CURRENT ISSUE ARTICLES

Senate Panel Approves FY12 Ag Appropriations Bill

House Ag Committee Seeks Clarification From EPA

Ex-Im Bank Reauthorization Mark-up Applauded

Ag Advisory Committees Members Named

Industry Reminded of Tare Weight Table Changes

Sales, Shipments Lag

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Senate Panel Approves FY12 Ag Appropriations Bill

The Senate Appropriations Committee has approved the FY12 agricultural appropriations bill. Overall discretionary spending for the Agriculture Subcommittee for FY12 totals $19.780 billion, which includes $1.750 billion in security spending and $18.030 in non-security spending. This represents a net security/non-security decrease of $138 million below the FY11 continuing resolution. However, non-security spending alone is reduced by $192 million below the FY11 continuing resolution. The bill also includes $266 million to respond to floods, storms and other natural disasters.

The bill reflects reductions below the FY11 funding level in many programs. In making these funding decisions, programs directly related to public health and safety and domestic and international nutrition assistance programs were prioritized.

Summaries of the funding decisions follow.

Food and Drug Administration. The FY12 bill provides $2.497 billion for the Food and Drug Administration (FDA), as compared to $2.447 billion in FY11, not including funding collected through user fees. The FDA is the only non-security Agency to receive increased funding in this bill. This funding level takes into consideration the federal government's responsibilities to protect public health and safety, especially in the areas of food, drugs, medical devices and biologics. An increase is provided the FDA to begin implementation of the recently passed Food Safety Modernization Act. 

Food Safety and Inspection Service. The FY12 bill provides the Food Safety and Inspection Service (FSIS) $1.007 billion, the same level as FY11. This includes the full funding requested in the budget for federal, state and international inspection activities, and will allow the FSIS to continue modernizing its workforce and improving food safety systems.

Domestic Nutrition. The FY12 provides $6.582 billion for the Special Supplemental Nutrition Program for Women, Infants, and Children, as compared to $6.734 billion in FY11. This level will fully fund participation in the program. The decrease from FY11 is due to lower program participation rates than originally estimated. This level also provides $60 million for breastfeeding peer counselors. For other domestic nutrition programs, the FY12 bill provides $382 million, as compared to $393 million in FY11. This includes funding for the Commodity Supplemental Food Program of $176 million, which fully funds participation.

Foreign Food Assistance. The FY12 bill provides $1.562 billion for PL 480 Title II, as compared to $1.5 billion in FY11. The PL 480 Title II program provides emergency food assistance to the most vulnerable areas in the world. The bill provides an increase for PL 480 Title II to reflect the increased demand for humanitarian food assistance especially with the unprecedented famine in the Horn of Africa. The McGovern-Dole Program, which provides school meals to the world's poorest children, is funded at $188 million, as compared to $199 million in FY11.

Research. The FY12 bill provides $2.309 billion for the National Institute on Food and Agriculture (NIFA) and the Agricultural Research Service, as compared to $2.348 billion in FY11. Specifically within NIFA, the Agriculture and Food Research Initiative is funded at $266 million, the Hatch Act is funded at $236 million, the McIntire-Stennis Cooperative Forestry program is funded at $33 million, and Smith-Lever Sections 3(b) and 3(c) is funded at $296 million.

Rural Development. The FY12 bill provides $654 million for Rural Development Salaries and Expenses, as compared to $688 million in FY11. Most programs were reduced from FY11 levels. For Housing and Community Programs, the bill provides $1.09 billion in budget authority while $1.224 billion was available in FY11. For Business Programs, the bill provides $119 million, as compared to $128 million in FY11. Under Rural Utilities Programs, the bill provides $557 million as compared to $597 million in FY11.

Farm Service Agency. The FY12 bill provides $404 million for farm loan programs, as compared to $461 million in FY11. The bill provides $1.182 billion for salaries and expenses, as compared to $1.208 billion in FY11.

Conservation. The FY12 bill provides $828 million for the Natural Resources Conservation Service, as compared to $871 million in FY11. The bill does not include funding for the Watershed Rehabilitation Program.

House Ag Committee Seeks Clarification From EPA

House Agriculture Committee Chairman Lucas (R-OK) sent a letter to EPA Administrator Lisa Jackson which requested a response to a list of questions that was submitted to her agency earlier in the year. Administrator Jackson had testified before the House Agriculture Committee on March 10, '11, at a hearing on EPA regulations (see March 11 Cotton's Week). After the hearing, committee members submitted questions for the record to clarify EPA's intentions and the potential impacts of that agency's actions on agriculture.

Lucas' letter to Jackson, which can be viewed at http://agriculture.house.gov/pdf/letters/epa_questions110908.pdf, stated that EPA regulations "can have far-reaching consequences on businesses across the country. For that reason, your agency's regulatory agenda has been a frequent topic of interest at hearings held by the House Committee on Agriculture."

In reminding Jackson that it has been nearly six months since the questions had been submitted, the letter said, "Our Committee is not raising idle concerns; we are seeking forthright answers that will help farmers and ranchers make important business decisions."

Lucas also said the clarification of EPA's intent will, "help dispel any mischaracterizations of regulations which are currently under consideration by your agency and give American businesses the regulatory certainty they need to reinvest in our economy."

