The USDA’s Commodity Credit Corporation has announced amended regulations affecting the marketing assistance loan program for the 2006 and subsequent crops of upland and Extra Long Staple cotton. Dr. Mark Lange, President and CEO of the National Cotton Council, says there have been some outstanding flow issues in the past several years and that this rule goes a long way towards addressing some of those issues.
According to Lange these new provisions are in line with the comprehensive, unified position established by the industry and delivered to USDA in response to their proposed rule.
Lange says the new provisions also permit cotton that has been stored inside a warehouse, under loan, to be moved to another warehouse.
Lange says the industry created a solid, comprehensive package in response to USDA’s proposed rule and did so in an incredibly short period of time.