Chairwoman's Farm Bill Mark Restores EAAP

Farm Program Funds Released

New GSM-102 Fee Schedule Announced

Final '12 Crop Estimates Released

USDA Sees 14-Million Bale '13-14 US Crop

Azevedo Named WTO Director General

Senate Panel Approves SPCC Rules Amendment

EPA Approves New Pesticide for Plant Bugs

NCC Opposes Federal Labeling Bill

Stoneville Ginner School Registrations Sought

COTTON USA Conducting First India Retail Promotion

Sales Slip, Shipments Stay Strong

Led by Sen. Chambliss (R-GA), nine Cotton Belt Senators co-signed a letter to Senate Agriculture, Nutrition & Forestry Committee Chairwoman Stabenow (D-MI) and Ranking Member Cochran (R-MS) urging inclusion of the Economic Adjustment Assistance Program (EAAP) for domestic textile manufacturers in the Committee's farm bill draft. That draft, posted on the Agriculture Committee's website, www.ag.senate.gov/issues/farm-bill, includes the EAAP.

Joining Sen. Chambliss on the letter were Sens. Isakson (R-GA), Burr (R-NC), Hagan (D-NC), Landrieu (D-LA), Pryor (D-AR), Boozman (R-AR) and Graham (R-SC).

Sen. Cochran, already a strong EAAP proponent, recently met with NCC Chairman Jimmy Dodson and reviewed the program's importance during a discussion about the farm bill's cotton title.

The Committee has scheduled a farm bill mark-up for May 14, while the House Agriculture Committee will begin their mark-up on May 15. The Chairman's mark in the House can be found at http://agriculture.house.gov/markup/consider-2013-farm-bill.

NCC President/CEO Mark Lange sent a letter to USDA's Farm Service Agency Administrator Juan Garcia conveying appreciation for the release of farm program payment funds, which had been frozen due to budget sequestration.

In addition, the NCC letter, on the NCC's website at www.cotton.org/issues/2013/garlet.cfm, requested a date for the release of Economic Adjustment Assistance Program (EAAP) funds, which have been similarly placed on hold due to budget constraints, as well as an explanation of possible payment reductions. EAAP funds support investment in textile plant and manufacturing equipment, stimulating local economies and keeping the US textile industry globally competitive.

USDA announced that new fees for the GSM-102 export credit guarantee program will apply to applications filed after May 10. The new fees are necessary under terms of the US-Brazil Framework Agreement because utilization exceeded the threshold in the agreement.

USDA's announcement and new schedule of fees are available on its website at www.fas.usda.gov/scriptsw/PressRelease/pressrel_dout.asp?PrNum=0046-13.

In its final estimate of the '12 US cotton crop, USDA placed total production at 17.31 million bales, up from the January estimate of 17.01 million bales. The upland crop estimate was raised 285,000 bales from the January estimate to 16.54 million bales while the extra-long staple (ELS) estimate increased 19,800 bales to 779,800.

Final planted area is estimated to be 12.31 million acres and final harvested area is estimated to be 9.37 million acres. The '12 national upland yield is an estimated 869 pounds per harvested acre, 64 pounds above the five-year average of 805 pounds. The estimated national average ELS yield of 1,581 pounds per harvested acre represents a 257 pound increase in yield when compared to the five-year average.

In its May report, USDA projects US '13-14 production to be 14.00 million bales. Mill use is projected at 3.50 million bales while exports are projected to be 11.50 million bales. The estimated total offtake stands at 15.00 million bales. With beginning stocks of 4.00 million bales, this would result in US ending stocks of 3.00 million bales on July 31, '14, and a stocks-to-use ratio of 20.0%.

In USDA's May report, USDA projects world production for the '13-14 marketing year at 117.82 million bales. Mill use is set at 110.43 million bales. With beginning stocks at 84.78 million bales, this would result in world ending stocks of 92.74 million bales on July 31, '14, and a stocks-to-use ratio of 84.0%.

