The House of Representatives passed, an appropriations bill to fund several federal agencies, including USDA and the Food and Drug Administration, for the rest of fiscal year 2024, by a vote of 339-84. The bill is expected to pass the Senate and be signed into law by President Biden soon.
This legislation prevents a partial government shutdown that otherwise would have begun on Saturday. It also ends the repeated sequence of stop-gap funding bills, known as continuing resolutions, that had been funding the government at FY23 levels since October of last year.
The USDA-FDA portion of the legislation provides $22.3 billion in total spending. The Animal and Plant Health Inspection Service will receive $1.16 billion, with the cotton pests account receiving $15.5 million, similar to the FY23 funding level.
Congress is not yet finished funding the government in FY24. Legislation to fund all remaining federal departments and agencies, including the Departments of Defense, Homeland Security, and Health and Human Services, must be enacted before March 22 to prevent a partial shutdown.
U.S. Crop Reduced
In its March report, USDA projected the 2023-24 U.S. crop to be 12.10 million bales, 330,000 bales lower than the February report, based on the March 8 Cotton Ginnings report. U.S. mill use and exports were unchanged from the February report at 1.75 million and 12.30 million bales, respectively. This generates a total 2023-24 offtake of 14.05 million bales. Ending stocks for 2023-24 are projected to be 2.50 million bales for an ending stocks-to-use ratio of 17.8%.
USDA released 2024-25 projections during last month’s Agricultural Outlook Forum. U.S. production is estimated to be 16.00 million bales for 2024-25. Mill use is projected to be 1.75 million bales while exports are reported at 13.80 million bales. The estimated total offtake stands at 15.50 million bales. With beginning stocks of 2.50 million bales, this would result in U.S. ending stocks of 3.00 million bales on July 31, 2025, and a stocks-to-use ratio of 19.4%.
In USDA’s March report, expected 2023-24 world production estimate was raised 140,000 bales from the February report to 112.96 million bales. World mill use was raised 480,000 bales to a projected 112.94 million bales. Consequently, world ending stocks for 2023-24 are projected to be 83.34 million bales for a stocks-to-use ratio of 73.8%.USDA released 2024-25 world projections during last month’s Agricultural Outlook Forum. World production is estimated at 116.50 million bales for the 2024-25 crop year. Mill use is projected to be 116.00 million bales. With beginning stocks of 83.34 million bales, this would result in world ending stocks of 83.84 million bales on July 31, 2025, and a stocks-to-use ratio of 72.3%.
NCC Emerging Leaders Visit Washington
The NCC’s Washington office hosted participants of the Cotton Foundation’s Emerging Leaders Program, a year-long training and educational initiative designed to give the next generation of potential NCC directors an understanding of the role the NCC plays in advocating for the U.S. cotton industry.
While in D.C., the group met with Congressman Patrick McHenry (R-NC); CFTC Commissioner Caroline Pham; numerous officials at USDA, including Acting Deputy Under Secretary for Trade Jason Hafemeister; Bayer Vice President and Head of North America Public Affairs Duanne Simpson; EPA Senior Advisor for Agriculture Rod Snyder; White House Senior Advisor for Public Engagement Will McIntee, who specializes in agriculture and rural issues; Ambassador Doug McKalip, the Office of the U.S. Trade Representative’s Chief Agriculture Negotiator, and Dr. Laurie-Ann Agama, the Deputy Assistant U.S. Trade Representative for Economic Affairs; and House and Senate Agriculture Committee staff.
This year’s Emerging Leader Program participants are Trey Beyer, a producer from Portland, Texas; Ryan Johnson, a producer from Wilmot, Arkansas; Kevin Madding, who works for Calcot in Bakersfield, California; Nick Marshall, a producer from Baker, Florida; John Newby, a producer from Athens, Alabama; Paula Price, who works for Cargill in Cordova; Ross Rayner, a producer from Goodyear, Arizona; Will Sanford, a producer from Prattville, Alabama; Randy Squires, a Plains Cotton Cooperative Association warehouser from Hobart, Oklahoma; Steve Stirling, a ginner from Tuscumbia, Alabama; and Blake Wilber, a producer from Tulare, California.
CFTC Chairman Comes to the Hill
Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam appeared before the House Agriculture Committee primarily to urge Congress to reauthorize the CFTC.
