Comparing U.S. Cotton Marketing by Region

• Southwest (Texas/Oklahoma): Largest producer but facing reduced acreage and economic challenges. Farmers use precision tools and conservation tillage. Exports dominate the market.
• Delta (Arkansas/Mississippi): Fertile soils drive high yields. Focus on water conservation and regenerative practices. Organic cotton is growing, but global competition impacts prices.
• Southeast (Georgia/Alabama): Crop rotation and no-till farming are common. Strong infrastructure and third-party certifications boost marketability.
• West (California/Arizona): High-quality cotton with advanced irrigation. Smaller acreage but efficient production. Facing reductions due to water costs and market trends.

Key Takeaways:

• Sustainability is a major focus, with programs like the U.S. Cotton Trust Protocol driving adoption of eco-friendly practices.
• Economic pressures, such as falling prices and rising costs, are pushing farmers to adapt.
• Regional differences in soil, water, and climate shape farming practices and marketing strategies.

Quick Comparison:

Each region balances economic realities with sustainability efforts, shaping the future of U.S. cotton production.

Field to Market 2023 Collaboration of the Year: Collaborating for a Smarter Cotton Future

1. Southwest (Texas/Oklahoma)

The Southwest, led by Texas and Oklahoma, stands as the largest cotton-producing region in the U.S., but it’s bracing for a challenging 2025. Texas farmers are expected to plant 5 million acres of cotton this year, marking a sharp 15.8% drop from 2024’s 5.95 million acres. Oklahoma is also seeing a 5% decrease in planned cotton acreage.

Practices

Farmers in Texas and Oklahoma are turning to precision agriculture and regenerative methods to improve efficiency and manage costs. Over 91% of Trust Protocol growers in this region use advanced tools like GPS receivers, multi-spectral imaging, and ground-based sensors to fine-tune their crop management.

Abernathy Farms in Oklahoma, for example, uses no-till and minimum-till methods, paired with drip irrigation and variable rate fertilizers based on grid soil sampling and harvest maps.

Conservation tillage is becoming more common, with 56% of growers adopting this practice. By leaving over 30% of crop residue on their fields, they’ve managed to cut soil loss by 68%.

"As we talk about soil health and crop sustainability, reducing tillage operations is an important part of the equation", says Dr. Muthukumar "Muthu" Bagavathiannan, Billie Turner Professor of Agronomy at Texas A&M’s Department of Soil and Crop Sciences.

Programs like Cargill's regeneratively-sourced cotton initiative offer farmers in the Southwest access to premium markets. By incorporating practices like cover cropping and reduced tillage, growers can qualify for premium pricing. To participate, growers must sign up by December 1 and work with Cargill representatives to document their conservation efforts.

Marketing Methods

The Plains Cotton Cooperative Association (PCCA) revolutionized cotton marketing in the Southwest with its TELCOT electronic trading system, which once traded an impressive 385,599 bales in a single day back in 1989. Today, PCCA’s tech-driven marketing approach continues to streamline the process, handling around 475,000 bales annually. Of this, 85% to 90% is exported overseas for textile production.

The region also benefits from initiatives that emphasize transparency. For instance, the U.S. Cotton Trust Protocol, which represents 23% of the nation’s cotton-growing area, offers detailed verification and documentation that appeal to brands seeking sustainably grown cotton.

Economic Factors

Economic challenges are reshaping the Southwest’s cotton market. Cotton prices have dropped 28% since 2021, with a 22% decline occurring between 2022 and 2024. These price shifts, combined with high input costs, have made it tough for growers to maintain profitability.

"The current economic situation is challenging for U.S. cotton growers. For the third year in a row, farmers are facing a tough market with unfavorable returns and an inadequate safety net. These conditions are pushing some to reduce their cotton acreage in favor of other crops", explains Brant Wilbourn, Texas Farm Bureau associate director of Commodity and Regulatory Activities.

In response, farmers are shifting to alternative crops like sorghum, corn, wheat, and peanuts, leading to an overall 14.5% reduction in cotton acreage across the Southwest. Rising labor costs, including increases in the 2025 Adverse Effect Wage Rate (AEWR), add another layer of complexity.

