By Emmy Powell
Communications Specialist

Proposed federal legislation could strengthen demand for U.S.-grown cotton and support rural communities that rely on the crop.

The Buying American Cotton Act (BACA) introduced in the Senate by Sen. Cindy Hyde-Smith and recently reintroduced by U.S. Rep. Greg Murphy in the House of Representatives aims to encourage the use of cotton grown by U.S. farmers in products sold domestically.

The bill would provide a tax credit to the first U.S. entity that sells an eligible cotton product in its final form in the United States. Supporters say the incentive would encourage brands and retailers to use American-grown cotton in apparel, home textiles and other products.

Boosting demand is critical as cotton farmers face increasing global competition and changing market conditions.

The United States remains the world’s largest exporter of cotton, but other countries have significantly expanded production in recent years. Brazil has more than tripled its annual cotton output over the past decade.

At the same time, the U.S. consumer market for cotton products remains strong, but much of the cotton used in those goods comes from foreign sources.

Supporters, including the American Farm Bureau Federation (AFBF) and Texas Farm Bureau, say the Buying American Cotton Act would help shift some of that demand toward cotton grown in the United States.

During a recent U.S. Senate Agriculture Committee hearing, AFBF President Zippy Duvall emphasized the potential benefits the legislation could bring to farmers and rural communities.

“Your bill will incentivize companies to use American grown cotton, which is a good thing for our cotton farmers,” Duvall said.

He noted the decline of the domestic textile industry over the past several decades has significantly affected cotton-producing regions and highlighted the loss of cotton infrastructure across rural America.

“When NAFTA was passed and all our textile mills left and went overseas, that’s where our cotton had to go,” Duvall said. “We’ve lost 1,700 cotton gins since 1980. That infrastructure will never be replaced again.”

Duvall said strengthening demand for U.S. cotton could help stabilize the industry and bring economic benefits back to rural communities that depend on cotton production.

National Cotton Council (NCC) vice chairman, Nathan Reed also voiced support for the bill during the committee hearing.

Read the full bill text here.