2010 cottons week header
2010 cottons week header dow logo
January 29, 2010
 


PhytoGen® is the Right Choice

“It didn’t rain throughout June, and we still had good yields. A good fiber package is also very important, and the PHY 375 [WRF] has graded great so far.”

— Aaron Wade, Jonesville, Louisiana

For more information about PhytoGen brand varieties, visit www.PhytoGenYields.com or call 1-800-258-3033.

photogen-widestrike-online

®PhytoGen and the PhytoGen Logo are trademarks of PhytoGen Seed Company, LLC. ®The WideStrike Logo is a trademark of Dow AgroSciences LLC. PhytoGen Seed Company is a joint venture between Mycogen Corporation, an affiliate of Dow AgroSciences LLC, and the J.G. Boswell Company.

 


PhytoGen® Brand Varieties Pay Off

In the field, on the scale and at the gin, PhytoGen® brand varieties pay off. And for 2010, PhytoGen offers three Acala varieties.

• PhytoGen brand PHY 755 WRF has WideStrike® Insect Protection (two-gene Bt cotton) and Genuity Roundup Ready® Flex. Plus, check out that staple length of 40! The parentage is PHY 72.

• PhytoGen brand PHY 725 RF is the most widely planted Acala in California, offering Genuity Roundup Ready Flex, high yield potential and long staple length.

• PhytoGen brand PHY 72 is a high-yielding conventional Acala with wide adaptability and long staple length.

For more information, see your cottonseed dealer or call 1-888-395-7378.

p-w-genuity-online

®PhytoGen and the PhytoGen Logo are trademarks of PhytoGen Seed Company, LLC. ®WideStrike and the WideStrike Logo are trademarks of Dow AgroSciences LLC. ®™Genuity, the Genuity logo and design and Roundup Ready are trademarks of Monsanto Company. PhytoGen Seed Company is a joint venture between Mycogen Corporation, an affiliate of Dow AgroSciences LLC, and the J.G. Boswell Company.

 


 
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Senate Approves Increase in Debt Limit, Adds Pay-Go

The Senate passed a bill to increase the limit on federal borrowing by almost $2 trillion and added a provision to restore the pay-as-you-go budget law. The House will consider the measure (H.J. Res. 45) during the week of Feb. 1, only days after President Obama is scheduled to release the FY11 budget.

The debt ceiling hike would increase the congressionally set limit from its current $12.4 trillion level to $14.3 trillion.

The vote on the amendment by Senate Majority Leader Reid (D-NV) to reinstate pay-go was 60-40 with no Republican support.

Pay-go budget rules were introduced in the ’90 bipartisan budget deal, subsequently renewed in ’93 and again in ’97 before lapsing in ’02.

Pay-go requires new permanent spending or new revenue reductions to be offset with spending cuts or new revenues to keep from increasing the deficit. If they are not offset, they would trigger automatic spending cuts in some mandatory programs, including Medicare.

While the new pay-go legislation is similar to the old one, its exemptions for some politically popular policies, as well as its new method of scorekeeping, may make it less effective. The old law allowed exemptions for emergency spending but did not exempt any specific programs. The new pay-go includes exemptions for several expensive, but politically popular, issues, meaning those provisions will not have to be paid for with offsetting spending cuts or revenue increases if they are extended.

Under the new language, keeping the Alternative Minimum Tax from expanding and maintaining the estate tax at its ’09 levels would get a two-year exemption. The so-called Medicare “doc fix,” which delays a scheduled reduction in doctors' reimbursement rates under Medicare, would get a five-year exemption.

The “middle class” portions of the ’01 and ’03 tax cuts would get a permanent exemption. The exemptions are expected to cost about $1.6 trillion over 10 years.

In addition to the exemptions, the scorekeeping under the new language differs from the original pay-go law. Under the old law, the White House's Office of Management and Budget scored the effects on the deficit of individual pieces of legislation and kept track of them. If there was an increase in the deficit at the end of a legislative session, the automatic spending cuts would kick in.

