2014 Upland Cotton Loan Chart Now Available

Friday, April 25, 2014                           By Shawn Wade

      The United States Department of Agriculture Farm Service Agency released the 2014-crop Upland Cotton Loan Premium and Discount tables on April 15 and it appears that this year's changes have mostly scaled back premium values from those issued in 2013.

      Most of the changes to the 2014 table of premiums and discounts were confined to the upper right quadrant of the loan chart and continues the trend of recent years of higher quality cotton gaining value compared to cotton of lower quality that is discounted more each year.

      Positive changes for 2014 were confined to reductions in discounts for Leaf grades 6 and 7 in Staple categories 35 and higher. The only exception to this trend was improvements in the upper Leaf grades for Color grades 41 and 51, Staple lengths 35 and better. Cotton within this latter range generally have higher loan values due to premiums increasing 0-30 points.

      Almost all of the changes for cotton in the other Color and Staple categories resulted in larger discounts that ranged from 5 to as much as 70 points.

      Changes in the 2014 premiums and discounts for Bark and Extraneous matter, Micronaire, Strength, and Length Uniformity were mixed. Bark discounts will be slightly higher in 2014.

      The most noticeable change in this section of the premium and discount tables are the lower discounts for Strength readings below 26 and throughout the Uniformity table. Changes in the Micronaire table were almost non-existent except for slight increases in the discounts Micronaire readings above 5.0.

      Strength discounts were increased 60 to 85 points for values below 26 grams per tex (g/tex). Offsetting these changes were 10-15 point increases in premiums for strength measurements above 30 g/tex.

      The table below provides comparisons between 2013 and 2014 loan values for White Grades 11-41 and Light Spot grades 12-42, Staple 34 through 38 and higher.

      Complete 2014 Loan Premium and Discount tables and loan charts with calculated values based on the 2014 schedule of premiums and discounts will be posted on the Plains Cotton Growers website at: http://www.plainscotton.org.

 


COMPARISON OF LOAN PREMIUMS AND DISCOUNTS FOR SELECTED

GRADE, STAPLE LENGTH, AND LEAF CONTENT COMBINATIONS

OF 2014-CROP AMERICAN UPLAND COTTON

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

 

Staple

34

35

36

37

38+

Color

Leaf

2013

2014

Change

2013

2014

Change

2013

2014

Change

2013

2014

Change

2013

2014

Change

 

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

SM &

Leaf 1-2

210

170

-40

455

425

-30

550

525

-25

570

550

-20

575

560

-15

better

3

185

145

-40

380

360

-20

475

460

-15

495

485

-10

505

495

-10

11 & 21

4

105

85

-20

230

215

-15

310

300

-10

320

315

-5

325

320

-5

 

5

-45

-55

-10

130

120

-10

185

175

-10

195

190

-5

195

190

-5

 

6

-295

-295

0

-235

-230

5

-220

-210

10

-215

-210

5

-215

-210

5

 

7

-450

-450

0

-410

-395

15

-390

-380

10

-385

-375

10

-385

-375

10

MID

Leaf 1-2

160

125

-35

370

360

-10

485

480

-5

495

490

-5

505

500

-5

31

3

150

115

-35

345

330

-15

430

425

-5

440

435

-5

450

445

-5

 

4

80

60

-20

190

190

0

270

265

-5

280

275

-5

285

280

-5

 

5

-100

-110

-10

90

75

-15

135

120

-15

145

130

-15

145

130

-15

 

6

-305

-310

-5

-270

-265

5

-245

-240

5

-240

-235

5

-240

-235

5

 

7

-455

-455

0

-435

-425

10

-415

-405

10

-410

-400

10

-410

-400

10

SLM

Leaf 1-3

45

30

-15

145

150

5

200

220

20

205

225

20

210

235

25

41

4

Base

Base

Base

80

95

15

135

165

30

140

170

30

145

175

30

 

5

-195

-210

-15

-135

-135

0

-65

-70

-5

-65

-70

-5

-65

-70

-5

 

6

-385

-395

-10

-340

-340

0

-315

-310

5

-315

-310

5

-315

-310

5

 

7

-560

-565

-5

-525

-515

10

-510

-500

10

-510

-500

10

-510

-500

10

SM &

Leaf 1-2

75

70

-5

180

185

5

260

270

10

265

275

10

265

275

10

better

3

60

50

-10

150

155

5

225

235

10

230

240

10

230

240

10

12 & 22

4

-15

-25

-10

100

105

5

175

185

10

180

190

10

180

190

10

 

5

-210

-220

-10

-125

-130

-5

-95

-100

-5

-95

-95

0

-95

-95

0

 

6

-410

-425

-15

-375

-375

0

-370

-365

5

-365

-365

0

-365

-365

0

 

7

-580

-585

-5

-545

-540

5

-535

-525

10

-530

-525

5

-530

-525

5

MID

Leaf 1-2

-20

-35

-15

30

25

-5

75

80

5

85

85

0

90

85

-5

32

3

-45

-55

-10

15

-25

-40

70

70

0

75

70

-5

75

70

-5

 

4

-140

-155

-15

-65

-70

-5

-10

-15

-5

-10

-15

-5

-10

-15

-5

 

5

-300

-310

-10

-250

-255

-5

-220

-225

-5

-220

-225

-5

-220

-225

-5

 

6

-470

-480

-10

-435

-435

0

-420

-420

0

-420

-420

0

-420

-420

0

 

