NCC Chairman Chuck Coley will testify on March 14 before the Senate Agriculture, Nutrition & Forestry Committee as that panel continues its series of hearings regarding reauthorization of the '08 farm law. On March 16, Sen. Chambliss (R-GA), a Committee member, will conduct Georgia farm bill listening sessions in Jesup and Tifton.
Meanwhile, the House Agriculture Committee has created a website in conjunction with its initiation of field hearingsabout American farming and farm bill reauthorization.(see 3/2/12 Cotton's Week)
The website's purpose is to solicit citizens' comments, concerns and ideas for consideration as part of the Committee's farm bill field hearing record. The websiteis http://agriculture.house.gov/farmbill. Click on the logo under "Farm Bill Feedback" and complete the feedback form. Comments must be submitted by May 20, '12.
The Committee held its first hearing in Saranac Lake, NY. Upcoming hearings are: March 23, 9 am CDT, Carl Sandburg College, Student Center Bldg. B, 2400 Tom L. Wilson Blvd., Galesburg, IL; March 30, 9 am CDT, Riceland Hall, Fowler Center, Arkansas State U., 201 Olympic Drive, State University, AR; and April 20, 9 am CDT, Magouirk Conference Center, 4100 W. Comanche, Dodge City, KS.
Revisions Announced for Upcoming Loan Rate Schedules
USDA's Commodity Credit Corp. (CCC) announced revised loan rate ranges and base-quality ranges for upland cotton strength and length uniformity, and changes to the staple lengths for which distinct color and leaf loan rate differentials are provided.
CCC uses measures of strength and length uniformity in determining the price support value of a bale of upland cotton. The base-quality ranges for these factors are those for which loan rate premiums and discounts do not apply.
Effective with the loan schedule for '12 crop upland cotton, the value ranges for strength and length uniformity loan rate adjustments will be denoted in whole units, consistent with the price reporting of the Agricultural Marketing Service (AMS). For example, the '11-crop loan adjustments were provided for ranges such as 25.5-26.4 grams per tex for strength and 79.5-82.4% for length uniformity. Effective for the '12 crop, whole-unit ranges are established such as 25.0-25.9 grams per tex for strength and 80.0-80.9% for length uniformity.
Effective with the '12 crop loan schedule, the base quality range for strength is established at 26.0-28.9 grams per tex and for length uniformity at 80.0-81.9%. These new ranges are consistent with AMS price reporting and the objectives of the marketing assistance loan program.
CCC also is revising the upland cotton staple lengths for which distinct differentials are provided. All upland cotton having staple lengths of 31/32-inch and shorter will be subject to one distinct schedule of color grade and leaf differentials. Additionally, upland cotton of staple length 37/32-inch will be subject to color grade and leaf differentials separate from those applicable to all upland cotton of staple lengths of 38/32-inch and longer.
To inquire about these revisions to loan rate base-quality ranges, please contact Gene Rosera, Economic and Policy Analysis Staff at (202) 720-8837 orGene.Rosera@wdc.usda.gov.
Bill Would Increase San Joaquin Water Supplies
The San Joaquin Water Reliability Act (H.R. 1837), co-sponsored by Reps. Nunes (R-CA), McCarthy (R-CA) and Denham (R-CA) and adopted by a vote of 246-175, would increase water supplies for agriculture and municipal uses and limit the ability of the federal and state governments to restrict water supplies to protect salmon.
The bill would overturn the '09 San Joaquin River Restoration Settlement Act, which authorized the Interior Dept. to implement a '06 settlement requiring state and federal agencies to cooperate in returning water and promoting a self-sustaining salmon population to the river. If enacted, H.R. 1837 would reinstate a '94 agreement known as the Bay Delta Accord. That agreement between federal and state agencies was designed to ensure a reliable source of water for agriculture and to provide new water flows for fisheries in the Sacramento-San Joaquin Delta.
The bill also would redirect 800,000 acre feet of water, previously allocated for restoring fish and wildlife, to water district users, including farmers. Water users would be allowed to enter into 40-year contracts instead of the 25-year contracts currently allowed.
In a Feb. 28 statement of administration policy, the White House said it "strongly opposes" H.R. 1837 because "the bill would unravel decades of work to forge consensus, solutions, and settlements that equitably address some of California's most complex water challenges."
The '06 settlement, which H.R. 1837 would replace, ended an 18-year-old dispute between farmers and environmental activists over releasing more water from the Friant Dam into the river to restore fish populations. The settlement was reached by the Friant Water Users Authority, the Natural Resources Defense Council, the US government and third parties.
