GLICKMAN PROPOSES COTTONSEED PAYMENT PROGRAM
                                            Release No 0065.00 
                                                               
                                     Dann Stuart (202) 690-0474
                                    Dan_Stuart@wdc.fsa.usda.gov

GLICKMAN PROPOSES COTTONSEED PAYMENT PROGRAM

     WASHINGTON, February 29, 2000 -Agriculture Secretary Dan Glickman
announced today that USDA will propose to pay cotton farmers and ginners about
$74 million to help offset losses from low 1999-crop cottonseed prices.

     "Because of those low prices, many gins were unable to meet operating
expenses normally covered by cottonseed revenues and some cotton farmers had
to pay higher ginning costs," Glickman said.  "This discretionary program will
help farmers make up this lost income."

     The proposed payments would be made to cotton gins based on seed tonnage
produced from the 1999 crops of upland and Extra Long Staple cotton.  USDA
plans to propose that gins share cottonseed program payments with cotton
farmers commensurate with any increased 1999-crop ginning charges as a
condition of accepting program payments.

     Glickman said if USDA's current estimate of  6.5 million tons of
cottonseed is correct, the payment rate could be expected to be about $11.40
per ton of cottonseed.  

     "This rate estimate is very preliminary," said Glickman.  "The actual
rate would be based on the total number of applications, the total payment
tonnage of seed, and a final determination of available program funds."

     Regulations for this new program must be published in the Federal
Register before payments are made.  The program would be implemented by USDA's
Farm Service Agency and is authorized by section 104 of the Omnibus
Consolidated Appropriations Act, 2000.

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