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Information for Buyers and First Handlers

Collection Responsibilities

Any person or entity that purchases a bale of cotton from a producer is responsible for collecting the research and promotion assessment from the producer. The buyer is often referred to as the first handler or collecting handler since collection occurs at the time of any payment or credit to the producer’s account for the cotton. Collecting handlers may be individuals, gins, cooperative marketing associations, cotton shippers, or any person that accepts a bale of cotton from the producer under an agreement providing for the marketing of the cotton. Details concerning a buyer and first handler’s responsibilities are set out in the Program Rules and Regulations.  

The Program Rules and Regulations also provide details concerning assessment rates, how to handle cotton tendered for a CCC price support loan, reporting requirements and schedule, confidentiality and enforcement issues.