The U.S. cotton industry generates about 200,000 jobs among the various sectors from farm
to textile mill and accounts for more than $25 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;
- Southern Georgia; and
- California's San Joaquin Valley.
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 typical 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, where
it is particularly well adapted to environmental conditions.
ELS cotton is also grown in the arid regions of southwest
Texas, New Mexico, and Arizona. The markets for ELS cotton
are mainly high-value products, such as sewing thread
and expensive apparel, although it is also used in home
furnishings, like bath towels and rugs.
Cotton acreage in the United States rose slightly during
the first half of the 2000s, which continued a multi-decade
trend. 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 averaged over 14.5 million
acres during the first half of the 2000s. Since 2006,
however, U.S. cotton planted area has been considerably
lower as relative prices have favored the planting of
alternative crops, such as corn and soybeans. All regions
of the Cotton Belt have experienced significant declines
compared with the first half of the 2000s.
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According to the Census of Agriculture, U.S. cotton farms
numbered 18,605 in 2007, down from 24,805 in 2002. While
the number has fallen, cotton acreage per farm has risen,
averaging 564 acres per farm in 2007 compared with 502
acres in 2002. The percentage of large cotton farms (over
1,000 acres) has continued to increase while the share
of small cotton farms (under 100 acres) declines.
Similar to area, cotton production in the United States
during the first half of the 2000s continued a rising
trend, paralleling advances in technology (seed varieties,
fertilizers, pesticides, and machinery) and production
practices (reduced tillage, irrigation, crop rotations,
and pest management systems). The impact of these changes
has been particularly evident, with yields and production
reaching new highs. While U.S. cotton production decreased
considerably following the area reductions of the late
2000s, consistently higher yields helped limit the effect
of these acreage declines.
Consumption of cotton by U.S. textile mills peaked in
1997. Since then, U.S. mill use of cotton has plummeted,
dropping about 50 percent by 2005 and nearly 70 percent
by 2009. While the end of the Multifibre
Arrangement's (MFA) quotas in 2005 was a factor,
much of the decline in U.S. textile production occurred
before then. Capital investment by global textile suppliers
near the turn of the century provided increased concentration
and market share, accelerating a long-standing trend of
textile production moving to developing countries. Despite
this, U.S. consumer demand for cotton products remains
strong, 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 from the mid-1990s
to the mid-2000s.)
The world's four largest cotton-producing countries
are China, India, the United States, and Pakistan, which
together account for nearly 75 percent of world production.
Other major producers include Brazil, Uzbekistan, and
Turkey. While cotton is generally a Northern Hemisphere
crop, about 8 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.
Many of the leading cotton producers are also leading
mill users of raw cotton. The top three consumers are
China, India, and Pakistan, which together account for
two-thirds of world consumption. Turkey and Brazil are
the fourth and fifth largest mill users of cotton, bumping
the United States to sixth place among consuming nations.
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Trade is particularly important for cotton. About 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,
such as clothing and home furnishings, the industry faces
additional challenges associated with the economic well-being
of downstream manufacturing industries as well as the
economic well-being of the final consumer.
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