Many cotton growers are hoping an economic incentive put in place under the Obama administration will get new life in the Trump administration.
A group of 135 senators and representatives from both parties sent letters to President Trump urging the administration’s support for the Cotton Ginning Cost Share (CGCS) program in an ongoing basis.
The USDA program helps cotton growers with their anticipated costs to gin their cotton. Former Secretary of Agriculture Tom Vilsack initiated the program when cotton planted acres were at a 30-year low and prices were approaching 50 cents per pound.
The letter says the share program will help bridge the gap until a new farm bill is adopted by Congress.
“From 2014 until today, where the market returns plus any government payments, how they compare to total cost of production,” said Dr. Gary Adams, president and CEO of the national Cotton Council. “Unfortunately, that means growers have either had to reduce the equity, cut into their equity, or in many cases they’ve not been able to get the financing that they need to continue their crop.”
Cotton condition ratings across the country are at 60 percent good to excellent condition, down one point from the week prior. Texas growers are seeing a two-point drop with 49 percent of their crop in the good to excellent category.
However, several states including Louisiana, Mississippi, Oklahoma and Virginia enjoyed big improvements.