Roberto Azevedo, Brazil's ambassador to the World Trade Organization (WTO), has been selected to become the next Director General after a final round of consultations with WTO members. He was chosen over Mexico's former Trade Minister Herminio Blanco in the selection contest's final round.

Nine candidates entered the selection process to succeed Pascal Lamy, who will step down as Director General at the end of August. WTO members are expected to officially accept the result of the selection process in a formal meeting on May 14.

Deputy US Trade Representative Michael Punke, who serves as US Ambassador to the WTO, said Azevedo's selection was a "very good day for the WTO as an institution. The United States and others have warned that failure at Bali could result in a collapse of the long-stalled Doha Round, now in its 12th year, and possibly damage the future of the WTO as an effective forum for negotiations."

Sen. Pryor's (D-AR) amendment 801 to the Water Resources Development Act of 2013 (WRDA) was accepted by unanimous consent in the Senate Environment & Public Works Committee.Sens. Inhofe (R-OK), Fischer (R-NE), Landrieu (D-LA), Johanns (R-NE), and King (I-ME) cosponsored the amendment that would revise the EPA Oil Spill Prevention, Control and Countermeasures (SPCC) rule for farms and ranches.

The amendment increases the exemption level from 1,320 gallons to 2,500 gallons of aboveground storage capacity of containers greater than 1,000 gallons. The amendment also creates a temporary 6,000 gallon aggregate aboveground oil storage exemption threshold for farms of up to 30 months pending the completion of a joint EPA and USDA study to set a permanent exemption threshold for farms between 2,500 and 6,000 gallons based on what constitutes a significant risk of discharge to water and a subsequent rulemaking by EPA.

In addition, the amendment permits farms to self-certify their spill prevention plans if their aggregate aboveground oil storage is above the exemption level and less than 20,000 gallons. A professional engineer must certify the plan if the farm has an individual storage tank greater than 10,000 gallons, an aggregate aboveground oil storage greater than or equal to 20,000 gallons, or a reportable oil discharge history.

The WRDA still must be approved by the full Senate and then pass the House before it goes to the President for signature.

Sens. Pryor and Inhofe worked hard to obtain these concessions from Sen. Boxer (D-CA). Although they are not all that the agriculture community had hoped for, there will be further opportunities to improve the rule in the House.

Producers are reminded that this is only the first step in a process to modify existing SPCC regulations.While numerous deadline extensions have been seen in the past, the current compliance date is May 10, '13, by which owners/operators of a regulated farm or facility must have a SPCC Plan.

EPA announced its decision to approve unconditional registrations for the new active ingredient sulfoxaflor. Sulfoxaflor belongs to its own new insecticide subclass in terms of its mode of action, so it is expected to be used by producers faced with pests that have developed resistance to other alternatives.

Sulfoxaflor belongs to a novel chemical class called sulfoximines developed by Dow AgroSciences and will be marketed in the United States as Transform®. It offers effective control of many important piercing/sucking insect pests and can be used in a large number of major crops, including cotton, soybeans, citrus, pome/stone fruit, nuts, grapes, potatoes, vegetables and strawberries.

On Jan. 14, EPA proposed to register sulfoxaflor conditionally and announced 30 days of public comment. The reason for the conditional registration was to allow for more study on its impact on honey bees.

In a response to public comments posted in the docket, EPA said, "Sulfoxaflor use will primarily displace use of existing less effective insecticides which have an activity profile which is similar to or worse than sulfoxaflor against honey bees and non-targets." The final label includes what the agency calls "robust terms for protecting pollinators" which include lengthening treatment intervals and lowering the maximum label rate for cotton and some other crops from the requested 0.09 lbs of active ingredient per acre to 0.069 lbs a.i./acre.

Sulfoxaflor has been used under a Section 18 emergency exemption on cotton in Arkansas, Mississippi, Tennessee and Louisiana to control the tarnished plant bug, which has developed resistance to alternative pesticides.

