Assessment Rates Overview
Cotton produced in the United States is assessed at a rate of $1.00 per bale plus a supplemental assessment equal to 5/10 of one percent of the current value of the cotton. Section 1205.501 of the Program Rules and Regulations provides additional details regarding the rate of the assessment, including an assessment structure that can be used to determine the amount of the supplemental assessment.
ATTN: All Collecting Handlers and All Cotton Gins
The Rules and Regulations developed to administer this Program require anyone who purchases a producer’s equity to collect the supplemental assessment.
We have simplified the reporting of these equity purchases. Please use the following procedures:
- List all collections of assessments on equity purchases on a separate Collecting Handler report form;
- Indicate “equity assessments” on it;
- List the bales and dollar amount collected by each county and state.
Since equities are usually traded in dollars per bale, we have developed the following rate chart for your convenience:
Equity Paid $ per Bale
0.00 – $ 49.99
$ 50.00 – $ 99.99
$100.00 – $149.99
$150.00 – $199.99
To Be Collected Per Bale
For the Collecting Handler who uses the “Percentage Method” – the supplemental assessment on equity purchases should be computed by multiplying the amount paid the producer for his equity times five-tenths of one percent (.005).
Please call the Cotton Board (901) 683-2500 if you have any questions. Thank you for the service you provide to the Cotton Research and Promotion Program
The value of cotton for purposes of the Research and Promotion Supplemental Assessment will be the gross price per pound of the lint cotton received by the producer, as shown on the producer’s settlement document before weigh penalties, buyer’s commission or brokerage fees, marketing fees, the per bale cotton research and promotion assessment, picking charges, ginning charges, warehouse receiving charges, warehouse storage charges, transportation charges or any other deductions are made. This price per pound will be converted to a per bale assessment in accordance with this rate chart. You may download the rate chart by clicking on the "Download" PDF link below.
(THE TOTAL ASSESSMENT COLUMN INCLUDES BOTH THE SUPPLEMENTAL ASSESSMENT AND THE $1.00 PER BALE)