The USDA announced today that the cotton transition assistance program (CTAP) enrollment will begin next week. The 2014 Farm Bill provided cotton growers with a new Stacked Income Protection Plan (STAX) beginning with the 2015 crop year. Since this program is not in place for the 2014 crop year, there will be a cotton transition payment for the 2014 crop year.
This payment amount has been calculated at 9 cents per pound and will be paid on 60% of the cotton base acres. If the STAX program is not in place for any county in 2015, the transition assistance payment will be available on 36.5% of the cotton base acres.
It appears that any applications approved before October 1, 2014 will be reduced by an automatic 7.2% and if approved after that date, the reduction will be 7.3%. These reductions relate to the passage of the Budget Control Act of 2011.
Based on the verbiage contained in the release from USDA, I would assume that USDA will also reduce any ARC/PLC payments by these same percentages. We will keep you posted on that as we get additional confirmation.