One-Time USDA Ginning Cost Share Program Released

usda-green-logo77Yesterday, June 6, 2016, US Secretary of Agriculture Vilsack, fulfilled a commitment made earlier this year. In his announcement that he didn’t have the authority to add cotton seed as an ‘other oil seed’ Secretary Vilsack said he would be open to other types of assistance within his powers acknowledging that cotton had been hit with some unusually rough economic situations.

A one-time cotton ginning cost share program will be distributed to cotton farmers who planted cotton in 2015. According to the USDA’s announcement and Fact Sheet, farmers who planted cotton in 2015 will be eligible for a cost share payment to help offset the cost of ginning. The payment is regionally adjusted to reflect the differences in the cost of ginning. The payment for the Southeast is $47.44 per acre. This is based on USDA Economic Research Service estimate of the cost of ginning per acre (not per bale) X 40%.

Although this program does not count against payment limits on in other farm programs, it does have its own $40,000 per individual or entity. Producers must also come under the $900,000 agi test as well.

Producers can sign up for the program June 20, 2016 through August 5, 2016. Payments are expected to be made before harvest 2016.

Please follow the links above or or your local FSA office for more information.