On April 24, Sen. Boxer (D-CA) and Rep. DeFazio (D-OR) introduced S. 809 and H.R. 1699, the Genetically Engineered Food Right-to-Know Act, respectively. If passed, the bill would require the Food and Drug Administration (FDA) to mandate labels for food with genetically engineered (GE) ingredients, including food produced using genetically engineered seeds.

About 70-80% of the processed foods sold in the United States are made with genetically engineered ingredients, including corn, soybeans, sugar beets and cottonseed oil. Under this bill, products such as non-genetically engineered meat, poultry and dairy would not be labeled even if the animals were fed genetically engineered grain or hay. But unlike Proposition 37, which was narrowly defeated by popular vote last year in California, alcohol produced using GE grain or grapes would be labeled.

There are 26 states trying to pass legislation that would require GE foods to be labeled. Sen. Boxer thinks it makes more sense to have a single law for the entire nation.

The NCC has adopted policy opposing mandatory labeling of GE foods on the grounds that it would violate a long-standing policy of FDA to limit mandatory labeling except when there are substantial differences in the products such as nutritional value or allergens. The NCC also believes that such labeling would be used by anti-biotech groups to steer consumers away from buying GE products and would have a negative impact on further technologies.

The NCC had joined numerous other organizations on a Congressional letter opposing this bill. The letter is on the NCC's website at www.cotton.org/issues/2013/upload/13gelabelingletter.pdf.

Registrations are being taken for the '13 Stoneville Ginners School at the USDA gin lab in Stoneville, MS, on June 4-6. Online registration and complete course information is at www.cotton.org/ncga/ginschool/index.cfm.

The just-completed Western Ginner School in Las Cruces, NM, attracted 40 participants while 123 attended the Southwest Ginner School in Lubbock, TX.

National Cotton Ginners' Assoc. (NCGA) Executive Vice President Harrison Ashley said, "It is important that both the hands-on ginners and the management stay current with the latest technology and issues facing our industry."

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 school features a two-day continuing education (CE) course for certified ginners and gin managers/superintendents. The CE course at the Stoneville school will be held on Tuesday and Wednesday, June 4-5. CE topics at the Stoneville school are:

• PLC purpose, function and remote service
• Automated bagging and strapping/tying systems
• Overview of the importance of proper equipment adjustments
• Decreasing lint loss
• Round module handling and ginning
• Plastic contamination and prevention
• Commercial moisture measuring devices and moisture restoration

"One extremely important topic that is being covered at all three of the 2013 gin schools is contamination prevention," Ashley said.

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.

Cotton Council International (CCI) will highlight the COTTON USA Mark at retail in India as part of a Spring/Summer '13 promotion with Brooks Brothers and Supima. While CCI has worked with mills and manufacturers in India for many years under the COTTON USA program, this is the first time showcasing the COTTON USA Mark at retail there.

Brooks Brothers stores in India will include the tri-branding of Supima, COTTON USA and Brooks Brothers on all Supima cotton apparel. Brooks Brothers store windows in Gurgaon, Delhi and Chennai will feature a Supima and COTTON USA display highlighting the "Grown in the USA" story of the Brooks Brothers brand. The malls will have additional displays to draw shoppers into the Brooks Brothers stores. The US cotton collection includes a broad range of premium quality products, including shirts, pants, sweaters, jeans, socks and underwear.

To maximize consumer exposure to the promotion, CCI, Supima and Brooks Brothers will run advertisements, advertorials and feature stories in newspapers and magazines.

Sub Sales Slip, Shipments Stay Strong

Net export sales for the week ending on May 2 were 122,200 bales (480-lb). This brings total '12-13 sales to approximately 13.1 million bales. Total sales at the same point in the '11-12 marketing year were approximately 12.1 million bales. Total new crop ('13-14) sales are 1.6 million bales.

Shipments for the week were 306,600 bales, bringing total exports to date to 10.3 million bales, compared with the 8.7 million bales at the comparable point in the '11-12 marketing year.