The new Farm Bill could lead to significant changes for commodity producers. The potential
impact of these changes on cotton producers is examined. In particular, the difference between
the existing Direct and Counter-Cyclical Payment Program and the new Stacked Income
Protection Plan (STAX) for cotton producers is discussed. An illustrative example is provided to show how payments to cotton producers could potentially differ for a specific year under various programs. Detailed information on STAX calculations and a STAX payment calculator
is included to assist with the development of Extension programs targeted to cotton producers, landowners, and bankers.
