USDA Introduces Cotton Ginning Cost Share Program

The U.S. Department of Agriculture is taking steps to assist cotton producers through a Cotton Ginning Cost Share Program. The program is designed to maintain and expand the domestic marketing of cotton. Ag Secretary Sonny Perdue announced the program at the 66th annual Mid-South Farm and Gin Show. He says American producers have faced four years of intense financial stress, similar to other commodities, but with a weaker safety net. “In particular, cotton producers confront high input and infrastructure costs, which leaves them more leveraged than most of their colleagues,” Perdue says. “That economic burden has been felt by the entire cotton industry.” The sign-up period for the program runs from March 12 through May 11. The program will be administered by the Farm Service Agency. Cotton producers will receive a cost-share payment, which is based on a producer’s 2016 cotton acreage reported to the FSA and then multiplied by 20 percent of the average production cost in each production region. Payments will be capped at $40,000 a producer, who must meet conservation requirements, be actively engaged in farming, and be under adjusted gross income limits.