**UPLAND COTTON ANNOUNCEMENT July 17, 2008**

This announcement has been reissued today, July 22, 2008, to publish a
revised adjusted world price (AWP) entry for the July 17 Upland Cotton
Announcement. The correct AWP is 63.35 cents per pound instead of the
previously announced AWP of 63.43. The reason for the correction is that
Central Asian quotes for July 15-17 should have been included in the AWP
calculations to comply with 7 CFR Part 1427 announced in the Federal
Register on May 27, 2008. The corrected AWP of 63.35 is effective from
12:01 a.m., Eastern Time, Friday, July 18, 2008, through midnight,
Eastern Time, Thursday, July 24, 2008. The corrected AWP will be entered
into CCC cotton software effective 12:01 a.m., Wednesday, July 23, 2008,
to allow for the synchronization of CCC and user loan software.

The Department of Agriculture\'s Commodity Credit Corporation announced
the AWP for Strict Low Middling (SLM) 1-1/16 inch (leaf grade 4,
micronaire 3.5-3.6 and 4.3-4.9, strength 25.5-29.4 grams per tex, length
uniformity of 80-82 percent) upland cotton (base quality), adjusted to
U.S. quality and location, the coarse count adjustment (CCA), and the
loan deficiency payment rate that will be in effect from 12:01 a.m.,
Eastern Time, Friday, July 18, 2008, through midnight, Eastern Time,
Thursday, July 24, 2008. The next announcement of the AWP, CCA, and LDP
rate for upland cotton will be on Thursday, July 24, 2008, at 5 p.m.,
Eastern Time.

**[Cents/lb.]{.underline}**

**Adjusted World Price (AWP)
\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....
63.35**

**Coarse Count Adjustment (CCA)
\...\...\...\...\...\...\...\...\...\...\...\...\...\.... 0.00**

**Loan Deficiency Payment Rate
\...\...\...\...\...\...\...\...\...\...\...\...\...\...\..... 0.00**

This week's AWP and CCA are determined as follows:

FE Price
............\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....
79.23

Adjustments:

Avg. U.S. spot market location ..................\..... -11.12

SLM 1-1/16 inch cotton
\...\...\...\...\...\...\...\...\...\...\...\...\.....-- 4.80

Avg. U.S. location
\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...
0.04

Sum of Adjustments
\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....
--15.88

**ADJUSTED WORLD PRICE**
\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....
63.35

Current FE Price
...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\....
77.19

Current FE Coarse Count Price
.............\...\...\...\...\...\...\...\...\...\...\... 75.16

Adjustment to SLM 1-1/32 inch cotton
\...\...\...\...\...\...\...\...\...\...\...\..... -- 6.70

**COARSE COUNT ADJUSTMENT** (Cannot be less than zero)\...\...\...\...
**0.00**

-more-

The Farm Security and Rural Investment Act of 2002 provides that the AWP
may be further adjusted if: 1) the AWP is less than 115 percent of the
current crop year loan rate for base quality

upland cotton, and 2) the USNE price exceeds the NE price. This week
neither condition for this adjustment has been met. Because the AWP,
63.35 cents/lb., is 121.8 percent of the current crop

year loan rate for base quality upland cotton, and the USNE price, 77.85
cents/lb., has not exceeded the NE price, 78.09 cents/lb., a further
adjustment cannot be made.

Because the AWP for the period exceeds 52.00 cents per pound, which is
the base quality loan rate, the loan repayment rate during this period
is equal to the loan rate, adjusted for the specific quality and
location plus applicable interest and storage charges.

For further information: Thomas Bickerton, (202) 720-3008, e-mail:
Thomas.Bickerton@wdc.usda.gov