The Upland Cotton Loan Valuation Program is designed to facilitate calculation of Commodity Credit Corporation (CCC) upland cotton loan premium and discount values given high-volume instrument (HVI) classing information. Through support of Cotton Incorporated, this program is updated annually to reflect changes in the premium and discount schedule for each year's upland cotton crop.
The Upland Cotton Loan Valuation Program is primarily used for evaluation of variety trials and result demonstration studies, although it can be used without modification for other applications involving calculation of cotton loan values. If desired, this program has the capability to calculate net returns over an experimental treatment and harvest cost on a per acre basis. Results can be presented in both report and graphical formats. This program is distributed as a compiled spreadsheet, so no specific type of spreadsheet software is required to run the Cotton Loan Valuation Program.
To calculate loan values for each sample, the Cotton Loan Valuation Program requires user input of data related to HVI classing results including: color and leaf grades, micronaire, length in inches, strength in grams per tex, uniformity index and bark grade for each sample. If it is necessary to change the base CCC loan rate to reflect the value for your particular area, the Cotton Loan Valuation program does accommodate this change.
The Cotton Loan Valuation Decision Aid was developed by Dr. Larry Falconer at the Texas A&M University with funding from Cotton Incorporated.