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August 6, 2010
 

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Lincoln/Chambliss Introduce FIFRA Amendment

Senate Agriculture Chairman Lincoln (D-AR) and Ranking Member Chambliss (R-GA) introduced a bill which would amend the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) to exclude pesticide applications from the need for permits, provided the pesticides are applied in accordance with the product label.     

Chairman Lincoln said, “EPA, at the direction of the federal courts, is requiring permits for pesticide applications even if the application doesn’t occur directly into water. Congress never intended for agricultural chemicals to be regulated under the Clean Water Act…I am introducing legislation to clarify Congress’ intent. Farmers, foresters, and ranchers already comply with FIFRA and further unnecessary regulation should not be required. I am pleased to be joined by Agriculture Committee Ranking Member Saxby Chambliss. The bill is very simple:  as long as a farmer is complying with FIFRA, then no Clean Water Act permit will be required.”

If the legislation is enacted, it will overturn the Sixth Circuit Court decision in NCC, et al, v. EPA and will ensure pesticide uses will not be subject to redundant regulation.

NCC Chairman Eddie Smith stated, “This bill will restore certainty for cotton farmers who use crop protectant products safely and responsibly. Pesticides have been regulated successfully by FIFRA for years. This bill will prevent EPA from imposing unnecessary, duplicative, and confusing regulatory burdens on farmers.”

In earlier comments to the EPA, the NCC had emphasized that the FIFRA registration process already requires a myriad of human health, safety, and environmental studies to confirm the mandate of “no unreasonable adverse affects” and to establish conditions under which pesticides may be used safely and legally in the United States.

The NCC’s full statement is available at www.cotton.org.

 
SURE Payments Application Deadline Set

USDA announced that producers have until Sept. 30, ’10, to submit an application for payment under the ’08 Supplemental Revenue Assistance Payments (SURE) Program. SURE provides financial assistance for crop production and/or quality losses due to a natural disaster.

Farm Service Agency (FSA) Administrator Jonathan Coppess said, "We want producers to be aware of this deadline so they are certain to visit their FSA county office to file a 2008 SURE program payment application no later than September, 30, 2010. It is important to finish the current 2008 SURE program sign-up because the authority for the Recovery Act supplement for payment benefits expires at the end of the current fiscal year and the Department of Agriculture will then start the 2009 SURE sign-up application process."

FSA began accepting and processing ’08 SURE program applications in Jan. ’10, and the American Recovery and Reinvestment Act of 2009 (Recovery Act) allowed for a one-time increase in the calculation of ’08 SURE payments that are filed by Sept. 30, ’10. Producers who do not file a ’08 SURE program payment application by Sept. 30, ’10, will not be considered eligible for ’08 SURE program payments.

Producers are encouraged to file an application for ’08 SURE payments regardless of whether they think they may or may not qualify. An electronic SURE program payment calculator and additional information regarding the SURE program is located at http://www.fsa.usda.gov/FSA/sure, or producers can contact their local county FSA office.

 
US-Korea FTA Textile Provisions Reopening Urged

The National Council of Textile Organizations (NCTO), the Service Employees' International Union and other groups sent a letter to US Trade Representative Kirk urging the Administration to reopen the textile provisions in the pending US-Korea free trade agreement (FTA).

The groups said that Korea was a major exporter of textile products to the United States and that the Korea FTA favors the Korean industry. According to NCTO, there are three major problems with the agreement’s textile provisions: 1) Korean manufacturers are provided immediate duty-free access to US markets in sensitive textile categories; 2) the customs enforcement provisions are weak; and 3) the rules of origin for textiles and apparel would provide benefits to China and other countries for a number of important products.

The co-chairs of the Congressional Textile Caucus also wrote Ambassador Kirk seeking to have textile provisions in the Korea FTA renegotiated. Their letter says 60% of the sensitive products are provided immediate tariff elimination and the tariffs for another 29% are scheduled to be eliminated in five years. The letter notes that immediate tariff elimination is unprecedented in previous FTAs and that US textile exports are subject to a 10% value added tax.

US industry representatives sought a 10-year phase-out for sensitive items but only 10% of the tariff lines identified as sensitive obtained a long phase-out.

The International Trade Commission (ITC) in its assessment of the US-Korea FTA predicted that imports will increase on textile items such as man-made fibers, yarns, fabrics and hosiery. The ITC report predicted an increase of 86% to 94% in textile imports’ value from Korea which translates to between $1.7 billion and $1.8 billion. The report, though, also predicted that 85% to 95% of the imports will be diverted from other import sources, a point which is disputed by industry sources.

 
Trade Is Focus of Senate Agriculture Hearing

The Senate Agriculture Committee held a hearing regarding US agricultural trade policy and the trade title in the ’08 farm bill.

During this third hearing in the Committee’s series to review current farm law and implementation in preparation of the next farm bill, Chairman Lincoln (D-AR) said, “Agriculture is a sector of our economy where we are proving that we can successfully meet the export demands that will help rebuild the U.S. economy. For every additional one billion dollars of agricultural products we export, we can create 9,000 jobs.”

