2010 cottons week header
PHYTOGEN_CMYK_275x77px
twitter
February 26, 2010
 

CAAG3NLST064_CottonsWeek_Newsflash_289x640_jpeg_200k_04-19

™ ®Trademarks of Corteva Agriscience and its affiliated companies. ©2024 Corteva.




 
PAST ISSUES/ARCHIVES
 
Cotton's Week: April 19, 2024
Cotton's Week: April 12,2024
Cotton's Week: April 5, 2024
 
 


 
Supreme Court Denies Petitions in NCC v EPA

The US Supreme Court, without comment, denied two industry petitions seeking review of a Sixth Circuit Court of Appeals decision in NCC v EPA. That decision vacated a ’06 EPA rule that pesticides applied in accordance with FIFRA to, over, or near water do not require National Pollutant Discharge Elimination System Permits (NPDES) under the Clean Water Act (CWA).

The petitions, filed separately by CropLife America and the American Farm Bureau Federation in collaboration with other agricultural groups including the NCC, both argued that EPA's interpretation of the CWA deserved deference and questioned whether Congress intended to include pesticides in the scope of the NPDES permitting program. This denial by the Supreme Court ends any further legal recourse for agricultural interests who believe that the Sixth Circuit decision sets a dangerous precedent that could subject additional farming activities to permit requirements.

NCC Chairman Eddie Smith stated, "The Supreme Court's failure to review the NCC v. EPA case creates an uncertain regulatory future for the application of agricultural crop inputs. Farmers face potential new regulations that could force many to obtain even more permits before they apply agricultural inputs. A burdensome new permit requirement will increase costs both to farmers and many states that will carry much of this regulatory load."

Senate Agriculture, Nutrition & Forestry Committee Chairman Lincoln (D-AR) and 36 other lawmakers had urged the high court to review the case in a Dec. 4 amici curiae brief. The lawmakers argued the Sixth Circuit had “substituted a deeply flawed reading of the [CWA].”

The Supreme Court denial is being billed as a big win for environmentalists who claim that the industry fears are exaggerating the ruling’s scope. Yet, some activists already are saying the ruling may aid efforts by EPA and environmentalists to regulate releases from thousands of sources that generally are exempted from water permit requirements such as post-construction stormwater runoff, concentrated animal feeding operations, emissions from power plants and fertilizer applications.

Comments by Sen. Inhofe (R-OK), ranking member of the Senate Committee on Environment and Public Works, may signal the possibility of a legislative solution.

"The Supreme Court's denial is unfair to agriculture and consumers," Inhofe said. "The court's denial means agriculture will face yet another layer of bureaucracy and regulation, which will stifle job creation in rural America. Also, EPA now will have to process 5.6 million new pesticide applications per year, which will hinder farm operations and add significant costs to both producers and consumers of agriculture. I hope the Obama Administration will work with Congress as soon as possible on bipartisan legislation to address this issue."

 
Greenhouse Delay Could Facilitate Climate Bill Work

Responding to bipartisan pressure, EPA Administrator Lisa Jackson told Senators in a letter she will delay regulation of greenhouse gas emissions until next year at the earliest, adding that regulation of the smallest emitters would not begin until ’16.

The EPA has the authority to begin regulating emissions under the Clean Air Act (CAA) as early as next month, because of a December finding that says greenhouse gases endanger public health and welfare. The “endangerment finding” was viewed as a hammer to force Congress to pass a cap-and-trade bill. But the Senators who are working on a bill say they have yet to reach agreement even on a basic mechanism for regulating emissions.

Opposition to EPA’s endangerment finding has been mounting.

Twelve House Republicans filed a lawsuit in the US Court of Appeals for DC challenging EPA’s finding. Similar lawsuits have been filed by the states of Texas and Virginia and a variety of industries and trade organizations.

Sen. Murkowski (R-AK), supported by 138 agricultural groups, introduced a resolution of disapproval which would repeal EPA’s finding and the companion resolution of disapproval (H.J. Res. 76) was introduced in the House by Reps. Skelton (D-MO), Peterson (D-MN) and Emerson (R-MO). Also, two bills have been introduced in the House that would forbid EPA from such regulations of greenhouse gases.

