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Virginia Cotton:
Price Fallout - Safety Nets in Place
By Johnny Parker, Agronomist
Commonwealth Gin, Windsor, Virginia
October 24, 2008 -
I have not given up on the idea of significant price improvement for
this current crop. Nevertheless, I am encouraged. If we maintain
cotton at the current price levels, there is some good news for
local farmers. We all prefer cotton over 70 cent, however farmers
do better when prices drop below 60 cent than when they are between
60 and 70. At the current price levels:
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The POP payment is at 7.36 cent and
potentially rising
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We have a shot at full counter cyclical
payments (13 cents)
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The Loan pays for storage and interest when
there is a POP
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We have good yields in 80% of the region
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CRC Crop insurance can payoff occurs even
at high yields
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