USDA Changes Upland Cotton Measurement Range

WASHINGTON - Feb 24/05 - SNS -- The USDA changed the measurement range for length uniformity in the schedule of premiums and discounts for 2005-crop upland cotton.

To class upland cotton, USDA's Agricultural Marketing Service (AMS) measures length uniformity to the tenth of a percentage point. AMS previously rounded the reading to the nearest whole percent.

Based upon industry interest in more precise measurements, beginning with the 2005 crop of upland cotton AMS will report the measurement to the tenth of a percent.

Producers, merchants, buyers, gins, cooperatives, loan agents, government agencies and others utilizing the Commodity Credit Corporation (CCC) loan schedule must incorporate these new ranges into their business software to calculate accurate loan values for the 2005 crop.

The change pertains to upland cotton eligible for nonrecourse marketing assistance loans. These loans provide producers short-term financing to store harvested crop production rather than immediately selling the crop at harvest. To be eligible for marketing loans, upland cotton must be classed by AMS. The upland loan schedule is used to calculate loan values and is based upon selected quality attributes, including length uniformity.

Today's announcement does not alter the loan value of upland cotton or add any additional quality attributes to the upland cotton loan schedule. The CCC loan schedule for extra long staple (ELS) cotton does not include length uniformity.

The length uniformity measurements, delineated in the customary whole percentage points and in tenths of a percent are shown below:

Length uniformity Length uniformity range
(whole percent) (tenths of a percent)
77 and below 77.4 and below
78.00 77.5 through 78.4
79.00 78.5 through 79.4
80.00 79.5 through 80.4
81.00 80.5 through 81.4
82.00 81.5 through 82.4
83.00 82.5 through 83.4
84.00 83.5 through 84.4
85.00 84.5 through 85.4
86.00 and above 85.5 and above

Thus, beginning with the 2005 loan schedule, a bale that classes 77.4 in length uniformity, for example, will fall into the range of “77.4 and below” rather than “77 and below.” In both cases of this example, the discount will be the same.

The 2005-crop upland cotton loan schedule, which will include loan differences for the usual quality factors -- staple length, color grade, leaf, micronaire, strength, length uniformity and extraneous matter -- will be available in mid-April along with the 2005-crop ELS loan differences schedule.