§ 870.9 Payment.

(a) The payment rate for purposes of calculating payments as specified in this part is 5 cents per pound. (b) The payment rate is the rate in effect on the date of consumption. (1) Baled eligible upland cotton consumption must take place in a building or collection of buildings where the cotton bale will be used in the continuous process of manufacturing the cotton into final cotton products in the United States, and as determined by AMS. Unbaled eligible upland cotton will be considered consumed by the domestic user on the date processed. (2) The quantity of eligible upland cotton with respect to which a payment is made available shall be determined based upon the net weight of each bale of eligible upland cotton. (c) Payments specified in this part will be determined by multiplying the payment rate by one of the following: (1) In the case of baled upland cotton, whether lint, loose samples, or re-ginned motes, but not semi-processed motes, the net weight of the cotton consumed; (2) In the case of unbaled re-ginned motes consumed, without re-baling, for an end use in a continuous manufacturing process, the weight of the re-ginned motes after final cleaning; or (3) In the case of suitable semi-processed motes, 25 percent of the net weight of the semi-processed motes. (d) In all cases, the payment will be determined based on the amount of eligible upland cotton that an eligible domestic user consumed during the immediately preceding calendar month. (e) Payments specified in this part will be made available upon application for payment and submission of supporting documentation, as required by the provisions of this part.