The NCC extended its appreciation to the Senate Agriculture, Nutrition & Forestry Committee and Chairwoman Stabenow (D-MI) for producing a farm bill that includes provisions supported by the cotton industry. An updated side-by-side comparison of the bill's main provisions is in the NCC website's farm bill section at www.cotton.org/issues/members/farmbill/2012/senate/senateside.cfm (members only).
Chairman Chuck Coley said, "The Committee's actions will provide U.S. cotton producers with risk management tools that can provide support when conditions occur that are beyond the growers' control. It also is important to note that the legislation reduces future outlays by more than $23 billion. Critics of farm programs should take note that agriculture has stepped up and made a more than proportionate contribution to deficit reduction and the example should be followed by others."
"We need some certainty and predictability regarding farm programs," Coley said, "as we look at the long-term investments necessary for maintaining our productivity and economic viability so we can meet this nation's food and fiber demands. The U.S. cotton industry is grateful to Chairwoman Stabenow (D-MI) and Senator Roberts (R-KS) – along with the solid support of Senators Chambliss (R-GA), Cochran (R-MS) and Boozman (R-AR) -- for including the NCC's Stacked Income Protection Plan (STAX) and modified marketing assistance loan program, both designed to meet budget challenges and the resolving of the Brazil WTO case."
Coley said the improvements to crop insurance, including 1) making enterprise units with irrigated and non-irrigated provisions permanent and 2) the establishment of a new Supplemental Coverage Option -- first introduced by Rep. Neugebauer (R-TX) -- also will provide important risk management options for cotton growers.
The Georgia producer said extension of the extra-long staple cotton loan and competitiveness provisions are important to Western cotton growers. He also pointed to the legislation's inclusion of significant modifications to the upland cotton marketing loan and GSM-102, "that should serve to empower the Administration to be more resolute and determined in future efforts to successfully resolve the long-standing Brazil WTO case and eliminate the threat of retaliation."
Coley expressed special thanks to Sen. Chambliss (R-GA) for his support of the cotton program provisions and for his successful effort to turn back an amendment to terminate the Economic Adjustment Assistance Program, which was authorized in the '08 farm bill and "is revitalizing the U.S. textile manufacturing sector and adding jobs to the U.S. economy."
The NCC expressed concern that the Committee-reported bill does not include program choices that meet the needs of rice and peanut growers. Coley said, "The NCC is committed to continue to work with those growers and their organizations to successfully modify the legislation before it reaches the Senate floor vote to ensure that Sunbelt farmers get the much-needed economic benefit of an adequate safety net. While it is important for cotton to have a workable program, many of our growers also rely on peanuts, rice and other crops for their livelihood and need viable cropping options."
Coley said the US cotton industry also has concerns with provisions regarding new lower payment limits, a significantly lower Adjusted Gross Income eligibility test, and changes to the actively engaged in farming provisions used to determine eligibility for revenue and loan programs.
Other positives of the Committee-approved bill that Coley noted were the continuation and streamlining of conservation programs and ongoing support of the Market Access Program and Foreign Market Development Program, two important trade titles that undergird US cotton exports.
"We look forward to working with the Members of the Senate as the legislation moves forward," Coley stated.
Senate Panel Reports Ag Appropriations Bill
The Senate Appropriations Committee favorably reported (28-1) the FY13 agriculture appropriations bill which provides $20.8 billion in discretionary funds for operations and programs under the jurisdiction of USDA, the Food and Drug Administration and related programs. The funding is $50 million less than the amount requested by the Administration and $1.2 billion more than was provided in FY12.
The relatively non-controversial measure was sent straight to the full committee without formal consideration by the agriculture subcommittee.
Agriculture Subcommittee Chairman Kohl (D-WI) said the increase from FY12 is due to two reasons: an increase in food costs that has driven up food assistance program expenses and a lack of farm bill savings that were previously available.
The measure includes funding for the cotton pests account which provided cost-share for boll weevil and pink bollworm eradication programs at $15.97 million as requested by the NCC. The legislation also authorized USDA-Farm Service Agency (FSA) to continue to make up to $100 million in loans available to the eradication programs.
The legislation provides $1.2 billion for the National Institute on Food and Agriculture and $1.1 billion for USDA's Agricultural Research Service. The bill provides $2.3 billion for rural development and $828 million for the Natural Resources Conservation Service. It would provide $1.2 billion for salaries and expenses for the FSA and $411 million for farm loan programs.