7

-635

-635

0

-600

-595

5

-590

-585

5

-590

-585

5

-590

-585

5

SLM

Leaf 1-3

-165

-175

-10

-90

-90

0

-25

-35

-10

-25

-35

-10

-25

-35

-10

42

4

-200

-210

-10

-135

-145

-10

-85

-95

-10

-85

-95

-10

-85

-95

-10

 

5

-360

-370

-10

-295

-300

-5

-280

-285

-5

-280

-285

-5

-280

-285

-5

 

6

-505

-515

-10

-475

-475

0

-460

-460

0

-460

-460

0

-460

-460

0

 

7

-685

-685

0

-645

-640

5

-635

-630

5

-635

-630

5

-635

-630

5


     

PCG Supports "Land Stewardship:

Providing Water for Texans" Campaign

      Plains Cotton Growers has partnered with the Association of Texas Soil & Water Conservation Districts, Texas Wildlife Association, and Texas State Soil and Water Conservation Board to highlight the important connection between voluntary land stewardship and sustaining water availability.

      The statewide campaign, "Land Stewardship: Providing Water for Texans," is the theme of this year's Soil & Water Stewardship Week, which is held April 27-May 4.
      "This campaign aims to bring more awareness and support to voluntary land stewardship, because the way we manage our resources on private lands directly impacts the water resources available for public consumption," PCG Executive Vice President Steve Verett said. "Plains Cotton Growers is proud to partner with ATSWCD to bring more support to voluntary land stewardship."

      Effective land stewardship increases the ability of open land to absorb rainfall, replenish aquifers, and ensure that water drains slowly and steadily into springs, streams, rivers and lakes – reducing run-off and helping to prevent flooding. Voluntary stewardship practices include things such as prescribed grazing management by ranchers, the use of cover crops by farmers, wildlife habitat enhancement, and the targeted removal of invasive brush species.

      "Voluntary land stewardship is an efficient, cost-effective, and sustainable way to 'create' more water for homes, businesses, recreation, agriculture, and wildlife," said Johnny Ussery, chair of the stewardship committee for the ATSWCD.

      Soil and water conservation performed in urban areas can also help supplement land stewardship efforts in rural ones.

      "Urban Texans can become involved by practicing effective land stewardship at home, and in their neighborhoods, schools, and businesses," Ussery said. "Small efforts, such as using plants in our home landscaping that require little water, can add up to major water conservation when practiced by millions of people across the state."

      Partnering organizations in the "Land Stewardship: Providing Water for Texans" public awareness campaign include Ducks Unlimited, the Nature Conservancy of Texas, Texas A&M AgriLife's Texas Water Resources Institute, Texas A&M Forest Service, Texas Agricultural Land Trust, Texas Department of Agriculture, USDA Natural Resources Conservation Service, Texas Parks & Wildlife Department, Texas Coalition Grazing Lands Conservation Initiative, Texas Association of Dairymen, South Texans' Property Rights Association, Independent Cattlemen's Association of Texas, South Texas Cotton and Grain Association, Texas Forestry Association, Texas HORSE, Texas Deer Association, Plains Cotton Growers, Inc., Texas Poultry Federation, Texas Corn Producers, Texas Wheat Producers Board and Association, Taking Care of Texas, Trinity Waters, Texas Pork Producers, and Quail Coalition.

      For more information on "Land Stewardship: Providing Water for Texans," please visit http://www.tsswcb.texas.gov.

 

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Farm Law Implementation Continues

Friday, April 17, 2014  From the National Cotton Council

      USDA continues to move forward with activities to implement The Agricultural Act of 2014 as the Farm Service Agency issued a number of notices related to the new law's implementation.

      The Agriculture Secretary announced the start of sign-up for the renewed livestock disaster assistance program. The FSA issued notices to its state and county offices about the 2012 SURE Program sign-up and payment eligibility and payment limitation provisions. USDA also released the schedule of cotton loan premium and discounts for the 2014 crop. The base loan was announced on February 18.

      Notice SURE-37 advised offices to prepare for sign-up beginning in May and confirmed that the qualifying loss for SURE, based on the 2008 farm law, requires a loss of at least 10% on one crop of economic significance on a farm that is either: 1) located in a disaster county; or 2) if not located in a disaster county or contiguous county, has a loss greater than or equal to 50% of normal production on the farm (expected revenue for all crops on the farm) due to disaster conditions.

      (PCG EDITOR'S NOTE: Eligibility for the 2012 SURE program will be limited only to crop losses incurred prior to September 30, 2011.)

      Notice PL-260 provides instructions to offices regarding implementation of the new payment limitation and adjusted gross income test provisions of the 2014 farm bill. The notice confirms that actively engaged in farming determination requirements are not changed for 2014 crops. The date for determination of ownership interest is June 1 and will be used for direct attribution for the entire program year. Substantive change must be bona fide and substantive, and an increase in base acres in the farming operation of 20% from the previous year will qualify for an addition of one person or legal entity unless the state office determines the change qualifies for more than one addition. The transfer of land or equipment also can meet the requirement if certain conditions are met.

      The notice specifies that all farm operating plans currently on file are continuous and remain effective for 14 unless revised. The notice provides instructions for applying the revised three-year average adjusted gross income test of $900,000 and provides a table of payment limitations for 2014-2018. The limitation per legal entity for the ARC, PLC, LDP and MLG programs is $125,000 and there is a separate limitation for peanuts. The new cotton transition payment is subject to a separate $40,000 limitation. There is a new form (CCC-941) that is required for certification of adjusted gross income and consent to disclose tax information.