RICHTON, Miss.—Mississippi cotton farmers are losing money—and some are preparing to abandon the crop altogether due to falling prices, extreme weather events, rising input costs and trade tensions.
“Last year was rough. This year is bad. If next year’s the same, it doesn’t matter what the government payments are,” said Will Maples, an agricultural economist with the Mississippi State University Extension Service. “If there’s not some improvement (by) next year … it’s really going to get rough.”
For farmers like Jerid Hensarling, whose family has grown cotton in Perry County since the early 1990s, the warning hits close to home. Standing in rows of cotton plants that stretch for thousands of acres, Hensarling said the industry has become a financial gamble.
“It’s just a tough time in the cotton industry,” he said. “The future’s a little unstable.”
The federal government has stepped in with emergency assistance and enhanced safety net payments, but economists warn that may not be enough if the current landscape persists.
Price Pressures
Jerid Hensarling said cotton is bringing in about 60-70 cents per pound—the same price his family saw in the 1990s—while the costs of doing business have surged.
“Everything costs double or triple what it used to,” he said.
With global demand for U.S.-grown cotton dwindling, Will Maples said many farmers are losing money—more than $12 per acre in some cases.
“Cotton’s probably in the worst situation right now for cotton producers,” he said. “With cotton at 70 cents and these costs—you’re talking about a negative return.”
Just to cover equipment costs, Hensarling said he needs to grow 1,100-1,200 pounds of cotton per acre.
“That’s what we base (how much cotton we need) off of—just to pay the bills on cotton equipment,” he said. “As long as it covers that, we’re not really looking for a profit, to be honest.”
That aligns with state budget estimates. Maples said the breakeven price for 2025 ranges from 80-85 cents per pound, assuming a yield of 1,200 pounds per acre.
For farmers in south Mississippi, where land is typically non-irrigated and yields are lower, breakeven prices may dip slightly. But even then, prices in the 60-70 cent range fall well short of what’s needed to break even.
Despite the low returns, Hensarling said he continues to grow cotton because it works well in rotation with peanuts—the more profitable crop on his farm.
Weather Worsens Outlook
On top of economic pressures, a rainy spring caused delays and damage. Maples said planting across the state was heavily impacted.
“It’s rained so much it’s been hard to get the crops planted,” he said.
By June 2, only 54% of Mississippi’s cotton had been planted—compared to 89% at the same time last year, according to U.S. Department of Agriculture data. Although all fields were finally planted by July 6, the delays hurt crop development. Early cotton growth was down 15%, and late-stage development dropped 7% from 2024.
Mississippi growers had already planned to reduce cotton acreage from 540,000 to 360,000 due to low profit margins. Will Maples said that, with the added weather impact, final totals may fall below 300,000 acres—the lowest since 2008-09.
“Cotton doesn’t like wet feet,” Jerid Hensarling said. “It doesn’t like to sit in water.”
That strain is pushing some farmers into early retirement. Nearly 15,000 farms closed across the U.S. between 2023 and 2024, according to USDA data.
“It’s outstanding, the number of farms that shut down last year—just prices and being too old to fight it,” Hensarling said.
In response, Congress approved the Emergency Commodity Assistance Program, which provided supplemental payments to row crop producers. Mississippi received nearly $119 million through the program, with nearly $33 million going to cotton farmers.
More recently, Congress passed H.R. 1—known as the One Big Beautiful Bill Act—raising the minimum price of cotton by 5 cents per pound.
“(The bill) basically would double their safety net right now,” Maples said.
While that aid offers some additional relief, it may not be enough if trends continue.
The ripple effects could also extend beyond the farm. Continued declines in U.S. cotton production may eventually drive up prices on everyday goods like clothing, bedding and personal care products that rely on cotton.
As The Wall Street Journal notes, if tariffs and shrinking supplies take hold, clothing prices are expected to rise by 17%—and textile prices in general could rise by nearly 10%.
‘We’re Going to Start Talking Bankruptcies’
To address uncertainties, cotton farmers are changing how they operate. In south Mississippi, producers like Jerid Hensarling rotate between cotton for two years and peanuts for one year.
“Peanuts is the biggest moneymaker in that region,” Will Maples said. “Cotton is just very helpful as a good rotational crop.”
Hensarling said the economics play out exactly that way on his farm.
“If it weren’t for the peanuts, I don’t know if we’d be doing (cotton) right now,” he said. “We never base it off cotton to pay the bills.”
That shift is evident in planting data. The USDA reports that the 30% drop in cotton acres this season has been met with a 40% increase in corn planting—a sign that farmers are adjusting to market conditions.
“It’s crossed our mind in the last few years—with the price of cotton being where it’s at—(to) start looking a little bit to see what other opportunities or options there are,” Hensarling said.
Maples warns that time is running out.
“Producers (have) already used up most of their liquidity. It’s going to be hard to get production loans,” he said. “If next year’s bad, we’re going to start talking bankruptcies—which means time to pay off those loans to the bank … liquidating equipment, land and so forth.”
Next year could be a turning point for the future of Mississippi’s cotton industry.
“The whole ag economy—on the row crop side at least—is walking a very fine line right now,” Maples said.
For farmers like Hensarling, the question is no longer whether this is a temporary slump but whether the industry can survive long enough to see a rebound.