To print: Click here or Select File and then Print from your browser's menu
------------------------------------------------------------------- This story was printed from the USDA, Farm Service Agency Newsroom, located at http://www.fsa.usda.gov/FSA/newsReleases?area=newsroom&subject=landing&topic=ner&newstype=newsrel. -------------------------------------------------------------------
NEWS Farm Service Agency Public Affairs Staff 1400 Independence Ave SW Stop 0506, Room 3624-South Washington, D.C. 20250-0506 Release No. 1719.04 Program Announcement Stevin Westcott (202) 720-4178 stevin_westcott@wdc.usda.gov USDA ANNOUNCES PREVAILING WORLD MARKET PRICE, LOAN DEFICIENCY PAYMENT RATE, AND USER MARKETING CERTIFICATE PAYMENT RATE FOR UPLAND COTTON WASHINGTON, Oct. 14, 2004 -- The Department of Agriculture's Commodity Credit Corporation today announced the prevailing world market price, adjusted to U.S. quality and location (adjusted world price or 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 80-82 percent) upland cotton (base quality), the coarse count adjustment (CCA) and the loan deficiency payment rate, and the user marketing certificate (Step 2) payment rate that will be in effect from 12:01 a.m., Eastern time, Friday, Oct. 15, 2004, through midnight, Eastern time, Thursday, Oct. 21, 2004. Cents/lb. Adjusted World Price (AWP) ................ 37.69 Coarse Count Adjustment (CCA) ............. 0.00 Loan Deficiency Payment Rate .............. 14.31 User Marketing Cert. Rate (Step 2)......... 0.00 This week’s AWP and CCA are determined as follows: NE Price .............................. 52.75 Adjustments: Avg. U.S. spot market location ... -11.55 SLM 1-1/16 inch cotton ............ –3.55 Avg. U.S. location ................ 0.04 Sum of Adjustments ....................... –15.06 ADJUSTED WORLD PRICE ...................... 37.69 NE Price ................................ 52.75 NE Coarse Count Price ................... –50.10 Adjustment to SLM 1-1/32 inch cotton .... –5.60 COARSE COUNT ADJUSTMENT (Cannot be less than zero) 0.00 The Farm Security and Rural Investment Act of 2002 provides that the AWP may be further adjusted if: 1) the AWP is less than 115 percent of the current crop year loan rate for base quality upland cotton, and 2) the USNE price exceeds the NE price. This week, both conditions for this adjustment have been met, and it has been determined that this further adjustment to the AWP shall be 0.00 cents per pound. Because the AWP for the period is less than 52.00 cents per pound, which is the base quality loan rate, the loan repayment rate during this period is equal to the AWP, adjusted for the specific quality and location. The loan repayment amount will be further adjusted by the application of a storage credit, and interest will be waived. Because the AWP is less than the 2004-crop loan rate, cash loan deficiency payments (LDPs) will be paid to eligible producers who agree to forego obtaining price support loans with respect to the 2004 crop. The payment rate of 14.31 cents per pound is the difference between the base loan rate of 52.00 cents and the AWP. Step 2 payments will not be made this week. The USNE price has not exceeded the NE price for four consecutive weeks. Relevant data for the Step 2 program follow: AWP as % Fri/Thur of 2004 USNE Period Base Loan USNE NE Less Step 2 Dates Week Ending Rate Price Price NE Price Rate Applicable .......... cents/lb ........... 1 09/23/04 76.8 53.95 55.00 -1.05 0.00 (09/24-09/30) 2 09/30/04 76.2 53.95 54.67 -0.72 0.00 (10/01-10/07) 3 10/07/04 73.9 53.50 53.48 0.02 0.00 (10/08-10/14) 4 10/14/04 72.5 52.85 52.75 0.10 0.00 (10/15-10/28) NOTE: The next announcement of the AWP, CCA, LDP rate, and user marketing certificate payment rate for upland cotton will be on Thursday, Oct. 21, 2004, at 5 p.m., Eastern time. Further program information is available from Steve Neff, (202) 720-7954, e-mail steve_neff@wdc.usda.gov. # NOTE: Farm Service Agency (FSA) news releases and media advisories are available on the World Wide Web at FSA's home page: http://www.fsa.usda.gov. |