Cameron Addresses AC21 on Coexistence
NCC producer director Don Cameron, who has a very diverse farming operation in Helm, CA, addressed a two-day plenary session of USDA's Advisory Committee on Biotechnology and 21st Century Agriculture (AC21). Agriculture Secretary Vilsack revived this committee last year to advise the department on compensating organic growers who incur economic loss due to pollen flow from neighboring biotech crops.
Speaking as a member of a five-person panel, Cameron explained to the committee how he produces conventional, biotech and organic crops harmoniously on his farm.
Vilsack has charged the committee to answer three questions: 1) what types of compensation mechanisms, if any, would be appropriate to address the economic losses by farmers where their crops' value is reduced by unintended presence of GE materials; 2) what would be necessary to implement those mechanisms (i.e. what testing procedures, tolerance levels, etc. would be needed to verify and measure a loss and determine if a claim was compensable or not); and 3) what other actions would be appropriate to bolster or facilitate coexistence among different agricultural production systems.
One of the four working groups that have been formed to deal with specific components of these questions has made three options for compensation – an indemnity fund, crop insurance and risk retention groups.
Committee members who are critical of the compensation idea have stated that there is not sufficient data to verify the level of economic harm that organic growers are claiming, that coexistence has existed for decades before biotech was commercial, e.g., among different types of corn and wheat, and that economic harm also occurs in the opposite direction as organic operations act as a source for insect and disease problems.
Compensation idea supporters claim that it would take too long to collect the requested data on economic harm incurred. They are insisting that the committee must move forward to provide Vilsack with a report.
The Phytosanitary Issues Management (PIM) group under the USDA-Animal & Plant Health Inspection Service's Plant Protection Quarantine program notified the NCC, the National Council of Textile Organizations (NCTO) and other organizations of an export issue affecting commodities destined to Honduras.
The inclusion of cotton yarn among these commodities is of special concern to the US cotton industry. PIM indicated that for shipments originating in Georgia, Alabama, North Carolina and South Carolina, Honduras is conducting inspections of all commodities for Megacopta cribraria (common name, kudzu bug) at ports of entry. SENASA, the Honduran counterpart to APHIS, is currently fumigating for live insects that are endemic to Honduras, and shipments with quarantine pests (esp. Megacopta) will be rejected.
PIM asked the NCC to advise yarn spinners to thoroughly inspect containers for this pest prior to loading and shipping cotton yarn in order to avoid problems. Yarn spinners also are being asked to make sure that: 1) containers are "broom clean;" 2) boxes or pallets containing cotton yarn are free of pests; and 3) as part of their routine shipping procedures, container doors are closed and sealed following loading.
Also, part of the joint effort by PIM, NCC, NCTO and othersto resolve this issue includes demonstrating to the Hondurans that US yarn spinners already have sufficient inspection protocols in place that would prevent the loading of kudzu bug-infested yarn or containers for any destination.
A recent court decision regarding efforts to impose numeric nutrient criteria has both environmentalists and agriculturists claiming partial victory.
Earthjustice and other environmental groups filed suit in '08 to force the EPA to overstep the efforts already underway in Florida and impose what critics say are scientifically dubious limits on nutrients. The Florida Dept. of Environmental Protection started the process to establish numeric nutrient criteria, but they were derailed in '09, when EPA entered into a settlement agreement with the environmental groups.
Several agricultural and agribusiness groups challenged the decision in federal court. In ruling on the case, US District Court Judge Robert L. Hinkle upheld a '09 determination by the EPA that numeric nutrient standards are necessary for Florida's waters, but invalidated certain aspects of the water quality criteria the agency developed. Judge Hinkle upheld the criteria for lakes and springs, but invalidated the criteria for streams, saying they were "arbitrary and capricious."
The Florida standards were in a narrative form as allowed by the Clean Water Act (CWA). However, EPA determined that numeric standards were necessary. Standard critics claimed that EPA tried to set a number that was based on the most pristine waters – an impossible standard to meet.
The court agreed with the argument that under the CWA, the state is actually the entity that controls how clean it wants its waters to be and that EPA cannot override that by trying to impose standards that reflect conditions "before man existed in these areas."
Agricultural groups hope the ruling sends a message to EPA that states have the authority to determine water quality standards within their jurisdictions.
EPA Seeks to Streamline ESA Consultations
Jim Jones, the new head of EPA's Office of Chemical Safety and Pollution Prevention, has stated that one of his three priority goals is to assess/streamline the agency's procedure to comply with an Endangered Species Act (ESA) requirement to consult with the relevant agencies on the impact of pesticide registrations to listed species.
