USDA Announces Authorization to Store Cotton Outside in Designated Areas of Texas, California, Arizona Through January 31, 2020

September 12, 2019

The U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) today announced that cotton warehouse operators located in southern Texas, California, and Arizona may apply for authorization to store cotton outside in specifically designated areas, effective September 9, 2019 through January 31, 2020.

For warehouses located in southern Texas, the warehouse operator must have a signed Commodity Credit Corporation (CCC) Cotton Storage Agreement (CSA), dated July 1, 2019.  For warehouses located in California and Arizona, the warehouse operator must have a CSA dated either July 1 or Sept. 1, 2019.

This action addresses increased production, market obstacles to cotton flow, and lack of warehouse storage space in southern Texas, California and Arizona for the 2019/2020 cotton marketing year, as determined by the 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.

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

The Warehouse and Commodity Management Division, part of the AMS Fair Trade Practices Program, administers Cotton Storage Agreements on behalf of the 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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