centralized cotton redemption
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Centralized Cotton Redemption. What is CCR?. Centralized Cotton Redemption (CCR). Centralized Cotton Redemption (CCR) System Provides a centralized process for buyers to redeem upland cotton Single redemption from multiple loans and multiple counties - PowerPoint PPT PresentationTRANSCRIPT
Centralized Cotton RedemptionCentralized Cotton Redemption
What is CCR?What is CCR?
• Centralized Cotton Redemption (CCR) System
• Provides a centralized process for buyers to
redeem upland cotton
• Single redemption from multiple loans and multiple
counties
• Use of an Electronic Agent Designation (EAD)
Centralized Cotton Redemption (CCR)
What is CCR?What is CCR?
• Limited to upland cotton loans disbursed in County
Office (Expanding to include LSA loans)
• Commodity Certificate exchange when AWP is less
than National Average Loan Rate
• Principal plus interest when AWP is equal to or
greater than National Average Loan Rate
Centralized Cotton Redemption (CCR)
Development of CCRDevelopment of CCR
• Development began in 2000
• Programmed by EDS
• Resides in COPS
• CCR was implemented in 2 phases
– Phase 1
• Beta test October, 2003
– Phase 2
• Full nation-wide implementation July, 2004
Implementation PlanImplementation Plan
• Participating buyers recommended by FSA and the National Cotton Council
• 20 Counties participating in Beta Test
• 5 buyers participating in Beta Test
– Dunavant Enterprises, Inc.
– Cargill Cotton
– Paul Reinhart, Inc
– Volcot Cotton
– Weil Brothers-Cotton, Inc.
CCR Activity IncreasesCCR Activity Increases
Beta10-1-03 to 6-30-04
2004 Crop YR
7-1-04 to 6-30-05
2005 Crop YR
7-1-05 to 6-30-06
2006 Crop YR
7-1-06 to 6-18-07
Merchants 2 11 22 30
% of COF Loans
44% 69% 88%
Invoices 32 642 577 751
Bale Count 2,805 1.7 million 1.8 million 3.2 million
Redemption Amount
$736,935 $300 million $357 million $639 million
CCR MilestonesCCR Milestones
• Largest week of activity - May 14 – 18, 2007
– 104 invoices
– 20 buyers
– $262.7 million
– 1.3 million bales
CCR MilestonesCCR Milestones
• Largest day of activity - May 17, 2007
– 9 merchants
– 38 invoices
– 578,980 bales
– $113,132,763.96
CCR MilestonesCCR Milestones
• Largest Invoice
– 8 states
– 68 counties
– 1888 loans
– 97,131 bales
– $18,943,529.65
• 7 of 68 counties – more than 100 loans
– 1 county – 199 loans
Authorization to RedeemAuthorization to Redeem
• All bales redeemed in CCR must meet two
authorization requirements:
– Designated as CCR eligible
– Electronic Agent Designation (EAD) holder
on file in COPS
• Producer must grant authorization
CCR EligibleCCR Eligible
• May designate at time of loan
– Flag set in APSS during loan making process and sent to COPS
• Authorize by signing CCC-605
– Authorization granted as part of agent designation
– Copy of CCC-605 submitted to County Office
– County Office updates EAD status flag to “Y”
Electronic Agent DesignationElectronic Agent Designation
• Electronic Agent Designation (EAD) is an electronic
CCC-605
• Authorizes agent to use CCR
• Producer names Agent and authorizes EAD with single
signature on CCC-605
What is an Electronic Agent Designation ?
Electronic Agent DesignationElectronic Agent Designation
• Agent can redeem cotton using CCR
• Agent can deliver paper copy of CCC-605 and funds to
County Office
• Producer may cancel CCC-605 at FSA County Office and
redeem the cotton himself
What is an Electronic Agent Designation ?
Electronic Agent DesignationElectronic Agent Designation
• CCC-605 may be converted to EAD anytime by an initial
or subsequent agent
• Request the Provider to update EWR record with the
Agent’s Holder ID
• Agent requesting initial EAD must retain the original copy
of the CCC-605
• Provider submits EAD Holder ID to COPS
How does EAD Work?
Electronic Agent DesignationElectronic Agent Designation
• Once CCC-605 is converted to EAD, option to purchase
is passed to a subsequent agent electronically.
• Current EAD Holder notifies Provider of subsequent EAD
Holder
• Subsequent EAD Holder does not have to maintain
paper copy of the CCC-605
How does a Subsequent Agent Receive EAD?
Using CCRUsing CCR
• The Buyer transmits an electronic file to COPS listing receipts and projected payoff date.
• COPS generates an invoice based upon the Buyer’s request.
• The Buyer wires the required funds by the payoff date.
