WASHINGTON – U.S. Senators Johnny Isakson, R-Ga., and David Perdue, R-Ga., today applauded Monday’s announcement by the U.S. Department of Agriculture (USDA) that it will make a one-time payment to help cotton producers with the cost of cotton-ginning equipment and boost their chances of competing in global markets.

The USDA said it will provide an estimated $300 million to eligible cotton producers to help pay for equipment. The global cotton market demands the ginning of cotton before it can be marketed for fiber. By helping with ginning equipment costs, the USDA cotton-ginning cost share program will help Georgia cotton producers compete in the global market, which has been recently plagued by low cotton prices and oversupply.

“The USDA’s recently announced cotton-ginning cost share program will be a boon to Georgia cotton producers,” said Senator Isakson. “The uncertainty of the global cotton market has forced many cotton farmers in Georgia to sell off equipment and land to pay off loans. By helping out with production costs, this program will help put Georgia cotton producers back into the competitive global market.” 

“Our farmers are a key part of our country’s economy,” said Senator Perdue, a member of the Senate Agriculture Committee. “The cotton industry has been severely impacted by current economic conditions, and this step provides Georgia’s cotton producers with some stability so they can remain competitive.”

Under the new program, eligible Georgia cotton producers can receive a one-time cost sharing payment equal to a producer’s share of 2015 cotton acres multiplied by $47.44, or 40 percent of the average ginning cost for the region. For example, a Georgia cotton producer with 100 acres could receive a payment of $4,744. 

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