Watkins conjectured that given an elliptic curve defined over Q, its Mordell-Weil rank is at most the 2-adic valuation of its modular degree. We consider the analogous problem over function fields of positive characteristic, and we prove it in several cases. More precisely, every modular semi-stable elliptic curve over Fq(T ) after extending constant scalars, and every quadratic twist of a modular elliptic curve over Fq(T ) by a polynomial with sufficiently many prime factors satisfy the analogue of Watkins' conjecture. Furthermore, for a well-known family of elliptic curves with unbounded rank due to Ulmer, we prove the analogue of Watkins' conjecture.