Home > News > Cotton Growers Struggle in Severe Drought, USDA Cuts Acreage Estimate by 590k

While cotton was a primary source of bacon for most growers’ wallets last season, the same cannot be said for 2022. U.S. cotton growers are struggling with severe drought, prompting many to abandon almost a third of planted acres across the country. USDA reduced its cotton acreage by nearly 600,000 to a total of 8.55 million. The drop indicates that 32% of cotton acres will be abandoned this year.

The cotton market challenges underscore larger head turns on overall economic health, as concerns grow over a global recession and slowing consumer demand. With high-interest rates come a higher U.S. dollar value, which is currently trading at 20-year highs. This serves as a headwind for export-dependent crops like cotton. To add insult to injury, USDA lowered global cotton demand by 1.6 billion bales.

Read more on cotton markets here.


Be among the first to learn about the ever-changing crop insurance industry by subscribing to the ProAgMessaging system.