Cotton POP payment First Week of December - Expected Change for Friday 12-5
12-3-2025
It looks like we will loose around a half of a cent from this week's POP payment of 1.23 cents beginning Friday. If you are planning to sell you cotton quickly, you can POP it at 1.23 by signing paperwork at the FSA office before closing time on Thursday. If you also want to call us to ensure that everyone is on the same page then that is optional, but as long as FSA knows, then they'll contact us.
If you are unsure of your marketing strategy and are probably waiting at least a few weeks, then giving up a half of a cent is not a big deal compared to the safty net that you leave in place by not popping. If the market drops even a little bit, the POP will go back up to recover the loss in the price and we have seen a lot bigger POP payments than this when the market has been dropping. Of course, if the market goes up, then an increasing market equals a decreasing POP. There is no specific trend in the market as of this moment. If March drops below 64 cents, then I would expect the POP to go back up to where it is now or possibly higher if the market trend gets negative.
Next year, this program will work differently making it simpler and raising the safty net price from the loan/LDP/POP payment component of the cotton program.
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