million in assistance payments to eligible producers. After listening to the growing concerns of
producers, and understanding the urgent need for a short-term viable solution, the USDA has
implemented a more streamlined and straightforward application process.
Understanding the Basics
Once you meet the eligibility requirements, this one-time payment will be calculated by multiplying the 2015 cotton acres you reported to the FSA by 40% of your specific region's average ginning cost. Regional payment rates per acre are:
Southwest - $36.97
West - $97.41
Eligibility requirements for this assistance program are the same as those used in the 2014 Cotton Transition Assistance Program (CTAP), and include:
$40,000 limit of payment per producer
Actively engaged in farming
Meet conservation compliance
- $900,000 limit on adjusted gross income
The application process will begin on June 20th and applications will continue to be taken until August 5th at your local FSA office. Applications will include pre-populated information, existing information from 2015, and your payment will be processed when your application is received, which are expected to begin in July. Producers in Texas can anticipate a payment of $36.97 per acre to assist with costs.
Currently, producers are struggling to compete with low prices, weak demand, high input costs, as well as, increasing competition from heavily subsidized foreign producers. This program was ultimately designed to help with cotton ginning costs as producers, and the communities in the rural areas that depend on them, as well as, others associated with the cotton and cottonseed including:
West Texas cotton producers will produce around 3.7 million cotton bales this year, supplying up to 5% of the world's cotton and cottonseed needs, including everything from T-shirts and bath towels to diapers and U.S. currency.
With the CGCS program assistance, you will have the assistance you need to cover necessary ginning costs you incur for the 2016 season. In most cases, this assistance will range from $4,200 to $8,100 or more for producers in the West Texas region. This is a significant increase compared to the 2014 CTAP program which provided an estimated $2,600 per farm and $5,200 per producer.