By Andi Anderson
The recent announcement from the Department of Agriculture's Commodity Credit Corporation provides important information regarding the adjusted world price (AWP), fine count adjustment (FCA), and coarse count adjustment (CCA) for upland cotton. Here's a breakdown of the key points from the announcement:
- Adjusted World Price (AWP): The AWP for this period is 61.33 cents/lb.
- Fine Count Adjustment (FCA): There are adjustments for both the 2022 and 2023 crops, with FCA values of 0.13 and 0.38 respectively.
- Coarse Count Adjustment (CCA): The CCA for this period remains at 0.00 cents/lb.
- Loan Deficiency Payment (LDP) Rate: The LDP rate for this period is also 0.00 cents/lb.
- Calculation Details: The AWP is calculated based on factors such as the Far East (FE) price, average cost to market, and specific quality adjustments for SLM 1-1/16 inch cotton. The FCA is determined by subtracting the loan schedule premium for SM 1-1/8” cotton from the market premium. The CCA is calculated based on FE prices and adjustments to SLM 1-1/32 inch cotton.
- Regulations and Adjustments: The announcement explains that if sufficient data are not available for the CCA, the latest available value will remain in effect. Additionally, the AWP may be further adjusted by the Secretary of Agriculture under certain circumstances outlined in the Agricultural Act of 2014. However, no adjustment was made for this period.
- Loan Repayment and Marketing Loan Gain/LDP Payment: Since the AWP exceeds the base quality loan rate of 52.00 cents per pound, the loan repayment rate during this period is equal to the loan rate adjusted for specific quality, plus applicable interest and storage charges. The marketing loan gain/LDP rate of 0.00 is the difference, if positive, between the base loan rate and the AWP.
This information is crucial for cotton producers and stakeholders to understand the current market conditions and the implications for loan repayment and marketing decisions.
Categories: Indiana, Crops