2016 Upland Cotton Loan Chart Now Available

Friday, April 22, 2016                                By Shawn Wade

      The United States Department of Agriculture Farm Service Agency released the 2016-crop Upland Cotton Loan Premium and Discount tables on April 15. The new charts reflect the unique market environment into which much of the previous year's crop was sold. A general lowering of premiums for Staple 34 and longer cotton with Leaf grades 1-4 as well as lower discounts for Leaf grades 5-7 highlighted the changes.

The 2016 table also can be found at http://www.plainscotton.org/16UpCotLC.pdf.

      The end result for producers in 2016 is that low-leaf, high-grade cotton with Color grades 11, 21 and 31 and Leaf Grades 1-3 will have slightly lower loan values compared to the previous year, while higher leaf cotton will see increased values.

      Although not severe, virtually all of the declines occurred in the 20 or so Color/Leaf/Staple combinations that are typically the most coveted by the market and the improvements were in quality combinations that were slightly more prevalent in 2015.

      Shorter staple cotton with Leaf grades 4 and lower in the 11, 21 and 31 Color grades will see minimal change in 2016 compared to the previous year.

      Changes in the 2016 premium and discount tables for Bark and Extraneous matter, Micronaire, Strength, and Length Uniformity were mixed with higher value measurements seeing little to no change, while lower value measurements in these categories will be penalized less in 2016 due to discounts getting smaller by 5-30 points. One exception to the trend is Level One Bark in the Texas, New Mexico, Oklahoma region that will garner a slightly higher discount in 2016.

      Highlights from this section include: a continuation of the trend toward lower discounts for Strength readings below 26; lower discounts for Micronaire readings above 4.9 and higher discounts for Micronaire readings below 3.5; and static premium and discount values for all Length Uniformity readings.

      The table below provides comparisons between 2015 and 2016 loan values for White Grades 11-41 and Light Spot grades 12-42, Staple 34 through 38 and higher.

      Complete 2016 Loan Premium and Discount tables and loan charts with calculated values based on the 2016 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 2016-CROP AMERICAN UPLAND COTTON

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

 

Staple

34

35

36

37

38+

Color

Leaf

2015

2016

Change

2015

2016

Change

2015

2016

Change

2015

2016

Change

2015

2016

Change

 

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

SM &

Leaf 1-2

160

145

-15

405

375

-30

510

490

-20

535

525

-10

545

535

-10

better

3

140

120

-20

345

315

-30

445

415

-30

465

450

-15

480

465

-15

11 & 21

4

80

70

-10

220

220

0

305

310

5

315

325

10

325

330

5

 

5

-60

-65

-5

135

135

0

185

190

5

195

200

5

195

200

5

 

6

-285

-280

5

-215

-205

10

-195

-185

10

-195

-185

10

-195

-185

10

 

7

-420

-385

35

-360

-320

40

-340

-300

40

-335

-300

35

-335

-300

35

MID

Leaf 1-2

120

105

-15

345

320

-25

470

440

-30

475

460

-15

490

470

-20

31

3

110

95

-15

320

290

-30

415

395

-20

425

410

-15

440

425

-15

 

4

60

50

-10

190

175

-15

265

250

-15

275

270

-5

280

280

0

 

5

-115

-115

0

80

80

0

130

130

0

140

140

0

140

140

0

 

6

-300

-295

5

-250

-240

10

-225

-215

10

-220

-210

10

-220

-210

10

 

7

-430

-390

40

-385

-350

35

-365

-325

40

-360

-320

40

-360

-320

40

SLM

Leaf 1-3

40

45

5

170

170

0

245

260

15

250

270

20

265

280

15

41

4

Base

Base

Base

110

115

5

195

210

15

200

220

20

210

230

20

 

5

-200

-195

5

-105

-90

15

-40

-20

20

-40

-20

20

-40

-20

20

 

6

-385

-375

10

-320

-305

15

-290

-275

15

-290

-275

15

-290

-275

15

 

7

-530

-495

35

-470

-425

45

-455

-410

45

-455

-410

45

-455

-410

45

SM &

Leaf 1-2

80

80

0

210

230

20

305

335

30

310

340

30

315

350

35

better

3

60

65

5

175

190

15

265

295

30

270

305

35

280

315

35

12 & 22

4

-30

-40

-10

115

125

10

210

240

30

215

245

30

220

255

35

 

5

-230

-235

-5

-115

-105

10

-85

-75

10

-80

-70

10

-80

-70

10

 

6

-425

-430

-5

-365

-350

15

-355

-335

20

-350

-330

20

-350

-330

20

 

7

-560

-535

25

-505

-470

35

-490

-455

35

-490

-450

40

-490

-450

40

MID

Leaf 1-2

-30

-35

-5

30

35

5

90

95

5

90

95

5

95

100

5

32

3

-55

-60

-5

10

5

-5

75

80

5

75

80

5

80

85

5

 

4

-150

-155

-5

-65

-65

0

-10

5

15

-10

5

15

-10

5

15

 

5

-310

-310

0

-245

-240

5

-215

-210

5

-215

-210

5

-215

-210

5

 

6

-475

-475

0

-430

-425

5

-415

-410

5

-415

-410

5

-415

-410

5

 

7

-610

-585

25

-565

-530

35

-550

-520

30

-550

-520

30

-550

-520

30

SLM

Leaf 1-3

-165

-170

-5

-80

-80

0

-20

-15

5

-20

-15

5

-20

-15

5

42

4

-205

-205

0

-135

-135

0

-80

-70

10

-80

-70

10

-80

-70

10

 

5

-370

-370

0

-290

-285

5

-275

-270

5

-275

-270

5

-275

-270

5

 

6

-510

-505

5

-465

-455

10

-450

-445

5

-450

-445

5

-450

-445

5

 

7

-660

-635

25

-605

-570

35

-595

-565

30

-595

-565

30

-595

-565

30


American Cotton Producers Get Updates

on Issues Confronting Cotton

Wednesday, April 20, 2016 By Forrest Laws, Delta Farm Press

      Shane Stephens says the first few weeks of his tenure since he was elected chairman of the National Cotton Council at its annual meeting in Dallas in February have been quite busy.

