NCC staff recently was informed that 21 warehouses failed to submit flow reports for the week ending May 16, ’14 and two of those warehouses earned a third strike for failing to submit three reports over the past 12 months. In total for the past 12 months, nine warehouses have earned a third strike.

Even though warehouse inventories may be exceptionally low and regular shipping activity can be slow at this time of year, the reporting rule still applies to every cotton warehouse with a Commodity Credit Corp. (CCC) Cotton Storage Agreement (CSA). See “U.S. Warehouses Not Complying with Mandatory Reporting” on the NCC’s website at

A rule published on Aug. 30, ’06, amended the regulations at 7 CFR, Part 1423.11 – Delivery and Shipping Standards for Cotton Warehouses. The rule states that “CCC may assess a fee equal to the application fee as part of the requirements for reinstatement to the CCC List of Approved Warehouses.” An amendment to the CCC’s CSA for cotton warehouses formally added the weekly flow reporting requirement. An additional reinstatement requirement is to bring the reports up to date by submitting all missing flow reports.

According to the USDA rule, when third strikes are recorded, “… until further notice, no additional CCC-owned or loan commodities subject to the terms of these agreement(s) can be stored or handled through these warehouses. If there are questions regarding this notice, please contact the Farm Service Agency’s Commodity Management Division, Storage Contract Branch in Kansas City, MO, at (816) 926-6446.”


The number of warehouses in the southeast that failed to submit weekly reports increased from 38 to 50.

The number of warehouses in the mid-south that failed to submit weekly reports increased from 19 to 26.