Calcot's Second Payment Approved
Board of directors approved $5.1 million progress payment, the second.
Compiled by staff
Published: Mar 9, 2010
"Cautious optimism" turned into reality on Feb. 18, as Calcot's board of directors authorized a $5.1 million progress payment, the second of the season, though the first for some varieties.
In January, a $4.3 million payment was approved by Calcot's executive committee directors, the first of the 2009-10 marketing season, on Pima cottons and Acala varieties, as well as South Texas Uplands. President Jarral Neeper noted at the time of the January meeting that he was "cautiously optimistic" a payment could be made in February on varieties that did not receive a payment in January.
Payment details for February included a 6-cent progress payment on base grade 31-3-35 California/Arizona and Desert Southwest and on California Upland cottons, which have a base of 21-2-37. California Upland terms are gin UD free; all others are net.
Also, South Texas cottons will be paid two cents per pound, which brings the current advance for all Calcot base grade 31-3-35 cottons up to 61.30 cents per pound. California Upland base is 64.55 after the payment, again on gin UD free terms.
Pima and Acala cottons from Calcot's growing regions did not receive a payment this month.
Actual payments of course vary based on grades, qualities and varieties as prices transition from loan differences to Calcot differences, but average payment per pound on varieties were 3.91 cents per pound on C/A, 4.35 cents on DSW, 3.4 cents on California Upland and 1.84 cents on the Texas Upland varieties.
Checks were processed and in the mail or made by direct deposit within just a couple of days.
Since this is the first payment of the season for some varieties, actual payment amounts vary based on grades, qualities and varieties as prices transition from loan differences to Calcot differences.
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