2009 Upland Cotton Loan Tables Reflect
Increased Influence Of High Plains Crop

Friday, April 17, 2009                                By Shawn Wade

      The release of 2009-crop Upland Cotton Loan Premium and Discount tables by the United States Department of Agriculture Farm Service Agency this week seems a little premature after last June's Farm Bill delayed announcement.

      Following last year's Farm Bill-induced revamping of the procedures used to establish the Upland Cotton premium and discount tables, the big question this year was how much influence the High Plains crop would have on the final product.

      At first glance it appears that the High Plains did indeed have an impact on the 2009 schedules, especially in the Micronaire premium and discount table.

      Most of the improvements included in the 2009 tables are found in the significantly lower discounts that will apply to low Micronaire cotton in 2009.

      Offsetting these gains, however, are slight reductions in premiums for some Color/Leaf/Staple combinations. The biggest of these declines are found at the upper end of the table. White Grades (11, 21, and 31, Leaf 1-4, Staple 35 or better cotton in 2009 will be valued 35-60 points lower than they were in 2008.

      The table below provides comparisons between 2008 and 2009 loan values for White Grades 11-41 and Light Spot grades 12-42, Staple 33 through 37.

      Complete 2009 Loan Premium and Discount tables and loan charts with calculated values based on the 2009 schedule of premiums and discounts will be posted on the Plains Cotton Growers website at: www.plainscotton.org


 

COMPARISON OF LOAN PREMIUMS AND DISCOUNTS FOR SELECTED

GRADE, STAPLE LENGTH, AND LEAF CONTENT COMBINATIONS

OF 2009-CROP AMERICAN UPLAND COTTON

Base Loan Rate: U.S.= 52.00 /pound

 

Staple

33

34

35

36

37+

Color

Leaf

2008

2009

Change

2008

2009

Change

2008

2009

Change

2008

2009

Change

2008

2009

Change

 

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

SM &

Leaf 1-2

10

-5

-15

230

200

-30

450

400

-50

545

485

-60

555

495

-60

better

3

5

-10

-15

200

170

-30

405

355

-50

485

425

-60

495

435

-60

11 & 21

4

-85

-90

-5

100

105

5

260

245

-15

355

320

-35

365

330

-35

 

5

-220

-215

5

-45

-50

-5

135

125

-10

190

180

-10

205

195

-10

 

6

-395

-390

5

-315

-315

0

-240

-240

0

-225

-220

5

-215

-210

5

 

7

-540

-535

5

-455

-450

5

-400

-390

10

-380

-370

10

-370

-360

10

MID

Leaf 1-2

-15

-15

0

185

160

-25

385

345

-40

470

420

-50

480

430

-50

31

3

-25

-25

0

165

140

-25

370

330

-40

430

380

-50

440

390

-50

 

4

-125

-125

0

70

65

-5

220

200

-20

290

265

-25

300

275

-25

 

5

-245

-235

10

-110

-100

10

90

90

0

145

135

-10

160

145

-15

 

6

-405

-400

5

-335

-330

5

-275

-270

5

-255

-250

5

-245

-240

5

 

7

-550

-540

10

-460

-460

0

-425

-420

5

-400

-395

5

-390

-385

5

SLM

Leaf 1-3

-130

-135

-5

50

45

-5

145

135

-10

195

180

-15

195

180

-15

41

4

-195

-200

-5

Base

Base

Base

100

90

-10

150

140

-10

155

140

-15

 

5

-290

-290

0

-205

-210

-5

-105

-110

-5

-65

-70

-5

-60

-65

-5

 

6

-470

-470

0

-405

-415

-10

-370

-370

0

-355

-355

0

-355

-355

0

 

7

-630

-635

-5

-575

-575

0

-545

-550

-5

-535

-540

-5

-535

-535

0

SM &

Leaf 1-2

-45

-55

-10

75

80

5

205

200

-5

275

270

-5

285

285

0

better

3

-60

-70

-10

60

60

0

185

180

-5

245

240

-5

255

255

0

12 & 22

4

-155

-160

-5

-25

-20

5

120

105

-15

185

175

-10

195

190

-5

 

5

-340

-350

-10

-210

-205

5

-135

-135

0

-95

-100

-5

-90

-90

0

 

6

-480

-485

-5

-410

-400

10

-365

-365

0

-360

-360

0

-355

-350

5

 

7

-625

-620

5

-570

-560

10

-535

-530

5

-525

-520

5

-520

-510

10

MID

Leaf 1-2

-135

-135

0

-30

-30

0

50

50

0

105

105

0

105

105

0

32

3

-150

-150

0

-50

-50

0

25

25

0

95

95

0

100

95

-5

 

4

-225

-225

0

-130

-150

-20

-40

-45

-5

15

15

0

15

15

0

 

5

-400

-405

-5

-300

-300

0

-250

-250

0

-220

-220

0

-220

-220

0

 

6

-555

-550

5

-485

-485

0

-460

-450

10

-445

-435

10

-445

-435

10

 

7

-665

-675

-10

-645

-635

10

-615

-610

5

-610

-600

10

-610

-600

10

SLM

Leaf 1-3

-265

-265

0

-185

-185

0

-105

-100

5

-45

-45

0

-45

-45

0

42

4

-290

-285

5

-220

-220

0

-150

-150

0

-100

-100

0

-100

-100

0

 

5

-450

-435

15

-385

-380

5

-330

-315

15

-315

-300

15

-315

-300

15

 

6

-620

-625

-5

-535

-530

5

-495

-490

5

-485

-475

10

-485

-475

10

 

7

-755

-750

5

-690

-695

-5

-660

-665

-5

-655

-660

-5

-655

-660

-5

 

Want the facts about the U.S. farm policy. Get what you need at:
 www.farmpolicyfacts.com