Home Markets How the drought cost the US cotton industry billions

How the drought cost the US cotton industry billions

by SuperiorInvest

Cotton farmers in Texas, where about 40% of an American crop is grownare dealing with a major drought that is costing the industry billions.

Lack of rain a extreme heat forcing growers in the state to abandon nearly 70% of the cotton acres they planted earlier this year, according to a forecast by the United States Department of Agriculture (USDA).

“It was one of the toughest growing years we’ve ever seen in history going back to the 1950s,” said Kody Bessent, CEO of Plains Cotton Growers, which represents farmers in 42 counties in the High Plains region of northern Texas. .

The US is the world’s largest exporter cotton, while sending the vast majority of the cotton it grows abroad. But this year, U.S. cotton production is expected to fall to about 14 million bales, down 21% from last year, the USDA says.

CNBC traveled to Texas, the nation’s largest cotton-producing state, to hear from farmers and others in the industry who are being hit hard.

Watch the video to learn more.

Source Link

Related Posts

%d bloggers like this: