Agriculture Secretary Vilsack extended the deadline of March 31 to April 7, '15, for farm owners and producers to choose between Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC). April 7 also is the last day to update yield history or reallocate base acres.
"This is an important decision for producers because these programs help farmers and ranchers protect their operations from unexpected changes in the marketplace," Vilsack said in a USDA release. "Nearly 98 percent of producers have already updated yield and base acres, and 90 percent of producers have enrolled in ARC or PLC. These numbers are strong, and continue to rise. This additional week will give producers a little more time to have those final conversations, review their data, visit their local Farm Service Agency offices, and make their decisions."
If no changes are made to yield history or base acres by the deadline, the farm's current yield and base acres will be used. If a program choice of ARC or PLC is not made, there will be no '14 crop year payments for the farm and the farm will default to PLC coverage for the '15-18 crop years. Producers who have an appointment at their local FSA offices scheduled by April 7 will be able to make an election between ARC and PLC, even if their actual appointment is after April 7.
USDA also has online tools, available atwww.fsa.usda.gov/arc-plc,which enable producers to explore how ARC or PLC coverage will affect their operation.
Covered commodities under ARC and PLC include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice (which includes short grain and sweet rice), safflower seed, sesame, soybeans, sunflower seed and wheat. Upland cotton is no longer a covered commodity and is now provided with additional insurance options through the Stacked Income Protection Plan (STAX) purchased through crop insurance agents.
To learn more, farmers may contact their local FSA county office. To find local offices, visithttp://offices.usda.gov.
Panel Reviews Farm Bill Implementation
The House Agriculture Committee's General Farm Commodities and Risk Management Subcommittee held a hearing to review the ongoing implementation of the Agricultural Act of 2014 and the related issues that USDA needs to address with regard to crop insurance and farm policy.
Farm Service Agency (FSA) Administrator Val Dolcini and Risk Management Agency (RMA) Administrator Brandon Willis both testified before the Subcommittee on implementation progress and responded to questions from the Subcommittee. Common issues raised included a number of key crop insurance issues for cotton producers such as the need for:1) providing greater flexibility and independent purchase decisions for STAX policies on irrigated and non-irrigated acres in the same county; 2) flexibility for enterprise unit purchases by practice within a county; and 3) more timely payment of STAX indemnities based on production region and availability of production data.
Administrator Willis indicated a willingness by RMA to discuss all of these issues with the cotton industry and seek opportunities to address some of these changes for the '16 crop year.
In addition, several Members conveyed serious concerns with aspects of the recently released "actively engaged" proposed rule from FSA to define and determine producer eligibility for farm programs. While the farm law instructed USDA to make some modifications to "actively engaged" provisions, there are concerns that the proposal goes beyond what the law requires and could have serious unintended consequences for some farms. The NCC is currently conducting a review and analysis of the proposed rule and will be providing industry comments to USDA.
Another issue raised with Administrator Dolcini was the ongoing concern with the impact of the new, unified payment limit on the marketing loan program. He indicated USDA is making some progress in setting up a system to track and inform producers of their status relative to the limit. However, much work remains before there will be a USDA process to timely inform producers and marketing entities of the payment status relative to the payment limit. (see following article)
The NCC continues to work with USDA on this process.
New MLGs/LDPs Reporting Process Announced
In a notice issued to state and county offices, USDA's Farm Services Agency (FSA) announced the release of a new process for electronically transmitting data regarding marketing loan gains (MLGs) and loan deficiency payments (LDPs). The new process will be used by cooperative marketing associations, loan servicing agents and designated marketing associations.
The new reporting process is being implemented in order to apply the payment limit provisions of the '14 farm law. In that legislation, a payment limit of $125,000 per legal entity is applicable to MLGs, LDPs and payments received under the Agriculture Risk Coverage or Price Loss Coverage programs. FSA is still in the process of developing policy and a final reconciliation procedure that will determine the procedures to be used in the event that an individual producer receives payments in excess of the limit.
Both the House and Senate passed their respective FY16 Budget Resolutions along mainly party line votes.
In the Senate, several amendments were filed that would have been extremely damaging to crop insurance and farm programs. The majority of these amendments focused on crop insurance.
Among several amendments filed by Sen. Flake (R-AZ) were: one to deny premium subsides for individuals with an Adjusted Gross Income over $750,000; another to eliminate the premium subsidy on the Harvest Price Option for revenue policies; and a third one to mandate that USDA disclose the premium subsidy of individuals. Sen. Shaheen (D-NH) filed an amendment that would have placed a $50,000 cap on premium subsidies. Sen. Booker (D-NJ) filed an amendment that would have lowered the Adjusted Gross Income test that is currently applied to commodity programs.
The NCC contacted Senate Cotton Belt offices requesting their opposition to these amendments. Fortunately, none of the amendments were brought up for a vote but it is likely the same amendments will be offered in the future.
NCC Supports Death Tax Repeal Bill
The NCC joined other agriculture organizations on a letter to Reps. Brady (R-TX) and Bishop (D-GA) in support of the Death Tax Repeal Act of 2015 (H.R. 1105).