DOL Withdraws Child Labor Rule
The US Dept. of Labor announced that it is withdrawing the entire proposed rule dealing with children under the age of 16 working in agriculture – and emphasized that the rule would not be pursued for the duration of the Obama Administration. Rather, the DOL announced it intends to work with rural stakeholders to develop an educational program to promote safe agricultural practices.
The rule had included a provision restricting the "parental exemption" that historically allowed children under the age of 16 to work on farms in which their parents or other family members were owners or part owners. The proposed rule would have required that the farm be directly owned by the minor's parents.
In response to intense engagement by agricultural stakeholders, including the NCC, as well as Congressional Members, the DOL earlier had withdrawn this portion of the rule for reconsideration.
House Panel Hearing Focus is Conservation
The House Agriculture Committee's Subcommittee on Conservation, Energy, and Forestry held a hearing on how conservation programs should be structured in the '12 farm bill. The Subcommittee heard from a number of members of the agriculture community.
Garry Niemeyer, president of the National Corn Growers Assoc., testified on behalf of national commodity organizations, including the NCC. His testimony offered support for the package that was recommended by both agriculture committees during the Joint Deficit Reduction Committee process, as well as the conservation title adopted by the Senate Agriculture Committee in its recent markup.
Witnesses at the hearing emphasized the importance of conservation programs that assist producers and landowners with voluntary conservation initiatives, while also acknowledging the difficult budget climate for reauthorizing farm bill programs. They explained that streamlining programs could achieve dual goals of making them more effective and efficient while also providing savings for deficit reduction, but cautioned that heavy funding cuts could undermine critical program functions.
Currently, there are more than 20 conservation programs and subprograms that are administered by the Natural Resources Conservation Service and the Farm Service Agency. Among the larger programs are the Conservation Reserve Program, Environmental Quality Incentives Program, Conservation Stewardship Program and the Wetlands Reserve Program.
Ruling Puts Hold on Gin Posting Requirement
According to the National Labor Relation Board's (NLRB) website, a South Carolina District Court and a DC District Court are refusing to allow a National Labor Relations Act (NLRA) "notice-of-rights" poster requirement to go into effect on April 30. Earlier court rulings have found that gins do not meet the narrowly-defined definition of farming under the NLRA and, therefore, would have to comply with the poster requirement.
NLRB Chairman Mark Gaston Pearce stated on their website that, "In view of the DC Circuit's order, and in light of the strong interest in the uniform implementation and administration of agency rules, regional offices will not implement the rule pending the resolution of the issues before the court."
Had the South Carolina and DC courts not blocked the NLRB from its proposed notice-posting rule, all US gins would have had to comply with the NLRA poster requirement, which includes posting a notice explaining employees' rights under the NLRA. Among those rights are: to organize, bargain collectively, discuss wages and other terms and conditions of employment, and picket/strike.
New Herbicide Traits Challenged
The Save Our Crops Coalition (SOCC) initiated legal action to force government regulators to analyze potential problems with proposed biotech crops tolerant of the synthetic auxin herbicides, which include 2,4-D and dicamba. SOCC is a grassroots organization of various farm interests that claims it supports biotechnology but is leery of the volatility and drift potential of the synthetic auxins. Most specialty crops and many commodity crops are highly sensitive to these herbicides.
Dow AgroSciences and Monsanto have deregulation petitions filed with USDA's Animal & Plant Health Inspection Service for 2,4-D and dicamba tolerant corn, respectively. Both companies plan to develop the same traits into soybean and cotton in the near future. These herbicide tolerances are being touted as a means to combat herbicide resistance in many parts of the country.
In their legal petitions, SOCC is asking USDA to conduct an environmental impact study (EIS) under the National Environmental Policy Act on the ramifications of both new corn traits' releases. An EIS takes about two years to complete. The coalition also is demanding that EPA conduct a Scientific Advisory Panel meeting and appoint advisors to the panel to address herbicide spray drift.The legal petitions require a response from the agencies before petitioners can file suit to force a response.
In a press release from Dow, the company reports that it has reformulated their product to be a 2,4-D choline, a new product, which has demonstrated a 92% reduction in volatility and a 90% reduction in drift, based on research data recently presented at scientific meetings. Dow also stated that an additional environmental assessment is unnecessary, expressing its confidence that EPA and USDA will make data-driven determinations under their respective statutory authorities for environmental protection and plant health.
National Bioeconomy Blueprint Announced
The White House Office of Science & Technology Policy (OSTP) announced its plan to strengthen bioscience research as a major driver of American innovation and economic growth.
