Senate Democrats re-elected Sen. Reid (NV) to serve as majority leader while Sen. Durbin (IL) was re-elected as assistant majority leader and Sen. Schumer (NY) as Democratic Conference vice chairman. Sen. Murray (WA) was re-elected as secretary of the conference and as chairman of the Democratic Senatorial Campaign Committee.
Democrats will control 55 seats to Republicans' 45 seats in the next Congress because two Independents - Sanders (VT) and King (ME) - will caucus with Democrats.
Republican Senators re-elected Sen. McConnell to be the minority leader, but as a result of Sen. Kyl's (AZ) retirement, Republicans elected Sen. Cornyn (TX) to serve as whip next year -- the second ranking Republican Senator. Sen. Cornyn will be succeeded as chair of the National Republican Senatorial Committee by Sen. Moran (KS) who announced that Sen. Portman (OH) will be vice chairman for finance and Senator-elect Cruz (TX) will serve as vice chairman for grass-roots operations and political outreach.
Other Republican leaders will retain their current positions: Sen. Thune (SD) as chairman of the Senate Republican Conference, Sen. Blunt (MO) as vice chair of the conference, and Sen. Barrasso (WY) as chair of the Senate Republican Policy Committee.
House Republicans selected Rep. Boehner (OH) to lead their caucus and he will be re-elected Speaker when the House convenes in the 113th Congress in January. House Republicans re-elected Rep. Cantor (VA) to return as majority leader and the third-ranking Republican, Rep. McCarthy (CA), will continue to serve as whip.
House Republicans also filled other slots in their leadership team. Rep. McMorris Rodgers (WA) defeated Rep. Price (GA) for the conference chairman post. Rep. Walden (OR) will chair the National Republican Campaign Committee and Rep. Lankford (OK) will be the Republican Policy Committee chairman.
Other Republican members of the leadership team for the 113th Congress include Rep. Jenkins (KS), conference vice-chair; Rep. Foxx (NC), conference secretary; Rep. Scott (SC), the sophomore class representative; Representative-elect Wagner (MO), freshman class representative; and Rep. Sessions (TX), was picked by Speaker Boehner to become the new Rules Committee chairman. Other committee slots will not be decided until the Republican Steering Committee meets during the week of Nov. 26. However, Rep. Ryan (WI) received an endorsement from Speaker Boehner to continue to serve as House Budget Committee chairman.
House Democrats will not conduct their leadership elections until the week of Nov. 26, but Rep. Pelosi (CA) announced she intends to seek re-election as minority leader and is expected to be unopposed. Following her announcement, Rep. Hoyer (MD), minority whip, and assistant leader Rep. Clyburn (SC) announced their intentions to seek re-election to their current posts as the second- and third-ranking House Democrats. They also are expected to be approved by the Democratic caucus the week of Nov. 26.
The major contested race in the Democratic caucus will be for vice chairman, a post being vacated by Rep. Becerra (CA), who is expected to move up to the caucus chairman post.
Estate Tax Exemption Extension Urged
The NCC joined 34 other agricultural organizations on letters to Congress urging Senators and Representatives to act immediately and permanently renew the current estate tax provision, until such time as full repeal is possible -- a move that will give farmers and ranchers the certainty they need to conduct business. The current estate tax relief is set to expire at the end of '12.
The letter noted that if Congress fails to act and estate taxes are allowed to be reinstated at the beginning of '13 with only a $1 million exemption and top rate of 55%, there will be a significant negative impact on agriculture.
"At a minimum, we support extending the exemption at $5 million per person and retaining the top rate of 35 percent until such time as full repeal of the estate tax is possible," the letter stated. "It is also imperative that any estate tax law passed, other than full repeal, index the exemption to inflation; provide for spousal transfers; and include the stepped-up basis."
The letter pointed out that family farmers and ranchers are not only the caretakers of our nation's rural lands but they are also small businesses. The '13 change to the estate tax law does a disservice to agriculture because it is a land-based, capital-intensive industry with few options for paying estate taxes when they come due. The current state of the economy, coupled with the uncertain nature of estate tax liabilities, makes it difficult for family-owned farms and ranches to make sound business decisions.