"We do it because that's the only way that we can survive. To cut back on the number of times that we cross a field and the amount of chemicals we use, being sustainable in no-till practice for so long, we can now do a lot of those things", says Mark Nichols, Vice Chairman of the Oklahoma Cotton Council.

Infrastructure

The Southwest’s cotton marketing success hinges on a well-established transportation network and processing facilities. PCCA has invested heavily in rail infrastructure to move cotton efficiently to California ports, as the U.S. supplies about 35% of global cotton exports.

Facilities like OCCA in Altus and RPCC in Sweetwater compress cotton bales to meet buyer density standards, improving market access. The region’s integrated supply chain ensures smooth logistics, moving cotton from fields to warehouses and then via truck or train to ports for international shipping. This system helps growers stay competitive globally, even amid local production challenges.

"The one thing that we know is that we do have to have trade. Especially us in agriculture… We have to plan for the future, these won't be quick fixes", says Kevin Brinkley, President and CEO of the Plains Cotton Cooperative Association (PCCA).

These logistical strengths provide a solid foundation for comparing marketing strategies across other U.S. regions.

2. Delta (Arkansas/Mississippi)

The Delta region, spearheaded by Arkansas, the third-largest cotton producer in the U.S., presents a distinct approach to sustainable cotton marketing. Agriculture plays a vital role in Arkansas, supporting over 235,000 jobs. Here, the focus is on water conservation and regenerative farming practices, which aim to balance environmental stewardship with economic efficiency.

Practices

Farmers in Arkansas and Mississippi are leading efforts in regenerative agriculture by prioritizing soil health and water management. These strategies address critical challenges, including the alarming 70–90% depletion of the Mississippi River Alluvial Aquifer. Since 2019, The Nature Conservancy’s well timer program has made significant strides, installing over 600 timers across 60,000 acres. This initiative has saved 10 billion gallons of water annually, reducing water usage by 20%.

"Each timer can annually save up to 189,000 gallons of water per acre. This program is a crucial step toward more sustainable farming practices, especially in critical groundwater areas of the Delta region." – The Nature Conservancy

The U.S. Regenerative Cotton Fund is also making an impact in this region by promoting soil health management. Farmers have seen savings of $74.30 per acre and net income increases of $172.87 per acre through these initiatives. Key practices like cover cropping, reduced tillage, and efficient irrigation are at the heart of sustainable cotton farming here. Emerging programs are also rewarding farmers for their positive environmental contributions, reinforcing the importance of these methods.

Economic Factors

Economic realities heavily influence cotton marketing strategies in the Delta. In 2024, Arkansas harvested 640,000 acres of cotton - a 27% increase from the previous year - with record yields of 1,341 pounds per acre, producing 1.788 million bales. However, cotton prices dipped from 79 cents per pound in 2023 to 76 cents in 2024, squeezing profit margins.

"Production costs are high relative to soybeans. It's management intensive. The harvesting equipment is one-dimensional and takes a massive capital investment. On top of all that, for the U.S., cotton is an export-dependent crop, and world trade of cotton is becoming more competitive each year." – Scott Stiles, Extension Economics Program Associate, University of Arkansas System Division of Agriculture

This tough economic landscape has driven a shift toward organic and regenerative premiums. For example, Delta Organics Ag Properties DST acquired a 1,102-acre certified organic property in Chicot County, Arkansas, in 2019. The property’s long history of chemical-free farming allowed it to achieve certification without a transition period. Meanwhile, Mississippi adds to the region’s output with 1.2 million bales of cotton, further diversifying the Delta’s agricultural contributions.

Infrastructure

The Delta’s agricultural success is supported by a vast water management network that services over six million acres of row crops. This system includes drainage ditches and the 1,000-mile Cache River system. Two-stage ditch projects, featuring floodplain benches, help manage sediment, stabilize banks, and control nutrient runoff.

Cotton gins and warehouses are also vital components of the region’s infrastructure. Specialized financing options are available to maintain and expand these facilities, ensuring the Delta remains competitive in sustainable cotton production. This combination of advanced water systems and robust agricultural infrastructure strengthens the region's position in the industry.

