Marketing
Marketing plans
100% Seasonal Pool
Management makes all marketing decisions: Pricing, CCC Loan, LDP, etc. Advance payment made when bales are delivered at harvest with quality adjustments applied using CCC Loan Schedule.
Progress payments issued in February and May with cash settlement/patronage refund in September. Premiums paid based on USDA Schedule.
Seasonal Pool advantages . . .
- Proven History of Outstanding Returns
- Less Worry about the Market
- Not Subject to Margin Calls
- Minimizes Risk to Grower
- Production Contracts
- No Penalty for Loss of Production due to Natural Causes
Premium Call Pool
Member makes all pricing and LDP decisions. Price cotton and lock-in LDP through the Cooperative. Lock-in LDP Rate until Jan. 31st. Production contract.
A competitive basis is determined each year by the Cooperative as the cotton is marketed throughout the season. A maintenance margin is maintained for safety. USDA premiums and discounts only. No additional quality discounts are applied.
Spot Basis Call Pool
Member makes all pricing and LDP decisions on a bale only contract. A fixed basis is offered by the Cooperative subject to change based on market conditions. The basis can be rolled forward subject to minimum carrying charges. No premiums paid on quality. CCC Loan discounts apply.
Seasonal/Call Combination
Member designates the number of bales to be assigned to either the Premium Call Pool and/or Spot Basis Call Pool option with remaining bales to be marketed in the Seasonal Pool. First bales delivered will be applied to Call Pool before any bales applied to Seasonal Pool. All other rules apply to both pools as stated above.
Option Protection Program
The Option Protection Program works in conjunction with either the Seasonal Pool or Call Pools. The member buys puts or calls to set price floors or hedge price risk. No brokerage account is necessary. The cost of options are offset against cotton payments.
Pool Comparisons
Benefits of marketing with cotton growers
Why should a producer market with the Cooperative?
- Second oldest cotton marketing cooperative in the United States, founded in 1922. Proven staying power in cotton market.
- Owned by over 450 member/producers. 100% Producer owned.
- Board of Directors consists of 10 cotton producers.
- Financed through the Commercial Banking System and Commodity Credit Corporation (CCC).
- All merchandising gains (weight, quality gains, carrying charges, government price support system, etc.) returned to members.
- Our presence in the market benefits members and non-members. If the Cooperative were not here, it would be more difficult for growers to get a fair price for their crop, since their only outlet would be independent buyers.
- The Cooperative does not "purchase" the cotton as independent buyers do. The producer/member passes title for the cotton they produce on a particular farm directly to the Cooperative with a Marketing Agreement. This type of agreement is for three reasons:
- Marketing advantages (price) are available when large pools of cotton are submitted for optimizing quality, creating potential for high prices and reducing handling costs.
- By operating on behalf of an individual grower, the Cooperative can utilize the Form G Loan contract through Commodity Credit Corporation and generate a prompt payment (often called an "advance") to the member for cotton delivered.
- The member can market the cotton and receive advances and the Cooperative can still collect marketing loan gains or LDP's for distribution back to the member.
What is our Objective?
- To maximize the producer/member's profit while adding value to the cotton produced over the entire marketing period.
- To enhance our members' incomes.
- To give the mills on-time deliveries of the quantities and qualities of cotton they purchase.
- To provide "Service with Integrity" that encourages trust and confidence in the Cooperative and exceeds the standards of business and personal conduct.
What is our Marketing Program?
- All members' bales are marketed through pooling arrangements.
- Producer signs up by Farm Serial Number.
- Flexible Marketing Pool Options.
Frequently Asked Questions
When is the deadline to sign-up your crop as a New Member?
March 31 prior to crop year
When is the deadline to exclude farms for a particular crop year?
March 31 prior to crop year
When are payments made in the Seasonal Pool?
| Initial Payment | Upon delivery of receipts and available grades |
| 2nd Payment | End of February |
| 3rd Payment | End of May |
| Final Settlement | No later than September 15th |
When are checks/direct deposits made during the crop year?
Checks are MAILED every Wednesday and Direct Deposits are processed into bank accounts every Wednesday.
How do I sign-up for Direct Deposit?
Go to the Documents section on the Financial Services page and print the Direct Deposit Form. Then, send the completed form along with a voided check to our offices. It takes 2 weeks to establish your account with our bank for direct deposit. You can also fax the form and a copy of your voided check to us at 919-773-4495.
Do I need to sign a CCC-709 or CCC-AA form for LDP payments at my local FSA office?
No, you do not and SHOULD NOT complete a CCC-709 or AA form for LDP payments at your FSA office. If you are participating in our Seasonal Pool, then we handle all the LDP/market gains on all the cotton in the Seasonal Pool on your behalf. You receive the average of the LDP/market gain for the year as part of your net return. If you are participating in the Call Pool, you will lock-in your LDP rate with the Cooperative. This can be done anytime between when your cotton is in a module or January 31st of the crop year. Please keep in mind that if you lock-in an LDP rate with module numbers, this will count towards your Payment Limitation. Otherwise, we use certificates for all LDP/market gains.
Can I hold my payments until the 1st of the calendar year?
Yes you can. All you need to do is notify us BEFORE you begin ginning. Or, if you are unsure of what your financial needs are, then we recommend that you have us hold your funds until January of the upcoming calendar year and then call us if you need funds before that time. Your cotton is invoiced at the time the electronic receipts are delivered, so payments have already been processed even though you may not have required the cash at that time.
How do I update my address or change my account with the Cooperative?
You can call us toll-free at 1-800-662-7082 to make any changes on your account.