News

Cotton farmers face stress without market certainty

A farmer in northwest Mississippi says cotton growers are being pushed to the limit trying to survive another year in a tough ag economy.

“The stress levels are high.”

Patrick Johnson tells Brownfield more credit is being used to produce a crop that will be deeply in the red again.

“You have cotton futures in the mid-60s, and our production costs are more than 80 cents per pound for lint and that’s an insurmountable challenge.”

Cotton is a high input crop, with fertilizer, seed and equipment costs increasing with inflation. Johnson says it’s also difficult to run a business without market certainty.

He says building demand for cotton provides certainty, whether it’s becoming a stronger competitor to polyester, or growing new and existing ag export business.

“Bangledash, India, Pakistan and Turkey are all potential markets for U.S. cotton.”

He says ad-hoc assistance is a quick solution to the problem.

“The most critical thing probably is to note with certainty what’s coming. That’s a big step. If bankers can rely on solid information they know what farmers can recieve, that’s a good first step, and delivery of the funds are equally as important.”

Until those details are finalized, Johnson says the stress will stick around as farmers monitor the markets for the right time to sell their crops.

Johnson is the chairman of the National Cotton Council. Hear the interview with Brownfield.