Cotton industry members and agribusiness personnel are encouraged to access information recently presented at the NCC's 25 STAX/Farm Bill workshops as well as information (including audio/video) presented in the NCC's just-completed four regional webinars.
Among important elements of The Agricultural Act of 2014 that were covered in those sessions were an in-depth look at the new Stacked Income Protection Plan (STAX) and the Supplemental Coverage Option along with regional examples of insurance premium rates and county yields. The information is now available on the NCC's website at www.cotton.org/issues/stax-farm-bill-meetings.cfm.
NCC President/CEO Mark Lange said cotton producers, other industry members and agribusiness personnel unable to attend any of the NCC workshops or participate in the just completed webinars will especially benefit from accessing this information.
"Even those unable to attend a workshop and/or take part in one of the webinars will find this information helpful as important decisions must be made to participate in this new farm law," Lange said.
Questions on the NCC's presentation information should be directed toinfo@cotton.org.
RMA Announces APH Details
The Risk Management Agency (RMA) announced program details related to the Actual Production History (APH) Yield Exclusion provision. Information made available includes eligible crops, crop years and counties where producers are eligible to exclude certain yields under the new provision; a fact sheet; and a list of frequently asked questions. The information is at www.rma.usda.gov/news/currentissues/farmbill/index.html.
The NCC sent a letter on Nov. 5 to RMA with recommendations regarding this provision's implementation. Among the recommendations accepted by RMA were:
RMA will use its own data as the source for determining the county yield;
any counties that share a common border will be considered contiguous;
the provision be implemented in a manner that any additional premium would only be borne by those producers who opt for this provision;
producers have the ability to reevaluate years that are excluded from their APH in future years; and
the new provision will not interfere with a producer choosing to use yield plugs.
The APH Yield Exclusion will be available in the actuarial documents beginning in the '15 crop year for spring planted corn, soybeans, wheat, cotton, grain sorghum, rice, barley, canola, sunflowers, peanuts and popcorn. It will allow eligible producers who have been hit with severe weather to receive a higher approved yield on their insurance policies through the federal crop insurance program.
Under the new farm law program, yields can be excluded from farm actual production history when the actuarial documents provide that the county average yield for that crop year is at least 50% below the 10 previous consecutive crop years' average yield; a crop year determined eligible for exclusion for a crop in a county, also will be eligible for exclusion in contiguous counties.
113th Congress Concludes Business, Adjourns
Following several days of uncertainty and delays in addressing the few remaining must-pass pieces of legislation, the Senate concluded its business and adjourned. This followed House adjournment during the previous week, which left the Senate to take action on several bills already approved by the House.
The Senate approved the "CRomnibus" funding bill for all federal government departments and agencies through FY15's end (Sept. 30, '15) with the exception of the Dept. of Homeland Security, which is only funded through the end of Feb. '15. The measure includes key funding for cotton industry priorities such as the cotton pests account for boll weevil and pink bollworm eradication and full funding for the MAP and FMD market development programs. (See 12/12/14 Cotton's Week for full list of provisions.)
In addition to the funding bill, the Senate approved by a vote of 76-16, the tax extenders bill previously approved by the House. This bill makes the Section 179 business expensing provision retroactive for '14 at the $500,000 level and also restores the 50% bonus depreciation provision for '14. Earlier attempts were to make some of the tax provisions permanent or at least two-year provisions covering both '14 and '15 to provide some degree of certainty, but ultimately the one-year retroactive provisions were all that could be agreed to.
The new Congress is scheduled to convene on Jan. 6.
Meanwhile, House Republicans have selected four new members to be added to the House Ways and Means Committee for the 114th Congress. Among the newly selected members are two Cotton Belt representatives: Reps. Smith (MO) and Holding (NC). House Transportation and Infrastructure Committee Chairman Shuster (R-PA) will be welcoming in 12 new Republican members to his Committee, including three Cotton Belt representatives: Babin (TX), Graves (LA) and Rouzer (NC).
The Senate released full committee assignments for the 114th Congress. A list of the Agriculture, Appropriations, Finance, and Environment and Public Works committees is on the NCC's website at www.cotton.org/issues/2014/sencomm114.cfm. (Cotton Belt Members are in bold and freshman Members are noted with an asterisk.) The complete House and Senate committee and subcommittee memberships will be available in early January once the new Congress convenes.
