2018-05-16 / Farm & Ranch

Deadline nears for Cotton Ginning Cost Share program

by Justin Walker
Communications Specialist

The deadline to sign up for the Cotton Ginning Cost Share (CGCS) program is May 11, and eligible farmers are encouraged to enroll.

The CGCS program was recently renewed by the U.S. Department of Agriculture (USDA) as a means to help cotton farmers with sustained ginning costs.

The USDA’s Farm Service Agency (FSA) is administering the program, mailing out letters and pre-filled applications to qualified farmers. Cotton growers should have received the forms and are encouraged to submit them as soon as possible.

“Texas Farm Bureau members need to remember to go into their county FSA offices to sign up for the CGCS program in order to get the payment to help with their 2016 ginning costs,” Brant Wilbourn, Texas Farm Bureau associate director of Commodity and Regulatory Activities, said. “This program is intended to help farmers and the entire cotton market, including the gins, cooperatives, marketers, cottonseed crushers and the rural communities that depend upon their success.”

Cotton farmers will receive a cost share payment under the program, which is based on the farmer's 2016 cotton acreage multiplied by 20 percent of the average ginning cost for each production.

The cost of ginning per acre in the Southwest region is $ 98.26, meaning Texas farmers enrolled in the program will receive $19.65 per acre. CGCS payments are capped at $40,000 per farmer.

Only farmers who planted cotton in the 2016 crop year, including failed cotton acreage but not prevented planting, are eligible for the program.

Farmers must meet conservation compliance provisions, be actively engaged in farming and have adjusted gross income not exceeding $900,000 to qualify for the program.

Before signing the forms, farmers and ranchers should double check the number of acres listed on the form and ensure landlords have received the appropriate documentation.

Farmers can complete a landlord’s form on their behalf, as long as they have power of attorney.

CGCS payments will help the domestic cotton industry find new and improved ways to market cotton, according to USDA.

“ Cotton producers confront high input and infrastructure costs, which leaves them more financially leveraged than most of their colleagues,” U.S. Seeretary of Agriculture Sonny Perdue said.

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