USDA Announces Steps to Address Cotton Storage Shortage in Southern Texas

October 19, 2018

The United States Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) today announced that cotton warehouse operators located in southern Texas may apply for authorization to store cotton outside in specifically designated areas, effective October 20, 2018 through January 31, 2019.  The warehouse operator must have a Cotton Storage Agreement with the Commodity Credit Corporation (CCC), dated July 1, 2018.

This action addresses a lack of warehouse storage space in southern Texas for the 2018 cotton marketing year, as determined by CCC.  This determination only applies to cotton warehouses in the following Texas counties:  Brazos, Cameron, Galveston, Harris, Hidalgo, Nueces, San Patricio, Webb, Wharton, Williamson and Willacy.

Several issues have combined to create a storage deficit for the 2018 crop in southern Texas, including:  a transportation shortage in the southern Texas region; unavailable warehousing facilities in the Corpus Christi region; increased production due to higher than normal yields in the upper Texas coast area; and record high inbound flow from gins to warehouses.

As the U.S. cotton harvest and ginning progresses this year, CCC will determine if there are storage deficit areas in other areas of Texas or other states.

The Warehouse and Commodity Management Division, which is in the AMS Fair Trade Practices Program, administers  Cotton Storage Agreements on behalf of CCC for over 300 cotton warehouses.  USDA currently has storage agreements with over 3,000 commodity warehouses and other storage facilities that are critical to the efficient and effective marketing of agricultural commodities throughout the United States.

For further information contact Dan Schofer, Cotton Program Manager, AMS Warehouse and Commodity Management Division at 202-690-2434 or dan.schofer@ams.usda.gov.

 

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