Feature Article | Policy & Trade | October 19, 2026
USDA’s October update advances the plan’s risk-protection and trade priorities with new crop-insurance flexibility and a planned cotton TRQ mechanism.
On October 16, the U.S. Department of Agriculture announced two actions under the Great American Cotton Plan: expanded crop-insurance flexibility for 2027 and a transfer of cotton tariff-rate quota administration to USDA’s Foreign Agricultural Service. The measures advance two of the plan’s four priorities—protecting growers from risk and improving cotton trade.
More flexibility in crop insurance
Beginning with the 2027 crop year, USDA’s Risk Management Agency plans to allow producers, including cotton growers, to purchase multiple endorsements on a single crop insurance policy. USDA says the change is intended to give eligible producers more options for managing adverse risks.
The practical details are still pending. RMA plans to provide final guidance to Approved Insurance Providers and crop insurance agents by November 30, 2026. Until that guidance is issued, growers should avoid assuming which endorsements may be combined or how the change will affect coverage and cost. Those details should be reviewed with an insurance agent.
A new role for USDA in cotton trade
USDA’s Foreign Agricultural Service (FAS) will assume responsibility for the cotton tariff-rate quota (TRQ) process. FAS is developing a mechanism intended to encourage purchases of U.S. cotton, with launch planned for 2027.
The process is expected to involve Bangladesh, Indonesia, Cambodia and Malaysia. FAS will help verify purchases of U.S. cotton by participating countries in connection with preferential tariff treatment for apparel produced using U.S. cotton and textile inputs. The program’s operating rules and potential effect on cotton demand have not yet been announced.
The plan’s four priorities
USDA launched the Great American Cotton Plan in May 2026 with four priorities: promoting domestic cotton consumption; increasing domestic demand and production; improving trade; and protecting growers from risk. The October announcements build on the last two. USDA also said it would continue working with Congress to support the bipartisan Buying American Cotton Act.
BACA remains a separate legislative effort
BACA fits within the plan’s domestic-demand discussion, but it is not one of the October agency actions. The proposed legislation would establish a domestic cotton consumption credit and document cotton processing through a traceable supply chain. The House bill, H.R. 7230, and Senate bill, S. 1919, remain separate legislative measures.
The National Cotton Council reported that BACA reached 100 House co-sponsors on September 24. The House bill was referred to Ways and Means, and the Senate bill was referred to Finance. Those referrals and co-sponsor totals show congressional activity; they do not mean the legislation has passed committee or become law.
What growers should watch
The next practical milestones are RMA’s final insurance guidance and additional details from FAS on the 2027 TRQ mechanism. For BACA, the key milestone remains congressional action. The efforts share an aim of strengthening U.S. cotton, but they use different tools and follow separate timelines.
Sources
USDA. Great American Cotton Plan actions, October 16, 2026.
USDA. Great American Cotton Plan launch, May 28, 2026.
U.S. Congress. H.R. 7230, Buying American Cotton Act of 2026.
U.S. Congress. S. 1919, bill status and actions.
National Cotton Council. BACA reaches 100 House co-sponsors, September 24, 2026.
Journal edition: Pima Field & Market Journal — October 23, 2026.