Source: USDA, 9/30/16

The U.S. Department of Agriculture (USDA) Commodity Credit Corporation today announced that the marketing assistance loan rate for 2017-crop base quality upland cotton is 49.49 cents per pound.

Marketing assistance loans provide interim financing to producers so that commodities can be stored upon harvest when market prices are typically low and sold later when price conditions are more favorable.

Base quality upland cotton has the following characteristics: color grade 41, leaf grade 4, staple length 1-1/16 inches, micronaire 3.5-3.6 and 4.3-4.9, strength 26.0-28.9 grams per tex, and length uniformity of 80.0-81.9 percent.

The 2014 Farm Bill established 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. The marketing assistance loan rate cannot be less than 45 cents per pound or greater than 52 cents per pound.
USDA works to strengthen and support American agriculture, an industry that supports one in 11 American jobs, provides American consumers with more than 80 percent of the food we consume, ensures that Americans spend less of their paychecks at the grocery store than most people in other countries, and supports markets for homegrown renewable energy and materials.

Since 2009, USDA has provided $5.6 billion in disaster relief to farmers and ranchers; expanded risk management tools with products like Whole Farm Revenue Protection; and helped farm businesses grow with $36 billion in farm credit. The Department has engaged its resources to support a strong next generation of farmers and ranchers by improving access to land and capital; building new markets and market opportunities; and extending new conservation opportunities. USDA has developed new markets for rural-made products, including more than 2,500 biobased products through USDA's BioPreferred program; and invested $64 billion in infrastructure and community facilities to help improve the quality of life in rural America. For more information, visit www.usda.gov/results.