Adjusted spot price
means the spot price adjusted to reflect any lack of data for base quality to make the adjusted spot price
comparable to a spot price assuming the base quality. If base quality spot price data are not available, spot prices for other qualities will be used and adjusted by the average difference between base quality spot prices and those for other qualities over the available observations during the previous 12 months.
Approved cooperative marketing association
(CMA) means a cooperative marketing association approved under part 1425 of this chapter
which has executed a Cotton
Cooperative Loan Agreement on a form prescribed by CCC
means the removal of the bagging and ties from a bale of eligible upland cotton
in the normal opening area, immediately before use, by a manufacturer in a building or collection of buildings where the cotton
in the bale will be used in the continuous process of manufacturing raw cotton
products in the United States.
means all fees, costs, and expenses incurred by CCC
in insuring, carrying, handling, storing, conditioning, and marketing the cotton
tendered to CCC
for loan. Charges
also include any other expenses incurred by CCC
in protecting CCC
's or the producer's interest in such cotton
means the measurement results provided by the Agricultural Marketing Service
(AMS) of color grade, leaf, staple, strength, extraneous matter and micronaire, and for upland cotton
, length uniformity.
Commodity certificate exchange
means the exchange, as provided in part 1404 of this chapter
, of commodities pledged as collateral for a marketing assistance loan at a rate determined by CCC
in the form of a commodity certificate bearing a dollar denomination. Such certificate may not be transferred or exchanged for the inventory of CCC
means the use of eligible cotton
by a domestic user in the manufacture in the United States of cotton
means upland cotton
and extra loan staple cotton
meeting the definition in the definitions of “upland cotton” and “extra long staple (ELS) cotton” in this section, respectively, and excludes cotton
not meeting such definitions.
means a person approved by CCC
to assist producers in preparing loan and loan deficiency documents.
means any product containing cotton
fibers that result from the use of a bale of cotton
Cotton storage deficit area
means a State, County, or group of contiguous counties within a State, where the production of cotton
for the area based on the most recent estimate from the USDA, National Agricultural Statistics Service
exceeds the combined approved inside storage capacity less carry-in stocks, of warehouses that have entered into a Cotton
Storage Agreement with CCC
Current Far East shipment price
means, during the period in which two daily price quotations are available for the growth quoted for M 13/32
, CFR (cost and freight) Far East, the price quotation for cotton
for shipment no later than August/September of the current calendar year.
Electronic Agent Designation is an electronic record that:
Designates the entity authorized by a producer to redeem all of the cotton pledged as collateral for a specific loan;
Is maintained by providers of electronic warehouse receipts; and
A producer may authorize CCC to use as the basis for the redemption and release of loan collateral.
Extra long staple (ELS) cotton
means any of the following varieties of cotton
which is produced in the United States and is ginned on a roller gin:
All other varieties of the Barbadense species of cotton, and any hybrid thereof; and
Any other variety of cotton in which one or more of these varieties predominate.
False packed cotton
in a bale containing substances entirely foreign to cotton
; containing damaged cotton
in the interior with or without any indication of the damage on the exterior; composed of good cotton
on the exterior and decidedly inferior cotton
in the interior, but not detectable by customary examination; or, containing pickings or linters worked into the bale.
Financial institution means:
A bank in the United States which accepts demand deposits; and
An association organized pursuant to Federal or State law and supervised by Federal or State banking authorities.
Form A loan
means a nonrecourse loan entered into between a producer and CCC
Form G loan
means a CCC
nonrecourse loan entered into between a CMA
means a bale of cotton
that, by comparison with the photographic standards of “A Guide for Cotton
Bale Standards” of the Joint Cotton
Industry Bale Packaging Committee, is determined to be a Grade A or Grade B bale.
that has passed through the ginning process.
Loan deficiency payment
means a payment received in lieu of a loan when the CCC
-determined value is below the applicableloan rate.
Loan servicing agent
means a legal entity that enters into a written agreement with CCC
to act as a loan servicing agent
in making and servicing Form A cotton
loans. The loan servicing agent
may perform, on behalf of CCC
, only those services which are specifically prescribed by CCC
including, but not limited to, the following:
Accepting loan repayments;
Handling documents involved with forfeiture of loan collateral to CCC; and
Transfer means, depending on the context, the process for a producer or an authorized agent of the producer to:
Physically relocate cotton loan collateral from one CCC-approved warehouse to another CCC-approved warehouse,
Exchange an electronic warehouse receipt for a receipt certificated by a warehouse for delivery under a futures contract without physically relocating the cotton, or
Do both of the above.
means planted and stub cotton
which is produced in the United States from other than pure strain varieties of the Barbadense species, any hybrid thereof, or any other variety of cotton
in which one or more of these varieties predominate.
means a receipt containing the required information prescribed in this part that may or may not be certificated for delivery for a futures-pricing contract
, and is:
For 2008-crop cotton only, a pre-numbered, pre-punched negotiable warehouse receipt issued under the authority of the U.S. Warehouse Act, a state licensing authority, or by an approved CCC warehouse in such format authorized and approved, in advance, by CCC; or
For 2008 through 2012-crop cotton, an electronic warehouse receipt record issued by such warehouse recorded in a central filing system or systems maintained in one or more locations that are approved by FSA to operate such system.
means a bale of cotton
that, at a gin, has 7.5 percent or more moisture, wet basis, at any point in the bale.
[67 FR 64459
, Oct. 18, 2002, as amended at 71 FR 51427
, Aug. 30, 2006; 73 FR 30275
, May 27, 2008; 73 FR 65719
, Nov. 5, 2008;75 FR 50849
, Aug. 18, 2010]