The National Bioeconomy Blueprint outlines steps that agencies will take to drive the bioeconomy, defined as the economic activity powered by research and innovation in the biosciences, and details ongoing efforts across the federal government to realize this goal.
The bioeconomy has emerged as an Administration priority because of its tremendous potential for growth, job creation and other societal benefits. According to the announcement, a more robust bioeconomy can enable Americans to live longer and healthier lives, develop new sources of bioenergy, address key environmental challenges, transform manufacturing processes, and increase the productivity and scope of the agricultural sector while generating new industries and occupational opportunities.
The Bioeconomy Blueprint outlines five strategic imperatives for a bioeconomy with the potential to generate new markets and economic growth:
1.Support research and development investments that will provide the foundation for the future bioeconomy.
2.Facilitate the transition of bioinventions from research lab to market, including an increased focus on translational and regulatory sciences.
3.Develop and reform regulations to reduce barriers, increase the speed and predictability of regulatory processes, and reduce costs while protecting human and environmental health.
4.Update training programs and align academic institution incentives with student training for national workforce needs.
5.Identify and support opportunities for the development of public-private partnerships and precompetitive collaborations—where competitors pool resources, knowledge, and expertise to learn from successes and failures.
Cotton Council International (CCI) featured yarns and fabrics of 10 leading Turkish COTTON USA licensees at the second COTTON USA Mediterranean Supply Chain Forum, held on April 16-19 in Marrakech, Morocco.
CCI promoted COTTON USA products to garment manufacturers from Egypt, Morocco and Tunisia, as well as to 16 brands and retailers from Europe and the United States. The Forum featured presentations on the world cotton market and the impact of recent price movements on consumer demand and purchasing patterns in key European markets. A panel discussion augmented the presentation on the European market.
Forum attendees also were given insight into the "Garment Company of the Future" and how new technologies may change the way companies operate and do business. They heard a panel discussion on the strengths and weaknesses of sourcing garments from N. Africa.
In an effort to build new customer and supplier relationships, 49 companies across the supply chain attended the Forum. To facilitate this, CCI arranged individual company meeting schedules tailored to each company's product sales or sourcing requirements. During a day and a half private trade show, more than 630 individual meetings were held – a new record for the Supply Chain Program.
The Agricultural Attaché from USDA's Foreign Agricultural Service at the US Embassy in Rabat also attended the event. Early participant feedback reported that each company met a significant number of good potential customers/suppliers. All commented on the program efficiency and format and the meetings' usefulness. CCI received verbal reports of widespread sampling, likely orders and new COTTON USA licensees.
Western Gin School Registration Still Open
Registrations still are being taken for the '12 Western Ginner School set for Las Cruces, NM, on May 8-10, and for the Stoneville Ginners School, set for Stoneville, MS, on June 12-14. Online registration and course information is at www.cotton.org/ncga/ginschool/index.cfm.
The school's Level I, II and III courses run concurrently from 8 am–5 pm each day. Each level of the coursework is built on the previous level of instruction, with Level I serving as the foundation. It is recommended that all new students, regardless of gin experience, start with Level I. In addition, the ginner schools feature a two-day continuing education (CE) course for certified ginners and gin managers/superintendents. The CE course at the Western school will be held on Tuesday and Wednesday, May 8-9.
School cooperators include USDA's Agricultural Research Service; USDA Extension Service, National Cotton Ginners Assoc. (NCGA) and its member associations; NCC; Cotton Incorporated; gin machinery/equipment manufacturers and suppliers; Cooperative State Research, Education and Extension Services; and select land grant universities. For more information, contact NCGA at (901) 274-9030 or www.cotton.org/ncga/ginschool/index.cfm.
Sales Rebound, Shipments Strong
Net export sales for the week ending April 19 were 154,400 bales (480-lb). This brings total '11-12 sales to approximately 12.0 million bales. Total sales at the same point in the '10-11 marketing year were approximately 15.7 million bales. Total new crop ('12-13) sales are 1.1 million bales.
Shipments for the week were 295,800 bales, bringing total exports to date to 8.0 million bales, compared with the 11.1 million bales at the comparable point in the '10-11 marketing year.
Effective April 27-May 3, ’12
Adjusted World Price, SLM 11/16
78.36 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
13
Special 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
98.92 cents
Forward 5 Lowest 3135 CFR Far East
NA
Coarse Count CFR Far East
NA
Current US CFR Far East
104.05 cents
Forward US CFR Far East
NA
'11-12 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-Feb.)
91.23 cents
**
**Aug.-July average price used in determination of counter-cyclical payment