NRCS Chief White Retiring
Dave White, chief of the Natural Resources Conservation Service (NRCS), announced his retirement effective Dec. 3, '12. Jason Weller has been named the Acting NRCS Chief.
White was a career conservationist with NRCS. He has provided technical and management expertise in Missouri; South Carolina; Washington, DC; and Montana, where he served as State Conservationist from '02- 08. White also helped the Senate Agriculture, Nutrition & Forestry Committee craft the Conservation Title for both the '02 and '08 farm bills.
During his four years as NRCS Chief, White developed and implemented forward-looking ideas to advance private lands conservation, including more than a dozen landscape conservation initiatives such as the Sage-Grouse and Migratory Bird Habitat Initiatives.
Jason Weller, acting NRCS chief beginning on Dec. 3, '12, has been involved in every major NRCS policy decision since '09 when he was appointed NRCS chief of staff. Prior to joining NRCS, Weller worked as a staffer for the Senate Agriculture, Nutrition & Forestry Committee; at the House Budget Committee, where he helped to construct the annual congressional budget for agriculture, environment and energy programs; and at the House Appropriations Subcommittee on Agriculture. He also worked for five years with the White House Office of Management and Budget where he assisted with the development and implementation of the USDA conservation programs' budget.
NCC staff was recently updated on the status of conservation programs for FY13. Under the current Continuing Resolution, the Environmental Quality Incentives Program and the Wildlife Habitat Incentive Program are operating under FY12 funding levels and will see no appreciable changes. The Conservation Stewardship Program is limited to only enrolling approximately 2 million new acres in FY13. Also, due to the expiration of the '08 farm bill, USDA has no authority to enroll new contracts for the Wetlands Reserve Program, Conservation Reserve Program or Grasslands Reserve Program – however, all current contracts will continue to be honored.
Kudzu Bug Inspection Urged
USDA's Animal & Plant Health Inspection Service (APHIS) is urging firms exporting cotton yarn from southeastern US states to follow APHIS protocols aimed at keeping kudzu bugs (Megacopta cribraria) out of shipments to Honduras and other Caribbean Basin importing countries.
The request comes after APHIS was notified by Honduran Servicio de Proteccion Agropecuaria (SEPA) at Puerto Cortesat that on Nov. 3, a container filled with blended cotton/polyester yarn was turned away after three live and three dead kudzu bugs were found.
In March, the Phytosanitary Issues Management (PIM) group under APHIS' Plant Protection Quarantine (PPQ) program notified the NCC, the National Council of Textile Organizations and other organizations of the kudzu bug/export issue affecting commodities destined to Honduras (see March 9, '12 Cotton's Week). PIM had 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 were 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.
Following this latest kudzu bug discovery, PIM informed the US cotton industry that Honduras has resumed conducting heightened inspections at their ports of entry (POE) for the second time this year. APHIS PPQ's response to the heightened inspections was to develop "Protocol for Loading Containers" to help insure harmonious relations with government agencies responsible for plant protection and quarantine in Caribbean Basin countries.
SEPA POE inspections affect all commodity shipments, including cotton yarn, originating in Alabama, Georgia, South Carolina and North Carolina. Shippers of all commodities are reminded that consignments containing live kudzu bugs will be turned away at the Honduran POE and returned to the originating state. Due to these heightened inspections, cotton yarn exporters are reminded to inspect containers for hitchhiking pests during loading and shipping.
The APHIS Phytosanitary Certificate Issuance & Tracking System (PCIT) website has the latest information on phytosanitary requirements. That site and the "Protocol for Loading Containers" website, along with a U. of Georgia Center for Invasive Species & Ecosystem Health-developed kudzu bug website, can be accessed on the NCC's website at www.cotton.org/tech/flow/kudzu-bug-remediation.cfm.
