Agriculture Secretary Tom Vilsack announced that the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) will provide an estimated $300 million in cost-share assistance payments to cotton producers through the new Cotton Ginning Cost-Share program, in order to expand and maintain the domestic marketing of cotton.
“Today’s announcement shows USDA continues to stand with America’s cotton producers and our rural communities,” Vilsack said. “The Cotton Ginning Cost-Share program will offer meaningful, timely and targeted assistance to cotton growers to help with their anticipated ginning costs and to facilitate marketing. The program will provide, on average, approximately 60 percent more assistance per farm and per producer than the 2014 program that provided cotton transition assistance.”
Through the program, eligible producers may receive a one-time cost share payment, which is based on a producer’s 2015 cotton acres reported to FSA, multiplied by 40 percent of the average ginning cost for each production region.
“I know producers have been waiting for this announcement on ginning cost-share assistance from USDA, and I am pleased to see the department put some assistance in place,” said U.S. Rep. Randy Neugebauer, R-Texas. “This is not producers’ first choice for how USDA could have addressed the downturn in cotton, and I agree that more could have been done by designating cottonseed as an eligible oilseed. The economic challenges facing cotton producers in our area are significant, and when farmers are in trouble, the whole community is affected.
“I appreciate that sign-up for this assistance will begin later this month and am hopeful that use of existing acreage and cost information will help get assistance to producers in a timely manner,” Neugebauer said. “As this assistance is implemented, I will continue to support the farm communities that keep this nation running as I work with House Agriculture Committee Chairman (Mike) Conaway to provide longer-term relief on this issue.”
With the need to provide assistance ahead of the 2016 ginning season this fall, the USDA will ensure the application process is straight-forward and efficient. The program estimates the costs based on planting of cotton in 2015 and the local FSA offices already have this information for the majority of eligible producers.
Registration will be held June 20 through Aug. 5 at the Snyder FSA office. Payments will be processed as applications are received, and are expected to begin in July.
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