The Senate approved (90-8) a motion to begin debate on the '12 farm bill (S. 3240) reported by the Committee on Agriculture. The vote allows debate to begin when the Senate returns on June 11.
The next step may be to attempt to reach agreement on the number amendments that will be debated and to establish a time for debate. More than 150 amendments had been filed as of June 8. Senate leaders have not indicated which amendments would be considered on the floor, a subject of negotiation between Democratic and Republican leaders. Senate Agriculture Committee Chairwoman Stabenow (D-MI) has predicted the debate could last as long as three weeks.
The Administration issued a statement supporting the bill reported by the Committee, saying it makes "meaningful progress toward the Administration's goals," including eliminating direct payments and tightening payment and eligibility requirements.
Chairwoman Stabenow and Ranking member Roberts (R-KS) praised the Committee bill as a major change in policy that replaces direct payments with revenue insurance, which pays farmers only when they suffer a
loss. The switch to revenue insurance, called Agricultural Risk Coverage, accounts for more than $15 billion of the Congressional Budget Office's estimated $23.6 billion in savings over 10 years.
"This is truly not your father's farm bill," Stabenow said. "It's about the future."
Some of the amendments that have been filed and may be considered include: a Grassley (R-IA) amendment to limit marketing loan gains and loan deficiency payments to $75,000 per legal entity; an amendment by Shaheen (D-NH) and Toomey (R-PA) to limit crop insurance premium subsidies to
no more than $40,000 per producer; an amendment by Coburn (R-OK) and Durbin (D-IL) to reducepremium subsides by 15% for individuals with an AGI above $750,000; amendments by McCain (R-AZ), Lugar (R-IN) and Shaheen to repeal and/or modify the sugar program; and a McCain amendment to prohibit federal spending on ethanol blender pumps. In addition, Sen. DeMint (R-SC) has announced his intention to offer an amendment to terminate all federal research and promotion programs such as the Cotton Research and Promotion Program which funds Cotton Incorporated.
Other amendments include one by a Cardin (D-MD) to require farmers who sign up for crop insurance to comply with conservation rules: a Graham (R-SC) amendment to replace the Supplemental Nutrition Assistance Program with a block grant to states; and four amendments by Sessions (R-AL) to crack down on fraud and tighten eligibility requirements for food assistance programs. Additional fights are possible over payment limitations.
In a speech on the Senate floor, Grassley praised a provision in the bill that limits payments to $50,000 per producer through a new revenue insurance program but said he expects Southern lawmakers — who
believe the number is too low — to try to remove it.
"Behind the scenes they're really raising Cain about this $50,000," Grassley said.
The prolonged debate likely will generate numerous amendments. Go to the "Farm Bill" (Member's Only) section of the NCC website's home page, www.cotton.org, for background information and talking points on many of the amendments listed above (updates will be updates posted there throughout the process). A list of staff contacts in Cotton Belt offices also is at www.cotton.org in the "Find Your Congressional Contacts" section.
House Panel Approves Ag Appropriations Bill
Text The FY13 agriculture appropriations bill was approved by the House Agriculture Appropriations Subcommittee. The draft measure, not yet assigned a bill number, passed on a voice vote with no objections. The next step will be consideration by the full appropriations committee as early as the week of June 18.
The measure sets spending at $19.4 billion for the fiscal year beginning on Oct. 1, a decrease of 1.9% from the FY12 enacted level. The Senate Appropriations Committee approved a version of the measure on April 26 (S. Rept. 112-163) that would set spending at $20.8 billion.
The House subcommittee rejected, by an 8-5 vote, an amendment offered by Rep. DeLauro (D-CT) to restore funding to the Commodity Futures Trading Commission (CFTC). Rep. DeLauro said she would offer additional amendments when the full committee considers the bill. The measure as approved by the subcommittee would reduce CFTC funding by 12%. The CFTC regulates futures and derivatives markets.
When the full committee considers the bill there will be additional debate over cuts to foreign food aid and domestic nutrition programs. When the committee meets, Rep. Flake (R-AZ) is expected to offer an amendment that would prohibit the US from transferring funds to the Brazilian Cotton Institute as required under terms of the US-Brazil Framework Agreement negotiated by the two governments to avoid retaliation against US exports while the '12 farm bill is being formulated.
The NCC sent a letter to the members of the House Agriculture Appropriations Subcommittee, which urged opposition to any amendment that would undermine the US-Brazil Framework Agreement. In addition, the Arizona Cotton Growers Assoc. Board of Directors sent a letter to Rep. Flake expressing strong opposition to legislation, "which, if enacted, would result in the United States abrogating an agreement negotiated with the Government of Brazil in June 2010." Copies of the NCC and Arizona Cotton Growers' letters, as well as talking points and a list of House Appropriations Committee members, are in the issues section (Members' Only) of the NCC's website at www.cotton.org/issues/members/index.cfm.
Census Signup Deadline Near
Text USDA is preparing to mail the 2012 Census of Agriculture to millions of US farmers and ranchers in late December. Producers are reminded not to miss their opportunity to be counted by signing up for the Census before July 1. The Census of Agriculture is a complete count of US farms and ranches and the people who operate them. A farm is defined as any place that produced and sold, or normally would have sold, $1,000 or more of agricultural products during the Census year (’12).
