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Circular 1194

The Agricultural Act of 2018 (2018 U.S. Farm Bill) extended the cotton commodity loan programs for the 2019 through 2023 crop years. Cotton commodity loan programs include the marketing assistance loan (MAL) program and the loan deficiency payment (LDP) program. These programs provide cotton producers with alternative marketing tools during periods of low cotton prices. Cotton producers can receive marketing loan benefits in the form of marketing loan gains (MLG), loan deficiency payments (LDP), commodity certificate exchange gains, and forfeiture gains. Producers can participate in the MAL or obtain an LDP on all or part of their production at any time during the loan availability period, from harvest until May 31 of the following calendar year.

Status and Revision History
Published on Mar 13, 2020
Published with Full Review on Apr 10, 2023

Faculty
Yangxuan Liu Associate Professor, Agricultural & Applied Economics

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