OBWEO Policy Statement

 

Current assessment for Crop Year 16 is $2.50 per acre.

Authority: Title 2 Section 3-50.7.B.4 of the Oklahoma Statutes.

The Board of Directors shall have the power and duty to:
Determine and establish the assessment annually for the following crop year pursuant to the Boll Weevil Eradication Act and the program enabling referendum. The assessment shall be determined upon a fair and equitable system that is based on cotton production and infestation factors. The assessment shall be a flexible rate not to exceed seven dollars and fifty cents ($7.50) per acre and one cent ($0.01) per pound of lint produced. Upon any change in the assessment rate the board shall immediately notify growers and cotton gins of the new rate.

Policy: 1. Beginning with crop year 2008, the assessment will be determined annually based on analysis of the following factors:

a. Estimate of cotton acres in production
b. Most recent season’s trapping results
c. Minimum $600,000 funding “floor” for contingencies
d. Resultant budget estimate including debt payment, if any

2. Any annual funding requirement that equals six dollars or less per acre will result in a straight per acre assessment.

3. Any annual funding requirement that equals more than six dollars per acre will result in an acre and pound assessment not to exceed the statutory limit of $7.50 per acre and $0.01 per pound.

The primary advantage of a straight per acre assessment is that the assessment for the upcoming season can be set as soon as the organization has solid acreage estimates. This will help producers determine their expenses at the beginning of the season. A straight per acre assessment will also aid the organization in arriving at income estimates early on in support of budget decisions, while reducing gin and program labor costs related to determining assessments and reconciling records at the end of the season. In the event of a major crop failure, contingency funds would come into play and the assessment would be adjusted as needed at the beginning of the next season. Assessments will continue to be collected by the gins.


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