A Breakdown of Fees that Farmers Pay

by Ashley Houchin, PCCA Cotton Services Manager

If you have ever seen a fee on your cotton statement and wondered what exactly it was or where that money is going, you are not alone. Keep reading for a breakdown of the most common fees and their purposes.

Processing a Bale
These fees cover the services and materials required to prepare cotton for market.

Ginning Fee

• The cost of processing cotton into marketable bales, including the equipment, labor, maintenance, and operating expenses required to run a gin.
  *For more about gin fees, please contact your local gin.

Bagging & Ties

• Covers the cost of the materials used to package each bale, protecting the cotton and keeping the bale secure throughout storage and transportation.

Classing Fee

• Covers the cost of USDA classing services that provide an official evaluation of each bale’s quality. These results are essential for marketing cotton and determining its value.

Cost of Moving a Bale of Cotton
These fees cover the handling, storage, and movement of each bale from the warehouse to its destination.

Receiving Charge

• Covers the cost of receiving and processing each bale into the warehouse, including documentation, identification, and inventory management.

Storage Charge

• Covers the cost of securely storing and maintaining each bale in the warehouse until it is marketed or shipped.

Delivery Charge

• Covers the cost of preparing, handling, and loading each bale for shipment to its next destination.

Industry Support
These assessments support organizations and programs that advocate for cotton producers and strengthen the U.S. Cotton Industry.

Cotton Board Assessment

• Supports the Cotton Research & Promotion Program, which funds research, education, and promotion efforts to strengthen demand for U.S. cotton. The Cotton Board administers these programs on behalf of the U.S. cotton industry.

National Cotton Council Dues

• Supports the National Cotton Council’s efforts to advocate for U.S. cotton producers, influence agricultural policy, and address issues affecting the cotton industry. These dues help ensure growers have a unified voice at the national level.

Producer Organization Dues

• Supports state and regional cotton producer organizations that work on behalf of growers through legislative advocacy, research, education, and industry representation.

Committee for the Advancement of Cotton (CAC) Contribution

• An optional, grower-elected contribution to the Committee for the Advancement of Cotton (CAC), the political action committee affiliated with the National Cotton Council. PCCA deducts the authorized amount from the grower’s cotton proceeds and remits it directly to the Political Action Committee.