Cotton growers request loan program updates in ’23 Farm Bill
Cotton growers are requesting updates to loan programs in the 2023 Farm Bill.
During a House Ag Subcommittee Hearing this week, National Cotton Council Chairman Shawn Holladay of Texas highlighted the Non-Recourse Marketing Loan Program for upland cotton.
“Despite higher production costs, the maximum level of the loan rate has remained at 52 cents since 2002. It should be increased to better reflect the cost of production and recent market prices.”
He says various loan repayment provisions should also be modernized to better reflect the global market and higher storage and logistics costs.
“These improvements include allowing storage credits to better reflect storage charges, determining a globally competitive adjusted price based on the three lowest international prices, limiting the amount of annual decline in cost to market values and creating a 30 day window for finalizing the AWP.”
He says the 2018 Farm Bill continued important programs for pima cotton grown in the southwestern US and the 2023 Farm Bill should also increase the pima loan rate to reflect current production costs.