As part of the NCC's ongoing efforts to address the Turkey anti-dumping investigation, extensive outreach and education continues to be conducted with Cotton Belt senators and representatives to enlist their support in helping the US cotton industry maintain market access to this key export market.
To date, Congressional letters have been sent to US Trade Representative Froman, Secretary of Commerce Pritzker, and Turkish Ambassador Kilic, noting the apparent political nature of the anti-dumping case, the lack of transparency in the basis used to initiate the case, and the potential World Trade Organization violations that may occur if Turkey proceeds to assess duties on US cotton imports.
Congressional members also are seeking close attention and engagement by the US government to take all steps available to prevent the imposition of duties. The letters, which can be viewed on the NCC's website at www.cotton.org/issues/2014/upload/14turklets121514.pdf, were sent by Rep. Smith (R-MO), House Agriculture Committee Chairman Lucas (R-OK) and Ranking Member Peterson (D-MN), and eight members of the Texas delegation, led by Reps. Conaway (R) and Neugebauer (R).
NCC Meets with USDA, APHIS Officials
NCC staff met with Deputy Under Secretary for Marketing and Regulatory Programs Gary Woodward, USDA Animal and Plant Health Inspection Service (APHIS) Administrator Kevin Shea, and other APHIS officials to discuss issues under their jurisdiction that are important to the cotton industry. NCC staff attending were John Maguire, Reece Langley, Dr. Don Parker and Dr. Keith Menchey along with Jill Davis of Cotton Council International.
Much of the discussion focused on the Boll Weevil (BW) and Pink Bollworm (PBW) Eradication programs. Parker expressed the industry's concurrence with the selection of Billy Newton to be the new Cotton Pest Coordinator. He also discussed some strategic issues for Cotton Pest Programs, both BW and PBW, as these programs consider actions necessary to transition into post-eradication in the future. Parker reviewed the National Buffer Concept, explaining that the cotton industry has initiated transitional steps toward a post-eradication status by recognizing the Lower Rio Grande Valley zone in Texas as the National Buffer Zone that currently is serving to protect the United States from re-infestation from Mexico. The National Buffer Zone should be considered a priority for all available boll weevil federal funding. The cotton industry also has created a private emergency funding mechanism, the Boll Weevil Protection Fund, should additional assistance be necessary.
Regarding the PBW program, Parker explained that the APHIS Phoenix facility is the only location that has the capacity for sterile moth production necessary to continue PBW eradication activities. The industry is concerned that APHIS maintain the facility and provide funding should the facility require further modifications and upgrades.
Parker also addressed the cotton industry's concern about the confirmation of the presence of Old World Bollworm (Helicoverpa armigera) in Puerto Rico.
The group thanked APHIS for their work that led to the recent Environmental Impact Statement on deregulation of dicamba tolerant cotton which should become effective in mid-January. (NOTE:EPA action on label review of dicamba for use on cotton still is required.)
The NCC also discussed with APHIS the issues surrounding the timeframe that phytosanitary certificates are valid on shipments and the impact of current shipping delays at the West Coast ports. Because of the West Coast slowdown, the NCC wants to make sure all affected shippers/exporters contact their Authorized Certifying Officials if a previously issued phytosanitary certificate is affected by the slowdown.
Bill Addresses WOTUS Interpretive Rule
In the FY15 funding omnibus, Congress included language that would require EPA to withdraw its controversial Interpretive Rule (IR).
The Clean Water Act (CWA) specifies that "normal farming" measures are not subject to dredge-and-fill permits (Sec. 404 permits), but does not define such practices. The purpose of the IR, according to EPA, was to define which farming practices would be included in the exemption. The regulation exempted 56 agricultural conservation activities but then linked their exemption to compliance with Natural Resource Conservation Service (NRCS) standards. Critics of the IR argue that the regulation limits Congressional intent and forces NRCS into an enforcement role.
EPA Administrator Gina McCarthy recently stated that she understood that there were concerns with the IR when it was issued and that she is not unhappy about the appropriations rider. She added that while EPA has not decided how to replace the rule, they will work with USDA on next steps for a policy to clarify "normal" farming practices.
While agriculture, industry and many Congressional members have sought to block the more comprehensive Waters of the US proposed rule (WOTUS), arguing that it oversteps the agencies' statutory authority, the omnibus only addressed the IR for fear of a presidential veto. The decision to not address WOTUS in the omnibus could limit means to block the regulation through Congressional action. EPA and the Corps are still planning to finalize the rule in April '15, months before Congress works on a FY16 appropriations bill.
