The marketing assistance loan rate for 2015-crop base quality upland cotton was recently announced by the U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC).
“Marketing assistance loans provide interim financing to producers at or after harvest to help them meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows,” said CCC Executive Vice President Val Dolcini, who is also the administrator of the USDA’s Farm Service Agency, in a USDA release.
The 2014 Farm Bill sets the base quality marketing assistance loan rate for upland cotton at the simple average of the adjusted prevailing world price for the two immediately preceding marketing years, as determined by the Secretary of Agriculture and announced Oct. 1, before the next domestic plantings. The marketing assistance loan rate cannot be less than 45 cents per pound or greater than 52 cents per pound.
Since the calculation exceeded the maximum allowed level, the 2015-crop marketing assistance loan rate for upland cotton is set at 52 cents per pound. Those cotton growers needing loan assistance are urged to contact their local Farm Service Agency (FSA) office.