During a Senate appropriation hearing, Republicans criticized the administration’s budget request for the EPA which would provide an increase of $43 million for greenhouse gas regulations. Under questioning, Jackson said she has no intention of starting over and expects the endangerment finding to withstand legal challenges.

The White House is still pushing hard for Congress to move a climate change bill. President Obama and Cabinet members continued this week to promote new efforts to expand nuclear power and “clean coal” technology in a bid to attract the support of Republicans and moderate coal-state Democrats for a climate change bill stalled in the Senate.

 
’10 Packaging Specifications Modified

In Memphis for its 43rd annual meeting, the Joint Cotton Industry Bale Packaging Committee (JCIBPC) modified the ’09 bale packaging specifications by adding ultraviolet (UV) ray inhibitors (light stabilizers) for all polyolefin (polyethylene film and polypropylene fabric) bale bags.

As part of the UV inhibitor action, the JCIBPC included a statement reiterating NCC policy that packaging materials are approved with conventional bale storage in mind. It was stated that the action was not an endorsement of outside storage but an acknowledgement that UV inhibitors play a role in polyolefin bag performance.

The JCIBPC also reviewed ’09 experimental test programs and heard NCC staff reports on packaging material use, the status of burlap and a request for a variance from the JCIPBC’s country of origin requirements for polypropylene. Staff reported that ’09 burlap use in the United States accounted for about one half of one percent of all bags used or approximately 70,000 bales.

During the Committee’s executive session, it approved experimental test program requests from: (1) L P Brown Co/IFP for a sixth year of testing of a 100% woven cotton bale bag; (2) Langston Company for a third year of testing of a 100% woven cotton bale bag; (3) Propex Operating Company LLC for a first year of testing of a modified construction spiral sewn woven polypropylene bale bag; and (4) L P Brown Co/IFP for a first year of testing of 8½ Gauge Wire for 6-Tie Applications.

In a separate action, the JCIBPC agreed to continue the policy of strongly encouraging gins using materials approved for use in experimental test programs to recess their bale ties. Gins also were urged to record and provide testing firms with a bale tag list when experimental test products are used. The range of bale numbers are used by NCC staff to monitor the performance of tested materials. Both requests were presented initially at the Committee’s ’08 meeting and reaffirmed at this year’s meeting.

Firms with approved bag test programs were reminded that the summary of “Physical Properties of Test Product” provided by each firm serves as a minimum condition of their test program, but the JCIBPC will look favorably on modifications of the tested material when modifications exceeded the minimum condition and resulted in improved performance.

 
NCC Continues to Monitor HOS Rules

The NCC continues to monitor Federal Motor Carrier Safety Administration (FMCSA) hours-of-service (HOS) rules.

During FMCSA’s HOS listening sessions, the prevailing theme was flexibility. Testimony mainly was from professional drivers, and a majority of those testifying generally supported the current HOS regulations. However, the need for flexibility was reinforced at the

Davenport , IA , meeting where one driver told representatives that the 14-hour rule and sleeper-berth provision are too rigid and need revision.

Robert Kohlwes, board chairman of the Iowa Motor Truck Assoc., stated that, “the current sleeper-berth provisions are too restrictive and cause the driver to be “working for the log book.”

Now that the first round of listening sessions has ended (see Jan. 22 Cotton’s Week), additional sessions may be held and testimony from the listening sessions will be published.

HOS regulations can be found on the FMCSA website at http://www.fmcsa.dot.gov/rules-regulations/TOPICS/HOS/HOS-Listening-Sessions.aspx.

 
’10 Ginner School Registration Open

Registration is open for ’10 Ginner Schools. Dates for the schools are: Southwest Ginners School, Lubbock, TX – April 5-7; Western Ginners School, Las Cruces, NM – May 11-13; and Stoneville Ginners School, Stoneville, MS – June 15-17. Registration can be completed online at http://ncga.cotton.org.

National Cotton Ginners’ Assoc. Executive Vice President Harrison Ashley said each level of Ginner Schools’ coursework is built on the previous level of instruction, with Level I as the foundation. Thus, beginning students, regardless of gin experience, should start with Level I.

Level I courses are: Introduction to Cotton Ginning and the Industry; Maintenance of Auxiliary Gin Components; Basic Hydraulics; Basic Gin Safety; Maintenance and Adjustments for Seed Cotton Cleaners, Gin Stands, and Lint Cleaners; Air Utilization and Drying; and Electricity in the Gin.

