California Farm Service Agency Newsletter

August 2016

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CA Farm Service Agency Newsletter

California Farm Service Agency

430 G Street #4161
Davis, CA  95616

www.fsa.usda.gov/ca

State Committee: Ronald Kelley
Reis Soares
Michael Honig
Pete Navarro
Alegría De La Cruz

State Executive Director:
Oscar Gonzales

Farm Program Chief:
Navdeep Dhillon

Farm Loan Chief:
John Oosterman

Please contact your local FSA Office for questions specific to your operation or county.

 

Deadline to Enroll in Cotton Ginning Cost-Share Program is Aug. 5

One-time Payments Began in July to Assist with 2016 Ginning Season  

The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) will provide an estimated $300 million in cost-share assistance payments to cotton producers through the new Cotton Ginning Cost-Share program, in order to expand and maintain the domestic marketing of cotton. Sign-up for the program began June 20 and runs through Aug. 5, 2016 at the producer’s local FSA office.

The Cotton Ginning Cost Share program will offer meaningful, timely and targeted assistance to cotton growers to help with their anticipated ginning costs and to facilitate marketing. The program will provide, on average, approximately 60 percent more assistance per farm and per producer than the 2014 program that provided cotton transition assistance.”

Through the Cotton Ginning Cost-Share 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. With the pressing need to provide assistance ahead of the 2016 ginning season this fall, USDA will ensure the application process is straight-forward and efficient. The program estimates the costs based on planting of cotton in 2015, and therefore the local FSA offices already have this information for the vast majority of eligible producers and the applications will be pre-populated with existing data. Payments will be processed as applications are received. County Offices began issuing payments in July.

Since 2011, cotton fiber markets have experienced dramatic changes. As a result of low cotton prices and global oversupply, cotton producers are facing economic uncertainty that has led to many producers having lost equity and having been forced to liquidate equipment and land to satisfy loans. The ginning of cotton is necessary prior to marketing the lint for fiber, or the seed for oil or feed. While the Cotton Ginning Cost-Share program makes payments to cotton producers for cotton ginning costs, the benefits of the program 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 program has the same eligibility requirements as were used for the 2014 Cotton Transition Assistance 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.

To learn more about the Cotton Ginning Cost-Share program, visit www.fsa.usda.gov/cgcs or contact a local FSA county office. To find your local FSA county office, visit http://offices.usda.gov.