Farm Progress
NCC to press for Buying American Cotton Act in 2026
New farm bill helps cotton farmers but won’t guarantee profitability.
By Forrest Laws
At a Glance
• U.S. cotton represents only 4 million of 20 million bales consumed domestically.
• Buying American Cotton Act offers tax credits for brands that sell U.S. cotton.
• Three years of prices below production costs have devastated producers.
The new farm bill, which the House Agriculture Committee has said it will mark up next week, should help U.S. cotton farmers who have struggled with three years of prices below production costs.
But the new legislation, along with other government measures, won’t be enough to restore the cotton industry to profitability, said Nathan Reed, new chairman of the National Cotton Council.
“While the increased safety net will provide a necessary foundation of support, the new provisions do not guarantee future industry growth,” Reed said while speaking to growers at the Midsouth Farm and Gin Show in Memphis, Tenn. “That growth depends on our ability to address several daunting challenges still in front of us.”
Reed, a cotton producer from Marianna, Ark., was elected chairman of the NCC at its annual meeting in San Antonio in early February. He said it’s easy to do the math on the U.S. cotton textile and apparel market.
“U.S. consumers represent a 20-million-bale retail market for cotton finished goods, yet we estimate that only 4 million bales of that are U.S. cotton,” Reed said.
Demand for growth
At its recent Outlook Conference, USDA estimated world cotton demand at 119 million bales in the current marketing year (August-July). “Unfortunately, we have seen no consistent demand growth for cotton products over the past 20 years,” Reed said.
“However, during that same period, manmade fiber consumption more than doubled, from the equivalent of 200 million bales of cotton to more than 400 million bales, with much of that being Chinese polyester currently priced at 42 cents per pound.”
Against this very competitive landscape, Reed said the council is working on two initiatives to build overall cotton demand and add value for U.S. cotton: the “Plant Not Plastic” campaign and the Buying American Cotton Act introduced by Sen. Cindy Hyde-Smith, R-Miss.
The “Plant Not Plastic” campaign is aimed at educating consumers about the microscopic particles that are being released by synthetic fibers during wash cycles and ordinary wear. Scientists estimate individuals could be breathing in between 74,000 and 120,000 microplastic particles per year.
Buy American
The Buying American Cotton Act will be the council’s top legislative priority in 2026, Reed said. “BACA leverages the largest retail market for cotton textiles and apparel products by incentivizing brands and retailers to request U.S. cotton in their supply chains.
“By documenting the use of U.S. cotton, brands and retailers will be eligible for tax credits based on the volume of U.S. cotton in the products sold in the U.S. market,” he noted.
The Senate bill has 11 cosponsors, while a companion bill in the House of Representatives has 43. Support for the bill includes members of Congress not only from the Cotton Belt but also from New York, New Jersey, Ohio and Maine.
“I encourage each of you to urge your senators and representative to co-sponsor the bill, and if they are already cosponsors, then ask them to get their colleagues to sign on,” he said.
Reed’s speech at the Gin Show, which is traditionally the first public appearance by the new council chairman, was shorter than most, perhaps owing to the dire economic straits the cotton industry finds itself in in 2026.
“We are all well aware of the economic challenges facing our industry,” he said. “For many producers, financial pressures have never been greater after three years with market prices below production costs. That is the message that we have taken to Washington, D.C., during hundreds of meetings on Capitol Hill, numerous political fundraisers and many sessions with the administration.”
Economic support
Those efforts have led to securing critical economic support, including:
• almost $1 billion in assistance for cotton producers through the Emergency Commodity Assistance Program
• over $1 billion expected for cotton in the Farmer Bridge Assistance program
• the single most significant increase in farm program support through the One Big Beautiful Bill Act passed last year
“Almost every industry priority was addressed in the new farm bill, and for that, I want to commend industry leadership and the industry organizations for their hard work in making the new farm bill a reality,” Reed said.
He said the council is also addressing its mill customers’ concerns regarding bale packaging materials, “including efforts to bring a new cost-competitive cotton bag to the marketplace.
“Coming out of NCC’s annual meeting, the Cotton Flow Committee will take a deeper dive into new data on warehouse performance, scheduling and shipping dates, and further evaluate workable options that will bring efficiencies and improvements in the movement of cotton,” Reed said.
He said maintaining access to critical products such as 2,4-D, dicamba and glyphosate remains a top NCC priority. “We cannot lose those tools and expect to compete with cotton producers in other countries.
Reed also expressed that the council remains engaged on trade issues and is working to expand international markets for U.S. cotton and cotton-manufactured products.