Ex-Im Bank Reauthorization Mark-up Applauded

The American Apparel & Footwear Assoc. (AAFA), the NCC and the National Council of Textile Organizations (NCTO) welcomed the successful mark-up of the Export-Import Bank Reauthorization Act of 2011 by the Senate Committee on Banking, Housing, and Urban Affairs Committee.

"Today's successful mark up by the Senate Banking Committee is a welcome step toward strengthening the U.S. apparel industry's supply chain throughout the Western Hemisphere," said AAFA President and CEO Kevin M. Burke. "By better recognizing the needs of our industry's global supply chain, the Export – Import Bank through this reauthorization can help provide greater access to supply chain financing to address the needs of U.S. companies in a globally competitive environment and create more jobs here in the United States. I would like to thank Chairman Johnson (D-SD) and Senator Hagan (D-NC) for their continued leadership on this important issue."

NCC President and CEO Mark Lange said, "The U.S. cotton industry is pleased to see an opportunity for its textile customers to expand exports of value-added products containing U.S. cotton, with the resulting benefits to our nation's farm income and job creation."

NCTO President Cass Johnson said, "NCTO applauds Chairman Johnson and Senator Hagan's leadership in recognizing the opportunities that exist for US job creation and investment in the Western Hemisphere. The textile and apparel supply chain is in critical need of liquidity in order to spur new growth, investment, and jobs in the region. This has been the missing piece that the Hemisphere sorely needs to attract new orders from brands and retailers. Committee approval of the Ex-Im Reauthorization bill, containing important Bank improvements for the industry takes the entire supply chain one step closer to addressing this crucial issue."

Ag Advisory Committees Members Named

Agriculture Secretary Tom Vilsack and US Trade Representative Ron Kirk announced the appointment of 148 private-sector members to the Agricultural Policy Advisory Committee (APAC) and six Agricultural Technical Advisory Committees (ATACs).

Congress established the advisory committee system in '74 to ensure a private-sector voice in establishing US agricultural trade policy objectives to reflect US commercial and economic interests. USDA and the Office of the US Trade Representative jointly manage the committees.

The APAC provides advice and information to the Secretary of Agriculture and the US Trade Representative on negotiating objectives, positions and other matters related to the development, implementation and administration of US agricultural trade policy. The ATACs offer technical advice and information on specific commodities.

Cotton industry members named to the Tobacco, Cotton and Peanuts ATAC included Sledge Taylor, a Como, MS, producer/ginner who serves as NCC secretary/treasurer; John Mitchell, a Cordova, TN, merchant who serves as Cotton Council International president; Kenneth Dierschke, a San Angelo, TX, producer and Texas Farm Bureau Federation president; Dale Artho, a Wildorado, TX, producer; Mike Quinn, a Garner, NC, cooperative official; Harvey Shroeder, executive director of the Oklahoma Cotton Council, Frederick; and Michelle Huffman, a NCC economist, Memphis, TN.

"With U.S. agricultural exports reaching record highs as our farmers and ranchers bring the American brand to more of the world consumers, agricultural trade is demonstrating once again its vital role in the health of our nation's economy," Vilsack said. "Members of these seven committees understand the importance of open markets to the U.S. economy. By serving on these committees, they have the opportunity to provide their expertise and knowledge to deliberations that influence U.S. trade policy, ultimately helping to grow, innovate and out-compete the rest of the world."

"These appointments are an important step in the Obama Administration's on-going efforts to expand trade and bring new opportunities to America's farmers and ranchers, as well as the businesses and workers they support," said Ambassador Kirk. "Agricultural exports are a critical component of America's economy, and the input and advice these individuals will provide in the coming years will be indispensible in helping to identify and capitalize on new and emerging trade opportunities."

This initial group of committee members will serve until June 9, '15. They will be supplemented by additional appointments over the next four years. Applications are encouraged at any time and will be reviewed periodically for additional appointments going forward. Information on applying is at www.fas.usda.gov/itp/apac-atacs/advisorycommittees.asp. Questions may be directed to Steffon Brown at 202-720-6219 or via e-mail to Steffon.Brown@fas.usda.gov.

Industry Reminded of Tare Weight Table Changes

As the harvesting and ginning season gets underway, ginners and warehousers are encouraged to make sure the software they use to assign bale tare weights is up to date.

This emanated from a review of the official bale bagging and tie tare weight table in the packaging specifications that resulted in a change in the table. That review occurred during the NCC’s Joint Cotton Industry Bale Packaging Committee in February and was approved by USDA in May. The outcome is an adjustment of the official tare weight for PE film and six wire bale tie patterns. The change only affects the one combination of bagging and ties. The result is a four pound tare weight instead of five pounds for PE film and six wire bale tie patterns. The tare weight change went in effect with the ’11-12 marketing year.

Sales, Shipments Lag

Net export sales for the week ending Sept. 1 were 46,000 bales (480-lb). This brings total ’11-12 sales to approximately 7.0 million bales. Total sales at the same point in the ’10-11 marketing year were approximately 7.2 million bales. Total new crop (’12-13) sales are 148,100 bales.

Shipments for the week were 80,600 bales, bringing total exports to date to 596,100 bales, compared with the 1.1 million bales at the comparable point in the ’10-11 marketing year.

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