Sen. Lincoln said the Committee authorizes and funds a variety of trade promotion programs under the trade title of the current farm bill. These include the Market Access Program, Foreign Market Development Program, GSM-102 Export Credit Guarantee Program and Technical Assistance for Specialty Crops.

“These programs will be a central focus as we begin debate on the provisions of the next farm bill,” she said.

Industry representatives expressed strong support for the programs and attributed some of their increased exports to them.

Ranking Member Chambliss (R-GA) said,  “U.S. agriculture exports remain one of the few bright spots in the domestic economy, with a balance of trade totaling almost $27 billion last year.”

Sen. Chambliss called on the President to submit three pending trade agreements with Colombia, Panama and South Korea to Congress for prompt approval and added, “The Doha Round is at an impasse and has been for some time. Let me state unequivocally that the deal on the table is insufficient and unbalanced from the perspective of the Congress. A successful Round is possible, but only when Brazil, China and India recognize that their rising influence in the international economy requires shared sacrifices in order to achieve individual and shared gains.”

At the hearing, members questioned US Trade Representative Kirk on a wide range of issues, such as the status of the World Trade Organization's Doha Round talks, the need for trade promotion authority and about specific commodities and countries. Ambassador Kirk said that while he was “less discouraged” about Doha, he agreed that the current text is “insufficient” and not one that he would bring to Congress. He noted that Canada had joined the United States in asking more of China, India and Brazil. While India has been open to dialogue, he said, “China has been wonderfully Chinese.”

 
Kirk Shares Thoughts on AGOA, Doha, Cotton

During a news briefing in conjunction with the 9th annual African Growth and Opportunity Act (AGOA) forum, US Trade Representative Kirk said AGOA’s success should not be tied to the export of textiles and apparel and that countries under the preference program should look to grow their economies through other trade including value added exports made from the continent's raw materials.

He stressed that African countries need to increase trade with each other through more regional integration and expressed frustration that a number of countries are neither exporting nor seriously studying development strategies.

Ambassador Kirk also told reporters he feels “more encouraged” about the state of the Doha Development Agenda trade negotiations and that “real” progress may be possible later this year if advanced developing countries are willing to come to the bargaining table. There also is more support for the US stance about the need for a more balanced outcome that puts manufactured goods and services on par with agriculture. But, he said the United States does not believe all developing countries deserve the same treatment. Advanced developing countries like China, India and Brazil should be expected to contribute more than poor countries, especially in nonagricultural market access and services.

“The notion that the United States has to pay again just to engage in discussions of NAMA and services is one we expressly reject,” he said. He stated that it would be “disingenuous” to suggest US agricultural subsidies have no impact on developing countries but neither should their impact be overstated -- as is the case being made by African countries for the immediate end to all US cotton subsidies. He noted that even if those subsidies were removed today, the so-called “Cotton Four” countries - Benin, Burkina Faso, Chad and Mali - still would be uncompetitive because they have limited production capacities and lack the infrastructure needed to export.

 
EPA Proposes Spill Prevention Rule Extension

On July 30, EPA announced that it is proposing to extend the compliance date by one year for certain facilities subject to recent amendments to the Spill Prevention Control and Countermeasure (SPCC) rule. Farms are included in the list of facilities that are eligible for the extension.

Last year, EPA amended the SPCC rule to strengthen certain provisions. Regulated facilities are required to amend and implement these changes as part of their overall SPCC plans. The purpose of the SPCC rule, which was finalized in ’73, is to establish requirements for facilities to prevent a discharge of oil into navigable waters or adjoining shorelines.

The proposed rule would extend the date by one year to Nov. 10 ’11 in which the owners or operators of certain facilities must prepare or amend and implement a SPCC plan. The proposed amendments do not remove the regulatory requirement for owners or operators of facilities in operation before Aug. 16, ’02, to maintain and continue implementing a SPCC plan in accordance with the SPCC regulations then in effect.

EPA is seeking comments on whether a shorter extension period (six to nine months) is warranted for facilities rather than the proposed one year extension. The public has the opportunity to respond to the proposed rule during a 15-day comment period following its publication in the Federal Register. More information on the proposed rule is at:  http://www.epa.gov/emergencies/content/spcc/index.htm.

 
Tax Cut Legislation Moving to Senate Floor

Legislation to extend more than $3 trillion in expiring tax cuts will move to the Senate floor when Congress returns from its August recess according to a spokesman for Senate Majority Leader Reid (D-NV).

Democratic leaders have made it clear that they intend to seek an extension of the existing individual income tax rates and credits for individuals earning less than $200,000 per year ($250,000 for couples).

Senate Minority Leader McConnell (R-KY), who confirmed that the debate over the bill will probably begin in September, said allowing the tax rates to rise for individuals in the top two tax brackets will hurt small businesses that pay their taxes through the individual income tax system. Returning the top tax rates to as much as 39.6% “will capture 50 percent of small business income and up to 25 percent of the workforce and will have a devastating impact by raising taxes in the middle of a recession,” McConnell said.

