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USDA Expands Cotton Insurance and Trade Opportunities

USDA Expands Cotton Insurance and Trade Opportunities
Oct 19, 2026
By Farms.com

The Great American Cotton Plan is designed to protect cotton farmers from risk while supporting stronger exports and long-term industry growth.

U.S. Secretary of Agriculture Brooke L. Rollins announced two new initiatives under the Great American Cotton Plan during a visit to Giesenschlag Farms in Caldwell, Texas.

The measures aim to strengthen crop insurance options for cotton growers and expand international trade opportunities for American cotton.

“Our cotton growers have been squeezed by foreign competitors for too long, which is why we launched the Great American Cotton Plan in May,” said Secretary Rollins.

“Today we are advancing that plan to give our producers more protection to manage their risks and improve opportunities for trade. We are not going to stop until we restore America’s cotton industry,” Rollins added.

Launched in May 2026, the Great American Cotton Plan focuses on four priorities:

  1. promoting domestic cotton consumption,
  2. increasing domestic demand and production to provide affordable cotton,
  3. improving cotton trade, and
  4. protecting growers against agricultural risks.

Expanded Crop Insurance Options

The U.S. Department of Agriculture’s Risk Management Agency (RMA) will allow producers, including cotton growers, to purchase multiple endorsements under a single crop insurance policy for the 2027 crop year. The change is intended to provide greater flexibility and strengthen protection against potential crop losses.

The Working Families Tax Cuts Act, signed into law by the administration on July 4, 2025, expanded several crop insurance products and improved their affordability by removing certain restrictions. According to USDA, these changes give producers more options to manage agricultural risks.

RMA plans to provide final guidance to Approved Insurance Providers and crop insurance agents by November 30, 2026.

New Approach to Cotton Trade

USDA’s Foreign Agricultural Service (FAS) is developing a mechanism scheduled to launch in 2027 to encourage purchases of U.S. cotton and create additional export opportunities.

Under the initiative, FAS will verify U.S. cotton purchases by selected countries, including Bangladesh, Indonesia, Cambodia, and Malaysia. In return, those countries may receive preferential tariff treatment on imports of apparel manufactured using U.S. cotton and textile inputs.

Tariff-rate quotas determine the quantities of imported goods eligible for specific tariff rates. Transferring responsibility for the cotton quota process to FAS aligns the function with USDA’s broader agricultural trade responsibilities.

The department said the two measures advance the Great American Cotton Plan’s objectives by expanding risk-management flexibility and supporting international demand for American cotton.

Photo Credit: pexels-nc-farm-bureau-mark


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