Losses felt throughout the cotton supply chain due to the COVID-19 pandemic must be addressed in the next federal funding relief legislation, said U.S. Sen. Thom Tillis (R-NC) and a bipartisan group of his colleagues.
“Given the severe pressures facing U.S. cotton and all of our agriculture industry, we believe Congress should pass the necessary legislation before the August recess,” wrote Sen. Tillis and his colleagues in a July 10 letter sent to U.S. Senate leadership. “We want to work closely with you and our other colleagues to ensure adequate relief for the U.S. cotton industry so that this critical industry receives the necessary assistance for all segments to survive and recover.”
Specifically, the next round of federal COVID-19 funding assistance should adequately address the magnitude of the losses being experienced by cotton farmers, textile mills and the cotton merchandising segment, according to their letter, which also was signed by U.S. Sens. Bill Cassidy (R-LA), Richard Burr (R-NC), Martha McSally (R-AZ), Jerry Moran (R-KS), Marsha Blackburn (R-TN), Roger Wicker (R-MS), and Mark Warner (D-VA).
“The COVID-19 pandemic is causing unprecedented demand destruction for cotton apparel and textiles,” Sen. Tillis and his colleagues wrote in their letter sent to U.S. Senate Majority Leader Mitch McConnell (R-KY) and Minority Leader Chuck Schumer (D-NY).
For example, the senators cited U.S. Census Bureau data showing that from March through May, U.S. clothing sales dropped by $44 billion, or 67 percent, relative to the same three-month period in 2019.
Likewise, U.S. textile mills reported a 90 percent drop in orders for yarn and are consuming cotton at a seasonally adjusted annual rate that has declined 90 percent from 2019 levels, the lawmakers wrote.
“Given the precipitous decline in retail demand, the loss of textile production and lower cotton prices that are expected to persist into 2021, the economic damage to the U.S. cotton industry is currently estimated to be at least $4 billion,” according to the lawmakers.