2014 Farm Bill

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET July 2015

Cotton Transition Assistance Program (CTAP)

BACKGROUND

CTAP, created by the 2014 Farm Bill, provides 

interim payments to cotton producers during the 

2015 crop year in counties where the new Stacked 

Income Protection Plan (STAX), is not available. 

STAX is a new insurance product also created by 

the 2014 Farm Bill.

While CTAP is administered by U.S. Department 

of Agriculture’s (USDA’s) Farm Service Agency 

(FSA), STAX is administered by the USDA’s Risk 

Management Agency (RMA). Information on 

STAX can be found on the RMA website at 

www.rma.usda.gov.

For the 2015 crop year, CTAP is based on a farm’s 

2013 adjusted cotton base acres effective under the 

2008 Farm Bill.

CTAP payments will be made available to eligible 

2015 producers who apply and meet all 

eligibility requirements and whose farms are 

physically located in counties where STAX is not 

available.

Under CTAP, there is no requirement that 

producers plant cotton in order to be eligible for 

payment; however, eligible producers must have 

adequate share in enough cropland acres to cover 

their claimed interest in cotton base acres on the 

CTAP application (form CCC-957). 

ELIGIBILITY REQUIREMENTS

To be eligible for CTAP, owners, operators, 

landlords, tenants and sharecroppers must apply 

and designate their share by signing form 

CCC-957. A producer signing form CCC-957 

acknowledges and agrees to:

• Comply with highly erodible land conservation 

and wetland conservation requirements on all 

their land;

• Comply with average adjusted gross income 

limitation provisions;

• Be considered actively engaged in farming;

• Devote acreage equal to the cotton base 

acreage to an agricultural or conserving use;

• Effectively control noxious weeds on the farm 

according to sound agricultural practices;

• File an acreage report with respect to all crops 

and all cropland on the farm;

• Notify FSA when there is a transfer of or 

change of interest of a producer. 

CTAP APPLICATION PERIOD

The application period will begin July 6, 2015, and 

end Sept. 30, 2015.

MAXIMUM PAYMENT AMOUNTS

CTAP payments for the 2015 program year are 

limited to $40,000 per person or legal entity. 

The limitation is applied by attributing both the 

amounts received directly by entities and persons 

and indirect amounts received through entities. 

CTAP applications approved before Oct. 1 are 

subject to congressionally mandated automatic 

reductions of 7.3 percent for the 2015 crop year. 

The Budget Control Act of 2011 requires USDA to 

implement these reductions to program payments. 

ADJUSTED GROSS INCOME(AGI)

Persons or legal entities whose average adjusted 

gross income exceeds $900,000 are not eligible for 

CTAP payments. The years used to calculate AGI 

for 2015 CTAP are the 2011, 2012 and 2013 tax 

years.
FACT SHEET

CTAP July 2015

CTAP PAYMENTS

CTAP payments will be issued Oct. 2015.

For crop year 2015, in counties where STAX is 

not available, CTAP payments are calculated by 

multiplying: 

• 36.5 percent of the farm’s upland cotton base 

acres (generic base) times;

• The farm’s direct yield for upland cotton times;

• $0.09 times;

• The producer’s share on the approved 

application.

The following is an example for 2015 CTAP 

payment in a county for which STAX is not 

available:

100 upland cotton base acres x 36.5 percent = 

36.5 payment acres

36.5 payment acres x 750 lb. direct payment 

yield x .09 = $2,464

CTAP payments are not based on producers’ 

current plantings of cotton acres, but instead are 

calculated using the base acres and the direct 

payment yield of upland cotton established on the 

farm. 

PLANTING FLEXIBILITY PROVISIONS

CTAP payment acres (upland cotton base acres) 

are not impacted by cropland that is planted to fruit 

and vegetables (FAV’s) and wild rice. 

FOR MORE INFORMATION

Further information on CTAP is available at local 

FSA offices or on FSA’s website at www.fsa.usda.

gov. Visit http://offices.usda.gov to locate the 

nearest FSA office or service center. 

_____________________________________________

The U.S. Department of Agriculture (USDA) prohibits 

discrimination in all of its programs and activities on 

the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial 

status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because 

all or part of an individual’s income is derived from any 

public assistance program. (Not all prohibited bases 

apply to all programs.) Persons with disabilities who require alternative means for communication of program 

information (Braille, large print, audiotape, etc.) should 

contact USDA’s TARGET Center at (202) 720-2600 

(voice and TDD). 

To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant 

Secretary for Civil Rights, 1400 Independence Avenue, 

S.W., Stop 9410, Washington, DC 20250-9410, or call 

toll-free at (866) 632-9992 (English) or (800) 877-8339 

(TDD) or (866) 377-8642 (English Federal-relay) or 

(800) 845-6136 (Spanish Federal-relay). 

USDA is an equal opportunity provider and employer.

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