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USDA/FSA

RIN: 0560-AH78

Publication ID: Fall 2008

Title: ●Cotton World Price Determination
Abstract: The final rule will enable the Secretary to continue to comply with the mandate in section 1204 (d) of the Farm Security and Rural Investment Act of 2002 to prescribe by regulation a formula to determine the prevailing world market price for upland cotton. Section 1204 (b) requires the Secretary to permit producers of upland cotton to repay a marketing assistance loan at a rate that is the lesser of (1) the loan rate plus interest or (2) the prevailing world market price (adjusted to United States quality and location). Current regulations provide that the prevailing world price for upland cotton be based on N. Europe price quotes, and further, that beginning in April of each year and continuing for a period of 6 weeks (transition period), the prevailing world price shall be determined using a combination of current crop (current) quotes and new crop (forward) quotes. Cotlook, Ltd., the supplier of N. Europe quotes, has announced that it will not publish forward crop quotes, N. Europe basis, for the 2008 season. In order to comply with the transition period requirement, an alternative source of forward quotes must be identified. A readily available and widely-accepted source of both current and forward cotton price quotes exists with Cotlooks Far East price quotes. No other source for comparable prices is known. Using the Far East quotes for determining the prevailing world market price for upland cotton will enable the Secretary to continue to comply with the requirements for determining the world price for cotton and the transition period. This program is scheduled to expire on July 31, 2008, and is anticipated to continue under the pending Farm Bill.
Agency: Department of Agriculture(USDA)	Priority: Other Significant
RIN Status: First time published in the Unified Agenda	Agenda Stage of Rulemaking: Completed Actions
Major: No	Unfunded Mandates: No
CFR Citation: 7 CFR 1427
Legal Authority: 7 USC 7934

Legal Deadline: None

Timetable:

Action	Date	FR Cite
Final Rule	05/27/2008	73 FR 30274

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: No
Agency Contact: Deirdre Holder Branch Chief, Regulatory Analysis and PRA Requirements Branch Department of Agriculture Farm Production and Conservation Business Center, 1400 Independence Avenue SW, Washington, DC 20250-0572 Phone:202 205-5851 Email: deirdre.holder@usda.gov