Treasury Secretary Geithner said the Republican criticism that allowing top tax rates to rise will hurt small businesses is a “myth.” “It's not the prescription the economy needs right now, and the country can't afford it.”

Instead, he said, extending tax cuts for only the middle class is about more than the debt and deficit. The estate tax and “extenders,” which include the popular research and development tax credit and above-the-line deduction for teachers' supplies are expected to be added to a package of other expiring tax cuts. Without congressional action before Jan. 1, ’11, virtually every American will face higher taxes as the 10% tax bracket disappears, other tax rates edge higher, and the child tax credit returns to $500 per child from its current level of $1,000.

House Majority Leader Hoyer (D-MD) also has said the tax cut extensions are expected to see some action in the House in September, though he made no guarantees that an agreement can be reached before Congress is scheduled to recess on Oct. 8.

 
Crop Insurance Listening Session Set

Sen. Chambliss (R-GA) has invited Bill Murphy, USDA’s Risk Management Agency (RMA) Administrator, to Georgia to hold a crop insurance listening session with producers on Friday, Aug. 27, from 1–3 pm.  The listening session will be held in the auditorium of the U. of  Georgia Tifton Campus Conference Center, 15 RDC Road (I-75, exit 64).

Listening sessions held in Aug. ‘09 were well-received, and this session is aimed at creating additional meaningful dialogue with the administrator and key RMA staff.

 
Mid-South Producers Visiting the Southeast

Cotton producers from Arkansas, Mississippi, Tennessee and Missouri will see cotton operations in Virginia and North Carolina on Aug. 8-13 as part of the NCC ’10 Producer Information Exchange (P.I.E.) program.

Sponsored by Bayer CropScience through a grant to The Cotton Foundation, the P.I.E. program helps producers improve their overall farming operation efficiency by: 1) gaining new perspectives in such fundamental practices as land preparation, planting, fertilization, pest control, irrigation and harvesting; and 2) observing firsthand the unique ways in which their peers are using new and existing technology.

The nine Mid-South producers will begin their tour on Aug. 9 in southeastern Virginia  with visits to Butler & Sons Farm in Windsor for a look at cotton, peanut and beef cattle production, and to the Mid-Atlantic Gin in Emporia for a look at cotton production in that area. They also will visit the Severn Peanut Shelling Plant in Severn, NC.

On the 10th, the group will visit the Sylvan Heights Waterfowl Park in Scotland, Neck, for a presentation on conservation and research for preserving waterfowl and habitat. They also will see production diversity and utilization of conventional and transgenic cotton varieties in that area, and observe some of Bayer’s crop trials.

On the 11th, the group will tour a peanut processing plant in Roxobel; see cotton production in the state’s Blacklands area at Pantego and view cotton production in the Williamston area and the Williamston Yarn Mill. On the 12th, the producers will tour the PCS Phosphate Mine in Aurora; see cotton and tobacco production at Harvey & Son Co. in Kinston; and cotton, tobacco, sweet potato and swine production at Warren Brothers Farms in Newton Grove. The tour will conclude on the 13th with a look at cotton production in the southern part of the state at Edgar Edens farm in Red Springs.

The participants are Arkansas – Fred Black, Jr. and Billy Elliott, both from Lake Village; Mississippi – Graham Hollister, Greenville, and B. Jones, IV, Yazoo City; Tennessee – Daniel Arant, Hornbeak, Kent Greene, Dyersburg, Matt Williams, Medina, and Bill Walker, Somerville; and Missouri – Dustin Jackson, Senath.

 
Sales Weak, Shipments Continue Strong

Net export sales for the week ending July 29 were 36,800 bales (480-lb). This brings total ’09-10 sales to approximately 14.0 million bales. Total sales at the same point in the ’08-09 marketing year were approximately 14.4 million bales. Total new crop (’10-11) sales are 3.7 million bales.

Shipments for the week were 370,000 bales, bringing total exports to date to 12.1 million bales, compared with the 13.2 million bales at the comparable point in the ’08-09 marketing year. Total exports are approximately 172,000 bales below the USDA projection of 12.3 million bales.

 

 
Effective Aug. 6-12, ’10

Adjusted World Price, SLM 11/16

68.58 cents

*

Fine Count Adjustment ('09 Crop)

 0.29 cents


Fine Count Adjustment ('10 Crop)

  0.39 cents


Coarse Count Adjustment

  0.00 cents


Marketing Loan Gain Value

 0.00 cents


Import Quotas Open

3


Special Import Quota (480-lb bales)

202,014


ELS Payment Rate

0.00 cents


*No Adjustment Made Under Step I

 

Five-Day Average



Current 5 Lowest 3135 CFR Far East

85.42 cents


Forward 5 Lowest 3135 CFR Far East

NA


Coarse Count CFR Far East

NA


Current US CFR Far East

88.20 cents


Forward US CFR Far East

NA


 

'09-10 Weighted Marketing-Year Average Farm Price  
 

Year-to-Date (August-June)

62.10 cents

**


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