Safety Engineers Pushing for Lower Noise
On Oct. 31, the American Society of Safety Engineers (ASSE) announced it joined a coalition seeking to adopt a lower noise limit than that required by the Occupational Safety and Health Administration (OSHA).
The coalition is pushing for an 85 dBA noise limit measured with a 3 dB exchange rate (meaning that each time the exposure duration is halved, the permissible noise limit may be raised by 3 dB), claiming such a limit would reduce the risk of noise-induced hearing loss by 68% and would be more aligned with global standards. OSHA's current noise limit is 90 dBA.
In a February letter, the ASSE asked David Michaels, OSHA administrator, to lower the agency's noise limit to 85 dBA and stated its opposition to the agency's Oct. '10 proposal to require employers to reduce noise through administrative controls, rather than by providing personal protective equipment, provided the cost of doing so did not threaten the employer's ability to stay in business. OSHA withdrew that proposal, which was a reinterpretation of OSHA's existing noise standard, in Jan. '11.
Industry lawyers claim that any changes to the existing standard would be very expensive to many businesses.
NCGA Supports SBA Loan Proposal
The National Cotton Ginners' Assoc. (NCGA) conveyed its support for a Small Business Administration (SBA) loan program proposal that will increase the "size standard" from $7 million to $10 million – thus making it easier for gins to qualify for this program and others such as the Economic Injury Disaster Loan (EIDL) Program.
The NCGA filed comments on the proposed rule for Small Business Size Standards: Agriculture, Forestry, Fishing, and Hunting with SBA Size Standards Division Chief Khem R. Sharma in Washington, DC. The NCGA noted that gins are small businesses that are often the center of many small, rural communities and offer employment opportunities to individuals across the Cotton Belt. Since '05, though, the US ginning industry has experienced a 24% reduction in the number of facilities through consolidation. Over the last 30 years, gin numbers have fallen by 70%.
"Interestingly, this reduction in the number of gins has occurred during increased production of cotton, which is being produced on fewer planted acres," the NCGA stated.
Peru Event Garners US Cotton Visibility
Cotton Council International's (CCI) COTTON USA Sourcing Program gained visibility through sponsorship of the sixth Expotextil show in Peru. Expotextil, led by the National Society of Industries' Textile Industry Committee, is the second largest textile show in Peru and boasts more than 150 exhibitors from that country.
Early estimates reveal that more than 22,000 visitors attended the three-day show where CCI sponsored various fashion shows. CCI also shared information with participants about the benefits of the Sourcing Program and the COTTON USA Mark was featured on a variety of materials distributed at the business center and the pavilions.
Sales Strong, Shipments Steady
Net export sales for the week ending on Nov. 8 were 423,400 bales (480-lb). This brings total '12-13 sales to approximately 7.0 million bales. Total sales at the same point in the '11-12 marketing year were approximately 9.5 million bales. Total new crop ('13-14) sales are 282,400 bales.
Shipments for the week were 116,600 bales, bringing total exports to date to 2.2 million bales, compared with the 1.5 million bales at the comparable point in the '11-12 marketing year.
Note: Cotton's Week will not be published on Friday, Nov. 23 due to the Thanksgiving holidays.
Effective Nov. 16-22, ’12
Adjusted World Price, SLM 11/16
59.64 cents
*
Fine Count Adjustment ('11 Crop)
0.72 cents
Fine Count Adjustment ('12 Crop)
0.92 cents
Coarse Count Adjustment
0.00 cents
Marketing Loan Gain Value
0.00 cents
Import Quotas Open
13
Special Import Quota (480-lb bales)
831,790
ELS Payment Rate
0.00 cents
*No Adjustment Made Under Step I
Five-Day Average
Current 5 Lowest 3135 CFR Far East
79.89 cents
Forward 5 Lowest 3135 CFR Far East
NA
Coarse Count CFR Far East
NA
Current US CFR Far East
80.70 cents
Forward US CFR Far East
NA
'12-13 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-Sept.)
71.00 cents
**
**Aug.-July average price used in determination of counter-cyclical payment
