Cotton Ginning Cost-Share (CGCS) Program Fact Sheet

FACT SHEET
Cotton Ginning Cost-Share (CGCS) Program

Overview

The Cotton Ginning Cost-Share (CGCS) program provides cost-share assistance payments to cotton producers with a share in the 2015 cotton crop. The CGCS program was established under the statutory authority of the Commodity Credit Corporation Charter Act and is under the administration of the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA).

The sign-up period for the CGCS program is June 20, 2016, through Aug. 5, 2016.

The CGCS program is a program that provides cotton producers with cost-share payments for their cotton ginning costs based on their share of 2015 cotton plantings.

Through the CGCS program, eligible producers can receive a one-time cost share payment, which is based on a producer’s share of 2015 cotton acres reported to FSA multiplied by a payment rate equal to 40 percent of the average ginning cost for each production region. The payment rates are as follows:

  • $47.44 for the Southeast (AL, FL, GA, NC, SC, VA);
  • $56.26 for the Mid-South (AR, IL, KY, LA, MS, MO, TN);
  • $36.97 for the Southwest (KS, OK, TX); and
  • $97.41 for the West (AZ, CA, NM).

For example, a Texas cotton producer who reported 100 acres planted to cotton and has a 100 percent stake in the production, would receive a CGCS program payment of $3,697.

Calculation: CGCS Program Cost Share Payment   =   acres   x   share   x   cost share rate

                                                                  $3,697   =   100     x   100 % ­­ x   $36.97 (Southwest)

All CGCS program payments are based on the acreage reporting the cotton producer filed at their local FSA service center.


Limitations

The CGCS program only applies to cotton producers who have an interest/share in 2015 cotton acres as reported to FSA county offices on form FSA-578. Cost share payments are capped at $40,000 per individual or entity. CGCS program payments do not count against the 2014 Farm Bill payment limitations.


Eligibility

To be eligible for a CGCS program payment, each applicant is required to be a person or legal entity who was actively engaged in farming in 2015 and who complies with requirements including, but not limited to, those pertaining to highly erodible land conservation and wetland conservation provisions, commonly referred to as the conservation compliance provisions.

A producer’s 3-year average adjusted gross income may not exceed $900,000 in order to be eligible CGCS payments.


Where to File the Application

CGCS program applications can be submitted to FSA either in person, by FAX or by email.

For More Information

For more information about the CGCS program, visit www.fsa.usda.gov/cgcs or contact your local FSA office. To find your local FSA office, visit http://offices.usda.gov.

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In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. 

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. 

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:

  • mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410;
  • fax: (202) 690-7442; or

USDA is an equal opportunity provider, employer, and lender.

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