CURRENT ISSUE ARTICLES

NCC Says Brazil's Claims Unfounded

'11-12 US Cotton Production Estimate Unchanged

Communication Technology Enhancements Offered

US Cotton Promoted at Colombiatex Event

Sales Weak, Shipments Strong

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NCC Says Brazil's Claims Unfounded

Contrary to the recent farm policy criticisms by Brazil, the NCC says its Stacked Income Protection Plan (STAX) represents a positive step forward in efforts to resolve the longstanding trade dispute between the two countries.

In a statement, the NCC points out that in '05, a World Trade Organization (WTO) panel concluded that the combination of the marketing loan, target price and former Step 2 provision of the marketing loan combined to cause significant price suppression and serious prejudice to Brazil's cotton industry. The upland cotton marketing loan's Step 2 provision was eliminated in '06. In the current farm program's context, the only remaining provisions relevant to the Brazil dispute are the marketing loan and the target price. By calling into question any program other than the marketing loan or the target price, Brazil has attempted to extend the trade dispute's scope to programs that are not part of the case's current retaliation phase. In an effort to meet current budget pressures and address the WTO case, the NCC proposes to eliminate the target price for upland cotton and introduce a formula that would lower the marketing loan in times of low prices. Also, after assuming a 30% reduction in available support, the NCC proposal redirects remaining baseline funding for the target price-based countercyclical payment program and direct payment into an area-wide insurance program. Moving upland cotton's support into an insurance program is entirely consistent with the WTO panel's findings regarding trade and market distortions. Brazil challenged all crop insurance programs for upland cotton as part of the original dispute, but ultimately, the WTO panel did not assign any economic damages to Brazil based on the presence of insurance programs.

"While the United States is seeking lower overall support," the statement noted, "it is unfortunate that Brazil seeks to criticize the progress of writing new U.S. farm policy while Brazil simultaneously maintains a minimum support price for cotton higher than current U.S. support levels."

The full statement is on the NCC's website at www.cotton.org/issues/2012/brazilrebutt.cfm.

'11-12 US Cotton Production Estimate Unchanged

In its February report, USDA projected the '11-12 US cotton crop to be 15.67 million bales, unchanged from the January report. US mill use was lowered 100,000 bales to 3.50 million bales. Exports were unchanged at 11.00 million bales. This generates a total '11-12 offtake of 14.50 million bales. Ending stocks for '11-12 are projected to be 3.80 million bales for an ending stocks-to-use ratio of 26.2%.

For the '10-11 crop year, USDA gauged US cotton production at 18.10 million bales. Estimated mill use and exports were unchanged from the January report at 3.90 million and 14.38 million bales, respectively. Total offtake for the '10-11 crop year is estimated at 18.28 million bales. Ending stocks were unchanged from the previous month at 2.60 million bales. The estimated stocks-to-use ratio for the '10-11 marketing year is 14.2%.

The USDA report raised the '11-12 world production estimate by 500,000 bales from the January report to 123.34 million bales. World mill use was lowered 280,000 bales from the January report to a projected 109.71 million bales. Consequently, world ending stocks for '11-12 are projected to be 60.77 million bales for a stocks-to-use ratio of 55.4%.

For the '10-11 marketing year, USDA estimated world production at 116.46 million bales, up 1.14 million bales from last month's report. Estimated world mill use was raised 320,000 bales to 114.64 million. Estimated world ending stocks on July 31, '11 are now estimated at 46.99 million bales. This has a corresponding stocks-to-use ratio of 41.0%.

Communication Technology Enhancements Offered

Acting Under Secretary for Farm and Foreign Agricultural Services (FFAS) Michael Scuse announced a package of technology enhancements from the Farm Service Agency (FSA) that include Web access for handheld and smartphone users, as well as a more efficient and timely option for receiving news and critical program information. The improvements will allow FSA information users to gain access to easy-to-read data, including key features such as loan deficiency payment rates, posted county prices, FSA news releases and AskFSA, the agency's online self-help knowledge base.

The FSA offerings underscore USDA's Blueprint for Stronger Service, a plan introduced in January by Agriculture Secretary Tom Vilsack that takes a realistic view of American agriculture's needs in a challenging budget climate, and lays out USDA's plans to modernize and accelerate service delivery while improving the customer experience through use of innovative technologies and business solutions. Three of the 27 initial recommendations implemented by USDA focus on information technology, while other process improvements already put into place by FSA have strengthened the agency's electronic customer service and online presence.

