Sourcing Seed Cotton Program Pricing and Production Information

Michael Deliberto  |  6/22/2018 7:08:04 PM

This report serves as an informational source for growers who are interested in projecting potential PLC program payments for the new seed cotton program for the 2018 crop year. Given the nature of the seed cotton program design, upland cotton lint prices per pound and cotton seed per ton are used in formulating the seed cotton price per pound. Seed cotton price consists of the weighted proportional share between the cotton lint price per lb. and the cottonseed price per lb. These weighted proportional shares are combined and comprise the seed cotton price per pound that is then compared against the congressionally mandated seed cotton reference price of $0.367 per pound. If this calculated seed cotton price falls below the mandated reference price of $0.367, then the difference between these two prices constitutes the PLC payment rate.

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