USDA Develops Storage, Purchasing System for Cotton

January 4, 2000

A new system to improve service and delivery of information on the sale of cotton from USDA inventory has been developed. The system uses Internet technologies to expand access to USDA services while reducing costs.

The system is known as COPS (cotton on-line processing system) and uses Internet technologies to expand access to Commodity Credit Corporation services while reducing costs. CCC recently conducted two small cotton sales using COPS, and the results were successful, says USDA.

Cotton loan forfeitures in 1999 created the largest CCC inventory in recent years. CCC should sell more than 100,000 bales of upland and extra long staple cotton in coming months.

As COPS continues to be developed, USDA says, part of the system is operational and may be accessed by entities that store CCC-owned cotton and by potential buyers interested in purchasing CCC-owned cotton. Gins and warehouse operators who have obtained an access code from the Kansas City commodity office may receive their quarterly invoices electronically to verify accuracy and generate payment.

Bidders may access CCC sales catalogs through COPS and, if interested, place an offer electronically. Successful offers will be invoiced and receipts transferred electronically upon payment.

For more information on the system, contact by e-mail lpbromley@kcc.fsa.usda.gov.