Legislative Affairs

he National Cotton Council worked in tandem with other commodity and farm groups against reopening of the Farm Security and Rural Investment Act of 2002 - including attempts to drain funds from that law. Chief among those activities was Chairman Woody Anderson’s testimony that: 1) reminded the House Agriculture Committee of the need to preserve – for the duration of its term – a law that balances commodity support and conservation programs and 2) emphasized to the House Agriculture Subcommittee on General Farm Commodities and Risk Management that the farm law has been a success and “remains vital to the structure and stability of the U.S. cotton industry and agriculture as a whole.”

During the year, the NCC also pointed out to lawmakers that since its inception, the farm law has spent $17 billion less than originally projected and did not need to be singled out for spending reductions.

Helpful was Senator Charles Grassley’s (R-IA) pledge to support no farm law changes. Implementing the farm law as

NCC Chairman Woody Anderson told Congress the current farm law has been a success and is vital to U.S. cotton and agriculture.

written and passed helped growers’ efforts in securing production loans and offered a stabilizing effect on the structure of U.S. cotton production and merchandising.

Comments submitted by the NCC on the farm law’s Conservation Security Program (CSP) implementation were aimed at ensuring that the rule’s definition would cover viable commercial-size operations and include necessary educational efforts so producers across the Cotton Belt could take advantage of the programs.

The NCC also supported a disaster package that was adopted as part of the Homeland Security Appropriations bill. Unfortunately, some of the costs of the $14.5 billion package signed by President Bush were offset by reductions in the CSP – and the NCC again expressed grave concerns about reopening the 2002 farm law. The crop loss disaster portion of the package provided financial assistance to producers on a farm incurring qualifying crop or quality losses due to damaging weather or related conditions for either the 2003, 2004 or 2005 crops.

A disaster assistance bill helped producers victimized by hurricanes or other damaging weather, including this south Alabama field flattened by Hurricane Jeanne and this West Texas field covered by several inches of November snow.

The NCC also constantly monitored the 2005 appropriations process to ensure funding priorities were addressed and offsets did not lead to farm law changes. Concerns included:  1) Senator Grassley’s attempt to introduce payment limits amendments into the fiscal 2005 budget resolution; 2) possible offsets from the renewal of the Child Nutrition Act and 3) a move to reduce direct payments to fund block grants as part of the Specialty Crops Competitiveness Act of 2004. That amendment failed after the NCC and other commodity and farm organizations urged the House Agriculture Committee to reject all amendments that would open the current farm law.

NCC worked closely with USDA and USTR officials on coordinating a defense against Brazil’s challenge of the U.S. cotton program. That included pressing for the appeal lodged with the World Trade Organization after the dispute panel’s unfavorable ruling against that program.

Concerns also were conveyed regarding the reduced amount of discretionary spending available to fund USDA programs. Research and education priorities were: 1) the 30 percent cost share for boll weevil eradication; 2) a funding increase for pink bollworm eradication and 3) full Market Access Program funding.

NCC economists and member services staff worked with state and countyExtension professionals to assess damages from hurricanes and conveyed that information to lawmakers in advance of the $14.5 billion disaster assistance package signed by President Bush.

Participation in several coalitions helped NCC amplify its positions on a number of farming-related issues. Activities included: 1) sending a letter urging withdrawal of the Farm Services Agency’s new definition of “family farm,” which would exclude legitimate family farmers from access to capital and 2) pushing for H2-A agricultural worker program reform.

In other key 2004 activities, the NCC:

• recommended that Agriculture Secretary Veneman provide an initial advance counter-cyclical payment for the 2004 upland cotton at the maximum allowable rate.
• joined with the Department of Justice and USDA in defending against some importers’ claims of the Cotton Research and Promotion Program’s constitutionality;
• reiterated its support for legislation that would close a loophole in U.S. law and better enable U.S. cotton to respond to unfairly subsidized competition from non-market countries, including China;
• maintained a dialogue with USDA’s Risk Management Agency on the crafting of the Standard Reinsurance Agreement to ensure that crop insurance is available and delivered promptly to NCC members;
• communicated to its members – through the “Helping Americans Vote” campaign - the urgency to get registered and to vote in the November election;
• supported, along with the National Cotton Ginners Association, a bill that allows small businesses to purchase healthcare coverage through associations; and
• pushed for a workable Foreign Sales Corporation/Extraterritorial Income export tax bill, which was signed into law by President Bush.