In recent years, environmentalists have launched a series of lawsuits to force EPA to complete and implement the ESA consultation process for pesticide uses. One such case, the Megasuit, seeks to force EPA to consult on the effects of more than 300 pesticides on more than 200 species.(see 10/7/11 Cotton's Week)
Jones said that court-ordered deadlines for species consultations could overrun the rest of his office's work.
A key component in addressing that issue will be an upcoming National Academy of Sciences' report that will review the state of science behind the consultations and attempt to resolve scientific issues between how the services and EPA conduct risk assessments.
US, World Mill Cotton Use Lowered
In its March report, USDA projected the '11-12 US crop to be 15.67 million bales, unchanged from the February report. US mill use was lowered 100,000 bales to 3.40 million bales. Exports were unchanged at 11.00 million bales. This generates a total '11-12 offtake of 14.40 million bales. Ending stocks for '11-12 are projected to be 3.90 million bales for an ending stocks-to-use ratio of 27.1%.
USDA released '12-13 projections during last month's Agricultural Outlook Forum. US production is estimated to be 17.00 million bales for '12-13. Mill use is set at 3.50 million bales while exports are reported to increase to 12.00 million bales. The estimated total offtake stands at 15.50 million bales. With beginning stocks of 3.90 million bales, this would result in US ending stocks of 5.40 million bales on July 31, '13, and a stocks-to-use ratio of 34.8%.
In USDA's March report, expected '11-12 world production estimates were raised 300,000 bales from the February report to 123.64 million bales. World mill use was lowered 990,000 bales to a projected 108.72 million bales. Consequently, world ending stocks for '11-12 are projected to be 62.32 million bales for a stocks-to-use ratio of 57.3%.
USDA also released '12-13 world projections during last month's Agricultural Outlook Forum. World production is estimated at 118.50 million bales for the '12-13 crop year. Mill use is set at 114.50 million bales. With beginning stocks of 62.32 million bales, this would result in world ending stocks of 66.32 million bales on July 31, '13, and a stocks-to-use ratio of 57.9%.
Census Participation Urged
In recognition of National Ag Day (March 8) and agriculture's central role in Americans' lives, USDA is calling on America's farmers and ranchers to sign up for the '12 Census of Agriculture and to share stories about how Census data benefits them.
USDA's National Agricultural Statistics Service (NASS) conducts the Census of Agriculture every five years and is currently preparing to send the Census form to all agricultural producers in December.
To put together a complete list of agricultural producers, NASS sent out the National Agricultural Classification Survey (NACS) early in '12. This initial survey helps identify all potential agricultural activities in the United States and who should receive the census form later this year. Producers who did not fill out the NACS still may sign up for the Census by visiting www.agcensus.usda.gov and clicking "Be Counted – Make Your Voice Heard."
Federal law requires all agricultural producers to participate in the Census of Agriculture. The same law requires NASS to keep all information confidential. In the census, and in all related surveys, NASS safeguards the privacy of all respondents, ensuring that no individual operation or producer can be identified.
NASS has launched the "Share your Census Story" web page, where producers can tell how local, state and national farm services, programs and policies were shaped by Census of Agriculture data.
For more information about NACS and the Census of Agriculture, go to www.agcensus.usda.gov. NASS will mail Census forms on Dec. 29, '12, to collect data for the '12 calendar year.
Sales Steady, Shipments Strong
Net export sales for the week ending March 1 were 121,400 bales (480-lb). This brings total '11-12 sales to about 11.4 million bales. Total sales at the same point in the '10-11 marketing year were about 15.6 million bales. Total new crop ('12-13) sales are 628,400 bales.
Shipments for the week were 404,600 bales, bringing total exports to date to 5.7 million bales, compared with the 8.2 million bales at the comparable point in the '10-11 marketing year.
Effective March 9-15, ’12
Adjusted World Price, SLM 11/16
78.85 cents
*
Fine Count Adjustment ('10 Crop)
0.59 cents
Fine Count Adjustment ('11 Crop)
0.64 cents
Coarse Count Adjustment
1.43 cents
Marketing Loan Gain Value
0.00 cents
Import Quotas Open
13
Limited Global Import Quota (480-lb bales)
871,389
ELS Payment Rate
0.00 cents
*No Adjustment Made Under Step I
Five-Day Average
Current 5 Lowest 3135 CFR Far East
99.41 cents
Forward 5 Lowest 3135 CFR Far East
NA
Coarse Count CFR Far East
NA
Current US CFR Far East
101.20 cents
Forward US CFR Far East
NA
'11-12 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-Jan.)
91.09 cents
**
**August-July average price used in determination of counter-cyclical payment
