USA launches a cost share payment program for cotton farmers to boost the national market
US cotton producers face high costs of inputs and infrastructure that slow their growth capacity.
The Secretary of Agriculture of EE. UU., Sonny Perdue, announced last Saturday at the 66th Annual Mid-South Farm and Gin Show that the US Department of Agriculture. UU (USDA) is taking steps to help cotton producers through a Cotton Ginning Cost Share (CGCS) program to expand and maintain national cotton marketing.
"Cotton producers in the United States have now faced four years of financial stress, just like the rest of our main commodities, but with a weaker safety net," said Perdue. "In particular, cotton producers face high costs of inputs and infrastructure, which leaves them with more financial leverage than most of their colleagues.This economic burden has been felt throughout the cotton market, including gins, cooperatives, marketers, cotton seed breakers and rural communities that depend on their success. "
The registration period for the CGCS program runs from March 12, 2018 to May 11, 2018.
Under the program, administered by the Farm Service Agency (FSA), cotton producers can receive a cost-sharing payment, which is based on 2016 cotton acres from the producer reported to FSA multiplied by 20% of the average ginning cost for each production region.
Perdue added: "I hope this is a necessary help as the rural cotton growing communities that stretch from the southeastern United States to the San Joaquin Valley of California prepare to plant." This infusion gives them one last opportunity for assistance until their agricultural account security network becomes effective. "
CGCS payments are capped at $ 40,000 per producer. To qualify for the program, cotton producers must comply with conservation compliance provisions, actively participate in agriculture, and have adjusted gross income not exceeding $ 900,000. FSA will send letters to all eligible cotton producers.
The program was established under the legal authority of the Law on the constitution of the Commodity Credit Corporation.
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