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USDA announces 2013 cotton loan rate differentials

USDA announces 2013 cotton loan rate differentials

The Farm Service Agency has released 2013 crop loan rate differentials for upland and extra long staple (ELS) cotton.   Link to tables provided.

The USDA’s Farm Service Agency (FSA) has announced the 2013 crop loan rate differentials for upland and extra long staple (ELS) cotton.

The tables of these loan rate differentials are available on the FSA Price Support Division website here.

These differentials, also referred to as loan rate premiums and discounts, have been calculated based upon market valuations of various cotton quality factors for the prior three years. This calculation procedure is identical to that used in past years. The Commodity Credit Corporation (CCC) adjusts cotton loan rates by these differentials so that cotton loan values reflect the differences in market prices for color, staple length, leaf, extraneous matter, micronaire, length uniformity and strength.

The 2013-crop differential schedules are applied to loan rates of 52.00 cents per pound for the base grade of upland cotton and 79.77 cents per pound for ELS cotton.

The loan rate provided to an individual cotton bale is based on the quality of each individual bale as determined by Agricultural Marketing Service classing measurements.

Further program information is available from Scott Sanford at (202) 720-3392 or email scott.sanford@wdc.usda.gov.

 

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