As of Aug. 28, USDA reported that 27% of bolls were opening across the 15 cotton-producing states for which weekly conditions are tracked. The 27% of bolls opened compares with the five-year average of 23%. Unfortunately, states that have suffered from drought conditions through the growing season are also the ones in which the crop has advanced at a faster pace. Texas reports that 27% of bolls are open, up from the five-year average of 18%. The crop in Georgia also is progressing ahead of schedule with 32% of bolls opened, compared to a five-year average of 24%.
Overall, crop ratings have stabilized in recent reports but still show the serious challenges facing portions of the US crop. In Texas and Oklahoma, 60% or more of the crop is rated as poor or very poor.
In much of the rest of the Cotton Belt, crop conditions are generally average to above average, with portions of the southeastern US being the exception. As of the Aug. 28 report, the North Carolina and Virginia crops were showing above average ratings. The extent of any damages to the North Carolina and Virginia crops due to Hurricane Irene are still being assessed and will be reflected in future USDA reports.
USDA Farm Service Agency (FSA) Administrator Bruce Nelson reminded producers about upcoming deadlines for disaster assistance. Nelson emphasized that losses must be the result of a weather event occurring on or before Sept. 30, '11.
"This year brought a host of extreme weather challenges for America's farmers, ranchers and producers," Nelson said. "USDA is committed to use the resources at our disposal to reduce the impact of these conditions and help producers get back on their feet. And this year, especially, it's important for producers to be aware of program deadlines and to have their records in order so that they get the assistance they need."
The '08 farm bill authorizes coverage of disaster losses through these five programs:Supplemental Revenue Assistance Payments Program (SURE); Livestock Indemnity Program (LIP); Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish (ELAP); Livestock Forage Disaster Program (LFP); and the Tree Assistance Program (TAP).
SURE applications for '10 crop losses will be accepted later this fall. SURE applications for '11 crop losses will be accepted in the fall of '12, when the '11 farm revenue data required by statute becomes available.
FSA is required to determine that the claimed loss was because of a disaster occurring on or before Sept. 30, '11. FSA must determine if a qualifying loss meets the established disaster relief criteria for at least one crop.
At the time the SURE application for payment is filed, the producer will be required to identify and certify a crop of economic significance that suffered a qualifying loss of 10% or more. At least one such crop with 10% losses on or before Sept. 30, '11, is required by SURE.
"We encourage all producers to read the applicable disaster program fact sheets and visit their local FSA county office. The staff can provide additional information such as the deadline for filing a program application or the initial requirement for filing a notice of loss," Nelson said.
Fact sheets for these programs can be found atwww.fsa.usda.govby clicking on Newsroom, then Fact Sheets. Additional information regarding the programs is athttp://disaster.fsa.usda.gov.
Oil Spill Plan Deadline 10 Weeks Away
EPA's Oil Spill Prevention, Control and Countermeasure (SPCC) program requires farms and other regulated facilities to prepare a SPCC Plan to prevent oil spills into US waters. Farms in operation on or before Aug. 16, '02, must maintain or amend their existing plan by Nov. 10, '11. Any farm that began operation after Aug. 16, '02, but before Nov. 10, '11, must prepare and use a plan on or before Nov. 10, '11.
The SPCC program applies to a farm which:
·Stores, transfers, uses or consumes oil or oil products, such as diesel fuel, gasoline, lube oil, hydraulic fluid, adjuvant oil, crop oil, vegetable oil or animal fat; and
·Stores more than 1,320 US gallons in aboveground containers larger than 55 gallons or stores more than 42,000 US gallons in completely buried containers; and
·Could reasonably be expected to discharge oil to waters of the US or adjoining shorelines, such as interstate waters, and intrastate lakes, rivers and streams.
SPCC plans include measures such as using suitable containers, identifying contractors to clean up an oil spill, secondary containment for spills and periodic inspections of pipes and containers.
Many farmers will need to have their plan certified by a Professional Engineer. However, a farmer may be eligible to self-certify his plan if the farm has a total oil storage capacity between 1,320 and 10,000 gallons in aboveground containers with no single container larger than 5,000 gallons and the farm has a good spill history.
According to a press report, President Obama overruled the EPA and directed EPA Administrator Lisa Jackson to withdraw a controversial proposed regulation tightening health-based standards for smog. Ozone is the main ingredient in smog.
The withdrawal of the proposed EPA rule comes three days after the White House identified seven such regulations that it said would cost private business at least $1 billion each. The proposed smog standard was estimated to cost anywhere between $19 billion and $90 billion, depending on its strictness.