• COPS automatically releases the receipts to the Buyer.
How does a Buyer redeem cotton using CCR ?
CCR Transaction FileCCR Transaction File
• FTP file listing of up to 100,000 receipts
• File contains a Header record:
– Total receipt count
– Buyer ID number.
– Payoff date within the current AWP period (Friday to Thursday).
– Date of file transmission
Preparing Transaction File
CCR Transaction FileCCR Transaction File
• File contains a Detail record for each receipt:
– Gin Code Number
– Gin Tag Number
– Crop Year
– Warehouse Code Number
– Warehouse Receipt Number
– Buyers EAD Holder ID
Preparing Transaction File
CCR Transaction FileCCR Transaction File
• To be valid, each bale must
– be under a County Office issued loan
– not in forfeiture status
– not be in a pending status for another CCR request
– be a valid EWR
Preparing Transaction File
CCR Transaction FileCCR Transaction File
• To be valid, each bale must
– reflect CCC as the current holder
– not have any critical COPS errors
– EAD indicator of “Y”
– EAD holder ID that matches COPS
Preparing Transaction File
Creating CCR InvoiceCreating CCR Invoice
• Calculate repayment for valid bales
• Uses effective AWP for requested repayment date
– requested date must be within current AWP
period (Friday to Thursday)
– repayment amount valid only if funds are
received before next AWP announcement
• Calculate storage credit on repayment date plus 2
day
Repayment Calculations
Creating CCR InvoiceCreating CCR Invoice
• Invoice / Collection Letter created and posted to
COPS
– payment due date
– repayment amount
– invoice number
– invoice expiration date
Posting CCR Invoice
Creating CCR InvoiceCreating CCR Invoice
• Acknowledgement File sent to buyer
• COPS sends e-mail to:
– Buyer to view and download invoice/collection
letter from COPS website
– Administrative County Office that disbursed to
alert of pending CCR redemption
Notifying Buyer and County Office
Creating CCR InvoiceCreating CCR Invoice
• Bales are placed in “pending” status when invoice
is created
– no changes allowed, including EAD holder
– no additions or deletions of bales to invoice
– no changes to payoff date
Bales Placed in Pending Status
Creating CCR InvoiceCreating CCR Invoice
• Invoice is valid for 21 days
• Buyer may cancel an Invoice anytime before
payment is submitted
• “Pending” status removed when invoice is
cancelled
Cancellation of CCR Invoice
Submitting RepaymentSubmitting Repayment
• Buyer wires funds based on the Collection Letter
instructions to the Federal Reserve Bank
• Collection is posted to COPS which triggers
release of receipts
Accepting Payment
Submitting RepaymentSubmitting Repayment
• Accept funds wired before due date
• No recalculation
– same AWP
– same storage credit
• Bales automatically released later of:
– date payment is processed
– original due date
Accepting Early Repayment
Submitting RepaymentSubmitting Repayment
• Accept payments past due date
• Recalculated based on
– AWP in effect on wire date
– storage credit for wire date plus 2 days
Accepting Late Payment
Submitting RepaymentsSubmitting Repayments
• Will redeem bales covered by sufficient funds
• Select bales starting in order of
– state
– county
– warehouse code
– receipt number
• New invoice required for remaining bales
Insufficient Funds
Submitting RepaymentsSubmitting Repayments
• Refunded to the merchant by direct deposit to
merchant’s account
• Manual process
• Future enhancement for automated process
Overpayments
Releasing ReceiptsReleasing Receipts
• Release automatically triggered when funds are
posted in COPS
• COPS emails Buyer of release of receipts and
refund due, if applicable
• Electronic CCC-500 data available for download
next day
Processing Release of Receipts
Contingency Plan – What Happens When COPS Is Down?Contingency Plan – What Happens When COPS Is Down?
• CCC-734 process for periods of time when systems are not operational
– Fax CCC-734
– Email redemption file
– Wire funds to Federal Reserve
• Process unseen by County Office
Processing CCR in the County OfficeProcessing CCR in the County Office
• Loan must be liquidated in APSS
• COF receives email that CCR repayment has been
completed
• CCR repayment file available in COPS
• COF downloads CCR file and transfers to S/36
using Cotton PC Software
Processing CCR in the County OfficeProcessing CCR in the County Office
• New menu option, Option 3, Centralized Repayment
• APSS repayment fields are pre-filled with CCR file
data
– automatically selects bales
• No calculations - accepts data from CCR file
• COPS tracks loan liquidation records from APSS
using indicator COPS R121
Favorable CommentsFavorable Comments
• Merchant
– “as important as EWR”
• County Office
– "It is a great system that has significantly simplified our cotton loan repayment processing."
• State Office
– “awesome process and I would put CCR up against ANY web application as being the best”