      Anyone familiar with the Council's activities knows that's an understatement given the economic climate the U.S. cotton industry is facing due to low cotton prices, high input costs and legislative, regulatory and trade issues in Washington and overseas.

      "The Council has been very active on numerous fronts," said Stephens, speaking at the spring meeting of the American Cotton Producers in Birmingham, Ala. "Our primary focus has been on successfully addressing the economic challenges that face our industry.

      "With the 2015 cotton acreage being the lowest in more than 30 years; exports being the smallest in 15 years; and prices being as low as they've been since the 2009 recession the industry has concentrated its efforts on USDA, seeking secretarial designation of cottonseed as another oilseed for eligibility under the 2014 farm bill ARC and PLC programs."

      Stephens said the industry built a broad base of support within Congress and also generated support for the program within the agricultural lending community and other commodity groups. Industry leaders also helped place more than 60 "op-ed" articles in newspapers across the country.

      "While those efforts have not yet produced the results we want, we knew this was likely to be a challenging and drawn out effort," he said. "As a result, we are continuing to demonstrate the financial need that exists in the countryside and are working closely with House Agriculture Committee Chairman Mike Conaway, House Agriculture Appropriations Subcommittee Chairman Robert Aderholt, Senate Appropriations Committee Chairman Thad Cochran, Senate Agriculture Appropriations Subcommittee Chairman Jerry Moran and other friends in Congress to seek this designation."

      Cotton Council leaders have also been seeking short-term assistance in meetings with Agriculture Secretary Tom Vilsack and his staff.

      Stephens was one of a long list of speakers who addressed the American Cotton Producers, the organization that represents the Council's producer segment, on a broad range of issues which some believe are among the most challenging to ever confront the cotton industry.

      Despite those challenges, the state and regional producer representatives attending the meeting said they expect cotton plantings to be up in the areas in 2016. Only the Southeast, which faced drought and flood conditions at different times in 2015, indicated an acreage decline.

      The Mid-South or Delta states are expected to see the largest percentage increases, according to their representatives. Arkansas is expected to be up 57 percent from 210,000 acres in 2015 to 330,000 in 2016; Louisiana, up 30 percent from 115,000 to 150,000; Mississippi, up 40 percent from 320,000 to 450,000; and Tennessee, up 30 percent to 245,000. (Missouri did not have a representative at the meeting.)

      South Texas is expected to reach 700,000 as prevented planted acres from last year return to cotton; the Rolling Plains is expected to plant 1.25 million and the High Plains could seed between 3.5 million and 3.8 million acres, according to Texas representatives.

      In the Far West, Arizona could plant 135,000; California, 206,000; and New Mexico 41,000. Arizona and California's acreage would be up while New Mexico's would be almost even with last year's.

 

Want the facts about the U.S. agriculture and farm policy?

http://www.farmpolicyfacts.org

 

NCC Announces 2016-17 Emerging Leaders

Thursday, April 21, 2016   From the National Cotton Council

      Twelve U.S. cotton industry members have been chosen to participate in the National Cotton Council's (NCC) Emerging Leaders Program for 2016-17.

      Participants, by industry segment, include: PRODUCERS - Brian Adamek, El Campo, Texas; Andrew Clark, Clovis, Calif.; Scott Flowers, Clarksdale, Miss.; Nick McMichen, Centre, Ala.; Steven Meeks, Screven, Ga.; Russ Ratcliff, St. Joseph, La.; Jerry Rovey, Buckeye, Ariz.; and Rich Vinson, Sikeston, Mo.; GINNER - Wes Morgan, New London, N.C.; COTTONSEED - Jerrod Drinnon, Lubbock, Texas; WAREHOUSER - Kent Ballard, Lubbock, Texas; and MARKETING COOPERATIVE - David Mullins, Rotan, Texas.

      Since being initiated in 2013, the Emerging Leaders Program has been supported by a grant to The Cotton Foundation from Monsanto.

      Overall, the Emerging Leaders Program provides participants a better understanding of how the NCC carries out its mission of ensuring the U.S. cotton industry's seven segments can compete effectively and profitably in the raw cotton, oilseed and U.S.-manufactured product markets at home and abroad.

      Specifically, participants get an in-depth look at: 1) the U.S. cotton industry infrastructure and the issues affecting the industry's economic well-being; 2) the U.S. political process; 3) the NCC's programs and its policy development and implementation process, and 4) Cotton Council International's activities aimed at developing and maintaining export markets for U.S. cotton, manufactured cotton products and cottonseed products.

      Class members will participate in three sessions. The first, set for the week of June 12 in Memphis and St. Louis, will provide an orientation to the NCC, professional development/communication skills training and an agribusiness briefing. During the second session in February, class members will see policy development at the NCC's 2017 Annual Meeting in Dallas while the third session in Washington, D.C., will focus on policy implementation and international market development.