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

China keen to invest in Bangla apparel, leather sectors

Apparel/Garments | On 21st Nov 2018

China keen to invest in Bangla apparel, leather sectors

Chinese investors expressed keen interest to invest in apparel,...

Armenia to resume cotton production

Textiles | On 21st Nov 2018

Armenia to resume cotton production

Armenia will soon resume cotton production with the establishment of...

Indian textile industry showing signs of recovery: CITI

Textiles | On 21st Nov 2018

Indian textile industry showing signs of recovery: CITI

The Indian textiles and apparel industry is showing signs of recovery ...

Interviews View All

Prabu Mohanram, Balavigna Weaving Mills Pvt Ltd

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Karan Toshniwal, Orange O Tec

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Italtex,

Italtex

Italtex is a leading studio publishing fabric trend-books since 1959....

Shivani Swamy,

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Marcel Alberts, Eurofibers

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

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

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

Leave your Comments


November 2018

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

news category


Related Categories:

Advanced Search