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2025 cotton loan rate fixed at 52 cents

Jan 03, 2025
By Farms.com

USDA supports cotton producers with loan rate update

The USDA Commodity Credit Corporation has set the 2025 marketing assistance loan rate for upland cotton at 52.00 cents per pound. This program ensures farmers have interim financing, allowing them to store crops post-harvest and sell when market prices improve.

The loan rate applies to base quality upland cotton, defined by traits such as a colour grade of 41, micronaire of 3.5-4.9, and uniformity of 80.0-81.9%. These standards ensure consistent support for cotton producers across the U.S.

The Agriculture Improvement Act of 2018 regulates the loan rate, ensuring it reflects global market trends while staying within the 45 to 52 cents per pound range. This mechanism stabilizes cotton production and trade, providing producers with financial flexibility.

FSA plays a crucial role in delivering USDA programs, helping farmers invest in and sustain their agricultural operations. From conservation to disaster recovery, USDA initiatives contribute to a resilient and equitable agricultural sector.

Learn more about USDA programs by visiting fsa.usda.gov.


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