NCC members are reminded that the general elections are set for Tuesday, Nov. 4, and with many races in Cotton Belt states tightly contested, every vote counts.
During this midterm election year, all 435 House seats and 33 of the 100 Senate seats are up for election. Highly contested Senate races in Arkansas, Georgia, Kansas, Louisiana and North Carolina will be closely watched. In addition, there are several Cotton Belt House races that are extremely close.
US agriculture has and will continue to face numerous policy challenges in Congress; it is imperative that we have elected representatives willing to work on behalf of our industry. It is important that members of the cotton industry exercise their right to vote on Nov. 4. The elections’ outcome could have significant implications for committee leadership and members of key committees, including the agriculture committees.
ARC, PLC Timeline Update, Program Details Offered
USDA's Farm Service Agency issued Notice ARCPLC-13. Available from the NCC's website at www.cotton.org/issues/2014/upload/14arcplc13oct.pdf, it supplements Notices ARCPLC-5, 10, 11 and 12 regarding owners' options to update a farm's crop yields and whether to retain or reallocate crop bases by Feb. 27, '15.
The Notice also stipulates that the farm's current producers have between Nov. 17, '14 and March 31, '15 to make a one-time, irrevocable election of either of the following:
Price Loss Coverage (PLC) or Agriculture Risk Coverage-County Coverage (ARC-CO) on a covered commodity by covered commodity basis on a farm, or
ARC-Individual Coverage (ARC-IC) for all covered commodities on a farm.
The election of PLC or ARC-CO or ARC-IC must be unanimous; must follow the base and yield decisions of the current owners; and, apply to the farm for the '14-18 crop years.
The Notice states the following: "A failure of the farm's current producers to make a program election will cause the farm to default to the PLC election for all covered commodities for 2015 through 2018 crop years and the farm will NOT be eligible for ARC or PLC payments in 2014."
The Notice also explains that after the conclusion of the program election period on March 31, '15, producers must annually enroll their respective share interest of base acres or interest of covered commodities to be eligible to receive payments. The annual enrollment for '14 and '15 crops is anticipated to occur from mid-April through mid-summer.
Producers are reminded that the annual enrollment process does NOT allow any change in the program election of ARC or PLC made for the '14-18 crop years.
In addition, Notice ARCPLC-10, on the NCC's website at www.cotton.org/issues/2014/upload/14arcplc10.pdf, details the procedures and requirements for farm owners to update a farm's crop yields for covered commodities for PLC program purposes. It also specifically discusses how PLC yields are established for covered commodities that may be produced on generic base acres if the farm has no yield history for the covered commodity being planted.
Producers Reminded of Conservation Compliance
Producers are reminded that changes mandated through the '14 farm law require them to have on file a Highly Erodible Land Conservation and Wetland Conservation Certification (AD-1026). The farm law relinked highly erodible land conservation and wetland conservation compliance with eligibility for premium support paid under the federal crop insurance program.
For farmers to be eligible for premium support on their federal crop insurance, a completed and signed AD-1026 form must be on file with the Farm Service Agency (FSA). Because many FSA and Natural Resource Conservation Service (NRCS) programs have this requirement, most producers already should have an AD-1026 on file. If producers have not filed this form, they must do so by June 1, '15. If a producer already has completed the AD-1026, no action is necessary as long as the answers from the previous form have not changed – because once filed, an AD-1026 provides continuous certification until a change is made. When a farmer completes the AD-1026, FSA and NRCS staff will outline any additional actions that may be required for compliance with the provisions.
It is anticipated that USDA will issue an interim rule early next year regarding conservation compliance as it relates to the federal crop insurance program.
USDA's Foreign Agricultural Service (FAS) announced a new fee structure and pending new guarantee fee rates to be charged for coverage under the Commodity Credit Corp.'s Export Credit Guarantee Program (GSM-102). The new guarantee fee rates will apply to applications for payment guarantees and amendment requests received on or after Oct. 31, '14, 12:01 am (EDT).
Under the new fee structure, guarantee fees will be based on the following factors: 1) obligor country, 2) foreign financial institution, 3) tenor and 4) repayment terms.
To assist participants in determining the appropriate fee for each transaction, FAS launched an online fee calculator at www.fas.usda.gov/programs/export-credit-gurantee-program-gsm-102/gsm-fee-schedule. Participants may select an obligor country and foreign financial institution using the calculator's drop-down menus to generate a set of fees for each eligible tenor and repayment term.
The new guarantee fee rates reflect historical program performance, country risk (including current and expected individual country macroeconomic performance), and individual foreign obligor risk, and are designed to offset the risk of each individual GSM-102 program transaction. Rates also are calculated to cover the GSM-102 program's long-term operating costs and losses. They are issued in accordance with Title 7 CFR, Section 1493.70(a) and will be in effect beginning on Oct. 31, '14.
