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    USDA offers User Agreement for textile mills

    Industry News | February 1, 2009 | By:

    The U.S. Department of Agriculture (USDA) has made available the User Agreement for textile mills participating in the Economic Adjustment Assistance (EAA) Program authorized by the Food, Conservation and Energy Act of 2008.

    The EAA Program authorizes the Secretary of Agriculture to provide assistance to U.S. textile manufacturers that invest an equivalent amount of funds in capital improvements to their operations by acquiring, constructing, installing, modernizing, developing, converting or expanding land, plant, buildings, equipment, facilities or machinery. Payments under the program are based on the amount of cotton (domestic or foreign) consumed by the textile manufacturer after August 1, 2008.

    The National Cotton Council (NCC) and the National Council of Textile Organizations (NCTO) have expressed their support for the program. NCTO chairman/NCC director Anderson Warlick said: “The timely release of funds under the Economic Adjustment Assistance program is critically important given the financial challenges faced by U.S. textile manufacturers dealing with uncertain credit markets, a sluggish economy and continued erosion of U.S. markets by subsidized textile and apparel imports. These funds can be an important component of our continued efforts to modernize our facilities and maintain competitiveness.”

    The NCC and the NCTO worked closely to promote inclusion of the new program in the recently enacted farm law. Program costs were offset by adjustments in the cotton program in order to make the program budget-deficit neutral.

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