Production Holds Steady, but the Market Is Shifting
USDA Agricultural Marketing Service has released its 2026 Organic Cotton Market Summary for the 2025 marketing year, and this year’s report tells a somewhat different story than the one we saw a year ago.
Last year’s report showed a substantial rebound in U.S. organic cotton production, with the 2024 crop reaching 56,717 bales, an increase of more than 17,000 bales from 2023.
For 2025, production increased again—but only slightly.
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Organic Cotton Production
U.S. production of organic Upland and American Pima cotton totaled 57,802 bales in 2025, an increase of just 1,085 bales, or about 1.9%, from 2024.
An additional 1,015 bales of transitional cotton were reported, down from 1,201 bales the previous year.
Texas continues to lead the nation in organic cotton planting and production, with additional organic acreage in Arizona, California and New Mexico.
The production numbers are important because they suggest that the large rebound we saw in 2024 did not continue at the same pace. Organic cotton production essentially leveled off in 2025.
Organic Cottonseed Remains Valuable
Organic cottonseed continues to be an important part of the value of the crop.
USDA reported organic cottonseed prices ranging from $385 to $660 per ton, compared with only $215 to $350 per ton for conventional cottonseed. Cottonseed yields ranged from 500 to 897 pounds of seed per bale of lint.
Most organic cottonseed continues to move into the organic dairy industry, with smaller amounts retained for oil production and livestock feed.
That relationship between Texas organic cotton and organic dairy remains important. Cotton is not simply producing lint for the textile market; the seed is also supplying a valuable certified organic livestock feed ingredient.
The 2026 Crop May Be Telling Us More About the Market
For me, the most interesting part of this year’s report may actually be USDA’s comments about the 2026 crop outlook.
Timely August rainfall helped relieve heat stress, although some fields were lost to hail and excessive heat. USDA also reports that overall organic cotton acreage was lower, in part because of crop rotations.
But one sentence especially stands out:
“Organic Upland acreage declined as growers shifted toward stronger organic Pima contract opportunities.”
USDA also reports that organic cotton demand remains “light amid strong global competition.”
Those two statements probably tell us more about the current organic cotton market than the modest increase in 2025 production.
Growers respond to markets. If contracts and premiums are stronger for organic Pima cotton than for organic Upland cotton, acreage will naturally begin moving in that direction where production conditions allow it.
At the same time, continued global competition is putting pressure on the U.S. organic cotton market.
My Take
A year ago, the big story was the recovery in organic cotton production. This year, I think the story is stability combined with change underneath the numbers.
Production increased from 56,717 to 57,802 bales, but that is essentially a flat year compared with the dramatic increase we saw in 2024. Meanwhile, transitional production declined, organic Upland acreage is reportedly falling, growers are responding to better Pima opportunities, and USDA continues to describe demand as light.
For Texas organic cotton growers, that makes contracts and market signals increasingly important. Producing organic cotton is expensive, especially when we consider weed control, rotations, fertility, seed availability and the additional management required under organic production. Acreage is unlikely to expand simply because organic cotton can be grown. There has to be a market willing to pay for it.
Texas remains the center of U.S. organic cotton production, but where that production goes—Upland versus Pima and perhaps even cotton versus other rotational crops—will increasingly depend on those market opportunities.
More Information
USDA AMS – 2026 Organic Cotton Market Summary
View the August 2026 USDA Organic Cotton Market Summary
Last Year’s Texas A&M AgriLife Organic Summary
2025 Organic Cotton Market Summary
Discover more from Texas A&M AgriLife Organic
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