Thursday, July 29, 2010

Storage Costs Were Offset

NCC Critical Of Obama Budget Proposal

Storage Costs Were Offset

The 2008 farm law includes provisions for the Commodity Credit Corporation (CCC) to pay a portion of the storage costs during periods of low prices. These provisions' costs were completely offset by changes in the upland cotton counter-cyclical target price.

"Baled upland cotton is an identity-preserved commodity that re-quires off-farm storage in facilities approved by CCC while under loan," Hardwick says. "Loan eligible cotton must comply with a number of CCC regulations stipulating bale wrapping and packaging.

"Foreign sales account for one-third of U.S. agricultural production's total value," Hardwick adds. "Solid export performance is essential for the economic health of rural America."

source : cottonfarming


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