Cotton producers may be eligible for Loan Deficiency Payments (LDP) from the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA). LDPs are payments made to producers who, although eligible to obtain a Marketing Assistance Loan, agree to forgo the loan in return for a payment on the eligible commodity. The deadline to apply for an LDP on 2024 crop-year cotton is May 31, 2025.  

An LDP triggers when the adjusted world price (AWP) for cotton falls below the loan rate. The loan rate for 2024-crop base quality upland cotton is $0.52 per pound. Extra-long staple cotton is not eligible for LDPs.   

For a commodity, in this case upland cotton, to be eligible for an LDP, the producer must have beneficial interest in the commodity, defined as having title, possession and control of the commodity, and is responsible for loss of or damage to the commodity. Producers must have a LDP Agreement and Request, form CCC-633EZ, Page 1 on file with the local FSA office on or before the date of losing beneficial interest in the crop. Page 3 of the CCC-633EZ form must be submitted when payment is requested, but no later than May 31 of the year following the normal harvest.  

LDPs are not subject to payment limitations, actively engaged in farming and cash-rent tenant rules; however, adjusted gross income provisions are applicable.  

Other eligibility requirements may apply; contact your local USDA Service Center for more information.