Bulk of Assistance Paid Out

August 31, 2001

USDA has sent to farmers more than 95% of the $4.6 billion in direct emergency payments authorized by the agricultural economic assistance package. The supplemental payments represent about 80% of the $5.5 billion in direct emergency payments to farmers authorized by the agricultural economic assistance package. Eligible farmers who have not yet received their payment should contact their local USDA Service Center or Farm Service Agency county office.

The department also announced that it began making $84.7 million in supplemental cottonseed payments Thursday to cotton ginners. These payments also were authorized in the assistance package. Payments are being made to cotton ginners based on their payment applications made earlier this year under the Agricultural Risk Protection Act of 2000.

Under those applications, 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. These supplemental payments are subject to the same terms and conditions of that prior application and persons who fail to handle the funds in that manner will be liable for a full refund of the funds as well as other sanctions as may apply.

FSA estimates that the average payment rate is $13.0058 per ton of cottonseed or approximately $5.0665 per average weight bale. The payment rate was based on the quantity of cottonseed that FSA estimates to have been produced from the bales and lint weight certified on the applications received from ginners.

For more information on the cottonseed program, contact Gene Rosera (202)720-8481 or by E-mail to gene_rosera@wdc.usda.gov.