Under the new language, the Office of Management and Budget simply would keep track of scores produced by the Congressional Budget Office and track the average annual cost of a piece of legislation. The automatic spending cuts only would be triggered if there was a deficit-increasing effect over five or 10 years instead of each year. Also, unlike the original law, the new pay-go would be permanent.

While Budget Committee Chairman Conrad (D-ND) had hoped to get a statutory deficit commission in return for supporting pay-go, he was satisfied with the commitments from Majority Leader Reid and House Speaker Pelosi (D-CA) to bring to a vote the recommendations from a panel created by a presidential executive order. The panel would be based on the proposal by Conrad and the ranking member on the Senate Budget Committee, Sen. Gregg (R-NH). The proposal was defeated earlier in the week by a 53-46 vote. In a letter from Vice President Biden to Conrad outlining the commitments, Biden wrote that Reid agreed to place the recommendations of the commission on the Senate calendar by “date certain before the end of the 111th Congress.”

If the recommendations pass the Senate, Pelosi has committed the House Rules Committee to passing a rule guaranteeing a vote on the recommendations by the end of the 111th Congress.

Gregg, who has been skeptical that votes can be forced without being written into law, said he was not swayed by the letter. Under the proposal, 14 of the 18 members of the commission would have to agree to issue recommendations, which would then have to garner three-fifths majorities in the House and Senate for passage. In theory, congressional Republicans could decline to name members and ensure the commission could not issue a report, a possibility aware of by Conrad.

 
Concern Conveyed Over Proposed Crop Insurance Cuts

The NCC, along with other agricultural organizations, sent a letter to Agriculture Secretary Vilsack expressing concerns about the proposed cuts in crop insurance.

The Risk Management Agency (RMA) currently is renegotiating the Standard Reinsurance Agreement (SRA) with crop insurance providers. The SRA is the contractual agreement between RMA and the companies that establishes the terms and conditions under which the Federal Crop Insurance Corp. will provide subsidy and reinsurance on eligible crop insurance contracts sold or reinsured by a company. RMA’s first SRA draft proposed reformulating the companies’ insurance pools and the procedure for receiving their reimbursement of cost to administer the program. These changes would remove approximately $4 billion from the crop insurance program over a five year period.

The letter expressed concerns about the proposed cuts and how those may affect the program’s availability in the future in light of cuts made in the recent farm bill.

Members in both the Senate and House also have joined to send letters to USDA urging RMA not to make deep cuts in crop insurance. In the Senate, Sens. Lincoln (D-AR) and Chambliss (R-GA), along with 24 other Senators, joined in a letter. In the House, Reps. Conaway (R-TX) and Herseth-Sandlin (D-SD), along with 36 other Representatives, joined in a similar letter.

RMA plans to complete negotiations on the SRA by early spring. Any changes made in the new SRA would not apply until the ’11 insurance year. The NCC will continue to monitor the negotiations to ensure the viability and availability of crop insurance.

 
Full MAP, FMD Funding Announced

USDA announced full Market Access Program (MAP) and Foreign Market Development Program (FMD) funding in FY10. The MAP is funded at $200 million annually and the FMD at $34.5 million annually, as authorized by the ’08 farm law.

The allocation of $234.5 million to 70 US trade organizations, including Cotton Council International (CCI), will help promote US food and agricultural products overseas. As in FY09, CCI is the recipient of the largest allocation of MAP funds and the second largest allocation of FMD funds.

USDA’s Foreign Agricultural Service (FAS) administers both MAP and FMD funding.

 
Marion Berry Commended for Service to Agriculture

NCC leaders commended Rep. Marion Berry (D-AR) for his distinguished public service. Throughout his career, first as a senior USDA official and later during his seven terms as the Representative for Arkansas' 1st District, Rep. Berry has been a tireless and effective advocate for family farmers and rural Americans.