The Census is the leading source of facts about American agriculture,” said Renee Picanso, Census and Survey Division Director at USDA’s National Agricultural Statistics Service. “The wealth of data available from the Census includes statistics on small, family farms to large, corporate farms; information on young, beginning farmers to older, experienced farmers; and insight into traditional, rural farming versus trends in areas such as lifestyle and urban farming.”
The sign-up period for the 2012 Census of Agriculture ends in a few weeks and is especially important for those individuals involved in agriculture who did not realize they qualify as a farm or have not previously participated in a Census. All farmers and ranchers are reminded to sign up and be counted.
“The Census provides the only source of uniform, comprehensive and impartial agricultural data for every county in the nation,” Picanso said. “Through the Census, producers can show the nation the value and importance of agriculture, and they can help influence the decisions that will shape the future of American agriculture for years to come. By signing up and then responding to the Census, producers are helping themselves, their communities and all of U.S. agriculture.”
To learn more and sign up for the Census of Agriculture, visit www.agcensus.usda.gov. All individual information will be kept confidential guaranteed by law (Title 7, U.S. Code, and CIPSEA, Public Law 107-347).
House Attempts to Prohibit Clean Water Guidance
Text The House approved the FY13 Energy and Water Development and Related Agencies Appropriations bill (H.R. 5325) on a vote of 255-165. The legislation provides the annual funding for the various agencies and programs under the Dept. of Energy (DOE) and other related agencies, and totals $32.1 billion – a cut of $965 million below the President's budget request.
Rep. Rehberg (R-MT) included a rider to the bill that would prevent EPA and the US Army Corps of Engineers from implementing proposed guidance which is currently under review by the Office of Management & Budget. The guidance would help define which waters qualify for regulation under the Clean Water Act (CWA).
Agriculture, homebuilding, mining and oil industries claim the guidance would trample private property rights and expand the federal government's powers under the CWA beyond constitutional limits. Administration officials and environmentalists support the guidance as an overdue effort to restore federal water pollution and wetland-filling rules rolled back by the Bush administration in the wake of two confusing Supreme Court rulings.
The White House has threatened to veto the legislation over opposition to this rider as well as one that would prohibit the use of funds to terminate the license application process for the Yucca Mountain nuclear waste repository.
Meanwhile, the Transportation and Infrastructure Committee passed H.R. 4965 by a bipartisan vote of 33-18. This bill also will prevent EPA and the Corps from moving forward with the guidance. According to the committee Chairman and bill sponsor, Rep. Mica (R-FL), "Any agency efforts to expand the federal government's regulatory reach must be done with transparency under the Administrative Procedures Act – not the unlawful, backdoor conversion of publicly unvetted agency guidance into de facto federal regulation."
In addition to Chairman Mica, the bipartisan bill is sponsored by Ranking Member Rahall (D-WV), Water Resources & Environment Subcommittee Chairman Gibbs (R-OH), Agriculture Committee Chairman Lucas (R-OK), Agriculture Ranking Member Peterson (D-MN), Rep. Noem (R-SD) and 58 other Members.
US Mills Showcased at Guatemala Show
Text Eleven US textile mills were showcased as part of the COTTON USA Sourcing Program in Guatemala City.
This year, the US mills had a chance to participate in a dinner with the new Guatemalan President at the National Palace. US mills were featured in the show's directory, on banners throughout the show and on bags given to each attendee. CCI also presented three fashion shows featuring garments from regional manufacturers using US yarns and fabrics.
There were two private events, including a presentation by one of Cotton Incorporated's economists on the cotton forecast, which was given to Korean textile and garment makers. The second event was a gathering in the COTTON USA Pavilion of approximately 100 representatives from companies in C. America and the United States. The US mills that participated in the event were: Alamac American Knits, Antex Knitting Mills, Buhler Quality Yarns, Corp, Carolina Cotton Works, Inc., Contempora Fabrics, Frontier Spinning Mills, Hamrick Mills, Jo-Mar Spinning, Parkdale, Tuscarora Yarns, Inc. and Zagis USA.
Sales Steady, Shipments Strong
Text Net export sales for the week ending May 31 were 140,200 bales (480-lb). This brings total ’11-12 sales to approximately 12.6 million bales. Total sales at the same point in the ’10-11 marketing year were approximately 15.4 million bales. Total new crop (’12-13) sales are 1.7 million bales.
Shipments for the week were 254,700 bales, bringing total exports to date to 9.8 million bales, compared with the 12.9 million bales at the comparable point in the ‘10-11 marketing year.
Effective June 8-14, ’12
Adjusted World Price, SLM 11/16
59.65 cents
*
Fine Count Adjustment ('11 Crop)
0.10 cents
Fine Count Adjustment ('12 Crop)
0.30 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
79.65 cents
Forward 5 Lowest 3135 CFR Far East
79.37 cents
Coarse Count CFR Far East
NA
Current US CFR Far East
81.00 cents
Forward US CFR Far East
78.00 cents
'11-12 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-April)
91.13 cents
**
**Aug.-July average price used in determination of counter-cyclical payment
