Analysis of CCC Warehouse Regulations

Abstract

The 2006 changes in CCC regulations on warehouse charges and reimbursements may affect growers with cotton in the loan program. This paper uses survey data collected from Texas warehouses to estimate the potential impact on Texas producers. This paper also discusses the possible impacts of additional policy proposals and their outcomes. Texas cotton warehouses have relatively low warehousing costs, which may reduce the impact of the rule changes. However, the probability of West Texas production exceeding CCC approved warehouse capacity implies occasional policy impacts from rule changes related to outside storage