A Status Report on the Advisory Committee on Cotton Classing and Marketing

H.L. Lewis


 
ABSTRACT

The Advisory Committee on Cotton Classing and Marketing has now been in existence for approximately one year. Tremendous progress has been made towards moving the classing of cotton into the modern era. This has been possible because all segments of the cotton industry have been willing to set aside their special interests in the spirit of improving the quality and competitiveness of U.S. cotton through the implementation of classing technology which attempts to measure those fiber parameters which reflect the end-use value of cotton.

In order for such changes in classing to have real significance to the commercial trade, changes must occur concurrently in the structure of the market. This is being approached by restructuring the Commodity Credit Corporation loan premium and discount schedules in such a manner so that these schedules reflect the actual value of cotton fiber to the utilization industry.

If the cotton production industry is to produce stronger, finer more uniform fiber, then monetary values must be placed on these attributes of cotton at levels which will ensure their breeding and production. Similarly, if we are to have fiber which has not been excessively cleaned at the gin, we must remove the economic incentives for excessive cleaning.

The best way to communicate the needs of the textile manufacturing industry to the cotton production industry is by means of real monetary rewards for producing and properly ginning the "right kinds of cotton". The most effective mechanism to communicate the needed changes to the cotton trade, in general, is through the loan premium and discount schedules.

Specifically, the following recommendations have been made to the Secretary of Agriculture by the Advisory Committee. These recommendations have been agreed to by unanimous vote of the committee.

1. Recommendations from the Advisory committee to the Secretary should be directed toward inclusion in a new or amended farm bill which will affect the 1991 crop. 2. Whenever, with industry consent, it is determined that additional quality factors should be added to the loan schedule, a base for that factor shall be established and included in the loan base rate in such a manner that the loan base rate will not change. 3. A two year project shall be funded to develop statistical models which will indicate premiums and discounts being paid for various fiber properties. 4. Request AMS to begin collecting market data on contracts with specified fiber properties which may be included in the loan structure. 5. High Volume Instrument (HVI) classing data shall be made mandatory for cotton to be eligible for the loan, beginning with the 1991 crop. 6. A loan premium and discount schedule shall be established for fiber strength and such schedule shall become a part of the loan beginning with the 1991 crop. 7. Classer's grade shall be determined as two components: a. Color grade shall be determined by a classer with the aid of a color meter; b. Leaf grade shall be determined by a classer with the aid of a trashmeter, with any reductions for bark or grass to affect the leaf grade; C. studies shall be initiated to determine the value of these separate components, including color, leaf trash and other extraneous matter; and d. At such time when technology allows the elimination of the classer, these determinations will be measured with instruments. 8. Establish a premium range for micronaire from 3.7 to 4.2, with the micronaire base level to include micronaire values from 3.5 to 3.6 and from 4.3 to 4.9. The following grades shall be excluded from the micronaire premium: a. White grades below strict low middling; b. Light spotted grades below strict low middling; C. All spotted grades; d. All tinged grades; e. All yellow stained grades; f. Gray grades middling and below, and g. Light gray grades strict low middling and below.

Move, as rapidly as possible, to develop instruments to measure maturity and fineness and establish appropriate premium and discount schedules to reflect the values of these properties.

9. Recommend that USDA study the feasibility of using length uniformity index for predicting the value of cotton. 10. Recommend that USDA study the transportation differentials for loan purposes to evaluate equity and necessity.

Obviously, a great deal of progress has been made. However, a tremendous amount of work remains to be done.

As you can see, the cotton research community has its work cut out for it. We are counting on you to get the job done.

The opportunity has arrived to develop a cotton classing and marketing system which will channel the industry to new heights of productivity and efficiency. It is my hope that we will be able to rise to the challenge!



Reprinted from Proceedings: 1989 Beltwide Cotton Research Conferences pg. 560
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998