USDA Publishes Final Rule for Cotton Warehouses

June 21, 2019

The Department of Agriculture’s (USDA) Agricultural Marketing Service has published a final rule in the Federal Register that amends the regulations for delivery and shipping standards for cotton warehouses (7 CFR Part 1423).

The final rule responds to a request from the cotton industry to change certain requirements for warehouses that enter into storage agreements with USDA’s Commodity Credit Corporation (CCC).  The final rule clarifies the definition of Bales Made Available for Shipment (BMAS).  Under the final rule, bales not picked up (BNPU) cannot be counted as BMAS for longer than one week.  Previously, the regulations provided two weeks for this reporting window.  CCC approved cotton warehouses are required to report BMAS, among other data, to CCC every week. 

This change is intended to improve the efficiency of cotton flow from U.S. producers and cotton warehouses to shippers, and ultimately to cotton manufacturers, by more accurately reporting cotton that is available for shipment.

The rule was published in the Federal Register June 21, 2019, and is effective June 24, 2019.  The rule is also available for viewing on-line .  For more information, contact Daniel Shofer, (202) 690-2434.