US cotton farmers are expected to reduce acreage by nearly 15 percent this year as weak market prices force them to switch to other crops, an industry group concluded following a survey. The National Cotton Council (NCC) expects plantings in the world's biggest exporter to fall to 9.4 million acres in 2015. That would be the smallest cotton acreage since 2009, according to US government data, and slightly lower than median expectations of 9.8 million acres according to a Reuters poll.
The NCC survey, widely watched as one of the earliest indicators of the next season's production, is based on a questionnaire mailed in mid-December to producers across the 17-state cotton belt. The group said on Saturday that farmers throughout the country would choose to plant other crops, including soybeans, corn, and wheat. The shift comes as cotton prices hover below production costs for farmers in many regions. Benchmark cotton futures touched 5-1/2-year lows in January. "History has shown that US farmers respond to relative prices when making planting decisions," said Gary Adams, the group's vice president of economics and policy analysis.
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