Ag Minute: Southern Agriculture - The Concerning Tale of Cotton and Rice
- Mar 5
- 4 min read
When most people think of American agriculture, corn and soybeans are usually the first crops that come to mind. Those two crops dominate the Midwest landscape and account for tens of millions of acres across states like Illinois and Iowa. But travel south into the Mississippi Delta or along the Gulf Coast and the fields begin to look very different. Instead of corn or soybeans, producers in those regions are often growing cotton and rice, two crops that are foundational to the agricultural economies of the Southern United States.
Rice production in the United States is surprisingly concentrated in a few regions with specific soil types and infrastructure to allow for flooding. American farmers produce roughly 20 billion pounds of rice annually, grown primarily across six states: Arkansas, California, Louisiana, Mississippi, Missouri, and Texas. Arkansas alone accounts for nearly half of the nation’s rice production, making the Mississippi Delta one of the most important rice growing regions in the world. Much of the crop is consumed domestically, but a large portion is exported to global markets, making rice an important contributor to U.S. agricultural trade.
Cotton, meanwhile, has long been one of the defining crops of Southern agriculture. Grown across states such as Texas, Georgia, Mississippi, Arkansas, and the Carolinas, cotton remains a key fiber crop used in clothing, textiles, and countless everyday products. Recently, cotton has been under significant pressure from petroleum based clothing products that many people wear today which are sweat resistant, comfortable, and oftentimes cheaper. Today’s cotton industry is highly mechanized and globally connected, with U.S. production closely tied to international demand for textiles. One of the disadvantages for cotton producers is the specific requirements of expensive mechanical harvesters and supporting implements. Single cotton harvesters can sell for close to a million dollars, and differ substantially from similarly priced combines in the sense that they can only harvest one crop.
Both cotton and rice are entering what many economists believe could be one of the most difficult financial environments producers have faced in decades. Cotton producers in particular are dealing with a combination of weak global demand, high input costs, and global competitors, like Brazil, producing at lower costs. Prices for cotton have struggled to rise above the cost of production in many regions, forcing farmers to reconsider how many acres they plant in 2026. Industry analysts note that global cotton stocks remain high while textile demand has been slower to recover in the wake of economic uncertainty. Increased global production in countries like Brazil has intensified competition in export markets, putting additional downward pressure on U.S. prices in a similar fashion to what has happened to the soybean market.
Rice producers are facing a similar squeeze. While demand for rice remains relatively stable worldwide, margins for U.S. farmers have narrowed as production costs rise and international competition grows stronger. Countries such as India, Thailand, and Vietnam continue to dominate global rice exports, often producing rice at lower costs due to cheaper labor and different regulatory environments. A strong U.S. dollar has also made American rice more expensive on the global market, further complicating export opportunities. The difficult economics facing both key crops have forced many Southern farmers to make difficult decisions ahead of the upcoming planting season. Some producers are openly questioning whether it makes financial sense to continue planting cotton or rice at all, particularly when alternative crops may offer more stable returns.
That’s where the Midwest begins to enter the conversation. With commodity markets shifting and planting decisions being made across the country, economists expect some acreage traditionally planted to cotton or rice to shift toward corn and soybeans in 2026. Corn and soybean production systems are already well established across much of the Mississippi Delta and surrounding regions, and in years where cotton or rice prices fall, those crops often become the logical alternative. While Illinois farmers are unlikely to start growing cotton or rice anytime soon, these acreage shifts still matter to producers here. If more acres across the South transition into corn and soybeans, it increases overall supply of those crops nationwide. Increased supply can place downward pressure on prices, similarly impacting farm profitability across the Midwest.
Agriculture has always been interconnected, and the challenges facing cotton and rice producers highlight just how closely tied different regions of the country are. Decisions made in the Mississippi Delta can ripple through commodity markets all the way to the Corn Belt. For Southern producers, the 2026 season may ultimately come down to a difficult choice: hang on and hope markets improve, or shift acres into crops that offer a better chance of turning a profit. Either way, those decisions will shape not only Southern agriculture, but the broader landscape of American crop production in the years ahead.
For the article providing context on the worsening condition for cotton and rice farmers in the Delta, follow the link below;
For a USDA NASS publication on crop acres, stocks, and past estimates for cotton, rice and more crops follow the link below;
