Bale
|
The
measured item sold to
the purchaser is a
cotton bale. It consists
of the cotton lint after
ginning. It weighs 500
pounds.
|
Boll
|
The
white “flower” of the
cotton plant that is
harvested for cotton.
|
CCC
Loans
|
Government loans secured
by cotton and other
commodities.
See IRC § 77.
|
Classing/Grading
|
Classing or grading is
done at the gin by the
USDA. Samples are pulled
from each bale and are
analyzed for color,
micronaire, strength,
length and moisture
content. The price
received for the cotton
is determined by its
grade.
|
Cooperatives
|
Some
gins are ginning
cooperatives. A co-op
gin is a tax exempt
entity owned by the
farmers. They can only
be examined by the
exempt organization
division. A farming
cooperative issues
patronage dividends and
makes per unit retain
allocations.
|
Defoliants
|
Sprayed
on plants to make the
leaves fall off prior to
picking. This makes it
easier for mechanical
picking and diminishes
boll staining.
|
Gin
|
Place
where cotton module is
processed into a bale.
The gin is a service
provider and does not
take title to the
cotton. Here the seed is
removed and is usually
sold to the gin for a
credit against baling
costs.
|
Growth
Regulators
|
Chemicals applied during
blooming season to force
plant to switch from
vegetative growth to
boll maturation.
|
Harvester
|
Machine
used to mechanically
remove bolls from the
plant. Also called row
pickers, they are
designed to harvest
multiple rows at a time.
The number of rows of
harvesting ability is
usually an indication of
the cost of the machine.
|
Lint
|
The
part of the cotton plant
flower used to make
cotton. There are many
varieties of cotton
plants. The difference
is in the quality of the
lint. Common lints
include Acala and
Upland. Finer, more
expensive lints include
Pima.
|
Market
Gain Payment
|
Market
Gain Payments are
associated with CCC
Loans. If the adjusted
world price of cotton
falls below the loan
rate, then the farmer
needs only to repay that
amount. The difference
is a market gain.
|
Module
|
After
cotton is harvested, it
is dumped into a Module
Builder. This machine
compresses the cotton
into a large block.
After a module is built,
the module builder moves
on to build more
modules. The block, or
module, is left in the
field until it is
delivered to the gin.
|
Patronage Dividends
|
A co-op
dividend taxable to the
farmer issued on Form
1099.
|
Per
Unit Retains
|
A
non-cash allocation made
by a co-op, taxable to
the farmer.
|
Seed
|
Seed is
the by-product in cotton
production. It is
usually sold to the gin
for a credit against
ginning costs, but it is
sometimes sold directly
by the farmer to
specialized seed
companies.
|
