Cotton storage tight in Florida, Missouri
The U.S. Department of Agriculture said Tuesday that because cotton storage facilities in Florida and Missouri are expected to fill that cotton pledged as collateral for Commodity Credit Corp. (CCC) loans in those states can be stored in specifically designated outdoor areas.
“Industry forecasts for the 2009 marketing year put Florida and Missouri cotton warehousing requirements above normal, which means regulated storage facilities may not have enough room to store the crop,” the USDA warned.
“Based on (National Agricultural Statistic Service) numbers and the amount of cotton held from previous years, known as carryover stocks, CCC predicts that some of this year’s stored inventory may need to be stored outside,” the department added.
According to the USDA, to be authorized for outside storage of cotton-loan collateral, a warehouse must agree to specific storage and reporting requirements for yard-stored bales before it can be allowed to put them outside.
“Approval to store cotton outside applies only to bales pledged as collateral for a marketing assistance loan with CCC,” the USDA said.
The department noted that the approval does not relieve the warehouse of any obligations to the producer or others regarding storage. “For cotton that has no collateral interest to CCC, it must be stored in compliance with all applicable licensing and/or state laws, rules and regulations,” the USDA said.