Cotton producers can request a recourse seed cotton loan at their local Farm Service Agency office. Due to this year’s large cotton crop and delayed ginning, these seed cotton loans can provide interim financing to producers until their cotton is ginned.

Recourse seed cotton loans are available from the beginning of harvest through March 31, 2018. Seed cotton loans must be repaid by May 31, 2018. After the cotton has been ginned, the seed cotton loan is repaid with proceeds from the ginned cotton.

County offices will provide written or e-mail notification to every Cooperative Marketing Association or Loan Servicing Agent used by the producer to ensure that the proceeds from a ginned cotton loan are used to repay a seed cotton loan obligation.

Any proceeds obtained from LSA or CMA, whether from a loan or Loan Deficiency Payment, will be jointly payable to the producer and to the Commodity Credit Corporation if these proceeds are from a loan for the same cotton that is collateral for the seed cotton loan.

Contact the local FSA office to learn about eligible requirements or to request a seed cotton loan.