"As an increasing number of farmers and ranchers move to mobile devices and other high-tech tools, we need to keep pace by investing in the best possible customer service while making the best use of taxpayer resources," Scuse said. "The mobile website is an added convenience for farmers and ranchers and an effective, efficient way for USDA to deliver news, program information and reliable guidance on a variety of agricultural issues. And investments in technology help USDA continue to make other, more significant investments in rural America, preserving the success of U.S. agriculture in the long term."

Like all websites, the FSA site is accessible through any device that connects to the Internet. The mobile site organizes the information on the website in a way that makes for easy reading on a small, hand-held screen. It does not require screen adjustments or constant scrolling and panning across the information.

A '11 study conducted by the Pew Research Center indicated that mobile Internet access is growing rapidly. From May '10 to July '11, the number of adults with mobile applications jumped from 43% to 50%. The trend is expected to continue. In addition, USDA's Economic Research Service found that 57% of all rural households use broadband Internet at home, but some 6% of all rural households (or more than 1 million rural households) access the Internet at home solely through wireless broadband services. The new FSA site makes the information available to these households.

In addition to the mobile website, FSA now is offering farmers and ranchers a more efficient and timely option for receiving critical program information. Such things as eligibility requirements, deadlines and related information can be accessed through an electronic news service hosted by GovDelivery.

By signing up for free online communications through GovDelivery, farmers and ranchers can receive news, via e-mail, directly to their home or farm office or to their mobile devices—allowing them to receive immediate notification of farm program news that is pertinent to their agricultural operation. Through GovDelivery, producers can establish subscriber preferences by choosing to receive federal farm program and farm loan information by topic, by state and/or by county. Producers also can select as many subscriber options as they want, which allows producers in multiple counties or across state lines to receive updates from each county in which they operate or have an interest.

FSA also offers AskFSA and AskFSAmobile, an easy-to-use knowledge database with automated answers to website visitor questions. In '11, AskFSA received 351,119 visitors -- 99.7% of whom found their answer online without the need for additional assistance.

The FFAS announcement said that the Obama Administration, with Agriculture Secretary Vilsack's leadership, has worked tirelessly to strengthen rural America, implement the farm bill, maintain a strong farm safety net and create opportunities for America's farmers and ranchers. US agriculture currently is experiencing one of its best years in decades thanks to the productivity, resiliency and resourcefulness of our producers. Today, net farm income is at record levels while debt has been cut in half since the '80s. Overall, American agriculture supports 1 in 12 jobs in the United States and provides American consumers with 86% of the food we consume, while maintaining affordability and choice. The Obama Administration has worked aggressively to expand export opportunities and reduce barriers to trade, helping to push agricultural exports to record levels in '11 and beyond. Strong agricultural exports are a positive contribution to the US trade balance, support nearly 1 million American jobs and boost economic growth.

To access FSA's mobile website visit www.fsa.usda.gov/mobile. To sign up for FSA's GovDelivery electronic news service, visit www.fsa.usda.gov/subscribe. For information on USDA's Blueprint for Stronger Service, visit www.usda.gov/strongerservice.

US Cotton Promoted at Colombiatex Event

The 24th annual Colombiatex trade show in Medellín, which attracted about 15,500, was an ideal venue for the US cotton industry to generate business connections and capitalize on the opportunities made possible by the recent Free Trade Agreement between Colombia and the United States.

Alamac American Knits, LLC joined the COTTON USA Sourcing Program during the event and nine members of the COTTON USA Sourcing Program were assisted with displaying samples of their products which highlighted US cotton benefits. Additionally, the COTTON USA Sourcing Program held an industry event on the fair's second day, during which the US mills met with 52 representatives of the Andean textile industry.

Cotton Incorporated also participated at Colombiatex, conducting eight presentations on "Color, Silhouettes and Texture Trends Spring – Summer 2013" and presenting a conference about the current cotton price situation.

Sales Weak, Shipments Strong

Net export sales for the week ending Feb. 2 were 65,900 bales (480-lb). This brings total '11-12 sales to approximately 10.9 million bales. Total sales at the same point in the '10-11 marketing year were approximately 15.1 million bales. Total new crop ('12-13) sales are 531,100 bales.

In the '11-12 marketing year, China accounts for 54% of total US sales. Turkey has moved in second place on the customer list with purchases of 976,000 bales, or 9% of the total. Mexico follows as the third largest customer, having purchased 892,000 bales of US cotton. Thailand and Vietnam, with purchases of 353,000 and 351,000, respectively, complete the list of top five customers.

Shipments for the week were 326,300 bales, bringing total exports to date to 4.3 million bales, compared with the 6.4 million bales at the comparable point in the '10-11 marketing year.

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