Major Crop Insurance Reform Legislation Introduced
NCC Vice Chairman Patrick Johnson joined a press conference in support of new legislation to improve crop insurance affordability.
Sen. John Hoeven, R-N.D., with (from left) Patrick Johnson of the National Cotton Council and Mark Watne of the North Dakota Farmers Union, talks about the FARMER Act.
The Federal Agriculture Risk Management Enhancement and Resilience (FARMER) Act, introduced by Senator John Hoeven (R-ND), would increase premium support for the Supplemental Coverage Option (SCO) from 65% to 80%. The bill also raises premium support for other types of crop insurance, and requires a study from USDA’s Risk Management Agency on ways to improve the effectiveness of SCO in counties larger than 1,400 square miles.
The FARMER Act has been cosponsored by six Senators, including Agriculture Committee Ranking Member John Boozman (R-AR). Some of the provisions of this legislation may eventually influence crop insurance reforms in a new farm bill.
In his remarks at the press conference, which can be viewed at https://bit.ly/3PVJ3Xu, Johnson emphasized that in his meetings with cotton producers throughout the country, “one thing I hear over and over is the need for increased premium support to allow producers to better manage risk by purchasing higher levels of coverage.” The FARMER Act, Johnson continued, “answers their call.”
Senators Hoeven, Boozman, Cindy Hyde-Smith (R-MS), Roger Marshall (R-KS) all spoke at the press conference. Johnson was joined by North Dakota Farmers Union President Mark Watne and National Corn Growers Association First Vice President Kenneth Hartman.
USDA’s National Agricultural Statistics Service (NASS) announced the discontinuation of the Cotton Objective Yield (OY) Survey, as well as all County Estimates for Crops and Livestock beginning with the 2024 production year. NASS pointed to a lack of budget resources as the reason for discontinuing the data.
Both the OY survey and the county estimates are critically important to the accuracy and reliability of the NASS production estimates. NCC will be following up with NASS to better understand the reasons for discontinuing the reports and to convey the industry’s concerns.
Opposition to California Rail Regulations Relayed
The NCC joined dozens of agriculture organizations on a letter at https://bit.ly/3PWlD4b urging Environmental Protection Agency Administrator Michael Regan to reject a request from the California Air Resources Board (CARB) to impose new regulations on rail carriers.
Most significantly, the proposed CARB regulations would require the decommissioning of locomotives 23 years or older beginning in 2030, after which most new locomotives would be subject to zero-emission requirements. The proposed regulations would also require rail carriers to shut down while in transit under certain conditions to further limit emissions.
The letter argues that zero-emission locomotives “are not yet commercially viable” and that the proposed CARB regulations would “pose a significant danger to U.S. agriculture and the broader U.S. supply chain.”
Support for Tax Bill Expressed
The NCC joined over 30 agricultural organizations on a letter at https://bit.ly/3xvJQaZ to Senate leaders Chuck Schumer (D-NY) and Mitch McConnell (R-KY) urging passage of the Tax Relief for American Families and Workers Act (H.R. 7024).
The legislation pairs numerous business tax breaks – including 100% bonus depreciation and dollar-value expensing of business equipment up to $1.29 million – with an expansion of the child tax credit. This bill passed the House of Representatives by a bipartisan vote of 357-70 in January but has since stalled in the Senate.
The letter points out that while American food and agriculture support 24 million jobs and contribute $9.6 trillion to the United States economy, currently low commodity prices mean many producers “are struggling to make ends meet.” Senate passage of H.R. 7024, the letter concludes, would “provide much needed assistance to America’s farmers, ranchers, growers, landowners, and all workers in the food and agriculture supply chain.”
Administration Finalizes New ESA Rules
The Biden Administration issued three new rules to undo endangered species rules issued by
the previous Administration. These rules will make it harder for stakeholders, including farmers, to comply with the Endangered Species Act (ESA).
One of the new rules applies the same protection for endangered species to threatened species. Regarding changes to "Critical Habitat," the government may now list any area as critical habitat for a species, even if that habitat can't sustain the species. This rule, coupled with an earlier Biden rule allowing the government to move species anywhere to protect them from climate change, gives the agencies almost unchecked power in designating land as off limits. The third rule addresses interagency actions on endangered species and was finalized as proposed without any of the clarification changes submitted by the public.
These rules will likely change how crop protection products are regulated and labeled. NCC will continue to follow these regulations.
2023 Crop Estimate Unchanged
In its April report, USDA projected the 2023-24 U.S. crop to be 12.10 million bales, unchanged from the March report. Mill use and exports were also unchanged from the previous month at 1.75 million bales and 12.30 million bales, respectively. 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 February’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 April report, expected 2023-24 world production estimates were lowered 40,000 bales from the March report to 112.92 million bales. Mill use was lowered 120,000 bales to a projected 112.82 million bales. Consequently, world ending stocks for 2023-24 are projected to be 83.08 million bales for a stocks-to-use ratio of 73.6%.
USDA released 2024-25 world projections during February’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 83.08 million bales, this would result in world ending stocks of 83.58 million bales on July 31, 2025, and a stocks-to-use ratio of 72.1%.
Registration Open for Two Remaining Gin Schools
U.S. certified ginners, gin managers and superintendents are urged to register for one of the two remaining 2024 Ginner Schools. Online registration is at www.cotton.org/ncga/ginschool/index.cfm.
The remaining school locations and dates are: 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.
Course descriptions also can be found at www.cotton.org/ncga/ginschool/index.cfm. The schools will continue to offer the Levels I, II and III as well as the continuing education courses. The three schools' programming is coordinated by the National Cotton Ginners' Association (NCGA), working with USDA’s Greg Holt and 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 a focus on improving safety. The Ginner Schools' Continuing Education Courses will include topics such as gin property insurance, fire detection and prevention, RFID technology, data collection, gin automation, precleaning for all conditions, bale packaging and contamination prevention, and classing and module averaging.
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 Stay Strong
Net export sales for the week ending April 4, 2024 were 92,200 bales (480-lb.). This brings total ‘23-24 sales to approximately 11.6 million. Total sales at the same point in the ‘22-23 marketing year were approximately 12.3 million bales. Total new crop (‘24-25) sales are 1.2 million bales (480-lb.).
Shipments for the week were 298,700 bales, bringing total exports to date to 7.8 million bales, compared with the 7.5 million bales at the comparable point in the ‘22-23 marketing year.
Capital Calendar
April 8
The Senate convenes.
April 9
The House convenes.
Next Week
April 15
The House and Senate convene.
April 16
The Senate Appropriations Subcommittee on Agriculture, Rural Development, and Food and Drug Administration will hold a hearing to review the Biden administration’s FY25 budget request for USDA. More information and a link to view the hearing are at https://bit.ly/3xyomdP.
April 17
The Senate Committee on Finance will hold a hearing, “The President’s 2024 Trade Policy Agenda.” More information and a link to view the hearing are at https://bit.ly/3vMTNAn.
