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May 27, 2026

Cotton gin rate hike approved in Oklahoma

 

After 44 years, Oklahoma’s cotton gin rates are going up. But they still will be below the rates paid in Texas and Arkansas, even after the Oklahoma Corporation Commission approved the move this week.

Commissioners have the constitutional authority to handle such rates and in a 3-0 vote on Wednesday, approved the increase from the $200 per hundredweight to $2.70 cwt and $7.50 per bale for bagging and tying to $10 per bale.

When the Oklahoma Cotton Council filed its application in December 2025, it noted at the time, “Applicant has performed comparison research of the rates charged for ginning picked, snapped, or stripped cotton and the bagging and tying thereof in neighboring states, and has found those rates almost universally to be higher than the rate currently authorized to Applicant’s constituent members for these services in the State of Oklahoma under the Commission’s Order No. 199421. Further, even after the requested increase to permitted ginning and bagging and tying rates for Oklahoma cotton gins were to go into effect, Applicant notes the increased rates would still be lower than the rates charged by many gins in neighboring jurisdictions.”

An Administrative Law Judge urged approval of the new rates and Natasha Scott with the Commission’s Public Utilities Division agreed, explaining there has been an 87% drop in the number of cotton gins in the state since the rates were last approved in 1981.

“So we’ve gone from 79 gins I think it was in 1981 when we last set rates to down to 10 gins operating at 11 different sites in the state and so with the few gins that have remained open they’ve had to absorb additional volume of cotton that needs to be ginned which means additional strain and wear and tear on their very expensive equipment and so they’ve had to put off repairs maintenance and that kind of thing because they’re operating at capped rates with costs of operation increasing the volume of cotton that they need to gin increasing and so on since 1981.”
She said the increased rates would help relieve some of the financial pressure and added that the new rates would still be $14 a bale less than rates charged in Texas where the fees are not regulated..
Scott also said cotton gin operators also face “exponentially” higher costs in the coming four years when new federal regulations will phase out the bags used for bagging the bales. Further, there is increased cotton production for the gins.

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