KNOXVILLE, Tenn. (WATE) — The University of Tennessee Institute of Agriculture reported that cotton producers in the state endured a second consecutive year of low profits in 2025, citing drought and market instability.
Severe rainfall in May 2024 disrupted crop planting and caused an almost one-third decline in Tennessee cotton areas. UTIA said 2025 brought little relief for cotton producers due to drought conditions and shifting business conditions spurred by international tariffs and greater competition.
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A UTIA release said that Tennessee grows two bales of cotton, approximately 1,000 pounds, per acre on average. The state average dropped to only 860 pounds per acre in 2025, a rate which UTIA said is at or even below the break-even margin for most growers.
“In a typical year, as much as 80% of cotton produced in the U.S. is exported, often arriving in China and other countries for textile production,” says Andrew Muhammad, professor in the Department of Agricultural and Resource Economics and Blasingame Chair of Excellence in Agricultural Policy. “However, Brazil recently surpassed the U.S. as the world’s top cotton exporter, threatening this industry that generated almost $1.1 billion in export revenue for Tennessee in 2022.”…