Today’s Cotton Newsline is 3 cuts. All cuts are Dr. Jody Campiche, Vice President of Economics and Policy Analysis for the National Cotton Council.
Suggested Introduction 1:
Crop insurance is important for U.S. cotton producers. However, crop insurance does not provide adequate protection for multi-year price declines. In addition, it does not adequately compensate producers for quality losses. In 2015, cotton acreage was down about 20 percent. That’s the lowest area we’ve had in the United States since 1983. As a result, we are seeing a reduction in the number of gins and cotton warehouses, and the ripple effect of declining cotton production can be felt in rural economies throughout the 17 cotton-producing states. Dr. Jody Campiche, Vice President of Economics and Policy Analysis for the National Cotton Council, joins us to explain the issues affecting U.S. cotton and its position in the global market.
Suggested Introduction 2:
Along with low prices, several other macroeconomic issues are affecting the cotton industry.
Suggested Introduction 3:
However, crop insurance was never designed to cover the type of losses currently facing cotton producers, according to Dr. Campiche.