The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) has extended the deadline to May 31 to sign up for the Cotton Ginning Cost Share program.
Through the program, cotton farmers may receive a cost share payment, which is based on a farmer’s 2016 cotton acres reported to FSA multiplied by 20 percent of the average ginning cost for each production region.
The cost of ginning per acre in the Southwest region is $98.26, meaning Texas farmers enrolled in the program will receive $19.65 per acre. Program payments are capped at $40,000 per farmer.
Only farmers who planted cotton in the 2016 crop year, including failed cotton acreage but not prevented planting, are eligible for the program.
Farmers must meet conservation compliance provisions, be actively engaged in farming and have adjusted gross income not exceeding $900,000 to qualify.
FSA is mailing a postcard to remind eligible cotton farmers of the May 31 deadline.
FSA mailed pre-filled applications to eligible cotton farmers in March when the original signup was announced.
The Cotton Ginning Cost Share program was renewed earlier this year by the USDA. The program will help cotton farmers offset ginning costs incurred, as well as expand and maintain the domestic marketing of cotton.
“America’s cotton producers have now faced four years of financial stress, just like the rest of our major commodities, but with a weaker safety net,” U.S. Secretary of Agriculture said in a statement when the program was first announced. “In particular, cotton producers confront high input and infrastructure costs, which leaves them more financially leveraged than most of their colleagues. That economic burden has been felt by the entire cotton market, including the gins, cooperatives, marketers, cottonseed crushers and the rural communities that depend upon their success.”
For more information on the program, cotton farmers should contact their local USDA service center.