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Time is Nearly Up for Cotton Ginning Cost-Share Applications

Brian German Field & Row Crops, Industry

The U.S. Department of Agriculture (USDA) reminds cotton producers that time is almost up to apply for the Cotton Ginning Cost-Share (CGCS) program.  The application window opened on March 17 and will officially close on Friday, May 11.Cotton Ginning Cost-Share

“The National Cotton Council urges all cotton producers to be sure and visit their local Farm Service Agency office before May 11, to sign up for the 2016 cotton crop,” said Vice President of Washington Operations for the National Cotton Council Reece Langley.  “This is the second Cotton Ginning Cost-Share program that has been administered by USDA, to help producers respond to the challenging economic conditions and low cotton prices of recent years.”

Under the program administered by the Farm Service Agency (FSA), a producer’s 2016 reported cotton acreage is multiplied by 20 percent of the average ginning cost established for the production region.  “The program is structured to provide payment for a portion of the grower’s ginning cost and the payment rates are based on the regional ginning costs,” said Langley.

The western region ginning cost has been averaged at $240.10 per acre.  California growers could receive a payment rate of $48.02 per acre.  Payments from the program are capped at $40,000 per producer.  There are certain requirements necessary for qualifying for the program and further information is available through the FSA website.

Secretary of Agriculture Sonny Perdue had initially announced the renewal of the CGCS program at a farm show in early March, encouraging producers to apply early and “hopefully get a little money in your pockets to buy those seeds and other inputs you need for the crop coming up.”