Thank you, Mr. Chairman. I appreciate very much the chance to provide the Council board and guests a state of the Foundation address.
I think the state of The Cotton can best be described as sound. Our membership is stable, the amount available to invest in general research and education projects is down only 1.3 percent from last year, and our investments are holding their own.
We currently have 70 member companies. We’ve lost a few and picked up a few over the last year. Consolidation among the crop protection, biotech and equipment companies has settled down…at least for the time being. The 80/20 rule continues to apply, with 80 percent of our funds coming from 20 percent of our membership. However, we have excellent participation from our entire membership.
I’d like to remind you of the significance of the dues paid by our member firms. Every cent collected goes directly into research and education projects benefiting the U.S. cotton industry. These dues, coupled with investment income and income from the Washington office building, have allowed us to consistently provide meaningful funding for 30-plus general projects each year for the past several years.
During the 2002-2003 year, the Foundation provided $425,500 for 36 general cotton research and education projects. Although the funding was down about 10% from the previous year, the number of projects is a record. This fact serves as evidence of the continuing quality of the projects that are submitted to the Foundation.
The Foundation’s special projects remain strongly endowed by member grants over and above regular dues. This includes the Cotton Leadership Program, the longest running special project. The program, which will graduate its 20th class this evening, has prepared 200 industry members for service, and many have assumed leadership roles locally, regionally and nationally. That includes current NCC Chairman, Bobby Greene, a graduate of the program's 1984-85 class, and Cotton Council International President Bobby Carson, a 1983-84 graduate. Another long-running special project, the Producer Information Exchange, is now in its 15th year. That program has allowed nearly 700 producers firsthand looks at innovative cotton production and cutting-edge technology in regions different than their own.
This past year, the Foundation expanded its role of facilitating alliances between member firms and the Council for underwriting key activities.
These activities include the Cotton Biotechnology Registration and Communication project, which is strengthening the cotton industry’s position for supporting continued registration of and permits for biotechnology products. The other new program, Cotton Pesticide Registration and Education, is strengthening the association’s ability to ensure access to a safe and effective spectrum of new and existing cotton pesticide products.
Other activities include greatly expanded roles for our allied industry partners in sponsoring NCC annual meeting activities and American Cotton Producers’ activities.
In addition, individual Foundation member firms now are backing the core NCC communications vehicles Cotton’s Week, AgDay Cotton’s Week program and Cotton eNews.
These alliances have generated about $480,000 in direct Council budget offsets. While we are delighted with these results, we all need to exercise due diligence in maintaining relationships with our sponsors and ensuring that they see real value for their investments. Such partnerships are invaluable and can benefit the NCC immeasurably in sustaining its mission and propelling U.S. cotton’s success in the world marketplace.
In summary…The Cotton Foundation continues to vigorously take up its mission of encouraging, facilitating and conducting cotton research and education. The Foundation yields its support to projects that can help the National Cotton Council carry out its mission of providing U.S. cotton industry members a world marketplace advantage. That edge is new technology - in the form of new products, systems or techniques. All Foundation-supported projects are aimed at developing these tools to help industry members reduce their fiber production, processing and handling costs - and affect bottom lines positively.
