Commodity Credit Corporation Executive Vice President Juan M. Garcia yesterday announced the marketing assistance loan rate for 2014-crop base quality upland cotton. The base quality marketing assistance loan rate for upland cotton is set 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, 2013, before the next domestic plantings, in accordance with the 2014 Farm Bill. The marketing assistance loan rate cannot be less than 45 cents per pound or greater than 52 cents per pound.
Because the calculation exceeded the maximum allowed level, the 2014-crop marketing assistance loan rate for upland cotton is set at 52 cents per pound.
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% to 81.9%.
The marketing assistance loan rate announcement for the 2014-crop of upland cotton is being made today because the announcement date specified in the 2014 Farm Bill has passed. Loan rate announcements for the 2015-18 crops of upland cotton will be made Oct. 1, each year before the crop is planted.