Maximum 2008 CC Payment Rate for Upland Cotton
Confirmed Announced By USDA

Friday, October 16, 2009                           by Shawn Wade

      Earlier this week USDA Secretary Tom Vilsack confirmed preliminary calculations indicating a final 2008 Average Price Received by Growers for Upland cotton well below the Upland cotton base loan rate of 52.00 cents per pound when announcing a maximum 2008 crop Upland cotton Counter-cyclical (CC) program payment rate of 12.58 cents per pound.

      The announcement put aside any concern that final revisions to 2008 cotton price and marketing data would have a negative impact on the calculation of the final CC payment rate. In fact this year's revisions actually lowered the final Average Price Receive by Growers to 47.80 cents per pound, down from the 48.39 cent per pound figure estimated using preliminary data.

      Based on this information, USDA began issuing payments for Upland cotton Counter-cyclical program on October 14. The 12.58 cents per pound final counter-cyclical payment rate for Upland cotton is the statutory maximum level. Producers who received an advance CC payment earlier this year will receive 7.55 cents per pound, the final rate of 12.58 cents less the partial payment rate of 5.03 cents per pound.

      NASS announced the final market year average price for Upland cotton on October 9, 2009. In the announcement USDA also confirmed that no CC payment would be made for 2008 crop corn, peanuts, grain sorghum, soybeans or oats. USDA will announce long-grain and medium and short-grain rice prices on January 29, 2010. No final counter-cyclical payments for rice are expected because the preliminary market year average prices for rice announced by NASS on August 31, 2009, far exceeded their respective effective prices.

      The final 2008 marketing year prices for crops other that cotton were: 23.0 cents per pound or $460.00 per ton for peanuts; $4.06 per bushel for corn $3.20 per bushel for grain sorghum and $9.97 per bushel for soybeans. There are no final counter-cyclical payment rates for peanuts, corn, grains sorghum and soybean oats because their effective prices exceeded target prices.

      The counter-cyclical payment rate is the amount by which the target price of each commodity, specified by the 2008 Farm Bill, exceeds its effective price. The effective price equals the direct payment rate plus the higher of either the national average market price received by producers during the marketing year or the national average loan rate for the commodity.

      The 2008 Farm Bill requires 2008 final counter-cyclical payments to be paid as soon as practical following the end of the marketing year, but not sooner than October 1, 2009. The 2008 Farm Bill also provides that one partial counter-cyclical payment may be issued after 180 days of the marketing year.


CCI Fax - October 15, 2009

COTTON USA Western Hemisphere Manufacturers Tour brings yarn and fabric buyers to the U.S. During a three-day tour, participants from nine Western Hemisphere countries met with U.S. cotton textile mills, toured a cotton farm and gin, and received briefings on topics ranging from a cotton fiber supply/demand outlook to cotton consumer and retail trends.

      The COTTON USA Sourcing Program arranged the tour to enhance sales of U.S. manufactured cotton yarn and fabric and to encourage business relationships to help U.S. textile mills take advantage of the various free trade agreements within this Hemisphere. Participants included yarn buyers from 29 firms and fabric buyers from 10 firms.

      Countries represented include Colombia, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Peru, Haiti and Mexico. The group met with top U.S. textile industry executives representing Buhler Quality Yarns Corp., Carolina Cotton Works, Contempora Fabrics, Frontier Spinning Mills, Hamrick Mills, Parkdale, Tuscarora Yarns and Zagis USA.

      COTTON USA garners attention from sponsorship of Meadham Kirchhoff at London Fashion Week. The partnership between Meadham Kirchhoff and COTTON USA was designed to highlight to the trade, media and consumers the benefits of U.S. cotton and its versatile use within the fashion industry. Seventy high ranked buyers attended the show as well as 99 journalists including Anna Wintour from American Vogue. Representatives from prestigious publications such as Vogue UK, Elle, Grazia, The Telegraph and The International Herald Tribune also attended and strong press coverage is expected.

      COTTON USA licensee in Hong Kong to launch new wave of advertising with COTTON USA. Kotex by Kimberly Clark's new advertising campaign will feature COTTON USA on product labels in all outlets, as well as in subway, magazine and online advertising. Kotex by Kimberly Clark will fund the advertising in its entirety. The campaign will launch in Hong Kong at the end of October and last for two to three months.

     Edwin Co., Ltd. joins COTTON USA licensee family in Japan. Edwin Co., Ltd., one of the largest casual wear brands in Japan, recently signed a COTTON USA license for Edwin, Something, Wrangler, Lee and Russell Athletic brand T-shirts. Edwin plans to label 400,000 units annually. Labeling will begin with the next spring-summer season.


Want the facts about the U.S. farm policy.

Get what you need at:


Cotton Research & Promotion Program Sets
Referendum To Enact 2008 Farm Bill Change

      The U.S. Department of Agriculture (USDA) has announced that a referendum will be conducted among U.S. Upland cotton producers and importers beginning take place on October 13, 2009, and continue through November 10, 2009.

      The USDA Agricultural Marketing Service (AMS) is proposing to amend the Cotton Research and Promotion Order to implement changes made by Congress in the 2008 Farm Bill.

      In the farm bill the states of Kansas, Virginia and Florida were recognized as separate states to be included in the definition of "cotton-producing state" as defined in the Cotton Research and Promotion Act (Act).

      According to the Act, a referendum among cotton producers and importers is required to amend the Order or any of its provisions. The AMS is providing an opportunity for all eligible persons to vote on the amendments to the Order.

      Producers will have an opportunity to vote by mail or through their respective Farm Service Agency County office. All known cotton importers will be mailed a ballot and referendum instructions. Ballots will also be available on the Internet at

     The final referendum rules and the proposed rule and referendum order will be published in the Oct. 5, 2009, Federal Register, and can be found on the Internet at:


October 15 Upland Cotton Adjusted
World Price (AWP) Announcement

      The Department of Agriculture's Commodity Credit Corporation announced the adjusted world price (AWP) for Strict Low Middling (SLM) 1-1/16 inch (leaf grade 4, micronaire 3.5-3.6 and 4.3-4.9, strength 25.5-29.4 grams per tex, length uniformity of 79.5-82.4 percent) upland cotton (base quality), adjusted to U.S. quality and location, the fine count adjustment (FCA), the coarse count adjustment (CCA), and the loan deficiency payment rate that will be in effect from 12:01 a.m., Eastern Time, Friday, October 16, 2009, through midnight, Eastern Time, Thursday, October 22, 2009.

      The next announcement of the AWP, FCA, CCA, and LDP The next announcement of the AWP, FCA, CCA, and LDP rate for upland cotton will be on Thursday, October 22, 2009, at 4:00 p.m., Eastern Time.


October 15, 2009


Adjusted World Price (AWP)                                                       49.44

Fine Count Adjustment (FCA) 2008 Crop                              0.00

Fine Count Adjustment (FCA) 2009 Crop                              0.00

Coarse Count Adjustment (CCA)                                                    0.00

Loan Deficiency Payment Rate                                                    2.56


This week's AWP, FCA, and CCA are determined as follows:

FE Price                                                                                    65.81


         Avg. costs to market                             -13.07

         SLM 1-1/16 inch cotton                - 3.30

Sum of Adjustments                                                                 -16.37

ADJUSTED WORLD PRICE                                                49.44