Our Services
Providing reliable loan servicing solutions that simplify USDA cotton programs for producers and gins.
Marketing Assistance Loan (MAL)
Fambro serves as the Loan Servicing Agent (LSA) between the producer and USDA’s Commodity Credit Corporation (CCC). Fambro’s role is to collect the required loan information, verify eligibility and documentation, submit the loan for processing, and service the loan after it is established.
To begin the Marketing Assistance Loan process, you will need to complete the FSA-211, CCC-10, and Cotton A-5. You can download the required forms using the link below, or contact our team and we can prefill the applicable information and guide you through where to sign based on whether you are applying as an individual or an entity.
Once the required forms are in place, our team will work with you to gather the additional information needed to process your loan, including identifying the farm numbers you plan to place cotton into loan under. From there, Fambro will guide you through the remaining steps and submit the loan for processing.
Loan Deficiency Payment (LDP)
Fambro serves as the Loan Servicing Agent (LSA) between the producer and USDA’s Commodity Credit Corporation (CCC). A Loan Deficiency Payment allows eligible producers to receive a payment when the Adjusted World Price (AWP) falls below the USDA loan rate, without placing the cotton into a Marketing Assistance Loan.
To begin the Loan Deficiency Payment process, the required producer eligibility documents must first be in place, including the FSA-211, CCC-10, and Cotton A-5. These are the same initial documents required for a Marketing Assistance Loan, but an LDP is processed separately.
Unlike a Marketing Assistance Loan, an LDP does not place the cotton into loan. Instead, an eligible producer elects to receive a payment when the applicable Adjusted World Price (AWP) is below the loan rate. Timing is important when requesting an LDP because the producer must meet USDA beneficial-interest requirements. Fambro will work with you to identify the applicable farm numbers and guide you through the payment process.
Managing Loan Redemptions
Fambro manages the redemption of cotton pledged under a Marketing Assistance Loan. A redemption allows cotton to be released from the loan by repaying the applicable loan amount, allowing the producer or authorized buyer to obtain clear title to the cotton.
When you are ready to redeem cotton, contact Fambro and provide the loan number and the bales you would like to redeem. Our team will calculate the applicable redemption amount, provide the information needed for payment, and coordinate the release of the bales once the redemption has been processed.
If the cotton has been sold to a merchant, the merchant may handle the redemption once the appropriate authorization and holdership are in place. In this case, Fambro will work with the applicable parties to facilitate the redemption and release of the cotton.
Administering CCC Cotton and Seed Cotton Loans
Fambro administers CCC cotton and seed cotton loans on behalf of eligible producers, helping manage the process in accordance with USDA requirements. Fambro works with producers and gins to collect the required information and documentation, submit loan requests, and ensure loans are properly processed through the Commodity Credit Corporation.
For a seed cotton loan, the cotton is placed into loan while still in module form, before it is ginned into bales. The producer must first have the required eligibility documentation in place such as the FSA-211, CCC-10, and Cotton A5 Attachment. The participating gin must also meet USDA requirements for the Seed Cotton Loan Program, including the CCC-879 and CCC-880.
When you are ready to request a seed cotton loan, contact Fambro with the farm numbers associated with the cotton and the gin that will be handling the modules. The gin will provide the required module information, including physical measurements for modules in the field or weights for modules at the gin. Fambro will work with the producer and gin to gather the required information and guide both parties through the loan process.
Ready To Get Started?
Let our team help make your cotton loan process simple and straightforward.