American farmers will plant less cotton this year, partly due to drought in high-production areas like Texas - Entrepreneur Generations

U.S. Department of Agriculture map

Ten years ago, U.S. farmers opted to grow more cotton, but this year marks a change. "U.S. cotton growers will devote more of their land to corn, wheat, and soybeans — crops that promise higher revenue this year — while sharply reducing their cotton plantings, said a survey released on Sunday," reports Chuck Abbott of Successful Farming. "The National Cotton Council said its survey of growers indicated 11.4 million acres will be planted to cotton this spring, 17% less than last year."

Multiple factors have prompted the shift. The Cotton Council's economic summary cited "an environment characterized by increased production costs, slumping consumer demand, and supply chain disruptions. . . . Growers across the Cotton Belt said they would shift some of their land out of cotton. Corn, wheat, and soybeans were the most frequently mentioned alternatives. Futures prices for most alternative crops were strong for the past year but cotton futures have fallen more than 16% since last winter."

Jody Campiche, Cotton Council vice president for economics, told Abbott, “History has shown that U.S. farmers respond to relative prices when making planting decisions. Price ratios for cotton to corn or soybeans are at the lowest level since planting of the 2009 crop. In addition, production costs remain elevated.”

Abbott reports, "The Cotton Council survey of growers in 17 states is closely watched as an early indicator of farmers’ plans for the new year. In Texas, the No. 1 cotton-producing state, growers said they would plant 6.2 million acres of cotton, a 21% reduction from 2022. . . . Economic conditions should improve by the time this year’s crop is harvested, Campiche said. World demand for cotton is expected to rise 5%, and China’s removal of Covid-19 restrictions should provide a boost to cotton consumption. China is one of the world’s largest cotton importers."

from The Rural Blog https://ift.tt/kf0UJYC American farmers will plant less cotton this year, partly due to drought in high-production areas like Texas - Entrepreneur Generations

Posted by Entrepreneur Generations

Tweet