Enrollment in a new cotton subsidy program, created by Congress early this year, will run until Dec. 7, said the USDA. The new program, offered for so-called seed cotton, allows growers to participate in either the insurance-like Agriculture Risk Coverage subsidy or the traditionally styled Price Loss Coverage subsidy that have been available to grain and soybean growers since 2014.
Seed cotton is cotton fiber that is still attached to the seed before ginning. The cotton industry proposed seed cotton as the basis for federal supports after the STAX program that was part of the 2014 farm bill proved to be a failure. STAX attracted low participation and provided little coverage against low prices.
As part of enrolling in the seed cotton program, growers must convert generic base acres — land eligible for supports — to seed cotton base acres. A portion of the new base acres will not be eligible for payments. Growers also can update the average yield on their farm, used by the USDA in calculating payments.