Home / Knowledge / News / Textiles / USDA announces cotton ginning cost-share programme
USDA announces cotton ginning cost-share programme
27
Jun '16
The US department of agriculture (USDA) has recently announced the Cotton Ginning Cost-Share (CGCS) programme, which will provide an estimated $300 million in cost-share assistance payments to cotton producers for their ginning costs based on their 2015 cotton plantings.

The CGCS programme has been established under the statutory authority of the Commodity Credit Corporation Charter Act and is under the administration of USDA's Farm Service Agency (FSA).

The CGCS programme only applies to producers who have reported 2015 cotton acres to USDA/FSA. In addition, producers must be actively engaged in farming and also comply with conservation compliance provisions. Further, a producer's 3-year average adjusted gross income may not exceed $900,000 to be eligible.

Under the programme, the cost-share payments are capped at $40,000 per individual or entity and do not count against 2014 Farm Act payment limitations. Through the programme, eligible producers can receive a one-time cost share payment, which is based on a producer's 2015 cotton acres reported to FSA multiplied by 40 percent of the average ginning cost for each production region.

The regional payment rates are $47.44 for the Southeast, $56.26 for the Mid-South, $36.97 for the Southwest and $97.41 for the West. The average assistance to cotton producers from the programme is estimated to be about $4,200 per farm or $8,100 per producer on average.

In recent years, cotton producers in the US are facing economic uncertainty due to poor US market conditions for cotton, and, in part, as a result of a large amount of excess stocks of cotton held in China. This has led many producers to having lost equity and have been forced to liquidate equipment and land to repay loans. The ginning of cotton is necessary prior to marketing the lint for fibre or the seed for oil or feed.

“While the CGCS programme makes payments to cotton producers for anticipated cotton ginning costs, the benefits of the programme will be felt by the broader marketing chain associated with cotton and cottonseed, including cotton gins, cooperatives, marketers and cottonseed crushers and the rural communities that depend on them,” the USDA said.

Signing up for the programme is ongoing and will run through August 5, 2016 at local FSA offices. Payments will be processed as applications are received and are expected to begin in July, USDA said. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 19th Sep 2017

Karl Mayer expands service operations in Asia

Karl Mayer, a world leader in the production of warp knitting and...

Textiles | On 19th Sep 2017

Welspun bags Made in Green label by Oeko-Tex

Welspun, a leading home textiles manufacturer, has been awarded Made...

Courtesy: SGS

Textiles | On 19th Sep 2017

SGS expands testing facilities in Naucalpan, Mexico

SGS has expanded testing facilities in Naucalpan, Mexico, creating a...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search