WOTUS aims to clarify the scope of the CWA following competing Supreme Court rulings for determining whether smaller waters and isolated wetlands are jurisdictional.
It is expected that WOTUS will face numerous legal challenges. One such challenge likely will involve public comments. EPA and the Corps received almost one million responses during the public comment period which ended on Nov. 14. Plaintiffs could argue that the agencies did not allow sufficient time to adequately consider such a large volume of public comments.
House Discusses GE Labeling
The House Energy and Commerce Health Subcommittee last weekheld a three-hour hearing on H.R. 4432, the Safe and Accurate Food Labeling Act. Introduced by Rep. Pompeo (R-KS) and co-sponsored by Rep. Butterfield (D-NC), the bill would require FDA to label a genetically engineered (GE) food if the agency believed it necessary for toxicity or allergenicity reasons, but would prohibit state labeling requirements.
The bill is being supported by the Grocery Manufacturers Assoc. (GMA) and agricultural groups and was initiated in reaction to a series of state attempts to require labeling. At least 25 states have considered labeling initiatives. Most have not passed, the latest casualty being in Colorado where Proposition 105 was defeated in November by 67% to 33%. However, labeling proponents have had successes. Last year, both Connecticut and Maine passed bills requiring GE labels. In May, Vermont signed into law its labeling bill.
Rep. Pitts (R-PA), the subcommittee chairman, said in an opening statement that, "food labeling is a matter of interstate commerce and is therefore clearly a federal issue that rightfully resides with Congress and the FDA. I'm concerned that a patchwork of 50 separate state labeling schemes would be impractical and unworkable. Such a system would create confusion among consumers and result in higher prices and fewer options."
Most surprising were comments from retiring Rep. Waxman (D-CA), one of the most liberal members of Congress. In his opening statement, Waxman said, "I'm concerned that mandatory GE labeling could be inherently misleading. Given that the FDA has raised no health or safety concerns with GE foods, a label could unintentionally appear to imply that the foods are somehow less safe than conventional varieties."
Waxman went on to say that, under the current system, if consumers want to avoid GE foods they can.They can buy organic foods, which, by law, cannot contain GE ingredients or they can search out the foods that manufacturers have certified and labeled as non-GE. That more targeted information may, in fact, be more usable.
No one expects the bill to move any further in the current Congress, but Rep. Pompeo has made assurances that he will reintroduce his legislation early next year. The GMA and other supporters already are looking for a sponsor to work on a companion to Rep. Pompeo's bill in the Senate.
Recordkeeping Rule Change Begins Jan. 1
According to the Occupational Safety & Health Administration's (OSHA) updated recordkeeping rule, which begins on Jan 1, '15, in addition to the requirement for employers to report all work-related fatalities within eight hours -- all in-patient hospitalizations, amputations and losses of an eye will be required to be reported within 24 hours of finding about the incident.
Employers can report to their nearest area office, the 24-hour OSHA hotline at 1-800-321-6742), or online at www.osha.gov/report_online.
The current OSHA rule requires that employers have eight hours to report a death or an accident involving three or more people to OSHA. Facilities located in states that operate their own safety and health programs (State Plan states) should check with their state for the new requirements' implementation date. More information can be found at www.osha.gov/recordkeeping2014/OSHA3744.pdf.
Sales Steady, Shipments Strong
Net export sales for the week ending on Dec. 11 were 97,100 bales (480-lb). This brings total '14-15 sales to approximately 7.3 million bales. Total sales at the same point in the '13-14 marketing year were approximately 7.3 million bales. Total new crop ('15-16) sales are 566,100 bales.
Shipments for the week were 184,900 bales, bringing total exports to date to 2.0 million bales, compared with the 2.7 million bales at the comparable point in the '13-14 marketing year.
Christmas AWP Announcement Noted
In its Dec. 11 Upland Cotton Announcement, USDA noted a change in the timing of the announcement of the Adjusted World Price (AWP) during Christmas week. With Christmas falling on Thursday and with Friday, Dec. 26, declared a federal holiday, USDA noted that the AWP announcement will be on Wednesday, Dec. 24, at 4 pm ET. This is a one-time occurrence being made in order to account for the federal holidays.
Note: Cotton's Week will not be published on Dec. 26 due to Christmas holidays.