House Republicans had pledged to try to block four environmental regulations, including the one on some pollution standards, when they return after Labor Day. Perhaps more than some of the other regulations under attack, the ground-level ozone standard is most closely associated with public health -- something the President said he wouldn't compromise in his regulatory review.
In his statement, the President said that withdrawing the regulation did not reflect a weakening of his commitment to protecting public health and the environment. "I will continue to stand with the hardworking men and women at the EPA as they strive every day to hold polluters accountable and protect our families from harmful pollution," he said.
The decision mirrors one made by Obama's predecessor, President George W. Bush. EPA scientists had recommended a stricter standard to better protect public health. Bush personally intervened after hearing complaints from electric utilities and other affected industries. His EPA set a standard of 75 parts per billion, stricter than one adopted in '97, but not as strong as federal scientists said was needed to protect public health.
The EPA under President Obama proposed in Jan. '10 a range for the concentration of ground-level ozone allowed in the air -- from 60 parts per billion to 70 parts per billion.
Orientation Tour Showcasing US Fiber
Textile executives from 14 countries throughout the world will visit the US Cotton Belt on Sept. 12-22 to familiarize themselves with US cotton and how the fiber is produced, processed and marketed. The bi-annual COTTON USA Orientation Tour is sponsored by Cotton Council International (CCI).
CCI President John Mitchell, a Cordova, TN, merchant, said,"The Orientation Tour is vital to U.S. cotton export performance.For years, this event has enabled our industry to showcase our high quality fiber to important international spinners as well as build and strengthen relationships with these customers."
The 31 participants represent 28 companies in Bangladesh, China, Colombia, Ecuador, India, Indonesia, Japan, Korea, Pakistan, Peru, Taiwan, Thailand, Turkey and Vietnam. These companies are expected to consume about 3.6 million bales in '11, 1.3 million of which are estimated to be US cotton – about 11% of US cotton exports.
The participating countries are expected to consume about 96 million bales of cotton in '11-12. This represents about 83% of the total annual world cotton consumption. This tour's countries also purchased 12.3 million bales of US cotton in '10-11, which accounts for 90% of US cotton exports.
The tour participants will visit a farm and gin in the Mid-South; observe cotton research in North Carolina, Mississippi and Texas; and tour the USDA cotton classing office in Bartlett, Tenn. They will meet with exporters in the four major Cotton Belt regions and get briefings from CCI, NCC, Cotton Incorporated, American Cotton Shippers Assoc., Texas Cotton Assoc., Lubbock Cotton Exchange, AMCOT, Western Cotton Shippers Assoc., American Cotton Producers, Southern Cotton Growers Assoc., Delta Council, the Plains Cotton Growers Assoc., Texas Cotton Producers, San Joaquin Valley Quality Cotton Growers Assoc. and Supima.
More than 800 textile executives from more than 60 countries have toured the US Cotton Belt by way of CCI's Orientation Tour, which was initiated in '68. The tour's objectives are to increase US cotton customers' awareness of the types/qualities of US cotton, help them gain a better understanding of US marketing practices and enhance their relationships with US exporters. The tour has led many foreign textile manufacturers to develop an appreciation for US cotton fiber quality and furthered the US cotton industry's reputation as a reliable supplier. The tour continues to be an excellent vehicle for helping US cotton capture additional market share overseas.
Sales, Shipments Rebound
Net export sales for the week ending Aug. 25, '11 were 231,400 bales (480-lb). This brings total '11-12 sales to approximately 6.9 million bales. Total sales at the same point in the '10-11 marketing year were approximately 7.1 million bales. Total new crop ('12-13) sales are 146,100 bales.
Shipments for the week were 250,400 bales, bringing total exports to date to 515,400 bales, compared with the 909,700 bales at the comparable point in the '10-11 marketing year.
Effective Sept. 2-8, ’11
Adjusted World Price, SLM 11/16
91.20 cents
*
Fine Count Adjustment ('10 Crop)
0.00 cents
Fine Count Adjustment ('11 Crop)
0.00 cents
Coarse Count Adjustment
0.00 cents
Marketing Loan Gain Value
0.00 cents
Import Quotas Open
1
Limited Global Import Quota (480-lb bales)
204,465
ELS Payment Rate
0.00 cents
*No Adjustment Made Under Step I
Five-Day Average
Current 5 Lowest 3135 CFR Far East
111.76 cents
Forward 5 Lowest 3135 CFR Far East
NA
Coarse Count CFR Far East
NA
Current US CFR Far East
121.88 cents
Forward US CFR Far East
NA
'10-11 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-July)
81.43 cents
**
**August-July average price used in determination of counter-cyclical payment
