Judging from their website, Target has cowboy hats in various child and baby sizes.
Also, you may want to check Wal-Mart because I have seen toddler cowboy hats there. For a more expensive option, check out any custom hat stores.I am sure they can help you or make one to suit your needs. If all else fails, you could order one on eBay. I just checked, and they have lots of really cute ones for affordable prices.
My favorite is this one from Affordable Western Wear which is based in Texas. It is $11.99. http://cgi.ebay.com/INFANT-Canvas-Straw-COWBOY-COWGIRL-HAT-Natural-Western_W0QQitemZ140218869051QQcmdZViewItemQQptZLH_DefaultDomain_0?hash=item20a5b2253b&_trksid=p3286.m20.l1116.Shepler's has kids' hats. I don't know if they have a store near you, though. sheplers.com/kids/hats/ Here's a switchboard.Com directory of western-wear shops in Texas (you can narrow down the results if you want, though): tinyurl.com/cvn5pv That's if you want a "real" hat for the kiddo.
If you're just looking for a cheap one for, say, a photo op, you can check the toy department at Walmart. Here's an online source if you don't have any luck in brick-and-mortar stores: smallinthesaddle.com/hats.html.
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