USDA Announces 2025 Cotton Loan Rate Differentials
The U.S. Department of Agriculture’s Commodity Credit Corporation has announced the 2025 crop loan rate
differentials for upland and extra-long staple cotton.
The differentials, also referred to as loan rate premiums and discounts, were calculated based on market valuations of various cotton quality factors for the prior three years. The Commodity Credit Corporation adjusts cotton loan rates by these differentials so that cotton loan values reflect the differences in market prices for color, staple length, leaf, extraneous matter, micronaire, length uniformity and strength. This calculation procedure is identical to that used in past years.
The 2025 crop differential schedules are applied to 2025 crop loan rates of 52 cents per pound for the base grade of upland cotton and 95 cents per pound for extra-long staple cotton. The 2018 Farm Bill stipulates that the loan rate for the base quality of upland cotton ranges between 45 and 52 cents per pound based on the simple average of the adjusted world price for the two marketing years immediately preceding the next crop planting.
However, the established loan rate cannot be less than 98% of the preceding year’s established loan rate. Along with USDA’s Agricultural Marketing Service classing (quality) measurements, these differentials are used to determine the loan rate for each individual cotton bale.
Visit https://www.fsa.usda.gov/resources/price-support/commodity-loan-rates to see the loan rates.
Farmers Honored As FiberMax One Ton Club Marks 20 Years
Cotton farmers and their families gathered in Lubbock, Texas, April 3 to celebrate FiberMax cotton yield achievements as part of BASF’s FiberMax One Ton Club, a long-standing tradition now in its 20th year. The club recognizes cotton farmers who produce FiberMax yields of one ton or more in a given year. Fifty-six members made this year’s club following the 2024 growing season and were recognized at the annual banquet.
All three new FiberMax cotton varieties that were introduced for the 2024 growing season (FM 765AX, FM 868AXTP and FM 823AXTP1) were used by farmers who achieved this year’s One Ton Club status.
The banquet culminates with a sweepstakes drawing for a two-year lease on a Ford Super Duty F-350 Lariat truck. This year’s winners were Cooper and Rene Ellison of Petersburg, Texas.
“The FiberMax One Ton Club is an important and meaningful tradition at BASF, and we are proud to have honored cotton farmers’ achievements now for 20 years,” said Mark Kelling, area manager at BASF Agricultural Solutions.
Many cotton farmers have qualified for the One Ton Club over its 20-year history, and a growing number have become multi-year winners. Of the 56 growers who made the club this year, 42 were repeat winners. One Ton Club standouts who received special awards for their 2024 performance include:
■ Highest yield: Scott and Jodi Meeks of Dalhart, Texas, harvested an average of 3,012 pounds per acre with FM 1621GL.
■ Highest gross value: Scott and Jodi Meeks of Dalhart, Texas, achieved the highest gross value of $1,551.78 with FM 1621GL.
■ Most acres: H Bar H Farms of Dalhart, Texas, planted 3,239 acres to FM 1621GL and FM 765AX.
■ Most varieties: H Bar H Farms of Dalhart, Texas, planted 3,239 acres to FM 1621GL and FM 765AX. Kornelious and Susana Enns of Enns Farm in Ackerly, Texas, planted 134 acres to FM 823AX and FM 868AX.
■ Highest loan value: Cooper and Rene Ellison of Petersburg, Texas, achieved the highest loan value of $0.5769 with FM 1830GLT.
To qualify for the FiberMax One Ton Club, growers must produce a minimum of 2,000 pounds of ginned cotton per acre on a minimum of 20 acres planted with 100% FiberMax cotton from Jan. 1 to Dec. 31, 2024.
The FiberMax One Ton Club is open to farmers in Alabama, Arizona, Arkansas, California, Georgia, Kansas, Louisiana, Mississippi, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia. Growers must provide an accurate and complete qualification form and gin recap sheets to verify 2,000 pounds per acre yields. Go to rb.gy/3fqyxk to see full details for qualification.
To view the complete list of 2024 winners, visit FiberMax.com/OTC.