Secretary Tom Vilsack returned to Capitol Hill for the third time in less than two months in order to report on the Biden administration’s funding allocations for USDA operations in the FY25 budget request released by the White House on March 11.
The hearing, which was held before the House Appropriations Subcommittee on Agriculture, Rural Development; and the Food and Drug Administration, was wide-ranging and occasionally heated.
In his testimony, the Secretary stressed the importance of “policies that add value for farms of every shape and every size.” He also highlighted “the undeniable challenges of climate change” and emphasized that greater attention should be focused on equity in the agriculture sector.
Subcommittee Chairman Andy Harris (R-MD) was at times critical of the growing costs and policies of the mandatory nutrition assistance programs administered by USDA. He also expressed concerns about proposals to expand the scope of the Commodity Credit Corporation to boost producer safety net programs if a new farm bill is not finalized soon.
Ranking Member Sanford Bishop (D-GA) specifically mentioned cotton when he highlighted the rising input costs that are placing major burdens on farmers in his district and elsewhere across the country. Vilsack stated that he might be open to granting producers ad hoc relief.
The White House budget request for FY25 calls for $31.6 billion in total discretionary spending for USDA operations, an increase from the $29.3 billion recently enacted for FY24. The request recommends a funding boost for nearly all USDA programs, including the cotton pest account of the Animal and Plant Health Inspection Service, which was allocated $15.6 million in the budget – a $100,000 increase over the FY24 enacted total.
While the presidential budget request offers an important glimpse of the Biden Administration’s priorities, it is not a binding document. Congress has final say on all government funding matters and will begin drafting FY25 appropriations legislation in the coming weeks.
Concerns About Corporate Transparency Act Conveyed
The NCC joined dozens of organizations on a letter urging swift Senate passage of legislation authorizing a one-year delay in implementation of the Corporate Transparency Act’s (CTA) beneficial ownership reporting requirements, which were developed to target illicit shell corporations.
The letter at www.cotton.org/issues/2024/upload/24ctalet.pdf, which was addressed to Senate Banking, Housing, and Urban Affairs Committee Chairman Sherrod Brown (D-OH) and Ranking Member Tim Scott (R-SC), points out that legislation to delay implementation of the CTA passed the House of Representatives by a near-unanimous vote in December. The Senate has not yet acted on this issue, though a companion bill to the House legislation was introduced by Scott in January.
The letter argues that the CTA reporting requirements, which were designed to apply to all entities having fewer than 20 employees and $5 million in revenue, are beyond the scope of what the Financial Crimes Enforcement Network is currently capable of managing. It also claims these reporting requirements would end up imposing costly mandates on a business community still largely unfamiliar with the new rules and trying to grapple with a recent court ruling exempting some businesses from CTA requirements.
Ocean Shipping Reform Legislation Passes House
The House of Representatives overwhelmingly passed the Ocean Shipping Reform Implementation Act by a bipartisan vote of 393-24. The bill, which is sponsored by Rep. Dusty Johnson (R-SD) and John Garamendi (D-CA), now awaits action in the Senate.
Among many other measures, this legislation codifies the definition of “controlled carrier” to encompass state-controlled enterprises originating from China and other non-market economies; clarifies that the Federal Maritime Commission (FMC) may stipulate minimum common carrier service contracts; and authorizes the FMC to streamline data collection to conform to industry best practices.
The bill is a follow-up to 2022’s Ocean Shipping Reform Act, which was supported by the NCC.
Cotton Supports Air Monitoring Revisions
The National Cotton Council, the National Cotton Ginners' Association and the Texas Cotton Ginners' Association added their support to comments from the NAAQS Regulatory Review & Rulemaking Coalition (NR3) to the EPA. The highly technical comments at www.cotton.org/issues/2024/upload/24nr3com.pdf supported a proposal to update and retroactively calibrate air monitors and their data which have been shown to be consistently off by 20% in their measurements of fine particulate matter (aka PM2.5).
The change would be a first step in providing businesses such as cotton gins some headroom to grow their operations under the new, more restrictive, PM2.5 National Ambient Air Quality Standards (NAAQS).
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.
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.
Pest Management Strategies Explored During Workshop
The Cotton Foundation and the Southern IPM Center co-hosted a Pest Management Strategic Plan (PMSP) Workshop at Plains Cotton Growers offices in Lubbock, TX. Growers,specialists, and researchers participated both virtually and in-person, alongside regulatory representatives from the EPA Office of Pesticide Programs and the USDA Office of PestManagement Policy. The purpose of this one-day workshop was to gather input from producers
and create an updated, regionally specific Cotton PMSP for Oklahoma, Kansas, and the high and rolling plains of Texas. The current PMSP for Texas was published in 2005, and cottonproduction has significantly evolved since then.
During the workshop, participants discussed pest management practices and products that are currently being used for controlling weeds, insects, diseases, nematodes, and other pests. Workshop attendees also highlighted priorities for research, regulatory activity, and education/training programs, as well as the overall priorities for cotton production; timelines of worker activities; efficacy of pest control tactics; preservation of natural enemies; and pesticide resistance management techniques.
The insights provided by producers and researchers are being summarized into a reference document that will be valuable for the USDA, EPA, and others to gain a better understanding of cotton pest management practices and needs in the area.
Sales Weak, Shipments Stay Strong
Net export sales for the week ending March 14, 2024 were 97,600 bales (480-lb.). This brings total ‘23-24 sales to approximately 11.3 million. Total sales at the same point in the ‘22-23 marketing year were approximately 11.7 million bales. Total new crop (‘24-25) sales are 1.0 million bales (480-lb.).
Shipments for the week were 410,400 bales, bringing total exports to date to 6.8 million bales, compared with the 6.5 million bales at the comparable point in the ‘22-23 marketing year.
Capital Calendar
March 19
The House and Senate convened.
March 20
The House Agriculture Committee held a hearing, “The Danger China Poses to American Agriculture.” More information and a link to view the hearing are at https://bit.ly/48P81yg.
March 21
The House Appropriations Committee’s Subcommittee on Agriculture, Rural Development, and Food and Drug Administration held a hearing to review President Biden’s FY25 budget request for USDA. More information and a link to review the hearing are at https://bit.ly/4acp9z3.
