USDA Announces 2026 Cotton Loan Rate Differentials

(Washington, D.C., April 15, 2026) - The U.S. Department of Agriculture's (USDA) Commodity Credit Corporation today announced the 2026-crop loan rate differentials for upland and extra-long staple cotton.

The differentials, also referred to as loan rate premiums and discounts, are calculated based on market valuations of various cotton quality factors for the prior three years. The Commodity Credit Corporation adjusts cotton loan rates by these differentials so that cotton loan values reflect the differences in market prices for color, staple length, leaf, extraneous matter, micronaire, length uniformity and strength. This calculation procedure is identical to that used in past years.

The 2026-crop differential schedules are applied to 2026-crop loan rates of 55.00 cents per pound for the base grade of upland cotton and 100.00 cents per pound for extra-long staple cotton. Along with USDA's Agricultural Marketing Service classing (quality) measurements, these differentials are used to determine the loan rate for each individual cotton bale.

These differentials are important to cotton producers because they are used to derive the actual loan rate for each bale of cotton - either above (premium) or below (discount) the average per pound loan rate, depending on the grade or quality of the cotton. The actual loan rate is significant because it is used to determine any marketing loan gains and loan deficiency payments.

The rates are posted on the Farm Service Agency website at https://www.fsa.usda.gov/resources/price-support/commodity-loan-rates. If you have questions or need additional information, please contact: Omri Bein by email at [email protected].