“We deeply regret Representative Berry has decided not to seek another term in Congress,” said Larry McClendon, the NCC’s immediate past chairman and a Marianna, AR, producer. “He has provided a strong voice in Congress for our nation’s family farmers who produce an abundant, safe and affordable supply of food and fiber while providing jobs and making substantial contributions to the rural economy. His leadership and enthusiasm for the contribution that farmers and rural Americans make to our nation’s economic and social fabric will be sorely missed.”

Allen Helms, a past NCC chairman and Clarkedale, AR, producer, said, “As Congress works to address complex and difficult issues and as we begin thinking about the next farm bill, Representative Berry’s experience, balanced views and deep knowledge of farming and the rural economy will be missed by the agriculture community and by his colleagues in Congress.”

Current NCC Chairman Jay Hardwick noted that the NCC looks forward to working with Representative Berry for the remainder of his term and wishes him much success as he returns home to his family and farming operation.

 
Vetter Appointed to Under Secretary Post

USDA announced that Darci Vetter, who has most recently served as an adviser on International Trade to Finance Committee Chairman Baucus (D-MT), has been named the next deputy under secretary for the Farm and Foreign Agricultural Service. The appointment does not require confirmation by the Senate.

Vetter previously served as director of agricultural affairs at the Office of the US Trade Representative.

It also was announced that John Brewer will become the administrator of USDA's Foreign Agricultural Service (FAS). Brewer previously served as associate administrator.

USDA announced that Janet Nuzum has been selected to serve as associate administrator for FAS. She previously worked as a staff member on the Ways and Means trade subcommittee, served as commissioner on the US International Trade Commission, worked for the International Dairy Foods Assoc. and was a member of former California Congressman Cal Dooley’s staff.

 
Sen. Lincoln to Provide Keynote Address at NCC Annual Meeting

The NCC’s ’10 annual meeting, scheduled for Feb. 5-8, at the Peabody Hotel in Memphis, TN, will feature a keynote address by Sen. Blanche Lincoln (D-AR), chairman of the Senate Agriculture Committee, during the general session on Monday, Feb. 8.

In addition to chairing the Agriculture Committee, Sen. Lincoln also is a senior member of the Finance Committee. One of the few experienced farmers in Congress, Chairman Lincoln has championed the cause of production agriculture, rural communities as well as child nutrition and conservation programs throughout her distinguished career, first in the House and now in the Senate. She has been dedicated to ensuring the farm law is properly implemented and has taken the lead in an effort to provide emergency disaster relief to farmers who suffered severe crop losses in ’09.

The general session also will feature a report from NCC Chairman Jay Hardwick, along with a special video presentation summarizing NCC activities during ’09. Other important convention sessions will feature: 1) the Feb. 5 American Cotton Producers meeting, where the NCC’s planting intentions survey results will be announced and a report given by Jim Miller, USDA Under Secretary of Agriculture for Farm and Foreign Agricultural Services; and 2) the Feb. 6 joint program committees meeting with the NCC’s Economic Outlook and a report from Cotton Incorporated President Berrye Worsham. The National Cotton Ginners Assoc. annual meeting that afternoon will feature an address from Rep. Travis Childers (D-MS). The Saturday luncheon will feature Charlie Cook, the publisher of The Cook Political Report.

Additional information on the NCC’s 72nd Annual Meeting is at http://www.cotton.org/news/meetings/amreg/.

 
Research and Promotion Program Referendum Results In

USDA announced the passage of a referendum to consider amendments to the Cotton Research and Promotion Order (Order). Those amendments provided that the states of Kansas, Virginia and Florida be separate states in the definition of “cotton-producing state.” 

The referendum was held Oct. 13-Nov. 10 on the two proposed Agricultural Marketing Service (AMS) amendments: 1) revise the definition of “cotton-producing state” and 2) revise the definition of “cotton-producing region” to conform with the change of "cotton-producing state." Of the 445 valid ballots cast, 405 or 91% favored the amendments to the Order. Opposing ballots totaled 40 or 9%.

