2023 Upland Cotton Loan Chart Reinforces Market Demand for Higher Quality

By Shawn Wade

The United States Department of Agriculture Farm Service Agency released the 2023-crop Upland Cotton Loan Premium and Discount tables on April 17. The new 2023 premium and discount schedule continues reinforce the market’s emphasis on quality and should reward growers who produce higher quality cotton. The Base Loan rate for 2023 Upland cotton was also announced and remains 52 cents per pound.

The 2023 tables reverse virtually all the changes made in 2022 when premiums and discounts were lowered, especially for White grades 11-41 and Staple lengths 34 and longer. In these Color/Staple combinations the 2023 table adds additional premium for Leaf grades 1-4 and increases discounts for higher leaf measurements.

Beyond the Color/Staple/Leaf tables, the 2023 loan chart maintains the maximum -4000 discount for Level One and Level Two Plastic contamination in the schedule for Extraneous Matter, highlighting the significant problem this situation presents to textile mills and spinners.

For Upland Cotton the 2023 Strength table includes significant changes for the second time in the past three years. In 2021, growers saw discounts for Strength readings below 25.9 g/tex increased significantly. Those discount levels were mostly unchanged in 2022 but have been bumped up again for 2023 as follows:

  • 17.9 g/tex and lower – Discount increased by 100 points.
  • 18-18.9 g/tex and 19-19.9 g/tex – Discount increased by 140 points.
  • 20-20.9 g/tex and 21-21.9 g/tex – Discount increased by 130 points.
  • 22-22.9 g/tex and 23-23.9 g/tex – Discount increased by 120 points.
  • 24-24.9 g/tex – Discount increased by 115 points.
  • 25-25.9 g/tex – Discount increased by 105 points.

Premium and discount tables for other types of Extraneous Matter, Micronaire and Length Uniformity have mostly smaller 5 to 25-point adjustments in 2023.

The most change is in the Micronaire table where discounts for measurements from 3.4 to 2.7 will have smaller discounts with improvements ranging from 15 to 25 points. The other notable change is for Micronaire between 2.5 and 2.6 where the discount was reduced by 55 points from -1415 to -1360.

The table above provides comparisons between 2022 and 2023 loan values for White Grades 11-41 and Light Spot grades 12-42, Staple 34 through 38 and higher.

Download 2023 Loan Premium and Discount tables

Download loan charts with calculated values based on the 2023 schedule of premiums and discounts

Verified by MonsterInsights