The letter, on the NCC's website at www.cotton.org/issues/2015/upload/15estatelet324.pdf, noted that the estate tax is 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 letter also noted that with rising farm land values across America, the estate tax will continue to plague farm and ranch families until it is repealed.
The House Ways and Means Committee passed the bill 22-10. Sen. Thune (R-SD) introduced companion legislation in the Senate.
Study: Neonicotinoids Not Sole Cause of Bee Decline
A three-year study published in PLOS ONE concluded that neonicotinoid insecticides are "to be an unlikely sole cause of colony declines." The findings "agree with a causal analysis by Saveley et al." (A causal analysis of observed declines in managed honey bees (Apis mellifera. Hum and Ecol Risk Assess. '12).
Neonicotinoid insecticides include imidacloprid, thiamethoxam and clothianidin. Cottonseed treatment insecticides generally contain one of the neonicotinoid treatments.
Environmental groups have argued neonicotinoid insecticides are causing the decline in bee populations and have urged a ban. The European Union placed a two-year ban on neonicotinoid products in '13, and many reports indicate pest outbreaks dramatically increased crop damage and foliar pesticide applications.
In June '14, President Obama released a Presidential Memo -- Creating a Federal Strategy to Promote the Health of Honey Bees and Other Pollinators. The memo formed a federal task force to develop a federal strategy, and that panel's report is expected soon. The memo states, "These steps should include the development of new public-private partnerships and increased citizen engagement."
The NCC continues to urge local solutions developed through state pollinator plans with all stakeholders as a means to mitigate potential risk from agricultural pesticides. The NCC also continues to emphasize that scientists should conclude that multiple factors are involved in honey bee decline, including poor bee nutrition, loss of forage lands, parasites, pathogens, lack of genetic diversity and exposure to pesticides.
Meanwhile, a USDA National Agricultural Statistics Service report released on March 20 reports that for '14, there was a 4% increase in honey bee colonies, a 19% increase in honey production and a 15% increase in yield per colony while honey prices are at a record high. The report is at https://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1191.
Mandatory Labeling Laws Hearing Held
Reps. Pompeo (R-KS) and Butterfield (D-NC) introduced the "Safe and Accurate Food Labeling Act of 2014" (H.R. 4432), bi-partisan legislation that would create federal standards for food labeling in order to keep American-produced food safe and nutritious, in addition to eliminating confusion for consumers.
The House Agriculture Committee held a hearing to discuss the Pompeo bill as well as other aspects of biotechnology and how they affect the agriculture industry.
Chairman Conaway opened by commenting how mankind has been modifying crops for years which has led to more plentiful harvests and argued that the safety of modern biotechnology has been proven by numerous leading scientific bodies.
During the hearing, the witnesses expressed their opposition to mandatory labeling and the need for GMOs in agriculture to ensure there is enough safe and affordable food and fiber for consumers around the world. One witness explained that with the population increasing at such a rapid rate, the only way the agriculture community can provide the world with enough resources is by using genetically modified products. They also explained that state-by-state labeling laws would cause mass confusion in the marketplace and could end up costing consumers more money. Committee members and witnesses agreed it is vital for the federal government to intervene on the labeling issue to preserve interstate commerce through national uniformity.
In response to these discussions, the NCC showed their support for agricultural innovation and biotechnology by signing two separate letters. The first letter, on the NCC's website at www.cotton.org/issues/2015/upload/15aginnovlet.pdf and sent to all Senators, explained the importance of technology to the agriculture industry and urged them to oppose any budget or appropriations amendments that would deny agriculture producers access to modern technology. The second letter, on the NCC's website at www.cotton.org/issues/2015/upload/15biotechlet324.pdf, was sent to Chairman Conaway and Ranking Member Peterson of the House Agriculture Committee thanking them for advancing public examination of the biotechnology labeling debate.
COTTON USA-Sponsored Designer Considered
Faustine Steinmetz, the latest recipient of COTTON USA's highly coveted London Fashion Week (LFW) sponsorship, has been selected as a finalist for the prestigious LVMH Young Fashion Designer Prize. She put an innovative, modern spin on denim in her COTTON USA-sponsored collection. Along with seven others, Steinmetz was selected as a finalist from 26 talented brands that presented their collections during Paris Fashion Week. The LVMH Prize recipient will be decided on May 22, '15.
COTTON USA's LFW sponsorship encourages new designers to showcase their talent and bring the vision for their collection to life through the versatility of US cotton. Now entering its 12th year, the sponsorship program has been a valuable platform for budding designers to elevate their work.
Launched in '13, the LVMH Prize was created to reveal and support emerging talent in the world of fashion design, and each year, the award recognizes a young designer and three graduates from fashion schools.
Sales, Shipments Continue Strong
Net export sales for the week ending on March 19 were 198,700 bales (480-lb). This brings total '14-15 sales to approximately 10.4 million bales. Total sales at the same point in the '13-14 marketing year were approximately 9.8 million bales. Total new crop ('15-16) sales are 929,200 bales.
Shipments for the week were 311,900 bales, bringing total exports to date to 5.8 million bales, compared with the 6.8 million bales at the comparable point in the '13-14 marketing year.