The CFTC has not been reauthorized since 2008. In opening remarks, both Chairman GT Thompson (R-PA) and Ranking Member David Scott (D-GA) offered their support for reauthorization, with Thompson emphasizing the importance of “providing the CFTC with the tools and authorities it needs to successfully execute its responsibilities.”
Behnam repeatedly pointed to the challenges that new trends – including the increasing use of digital assets – are bringing to regulators in the financial services sector. While he emphasized that the CFTC is flexible enough to respond to many of these challenges, the Commission is reaching the limits of what it can achieve “given the relatively rapid evolution of markets, market structure, and technology.”
Support for Shipping Technology Enhancements Expressed
The NCC joined the American Cotton Shippers Association and numerous other organizations on a letter at www.cotton.org/issues/2024/upload/24shiplet.pdf commending the Digital Container Shipping Association (DCSA) for its efforts “to facilitate digital interconnectivity and seamless data communication that anyone who touches the industry can leverage.”
The letter also welcomes the DCSA’s effort to draft a commercial schedules standard consistent with the Association’s engagement with the Federal Maritime Commission’s National Shipper Advisory Committee, which will improve data sharing and digital interconnectivity. It concludes with the hope that the commercial schedules standard will be finalized and implemented by the end of 2024.
High Cotton Awards Winners Recognized
The 30th High Cotton Awards recipients were recognized at the annual High Cotton Breakfast held on March 1 in Memphis. The awards, given to producers from each of the four Cotton Belt regions for growing quality U.S. cotton using regenerative practices, are supported by The Cotton Foundation with a grant from Farm Progress.
The 2024 honorees are: Southeast – Andy Wendland, Autaugaville, Ala.; Midsouth – Edward Greer, Rayville, La.; Southwest – Richard Gaona, Roby, Texas; and West - Jerry Rovey, Buckeye, Ariz. More information about the recipients and their operations is at https://bit.ly/4c4OkFw.
Ginner Schools Registration Urged
Certified ginners, gin managers and superintendents are urged to register for one of the 2024 Ginner Schools.
School locations and dates are: Southwest Ginners School at the South Plains Ginning Laboratory in Lubbock, TX, on April 1-3; Western Ginners School at the Southwest Ginning Research Laboratory Mesilla Park, NM, on May 7-9; and the Mid-South-Southeast Ginners School at the Abraham Baldwin Agricultural College in Tifton, GA on June 4-6. The Mid-South-Southeast school will return to the Stoneville, MS location in 2025.
Online registration and course descriptions are at www.cotton.org/ncga/ginschool/index.cfm. The schools will continue to offer the Levels I, II and III of course instruction as well as the continuing education courses. Please note that due to limited class size and availability, there will be no onsite registration.
The three schools' programming is coordinated by the National Cotton Ginners Association (NCGA), working in conjunction with the three USDA ginning laboratories.
Programming for Levels I, II and III will feature practical information on all aspects of ginning. Among topics to be covered are seed cotton drying/cleaning through the ginning process and gin waste disposal methods. The schools' overall emphasis will be on increasing ginning efficiency, turning out high quality fiber and, as always, a focus on improving safety. The school’s Continuing Education Courses are being develop and will appear on the NCGA website when finalized.
School cooperators include USDA's Agricultural Research Service, NCGA and its member associations, the NCC, the Texas Cotton Ginners Trust, Cotton Incorporated, gin machinery/equipment manufacturers and suppliers, and select land grant universities.
Sales Weak, Shipments Strong
Net export sales for the week ending February 29, 2024 were 65,000 bales (480-lb.). This brings total ‘23-24 sales to approximately 11.10 million. Total sales at the same point in the ‘22-23 marketing year were approximately 11.11 million bales. Total new crop (‘24-25) sales are 865,800 bales (480-lb.).
Shipments for the week were 347,300 bales, bringing total exports to date to 6.0 million bales, compared with the 5.9 million bales at the comparable point in the ‘22-23 marketing year.
Capital Calendar
March 5
The House and Senate convened.
March 6
The House Agriculture Committee held a hearing to receive testimony from Commodity Futures Trading Commission Chairman Ross Behnam. More information and a link to view the hearing are at: https://bit.ly/3Tswzsx.
