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Ex-Im Renews Insurance for $14.7 Million Export of U.S. Cotton to Turkey; Supports Farm Jobs in Carolinas, Tennessee and Virginia



Monday, October 22, 2012

(Ex-Im Bank)  WASHINGTON, D.C. The Export-Import Bank of the United States (Ex-Im Bank) has renewed a 12-month export credit insurance policy for Wells Fargo to enable the export of American cotton to a large textile firm in Turkey, Menderes Tekstil Sanayi ve Ticaret A.S. Ex-Im Bank's renewal of this policy will sustain jobs at Cargill Cotton, based in Cordova, Tennessee, and the Carolinas Cotton Growers Cooperative Inc., based in Garner, North Carolina.

Farm workers in at least fifteen U.S. farms will produce the cotton for export throughout the next year. Depending upon agricultural factors, and the precise qualities of cotton needed for various textiles, the cotton will be exported from a combination of farms in North Carolina, South Carolina, Tennessee, Virginia, and other states. Ex-Im Bank's support is expected to facilitate $15 million in sales of what these farms produce.

"Ex-Im insurance for this deal supports numerous American jobs in both agriculture and logistics," said Ex-Im Bank Chairman and President Fred P. Hochberg. "In this instance, we saw an opportunity to sustain a mutually beneficial relationship. Our financing is good for American jobs, boosts American agriculture, and helps American banks to mitigate their risks in export transactions."

The instrument renewed in this transaction was a Financial Institution Buyer Credit (FIBC), allowing Wells Fargo Bank to extend revolving credit to the Turkish textile manufacturer so it can import American cotton. The Menderes Tekstil firm is the largest home textiles producer in Turkey, and one of the largest in the world.

The primary exporters benefiting from this FIBC policy have deep roots in American agriculture. Cargill Cotton was incorporated in 1930. Carolinas Cotton Growers Cooperative Inc. took shape in 1922 as a cooperative marketing association, and now wholly owns two subsidiaries, Cotton Growers Warehouses Inc. and Southeast Futures Management Inc.