USDA Economic Research Service Briefing Room
" "  
" "

 
Briefing Rooms

Print this page Print | E-mail this page E-mail | Bookmark & ShareBookmark/share | Translate Translate | Text only Text only | resize text smallresize text mediumresize text large

Cotton: Background

Contents
 

The U.S. cotton industry generates more than 400,000 jobs among the various sectors from farm to textile mill and accounts for more than $40 billion in products and services annually. Cotton is produced in 17 southern States from Virginia to California. Major concentrations include areas of:

  • the Texas High and Rolling Plains;
  • the Mississippi, Arkansas, and Louisiana Delta;
  • California's San Joaquin Valley;
  • Central Arizona; and
  • Southern Georgia.

U.S. cotton is grown as an annual from seed planted each year, although cotton can be grown as a perennial in tropical climates. Given the vast differences across the U.S. production area, the cotton growing season varies dramatically, as typical planting occurs between March and June and usual harvesting occurs between August and December.

The predominant type of cotton grown in the United States is American Upland (Gossypium hirsutum). The upland type, which usually has a staple length of 1 to 1 1/4 inches, accounts for about 97 percent of the annual U.S. cotton crop. Upland cotton is grown throughout the U.S. Cotton Belt as well as in most major cotton-producing countries. The balance of U.S.-grown cotton is American Pima or extra-long staple (ELS) (Gossypium barbadense). ELS cotton, which has a staple length of 1 1/2 inches or longer, is produced predominantly in California, Arizona, New Mexico, and southwest Texas, where it is particularly well adapted to the arid environmental conditions. The markets for ELS cotton are mainly high-value products such as sewing thread and expensive apparel.

Cotton acreage in the United States rose slightly during the 1990s from the previous two decades. In the 1970s and 1980s, area planted to cotton averaged about 12 million acres. Area rose to about 14 million acres in the 1990s, and has averaged slightly higher since then. Most the growth in area has been in the Southeast, in part reflecting the cost-reducing impact of boll-weevil eradication.

U.S. cotton acreage

According to the Census of Agriculture, U.S. cotton farms numbered 24,805 in 2002, down from 33,640 in 1997. While the number has fallen, cotton acreage per farm has risen. As a result, the number of large cotton farms (over 1,000 acres) has continued to increase while the number of small cotton farms (under 100 acres) declines.

Like area, cotton production in the United States during the 1990s rose above the previous two decades, paralleling advances in technology (seed varieties, fertilizers, pesticides, and machinery) and production practices (reduced tillage, irrigation, crop rotations, and pest management systems). In recent years, the impact of these changes has been particularly evident, with yields reaching new highs.

Consumption of cotton by U.S. textile mills also rose during the 1990s, but peaked in 1997. Since then, U.S. mill use of cotton has plummeted, dropping about 50 percent by 2005. While the end of the Multifibre Arrangement’s (MFA) quotas in 2005 was a factor in this decline, much of the decline in U.S. textile production occurred before then. U.S. consumer demand for cotton has continued to grow, but imported clothing now accounts for most purchases by U.S. consumers. (See U.S. Textile and Apparel Industries and Rural America for more information about the impact of changes in textile trade on the U.S. textile industry.)

The world's four largest cotton-producing countries are China, the United States, India, and Pakistan, which together account for nearly 70 percent of world production. Other major producers include Uzbekistan, Brazil, and Turkey. Turkey is the fourth largest consumer of cotton in the world behind China, India, and Pakistan (bumping the United States to fifth place among consuming nations). Like Turkey, Brazil is also a major cotton-consuming country, but is increasingly exporting cotton to the world market, while Turkey’s imports have grown. While cotton is generally a Northern Hemisphere crop, about 10 percent of the world's output comes from south of the equator (primarily Brazil and Australia) and is harvested during the Northern Hemisphere's spring.

World cotton production

World cotton consumption

Trade is particularly important for cotton. More than 30 percent of the world's consumption of cotton fiber crosses international borders before processing, a larger share than for wheat, corn, soybeans, or rice. Through trade in yarn, fabric, and clothing, much of the world's cotton again crosses international borders at least once more before reaching the final consumer.

The cotton industry continues to face many of the supply and demand concerns confronting other field crops. However, since cotton is used primarily in manufactured products, the industry faces additional challenges associated with the economic well-being of downstream manufacturing industries.

 

For more information, contact: Leslie Meyer or Stephen MacDonald

Web administration: webadmin@ers.usda.gov

Updated date: August 21, 2006