Georgia Cotton Farmers To Receive Federal Assistance Payments

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Georgia's cotton farmers could receive assistance payments from the USDA under their Cotton Ginning Cost Share program. / Wikimedia Commons

Georgia's cotton farmers could receive payments of up to $40,000 each to help cover production costs this ginning season.

That’s because of a $300 million U.S. Department of Agriculture program launched this week aimed at sustaining and expanding the U.S. cotton market.

Chris Chammoun, Director of Public Affairs with the Georgia Cotton Commission, said the payments are a good start towards assisting Georgia’s cotton farmers.

“We think it’s going to help our growers keep their head above water temporarily,” he said. “It's not going to fix all the problems in the market right now, but this is something good for our cotton farmers here in Georgia.”

In 2015, the state was the second largest cotton producer in the U.S. after Texas. According to the USDA, Georgia cotton farmers produced 2.3 million bales of cotton that year. Chammoun said cotton is a $2.5 billion industry in the state. 

Chammoun said the state's cotton farmers have taken a hit in recent years because oversupply on the global market has led to low prices. Still, he was hopeful Georgia’s industry would rebound--and maybe even expand--when the market stabilizes.

“We’ve had long history of cotton, and we look forward to continuing with that history and continuing to have cotton as an important part of the Georgia agriculture industry,” he said.

Payments will be based on how much cotton farmers planted in 2015. Farmers can apply for the assistance payments from June 20 until August 5 at their local farm service agency office. The USDA expects the payments to begin in July.