3. Southeast (Georgia/Alabama)

Georgia and Alabama stand out in the Southeast by using technology-driven certification programs and a well-developed infrastructure to market their cotton. By focusing on third-party certifications and precision agriculture, this region has carved a niche for itself in the competitive global cotton market.

Practices

Cotton growers in Georgia and Alabama are making strides toward sustainability through initiatives like the U.S. Cotton Trust Protocol and Cargill RegenConnect. These programs demonstrate their commitment to environmental responsibility, addressing retailer expectations.

Participation in the U.S. Cotton Trust Protocol has grown significantly in the Southeast, with a 31% increase in enrollment, now covering 2.1 million acres. The region's growers are also adopting sustainable practices at impressive rates: 62% use cover crops, 56% practice no-till farming, 78% rotate crops, and 75% employ integrated pest management (IPM).

Precision agriculture is another cornerstone of the Southeast's approach. While growers here use many of the same advanced tools as other regions, they adapt them to meet the unique needs of their environment.

One standout example is Nick McMichen, an Alabama farmer who has maintained 100% no-till farming across 2,000 acres since 1998. His perspective highlights the pride and effort that go into sustainable cotton production:

"The U.S. Cotton Trust Protocol gives us the opportunity to verify and prove to everyone why we are. The standards U.S. cotton are grown by and the pride and care we put into it are second to none. Our protection of the soil and the environment are hallmarks of our continued dedication to keep raising the bar." – Nick McMichen, Alabama Cotton Grower

These sustainable practices have become essential for the region to remain competitive in an increasingly challenging economic landscape.

Economic Factors

Cotton producers in the Southeast face tough competition on the global stage. While U.S. cotton accounts for 35% of global exports, economic pressures are mounting. Brazil, for instance, sells cotton at prices 3–4 cents lower than U.S. producers, creating a significant pricing challenge. At the same time, the ongoing shift of textile manufacturing to lower-cost labor markets like Bangladesh and Vietnam is reshaping demand.

Beau Stephenson, President of the Texas Cotton Association, underscores this challenge:

"The United States' cotton industry is competing against countries like Brazil, which sells cotton at 3–4 cents less, and we have to be competitive."

Adding to the complexity, China's slowing economy has ripple effects on the global cotton market. As Daniel Lee from HMM American Shipping Agency explains:

"As China's economy suffers, it affects the regional economy as well."

These economic realities highlight the importance of efficiency and innovation for Southeast cotton producers.

Infrastructure

The Southeast owes much of its success in cotton marketing to its integrated infrastructure, which combines ginning, warehousing, and logistics. Cotton Partners, LLC in South Georgia is a prime example, offering services that streamline the entire cotton production process, from ginning to marketing and transportation.

"We are dedicated to helping cotton producers maximize their cotton experience... All you need is right here at your fingertips from your current loads and grades, news, weather, quotes, and other farming information." – Cotton Partners

Transportation also plays a critical role in the region's cotton industry. Georgia's waterways and historic rail networks, such as those that helped Atlanta become the "Gate City", provide vital market access.

The USDA's Cotton Ginning Cost Share (CGCS) program highlights the financial dynamics of the region's infrastructure. In 2018, the Southeast had ginning costs averaging $116.05 per acre, with a CGCS payment rate of $23.21. The Southeastern Cotton Ginners Association supports facilities across multiple states, addressing key issues like trucking and logistics.

However, infrastructure challenges remain. As Sonny Perdue, U.S. Secretary of Agriculture, noted:

"America's cotton producers have now faced four years of financial stress, just like the rest of our major commodities, but with a weaker safety net... In particular, cotton producers confront high input and infrastructure costs, which leaves them more financially leveraged than most of their colleagues."

Despite these challenges, the Southeast's infrastructure remains a critical asset, helping the region adapt to shifting market demands.

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4. West (California/Arizona)

California and Arizona are key players in the U.S. cotton industry, producing high-quality cotton despite accounting for a smaller share of the country’s total cotton acreage. These states have built a profitable niche by taking advantage of efficient irrigation methods and favorable growing conditions.

