WASHINGTON, June 5, 2003 - Agriculture Secretary Ann M. Veneman today
announced that $50 million in payments for the 2002-crop cottonseed
payment program will be made starting June 5, 2003. Cottonseed Program
payments are authorized under the Agricultural Assistance Act of 2003.
"These payments, which
are being made under the Agricultural Assistance
Act of 2003, will directly benefit cotton producers," Veneman said.
"USDA is committed to providing these disaster program benefits
to
producers as quickly as possible."
USDA's average payment rate
is $7.75639 per ton of cottonseed on
6,439,849 tons or approximately $2.99 per average weight bale. The
payment rate was based on the quantity of cottonseed that USDA estimates
to have been produced from the bales and lint weight certified on the
applications received from ginners.
Applications were mailed
to 899 domestic cotton ginners. Payments are
being made to cotton ginners because they usually retain proceeds from
the sale of the cottonseed. Similar to prior programs, ginners agreed
to share payments with the cotton producers to the extent that the low
cottonseed prices were borne by the producers rather than the ginner.
The Act, signed into law
on Feb. 20, 2003 authorizes total disaster aid
for producers suffering from natural disaster and related conditions.
Key provisions reimburse producers for crop losses in either 2001 or
2002. USDA has designated $250 million for the Livestock Assistance
Program (LCP); $60 million for sugarcane producers; $60 million for
sugar beet producers; an estimated $53 million for tobacco producers;
and $50 million for the cottonseed industry.
LCP sign-up began on April
1 and ends early June; LCP payments began May
5. The Tobacco Payment Program sign-up ended May 16 and payments began
May 13, one week ahead of schedule.
USDA's Farm Service Agency
(FSA) has developed a Web site that provides
producers with one convenient location for details on new and existing
FSA disaster assistance. The Web site can be accessed at
http://www.usda.gov/
or at http://disaster.fsa.usda.gov/.
For more information on the cottonseed program, contact Gene Rosera
(202) 720-8481 or by e-mail gene_rosera@wdc.usda.gov.
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