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USDA declares 3 states as storage deficit areas

17
Nov '08
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) announced that Florida, Kansas, and Missouri are storage deficit areas for the 2008-crop cotton marketing year.

CCC determines an area to be storage deficit if the production of cotton exceeds the combined approved inside storage capacity of warehouses that have entered into a Cotton Storage Agreement with CCC, less carry-in stocks for the area. Approved cotton storage warehouses located in such storage deficit areas may apply to CCC for authorization to store cotton pledged as collateral for a CCC loan outside.

For the 2008 marketing year determination, CCC used the Oct. 10, 2008, production estimates by the National Agricultural Statistic Service (NASS) and carry-in stocks of the same time period.

To be authorized for outside storage of cotton loan collateral, a warehouse must agree to specific storage and reporting requirements for yard-stored bales.

CCC's 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.

All cotton, in which CCC does not have an interest, must be stored in compliance with all applicable licensing and/or state laws, rules and regulations.

United States Department of Agriculture


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