Practices

The western region’s success largely hinges on precision irrigation and careful climate management. In fact, cotton yields in Arizona and California are more than double the national average. This is thanks to frequent, targeted irrigation and Arizona’s climate, which experiences minimal disruptions from pests and diseases.

Arizona’s cotton farming is a standout example. Yields in the state consistently surpass the national average, reflecting the advanced techniques used by growers. Over the years, pesticide use has dramatically decreased - from eight applications per season in the 1970s to just 0.5 applications annually today.

In addition to refining farming techniques, the region is leading the way in developing cotton varieties that can withstand drought and high temperatures. Mike Olvey of American Pima Seed and O&A Enterprises highlights this progress:

"We're just going to come up with better varieties that are going to use that water more efficiently. We're going to get higher yields".

Although organic cotton currently makes up only 1% of Arizona’s production, there is a push to expand this niche market. Infrastructure improvements, particularly in areas like Yuma, are paving the way for growth in organic cotton.

These innovative practices have positioned the region to adapt to a market increasingly influenced by economic and environmental challenges.

Economic Factors

Economic conditions play a critical role in shaping cotton farming in the West. Water availability is a major factor, as growers must weigh water costs against potential returns.

Recent market trends have proven challenging. Upland cotton acreage is expected to drop by 12.3% overall, with Arizona seeing an 18.8% decline and California facing a 40.8% reduction. Additionally, California is planting 27.6% less Extra Long Staple (ELS) cotton. These shifts are driven by lower cotton prices, high production costs, and trade uncertainties. In response, many farmers are transitioning to alternative crops like corn and wheat, which offer better returns. Still, government support remains strong; for instance, Arizona provides significantly higher insurance subsidies for cotton compared to other crops.

Infrastructure

Despite economic hurdles, the West maintains its competitive edge through a focus on quality. Arizona’s cotton seed production benefits from the state’s stable weather, free from major disturbances like hurricanes or tornadoes, ensuring consistent seed quality. Additionally, advanced irrigation systems contribute directly to the region’s high-quality cotton yields.

Jadee Rohner, executive director of the Arizona Cotton Growers Association, underscores the region’s strength:

"While we're not necessarily big, we're still pretty mighty".

George Frisvold, an agriculture and resource economics expert at the University of Arizona, adds:

"Arizona cotton has found a niche".

Advantages and Disadvantages

U.S. cotton producers are bracing for tough times ahead, with projected 2025 prices hovering around 62¢ per pound. The challenges and opportunities vary depending on the region, creating a delicate balance between controlling costs and implementing sustainable farming practices. As Yangxuan Liu, Associate Professor of Agricultural & Applied Economics, puts it:

"2025 promises to be challenging. Interest rates are expected to remain high for an extended period. Consumer spending on discretionary items is anticipated to tighten because of slow economic growth. High input costs persist, and cotton prices are expected to stay low."

Cost Efficiency Challenges

Cost efficiency continues to be a major struggle for cotton producers across the U.S. In regions with large-scale operations, rising production costs are a serious concern. For example, with production costs averaging about $899.96 per acre, cotton prices would need to rise by 59% just to break even. This challenge is compounded by stiff competition from Brazilian cotton, which is produced at much lower costs.

Sustainability Incentives

Sustainability efforts are becoming increasingly important in the U.S. cotton industry. Programs like the U.S. Cotton Trust Protocol are encouraging growers to adopt climate-conscious practices by offering financial rewards. Through this voluntary program, producers can earn $5 per acre (up to 706 acres) and up to $45 in risk-sharing incentives for practices such as cover cropping or no-till farming. Gary Adams, President and CEO of the National Cotton Council of America, highlights the program's significance:

"The U.S. Cotton Trust Protocol is a voluntary sustainability program for U.S. cotton growers. It provides a traceability platform for all U.S. cotton, bringing quantifiable and verifiable goals to responsible cotton production."

Economic Realities

Another pressing issue is declining yield performance. The national average yield is forecasted at 782 pounds per acre, falling short of the five-year average of 863 pounds per acre. This puts additional pressure on producers to improve both efficiency and sustainability to remain competitive. These economic realities echo earlier regional insights, emphasizing the need for continuous adaptation and innovation.

