Library

Upland Seed Cotton -- Locking the Adjusted World Price (AWP) for Loan Deficiency Payments

Summary

Producers who request a Farm Service Agency (FSA) loan deficiency payment (LDP) on upland seed cotton have the option to "lock in" the world price for computing the payment. The lock-in must be requested after harvest, but before the cotton is ginned. LDPs provided under this option are based on the world price for the date the producer requested the lock-in and are payable after the cotton has been ginned and classed.