According to the Act, a referendum among cotton producers and importers was required to implement, amend, continue, or when appropriate, to suspend, or terminate the Order or any of its provisions. In order to be eligible to vote, a producer or importer must have produced or imported Upland cotton during the representative period of Jan. 1-Dec. 31, ’08.

“One of the steps implementing the results of the referendum is for the USDA to certify any interested organizations as certified producer organizations (CPOs) from each of the new cotton- producing states,” said Cotton Board Chairman Larkin Martin, an

Alabama producer. “Once those new CPOs are in place, they will then nominate members and alternates to the Cotton Board to represent those newly recognized states. Those nominees will go through the same process for nomination and approval by the Secretary of Agriculture as all other Cotton Board members and alternates.”

A notice of the referendum results soon will be published in the Federal Register. The amendments will become effective after a final rule is issued in the Federal Register. For more information, contact Shethir M. Riva, Chief, Research and Promotion Staff, Cotton and Tobacco Programs, AMS, USDA, Stop 0224, 1400 Independence Ave., SW., Room 2639-S, Washington, D.C. 20250-0224, telephone (202) 720-6603, facsimile (202)690-1718, or email at Shethir.Riva@ams.usda.gov.

 
Assistant Labor Secretary Provides OSHA Insight

At a recent Small Business Labor Safety Roundtable, Assistant Secretary of Labor David Michaels offered insight on the Occupational Safety & Health Administration (OSHA) priorities under the Obama Administration. Michaels informed the group that OSHA is returning to the original intent of the OSH Act and would be moving its regulatory agenda forward.

Michaels said he was committed to compliance assistance for businesses and would work to get compliance assistance resources into the hands of business owners and workers.  He also said that the Department would work to improve its compliance assistance activities. With the increased focus on enforcement and standards, OSHA is hiring more than 100 new compliance officers.

Michaels indicated that OSHA was moving ahead with an aggressive regulatory agenda, listing four proposals that he believed especially affected small businesses: 1) proposing to revise its recordkeeping on the OSHA 300 Log; 2) revisiting its Hazard Communication Standard to make it consistent with the Globally Harmonized System of Classification and Labeling of Chemicals; 3) expediting efforts to update existing permissible exposure limits and establish other provisions to protect workers from respirable crystalline silica dust; and 4) analyzing comments on the Advance Notice of Proposed Rulemaking to protect workers from the hazards of combustible dust fires and explosions.

Michaels’ remarks are on OSHA’s website at:
http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=SPEECHES&p_id=2125.

 
December Mill Cotton Use Higher Than ’08 Level

According to the Commerce Dept., December (five-week month) total cotton consumption in domestic mills was 132.4 million pounds for a seasonally adjusted annualized rate of 3.54 million bales (480 lbs). Last year’s December annualized rate was 3.12 million bales.

The November (four-week month) estimate of domestic mill use of cotton was raised by 294,000 pounds to 132.5 million pounds. The revised seasonally adjusted annualized rate of consumption for November is 3.76 million bales. This is lower than last year’s November annualized rate of 4.03 million bales.

Using the latest figures from the Commerce Dept., calendar ’09 mill use is estimated to be 1.58 billion pounds or 3.29 million bales. This is lower than calendar year ’08’s use of 4.35 million bales.

Preliminary January domestic mill use of cotton and revised December figures will be released by Commerce on Feb. 25.

 
Sales Hit Marketing-Year High

Net export sales for the week ending Jan. 21 were 512,600 bales (480-lb) – a marketing-year high. This brings total ‘09-10 sales to about 7.8 million bales. Total sales at the same point in the ’08-09 marketing year were about 9.0 million bales. Total new crop (’10-11) sales are 191,200 bales.

Shipments for the week were 181,400 bales, bringing total exports to date to 4.3 million bales, compared with the 5.7 million bales at the comparable point in the ’08-09 marketing year.