Happy New Year everyone!
We are very blessed to be entering into a new year and, while I know some circumstances are different than others, we have much to be grateful for. It’s a new year with new beginnings, and I hope that everyone who reads this sees the good by the time I’m done.
While the cotton industry has certainly absorbed its challenges between demand and supply issues — coupled with market price, input cost and the ongoing battle of product consumption — we do have many programs, either enacted or in process, encouraging greater outcomes for all cotton industry segments.
Enacted (December 2024-December 2025)
Emergency Commodity Assistance Program
• First-of-its-kind economic assistance passed by Congress within the end-ofyear spending package in 2024.
• Texas cotton producers have received $487.36 million to date.
Supplemental Disaster Relief Program
• Included within the endof- year 2024 spending package for the 2023 and 2024 crop years.
• Texas producers have received $566.63 million to date.
House Bill 43
• During the Texas Legislature’s 89th session, House Bill 43 was passed, signifying the biggest investment in Texas agriculture in 60 years.
• The young farmer grant program, administered through the Texas Department of Agriculture, now removes age restrictions for producers. It also includes agricultural businesses for the first time ever as eligible applicants, namely infrastructure, and an increase in funding from $1 million every biennium to $100 million.
• Both producers and agricultural businesses will be able to apply for this grant program with a maximum grant amount per entity of $500,000 — previously $20,000.
• The young farmer interest rate reduction program also removed age restriction barriers and allows for a lowered interest rate of 1% to 2% — previously 4% — with a maximum loan amount of $1 million. It also includes agricultural businesses as an eligible applicant.
One Big Beautiful Bill Act
This legislation, signed into law by President Trump on July 4, 2025, made several enhancements to the expired 2018 Farm Bill, including the following:
• Reference prices were updated from 36.7 cents to 42 cents.
• Marketing assistance loan rate went from 52 cents to 55 cents.
·Funding was doubled in the Foreign Marketing Development and Market Access Programs.
Farmer Bridge Assistance Program
• To help producers bridge the gap while the Trump Administration brokers lucrative trade deals, the U.S. Department of Agriculture enacted the Farmer Bridge Assistance Program at the end of 2025.
• Payment rate for cotton has been set at $117.35 per acre.
• Producers can receive up to $155,000 per person or entity.
Current Advocacy: Harvest Cost Endorsement
• To help producers, and positively impact downstream infrastructure, Plains Cotton Growers has been working closely with the National Cotton Council, South Texas Cotton & Grain and USDA-RMA to develop a harvest cost endorsement.
• While this process is ongoing, we are very appreciative of USDA-RMA staff and their expedited work on this product idea, as well as Rep. Ronny Jackson (R-TX), and their partnership on this effort. We are also excited about the recent appointment of Dr. Justin Benavidez as USDA- RMA’s chief economist who will serve as Chairman of the Federal Crop Insurance Corporation Board of Directors.
• Time is always of the essence; however, we believe the cotton industry will soon pilot a risk mitigation tool that benefits our producers and complements infrastructure segments who depend on crop volume to remain in business.
Buying American Cotton Act
• To address the poor market conditions U.S. cotton has experienced, legislation was introduced by Sen. Cindy Smith-Hyde (RMS) and cosponsored by 11 members of the Senate — including Sen. John Cornyn (R-TX) and Sen. Roger Marshall (R-KS) of the Southwest cotton region.
• The legislation would provide a tax credit to the first U.S. entity who sells an eligible article in the U.S. in its final condition, meaning the product is now “ready for sale” at retail to the consumer.
• This incentive would provide U.S. cotton with a competitive edge against other countries like Brazil that also produce high volume, potentially increasing cotton apparel manufacturing and consumer purchases of U.S. cotton.
• Plains Cotton Growers is working with the American Cotton Shippers Association, the National Cotton Council and other industry advocates to fight for inclusion and passage of this bill as soon as possible.
Collectively, the U.S. cotton industry has worked together during 2024-2025 to secure billions of funds for our industry. At the same time, we are continuing to work hard to capture retailers, brands, world markets and enhance consumer awareness and cotton product purchases in a vastly competitive environment — AND we aren’t done yet.
While I understand the current status of the overall agriculture industry seems, feels and IS strained, I will attest that we will persevere. Better days are ahead and 2026 will be a monumental year.
On behalf of PCG, we appreciate and value our producers, infrastructure and associates who we proudly serve. Here’s to a prosperous 2026.