FREQUENTLY ASKED QUESTIONS:
- What types of crops are eligible for the High Cotton program? Currently, High Cotton is accepting Almonds, Walnuts, Pecans, Prunes, Bulk Wine, Wheat and Corn. Other storable products will be considered on a case by case basis.
- What are the funding levels for any specific crop? Typically our funding level represents 65-75% of the Fair Market Value Price for the product. However, in certain cases where an assignable hedge or forward contract is already in place, we have the ability to purchase for a price very near the contracted or hedged value.
- How long can my inventory stay in the program? Product has stayed within the program for as little as a couple of days and for as long as two years. Expected storage life of the crop will dictate the maximum duration allowable.
- Do I have to store my crop in a High Cotton warehouse. No. The crop must be stored in an approved and fully insured warehouse that has the capability to issue a Negotiable Warehouse Receipt (NWR) in a form acceptable to High Cotton. In certain cases where the commodity is already stored in a secure, high quality facility, storage in place may be accommodated.
- How do I know that I will get my same product back when I repurchase? All product placed into the program will be identity preserved in separate bins or tanks unless industry standard for storage of a specific crop provides for commingling and has established procedures for delivered quality settlements.
- Who is responsible for the crop when it is in the program? For the duration that a crop is in the High Cotton program, title to that crop lies with High Cotton. It is the responsibility of High Cotton and the approved storage facility to insure against damage or loss suffered while in the program. Loss in dry weight (“shrink”) or loss in quality within industry standards for the length of time in storage will not be covered.
- Who pays for the storage costs? All storage costs as well as any maintenance costs such as fumigation or fruit turning shall be the responsibility of the Processor. Usually these types of additional costs are built into the established storage monthly/season storage rates.
- Can High Cotton sell “my” crop to anybody but me? No. The program agreement provides the Processor the irrevocable and exclusive right as well as the duty to repurchase their crop from High Cotton prior to the contract termination date.