Because the AWP is below 52.35 cents per pound, the base quality loan rate for both the 1992 and 1993 marketing years, the loan repayment rate during this period is equal to the AWP, adjusted for the specific quality and location plus applicable interest and storage charges. The AWP will continue to be used to determine the value of upland cotton that is obtained in exchange for commodity certificates.
Because the AWP is below the 1993-crop loan rate, cash loan deficiency payments (LDPs) will be paid to eligible producers who agree to forgo obtaining a price support loan with respect to the 1993 crop. The payment rate is equal to the difference between the loan rate and the AWP. Producers are allowed to obtain an LDP on a bale-by-bale basis.
The USNE price has exceeded the NE price by more than 1.25 cents per pound for four consecutive weeks and the AWP has not exceeded 130 percent of the 1993 crop year base quality loan rate in any week of the 4-week period. As a result, the user marketing certificate payment rate is 1.75 cents per pound. This rate is applicable during the Friday through Thursday period for bales opened by domestic users and for cotton contracts entered into by exporters for delivery prior to Sept. 30, 1994. Relevant data are summarized below:
| Week | For the Friday through Thursday Period Ending |
USNE Price |
NE Price |
User Marketing Certificate Payment Rate |
| . . . . . | cents/lb | . . . . . | ||
| 1 | Dec. 16, 1993 | 62.30 | 59.09 | 1.96 |
| 2 | Dec. 23, 1993 | 63.50 | 60.92 | 1.63 |
| 3 | Dec. 30, 1993 | 65.50 | 62.00 | 2.25 |
| 4 | Jan. 6, 1994 | 66.75 | 63.75 | 1.75 |
Next week's AWP, CCA and user marketing certificate payment rate will be announced on Thursday, Jan. 13, at 5 p.m.
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