Adjusted world price, cotton

As part of the upland cotton marketing assistance loan program, a loan repayment rate that USDA calculates and publishes weekly. The AWP is the prevailing world price for upland cotton, adjusted to account for U.S. quality and location. Producers who have taken out USDA marketing assistance loans may choose to repay them at either the lesser of the established commodity loan rate for upland cotton, plus interest, or the announced AWP for that week. The AWP for cotton also was used for determining Step 2 cotton program payments prior to suspension of Step 2 in 2006.

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