USDA to Allocate $50 Million to US Cotton and Wool Apparel Makers Affected by Covid-19 

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USDA

AGENCY: 

Commodity Credit Corporation, Farm Service Agency; Department of Agriculture (USDA). 

ACTION: 

Announcement of funding availability 

The U.S. Department of Agriculture (USDA) announced a commitment of $50 million for the new Cotton and Wool Apparel Program (CAWA), which will support the domestic markets for wool and Pima cotton by assisting eligible apparel manufacturers of men’s and boys’ worsted wool suits, sport coats, pants, or Pima cotton dress shirts; Pima cotton spinners; and wool fabric manufacturers and wool spinners. 

The COVID-19 epidemic significantly lowered demand for various types of apparel, textiles, and threads, and hence the raw commodity market. CAWA will help to build and restore the market for domestically produced cotton and wool goods, as well as the underlying commodities. 

DATES: 

Funding Availability: Implementation will begin May 6, 2022.  

Applications Start Date:  Applications for funding starting on May 16, 2022.  

Applications Due Date:  Accepting applications for funding through June 17, 2022. 

“The transition toward remote work at the onset of the COVID-19 pandemic led to a dramatic decrease in consumer demand for dress clothing, which has continued to affect the entire supply chain of Pima cotton and wool,” said Farm Service Agency (FSA) Administrator Zach Ducheneaux. “While many manufacturers of these products shifted to the production of personal protective equipment, the industry has nevertheless struggled to recover from a persistent and significant decline in sales. The relief announced today will help keep these manufacturers in business, which will ultimately support American workers and the domestic Pima cotton growers and wool producers who rely on this industry.” 

Eligibility 

To be eligible for a CAWA payment under USDA, an applicant must: 

(1) Have filed an affidavit for a payment in any year from 2017 to 2021 from the trust funds authorized by sections 12602 and 12603 of the 2018 Farm Bill. 

(2) At the time of application, be in operation or have plans to restart domestic operations within a reasonable timeframe as an apparel manufacturer, Pima cotton spinner, wool fabric manufacturer, or wool spinner and submit a business plan showing the use of the assistance determined acceptable by the Deputy Administrator. 

(3) Have had at least a 15 percent decrease in calendar year 2020, compared to calendar year 2017, 2018, or 2019, in: 

(a) Gross sales; or 

(b) Consumption of the eligible products, except for apparel manufacturers. 

(4) Be an active entity on https://SAM.gov and have a SAM UEI.  

An eligible applicant is a legal entity with production and facilities located in the United States. 

Any entity that did not file an affidavit for a payment in any year from 2017 to 2021 under sections 12602 and 12603 of the 2018 Farm Bill is ineligible for CAWA says USDA. 

Application Process 

FSA will accept applications from May 16, 2022, through June 17, 2022. To apply for CAWA, eligible applicants must submit a completed form CCC-917, Cotton and Wool Apparel Program (CAWA) Application. Applications may be submitted to the FSA National Office by email to [email protected]. All applicants must be an active entity on https://SAM.gov and are required to enter their SAM UEI number on the application form to receive payment. 

More information is available in  Notice of Funding Availability on the Federal Register

Definitions: 

Apparel manufacturers means domestic manufacturers and producers that use imported Pima cotton fabric (80s or higher count and 2-ply in warp) to manufacture men’s and boys’ woven Pima cotton shirts or domestic manufacturers and producers of men’s and boys’ worsted wool suits, suit-type jackets, or trousers that use imported fabrics containing 85 percent or more by weight of wool.  

Consumption means for:  

  • Pima Cotton—the number of pounds of Pima cotton processed for U.S. ring spun Pima cotton yarns measuring less than 83.33 decitex (exceeding 120 metric number). 
  • Worsted Wool—the number of pounds of wool top spun into worsted yarn and the number of pounds of wool yarn processed into worsted woven wool fabric, converted into wool top. 

Report by Farm Service Agency 

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