On June 6, U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) announced an estimated 300 million in cost-share assistance payments to cotton producers through the new Cotton Ginning Cost Share program (CGCS) program. Through the CGCS program, 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. CGCS program cost share payment calculation = # of acres x share x regional cost share rate. Example: 100 acres 100% share in Tennessee would have a CGCS payment = 100 acres x 100% X $56.26 = $5,626. Cost share rate is regional, so the rate of $56.26 applies only to the Mid-South region (TN, AR, IL, KY, LA, MS, Mo).
The CGCS program has the same eligibility requirements as were used for the 2014 Cotton Transition Assistance (CTAP) program, including a $40,000 per producer payment limit, requirement to be actively engaged in farming, meet conservation compliance, and a $900,000 adjusted gross income limit. Program sign-up is June 20, 2016-August 5, 2016 at your local FSA office. Payments will start in July 2016.
Additional details can be found at:
CGCS Program: http://www.fsa.usda.gov/programs-and-services/cgcs/index
USDA Press Release: http://www.fsa.usda.gov/news-room/news-releases/2016/nr_20160606_rel_0140
CGCS Program Fact Sheet: http://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2016/CGCS_Program_Fact_Sheet.pdf
