As the global economy recovers from COVID-19, supply chain challenges and heightened demand, causing a significant rise in cotton input costs compared to market prices. Since the enactment of the 2018 Farm Bill, cotton production expenses have surged by 27%, with interest costs increasing more than 200% while expenditures on labor, seed, and chemicals haverisen by approximately 50%. As cotton futures continue to trade well below production costs for a third consecutive crop year, growers throughout the Cotton Belt are confronted with a dire predicament. Yangxuan Liu, University of Georgia Extension Economist, projects that net returns for cotton, peanuts, corn, and soybeans will not cover total costs, with an anticipated average loss of $204 per acre. With 2.4 million acres of row crops expected to be harvested in Georgia in 2024, farmers in the state could incur a total loss nearing $498 million.
The National Cotton Council (NCC) has consistently advocated for a new Farm Bill that accurately reflects the heightened production costs. Additionally, with mounting economic losses, it became evident that many growers would struggle to secure financing for 2025 without some form of immediate financial support. Georgia’s cotton producer leadership communicatedthese concerns to both NCC staff and their Congressional representatives. The message conveyed was clear: “Without new assistance before the year’s end, some farmers will be unable to obtain operating credit for the 2025 crop.”
In September, the NCC coordinated a multi-commodity fly-in to Washington, DC, alongside other national commodity organizations, Farm Credit Council, and the American Banking Association, to engage with Congressional members nationwide and emphasize the urgent need for economic assistance before the year’s conclusion. While discussions surrounding the Farm Bill often reveal regional disparities in agricultural policy, the adverse effects on the farm economy united commodity organizations in a call for immediate action.
As Congress recessed before the November elections, various state and regional cotton organizations, including the Georgia Cotton Commission, organized meetings with Georgia’s Congressional delegation to educate them on the growing crisis in farm country and to allow producers to tell share their experiences and concerns. As a result of these efforts, and other similar endeavors, Congressman Trent Kelly (R-MS) introduced legislation aimed at providing per-acre assistance payments based on a commodity’s estimated market losses, paid based on a producer’s 2024 planted acreage.
Following the elections, Congress reconvened, and discussions shifted away from a new Farm Bill to the need for immediate economic assistance. Negotiations between leaders in the House and Senate resulted in a package authorizing $10 billion to compensate growers for economic losses incurred during the 2024 crop year. This economic aid was in addition to $21 billion designated for agricultural disaster assistance due to the severe impacts of extreme weather events such as Hurricane Helene. Both the economic and disaster assistance provisions were incorporated into the Continuing Resolution, which would sustain government operations until mid-March. On December 20, Congress achieved final approval with a vote of 366-34 in the House and 85-11 in the Senate, with 11 out of 14 members of Georgia’s House delegation, including both Senators, voting in favor.
Looking ahead to 2025, the focus shifts to finalizing a new Farm Bill that aims to strengthen the cotton safety net. Current crop budgets for the upcoming year indicate a deteriorating outlook for row crop growers, and without a new Farm Bill, producers may find themselves in an even more challenging financial position by this time next year.
While exact payment rates will be finalized based on USDA implementation, estimated per–acre economic assistance payments are outlined below:
Eligible CommodityEstimated Payment ($/Acre)
Corn 43.80
Soybeans 30.61
Wheat 31.80
Cotton 84.70
Sorghum 41.85
Peanuts* 76.30
Canola* 26.76
*Commodities estimated to receive minimum payment, either through formula with complete data or based on assumption due to lack of publicly available data, final payment rates may vary.
The payments will be based on acres planted to the eligible commodity in 2024 (for harvest, grazing, haying, silage, and other similar purposes) and 50% of the acres prevented from being planted in 2024 with skip-row acreage granted parity with solid plant acreage for this program. Payment limits are $125,000 for persons or entities that derive less than 75% of their gross income is derived from farming, and $250,000 for persons or entities that derive 75% or more of their gross income from farming.