The Level II offerings include: Purpose and Operating Principles of Individual Gin Machines; Efficient Operation, Adjustment, and Maintenance of Gin Equipment; Pneumatics and Waste Collection; Electrical Systems; Hydraulic Systems; Gin Safety; Management Tips; and Roller Ginning (at the Western School only).

Level III features: Review of Functions of a Ginning System; Electrical Systems; Air Systems in the Gin; Drying and Moisture Restoration Systems; Matching Machinery Capacities in the System; Seed Cotton Unloading Systems and Management of Seed Cotton Handling Systems; Bale Presses and Hydraulic Systems; Safety Programs and Labor Regulations; Cottonseed Handling Systems; and Roller Ginning (at the Western School only).

In addition to Levels I, II and III, all schools will feature a two-day continuing education (CE) coursefor certified ginners and gin managers. They may register for the two days or for individual parts of the course with a minimum of one day registration. Check at each location for the order in which these will be covered.

The CE course’s first day offerings will focus on developing basic skills and knowledge in PLC controllers, touch screens and electrical components. Training will provide students with a basic understanding of PLC operation and programming that will allow for better communications with the repairman to expedite resolution of problems in the gin. The session will include a discussion of electricity in the gin and a focus on reading wiring diagrams and identifying problems that will allow for better communications with electricians. Other discussions will be held on high efficiency motors, power saving techniques, energy management and new technology to conserve energy.

The second day’s CE course discussion will focus on high capacity ginning and quality preservation; how ginners can get the most out of the gin through reduced operational costs, gin management and maintenance activities. Included will be identifying capacity drags, understanding the difference between urgency and carelessness and identifying capacity killers. The course will feature discussions on developing a program that can assist ginners in reaching the gin’s full operational capacity and maintaining that level throughout the ginning season.

In addition, the CE course will include a focus on safety training with a: 1) discussion on keeping the workplace safe by identifying hazards and 2) review of safety training materials.

 
US Mill Cotton Use Stable

According to the Commerce Dept., January (four-week month) total cotton consumption in domestic mills was 132.2 million pounds for a seasonally adjusted annualized rate of 3.66 million bales (480-lb). Last year’s January annualized rate was 3.67 million bales.

The December (five-week month) estimate of domestic mill cotton use was raised by 433,000 pounds to 132.9 million pounds. The revised seasonally adjusted annualized rate of consumption for December is 3.54 million bales. The previous year’s December annualized rate was 3.12 million bales.

Using the latest Commerce figures, 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.

Based on Commerce estimates from Aug. 2, ’09-Jan. 30, ’10, projected total pounds consumed during crop year ’09-10 would be 1.6 billion pounds or 3.34 million bales. USDA’s latest estimate of ’09-10 crop year mill use is 3.4 million bales.

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

 
Shipments Hit Marketing Year High

Shipments for the week ending Feb. 18 were 250,600 bales (480-lb) – a marketing year high – bringing total exports to date to 5.2 million bales, compared with the 6.4 million bales at the comparable point in the ’08-09 marketing year.

Net export sales for the week were 126,100 bales, bringing total ’09-10 sales to approximately 9.3 million bales. Total sales at the same point in the ’08-09 marketing year were approximately 10.2 million bales. Total new crop (’10-11) sales are 390,400 bales.

 

 
Effective February 26-March 4, ’10

Adjusted World Price, SLM 11/16

66.77 cents

*

Fine Count Adjustment ('08 Crop)

 1.75 cents


Fine Count Adjustment ('09 Crop)

  1.55 cents


Coarse Count Adjustment

  0.00 cents


Marketing Loan Gain Value

 0.00 cents


Import Quotas Open

13


Special Import Quota (480-lb bales)

831,884


ELS Payment Rate

11.37 cents


*No Adjustment Made Under Step I

 

Five-Day Average



Current 5 Lowest 3135 CFR Far East

83.14 cents


Forward 5 Lowest 3135 CFR Far East

NA


Coarse Count CFR Far East

NA


Current US CFR Far East

86.25 cents


Forward US CFR Far East

NA


 

'09-10 Weighted Marketing-Year Average Farm Price  
 

Year-to-Date (August-December)

60.49 cents

**


**August-July average price used in determination of counter-cyclical payment