Cotton may no longer be king, but Bill Walker, for one, is glad to see it recoup some status among Mid-South farmers.
Walker, who has farmed in Fayette County for 25 years, is among the local growers who have planted much more cotton this year in response to stronger prices. His cotton acreage is up almost sevenfold, replacing the grain crops that had dominated his fields.
Walker said the Memphis area should welcome the resurgence of the crop for which it has long been famed. "I think there's more of a turnover (of money) in the local economy with cotton," he said.
Across the nation, cotton acreage this year is up 21 percent to 12.23 million acres, compared to less than 10.1 million in 2016, according to initial estimates by the U.S. Department of Agriculture.
In Tennessee, Arkansas and Mississippi, total cotton planting increased to 1.35 million acres, 26 percent more than last year and nearly double the 685,000 acres recorded in the three states in 2015.
The main reason for the increase isn't hard to discern. Cotton prices have risen to about 75 cents per pound this year after hovering in the low 60s and high 50s in previous years.
At the same time, prices for competing crops, particularly corn, have fallen. Corn has dipped below $4 a bushel after recent years in which it topped $6.
Jon Devine, senior economist with Cotton Incorporated, which does research and promotion for the cotton industry, said the price surge resulted largely from healthy sales in overseas markets, the primary outlet for American raw fiber.
"U.S. export sales have been really, really strong," Devine said.
A monetary crisis in India, a major competitor, contributed to a decline its exports, he said. American cotton has filled some of that void, with exports increasing to most countries.
For the 12 months ending this July 31, U.S. exports should reach the second-highest for any crop year on record, Devine said. That's especially encouraging, given that China, traditionally a top customer of U.S. cotton, has been importing less in recent years because of the large reserve stocks it maintains.
"It's really good for us in picking up market share," Devine said.
The rise of cotton bodes well for ginners and companies that provide warehousing and other services the industry. At Longtown Supply Co., south of Mason, Tennessee, and about 25 miles northeast of Memphis, president Jim Wilder said the outlook is "much better" after recent bleak years. In fact, the firm is installing new equipment this year.
"Two years ago, we had a terrible year. Last year was much better — not great, but better," Wilder said.
Jeff Via, an extension agent with the University of Tennessee Extension Service, said farmers got the cotton planted in a timely fashion and recent rain has helped the crop.
"It really looks good," he said. "It seems like every day you go out there and it (the crop) jumps two or three inches."