Program participants are advised that guarantee fee rates may change at any time. Updates will be made to the online fee calculator at approximately 9 am EST on the day new rates are effective. Participants should access the fee calculator to verify the appropriate fee rate for each transaction prior to submitting an application for a payment guarantee.
For more information, contact the FAS Registrations and Operations Branch at (202) 720-3224 or gsm.registrations@fas.usda.gov.
Shipping Order Scheduling Education Progresses
NCC President/CEO Mark Lange sent an update on an industry initiative to improve cotton flow to cotton industry interest organizations representing shippers, marketing cooperatives, warehousemen and ginners.
The bulletin focused on EWR Inc.'s modified "Batch 23 File" (shipping order update) protocols. The bulletin references a NCC-prepared fact sheet that describes "… how the feature works, its benefits and a list of considerations the primary users of the feature (shippers and warehouses) should understand when deciding whether or not to adjust their business practices to accommodate the revised process."
According to a PoliticoPro report, the Government Accountability Office (GAO), Congress' independent investigative arm, has begun a review of how the USDA and the Food & Drug Administration (FDA) look at the long-term safety of genetically engineered (GE) crops both in the environment and in the food supply. The pending report is one of several that GAO said they have planned on food and agriculture issues - ranging from a review of the food safety system to the Women's Infants and Children supplemental food program.
The GAO's interest in genetically-modified organisms (GMOs) stems from a July '13 letter from Sen. Tester, a Democrat and Montana organic farmer. He argued that the 30-year-old Coordinated Framework for Regulation of Biotechnology that is used as the basis for regulating and approving genetically engineered crops and food does not reflect modern science.
In particular, Tester wrote, GAO should look at whether the current system ensures FDA has sufficient data to ensure the safety of GE foods; if agencies sufficiently take into account the economic impact of disrupted trade with countries that don't accept GE crops; the level of oversight of GE crop test plots; and how well the coordinated framework manages cross pollination of GMO and conventional crops.
'15 Ginning Sessions Offering Timely Reports
The '15 Beltwide Cotton Ginning Conference will offer ginner attendees numerous reports with practical applications. The conference is one of 11 technical conferences to be held at the '15 Beltwide Cotton Conferences, Jan. 5-7 at the Marriott Rivercenter Hotel in San Antonio, TX. Registration and hotel information for the forum is at www.cotton.org/beltwide.
The '15 Cotton Ginning Conference's two sessions are planned for Tuesday, Jan. 6, from 1:30-5:30 pm and Wednesday, Jan. 7, from 8 am-noon. The program will include reports covering new equipment and developments, quality issues and ongoing research.
National Cotton Ginners Assoc. (NCGA) President Dwayne Alford urges ginners to attend the ginning conference, which provides a forum for researchers and industry representatives to exchange information on new technology aimed at improving gin operation efficiency and preserving fiber quality.
Alford said ginners attending the Beltwide also are encouraged to attend the NCGA's committee meetings being held prior to the Ginning Conference. The meetings will begin at 1:30 pm on Monday, Jan. 5, and conclude at noon on Tuesday, Jan. 6. These meetings will focus on safety, labor, air quality and technology.
Cotton Promoted at Intertextile Shanghai
Cotton Council International and Cotton Incorporated joined forces to promote cotton at the '14 Shanghai Intertextile Apparel Show in China, with a focus on responsible cotton production and sourcing through participation in the Cotton LEADS™ program.
At the joint booth, the new COTTON USA logo appeared alongside quality products that exemplify the passion of farmers and an industry that spans across the country. Its clean modernity invokes the innovative American spirit and the American values of purity, quality and responsibility: a living ingredient born in the USA from seed, sun and soil. Cotton Incorporated displayed at the joint booth under the theme of "Discover What Cotton Can Do," highlighting production innovations, fashion trends, supply chain opportunities and marketing programs.
Products and services were displayed by Supima, as well as COTTON USA licensees Central Fabrics Co. Ltd., Sanyang Textile Co. Ltd. and Wuxi No. 1 Cotton Mill.
This year marks the 20th anniversary of the Intertextile Apparel Fabrics show in China, which has developed into the largest textiles fair in the world with more than 3,800 exhibitors from 30 countries. The show attracted about 70,000 buyers from some 100 countries over four days.
Sales Surge, Shipments Slip
Net export sales for the week ending on Oct. 23 were 196,200 bales (480-lb). This brings total '14-15 sales to approximately 6.1 million bales. Total sales at the same point in the '13-14 marketing year were approximately 5.1 million bales. Total new crop ('15-16) sales are 503,700 bales.
Shipments for the week were 74,900 bales, bringing total exports to date to 1.1 million bales, compared with the 1.8 million bales at the comparable point in the '13-14 marketing year.
