The U.S. Department of Agriculture (USDA) has announced that because cotton storage facilities in Florida and Missouri are expected to fill, cotton that is pledged as collateral for Commodity Credit Corporation (CCC) loans in those states can be stored in specifically designated outdoor areas.
Industry forecasts for the 2009 marketing year put Florida and Missouri cotton warehousing requirements above normal, which means regulated storage facilities may not have enough room to store the crop. CCC used the National Agricultural Statistic Service (NASS) Oct. 9, 2009, production estimates to make its determination. Based on those numbers and the amount of cotton held from previous years, known as carry-in stocks, CCC predicts that some of this year's stored inventory may need to be stored outside.
To be authorized for outside storage of cotton-loan collateral, a warehouse must agree to specific storage and reporting requirements for yard-stored bales before it can be authorized to put them outside.
Approval to store cotton outside applies only to bales pledged as collateral for a marketing assistance loan with CCC. This approval does not extend to CCC-owned cotton or other cotton that is not pledged as CCC loan collateral and does not relieve the warehouse of any obligations to the producer or others regarding storage. For cotton that has no collateral interest to CCC, it must be stored in compliance with all applicable licensing and/or state laws, rules and regulations.
For application information, contact: Paul Rodriguez at 816-926-6662 or [email protected].