ANNOUNCEMENT 08 Jun 2016In June 2016, the government of the United States of America announced a change in production support.
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The Farm Service Agency (FSA) of the U.S. Department of Agriculture announced on June 8, 2016 that it will provide an estimated $300 million in cost-share assistance payments to cotton producers through the new Cotton Ginning Cost-Share program. This program, which aims to expand and maintain the domestic marketing of cotton, provides to eligible producers a one-time cost share payment. The size of the payment is based on a producer's 2015 cotton acres reported to FSA, multiplied by 40% of the average ginning cost for each production region.
Sign-up for the program began on June 20, 2016 and will run through August 5, 2016. Payments will be processed as applications are received, and are expected to begin in July.
The program has a $40,000 per producer payment limit, as well as a requirement that the recipient is actively engaged in farming, meets conservation compliance, and has an income no higher than $900,000.