Cotton, as a strategic product in agriculture and industry, plays a vital role in the global and national economy, and is particularly important in poverty reduction and improving food access in rural areas. Optimal management of the cotton value chain, through increasing added value, contributes to improving rural livelihoods. Given the diverse applications of cotton and its role in creating sustainable employment and preventing migration, it is essential to investigate the extensional and economic factors affecting the development of its value chain. This study aimed to evaluate the impact of these factors on improving the cotton value chain in North Khorasan Province. The statistical population consisted of 3,017 rural cotton farmers in North Khorasan Province. Based on Cochran's formula, a sample size of 200 farmers was randomly selected using a multi-stage sampling method. Data were collected through a researcher-designed questionnaire after confirming its face and content validity by field experts. The results showed that extensional factors have a significant relationship with the method of buyer selection in the cotton value chain. The formation of local information groups and networks in villages and regions was identified as the most effective extensional factor (with a mean of 3.45 out of 5) in improving this chain. Furthermore, economic factors (with an overall mean of 4.11 out of 5) have a dominant influence on farmers' decisions regarding input purchases and cultivation methods, such that 70% of respondents rated their impact as high. Financial barriers, low selling prices relative to costs, and the lack of effective information networks are the main challenges to improving the cotton value chain.