Conclusion

Sustainability has become the common thread connecting diverse U.S. cotton markets. Whether it’s managing water scarcity in the Southwest or improving soil health in the Delta, every region faces the dual challenge of meeting economic pressures and evolving consumer expectations.

The U.S. Cotton Trust Protocol is at the forefront of this shift. With grower enrollment projected to jump from 6% to 50% by 2025, the program is proving that sustainability isn’t just good for the planet - it’s good for business. As Daren Abney, executive director of the Trust Protocol, puts it:

"We've seen grower membership increase each year since the programme's launch and are looking forward to welcoming growers and providing them with valuable resources in 2025. These programmes provide a clear pathway for growers to meet the increasing demand for sustainably produced cotton, enhancing profitability and strengthening growers' position in the global marketplace."

Consumer behavior is also reshaping the industry. A whopping 74% of buyers now consider environmental impact when making purchases, and 88% prioritize ethical sourcing. This shift has translated into a 28% premium for sustainable cotton, pushing producers to adapt quickly.

Programs like the Climate Smart Cotton Program are driving these changes with incentives designed to produce 4.2 million bales of cotton while cutting CO2 emissions by 1.14 million metric tons. Meanwhile, targeted policies are becoming increasingly urgent, as 40% of U.S. cotton-growing regions are expected to face shorter growing seasons by 2040.

Over the past four decades, U.S. cotton growers have made remarkable strides, reducing water usage by 79%, energy consumption by 54%, and greenhouse gas emissions by 40%. But to stay competitive, they must back sustainability claims with hard data. With 77% of consumers rejecting greenwashing, the Trust Protocol’s measurable metrics provide much-needed credibility.

In today’s cotton industry, success depends on balancing environmental stewardship with cost efficiency. While the challenges may vary by region, the path forward is clear: transparent, measurable efforts that align with the broader vision of sustainable U.S. cotton production. By embracing this approach, growers can meet the demands of both the market and the planet.

FAQs

How do U.S. regions differ in their sustainable cotton farming practices?

Sustainable cotton farming practices differ across the United States, shaped by varying climates, soil conditions, and resource availability. In the Southeast, farmers often prioritize soil health by adopting methods like reduced tillage and planting cover crops. These practices help preserve nutrients, boost soil carbon levels, and support long-term farm productivity while lowering environmental impact.

Meanwhile, in California, where drought conditions are a constant challenge, cotton farmers focus heavily on water conservation. Many rely on precision agriculture tools to carefully manage water use and reduce fertilizer waste, ensuring resources are used efficiently. Across the nation, the cotton industry is tailoring sustainable approaches to fit regional needs, tackling local environmental challenges and encouraging more responsible farming methods.

What economic challenges do U.S. cotton producers face, and how are they staying competitive globally?

U.S. cotton producers are facing a tough economic landscape. With cotton prices often dipping below the cost of production, rising input costs, and shrinking global demand, many growers are being forced to rethink their strategies. These challenges have already led to a noticeable reduction in cotton acreage, as farmers weigh their options in an unpredictable market.

To stay in the game, producers are turning their attention to boosting efficiency and adopting savvier marketing tactics. This involves setting clear financial goals that align with their production costs, keeping a close eye on market trends, and branching out into other crops to lessen their dependence on cotton. By taking these steps, U.S. cotton growers are working to navigate the uncertainties of the global market and secure a more stable future.

What role does the U.S. Cotton Trust Protocol play in promoting sustainable cotton farming, and how does it benefit growers?

U.S. Cotton Trust Protocol: Driving Sustainable Cotton Farming

The U.S. Cotton Trust Protocol offers a voluntary framework designed to support cotton growers in adopting environmentally conscious practices while tracking their progress toward sustainability. By aligning with this program, U.S. cotton gains an edge in the global market, appealing to brands and retailers that prioritize using sustainable materials.

Farmers participating in the program benefit from resources like the Climate Smart Cotton Program, which provides both technical guidance and financial support. This initiative helps growers reduce greenhouse gas emissions, cut input costs, and potentially increase yields. Beyond these immediate advantages, it also positions farmers to stay competitive in the marketplace while contributing to broader, long-term environmental goals.

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