USDA helps cotton producers maintain, expand domestic market
March 6, 2018
The U.S. Department of Agriculture is taking action to assist cotton producers through a Cotton Ginning Cost Share program in order to expand and maintain the domestic marketing of cotton.
The sign-up period for the CGCS program runs from March 12, 2018, to May 11, 2018.
Under the program, which is administered by the Farm Service Agency, cotton producers may receive a cost share payment, which is based on a producer's 2016 cotton acres reported to FSA multiplied by 20 percent of the average ginning cost for each production region.
The CGCS payment rates for each region of the country are:
Region States Cost of Ginning CGCS Payment Rate Per Acre
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Alabama $116.05 $23.21
Arkansas $151.97 $30.39
Kansas $98.26 $19.65
New Mexico $240.10 $48.02
CGCS payments are capped at $40,000 per producer. To qualify for the program, cotton producers must meet conservation compliance provisions, be actively engaged in farming and have adjusted gross incomes not exceeding $900,000. FSA will mail letters and pre-filled applications to all eligible cotton producers.
The program was established under the statutory authority of the Commodity Credit Corporation Charter Act.
To learn more about the CGCS program, visit http://www.fsa.usda.gov/cgcs or contact a local FSA county office. To find your local FSA county office, visit the USDA's new website: https://www.farmers.gov/.