Support Sought for NCC's Cottonseed Policy

Senators Asked to Keep Crop Insurance Intact

Attention to Tax Code Provisions Urged

APHIS Conducts Biotech Issues Forum

Beltwide Early Registration Encouraged

Sales Strong, Shipments Steady

House Agriculture Committee Chairman Conaway (R-TX) and Ranking Member Peterson (D-MN) circulated a letter to their House colleagues across the Cotton Belt seeking signatures in support of the cottonseed policy being pursued by NCC.

The letter, addressed to Secretary of Agriculture Vilsack, notes the severe economic challenges currently facing producers and other industry segments. The letter also specifically asks the Secretary to take all policy actions available to provide assistance to the US cotton industry, and specifically calls for USDA to utilize its existing authority in the '14 farm law to designate cottonseed as an "other oilseed." This action would make cottonseed eligible for the PLC/ARC programs. The leaders also note that such action is viewed as consistent with the intent of the '14 farm law.

The NCC is working to secure as many signatures as possible on the letter, which is expected to be sent to Secretary Vilsack the week of Nov. 30. A copy of the letter being circulated is on the NCC's website at www.cotton.org/issues/2015/upload/15cseedletnov.pdf. The NCC urges all cotton industry members and interest organizations to contact their Congressional Representative to review the industry's current economic conditions and this effort's importance -- and request that they sign the letter. The NCC also is continuing discussions with USDA and Senate Cotton Belt offices.

As part of a coalition representing a cross-section of agricultural organizations, the NCC signed onto a letter delivered to all Senators thanking those who came to the defense of crop insurance during the recent budget debate. The coalition also expressed strong support for the agreement to restore the funding for crop insurance during the omnibus appropriations process.

The letter, on the NCC's website at www.cotton.org/issues/2015/upload/15insureletnov.pdf, noted that, "The agriculture community is strongly committed to the belief that balancing the Federal budget is important, which is why the industry supported the passage of the 2014 Farm Bill just last year that saves tens of billions of dollars. The bill is a careful balance of priorities and should not be reopened before its expiration in 2018. Additionally, crop insurance has contributed well over $12 billion towards reducing government spending since the 2008 Farm Bill."

The coalition, which urged Senators to uphold the promise to make the crop insurance program whole again without re-opening the farm bill, has met with more than 60 House and Senate offices to reinforce that message.

The NCC joined other agricultural organizations on a letter to House and Senate leadership requesting that they act as soon as possible to address the numerous provisions of the tax code (i.e., tax extenders) that expired on Dec. 31, '14. The letter outlined why it is important for Congress to renew certain areas of the expired tax code with specific focus on Section 179 small business expensing and bonus depreciation.

The letter, on the NCC's website at www.cotton.org/issues/2015/upload/15taxextend1116.pdf, reminded the Leaders that agriculture requires significant investments in machinery, equipment and other depreciable assets and because of this farmers and ranchers place great value on tax code provisions such as Section 179 small business expensing and bonus depreciation. The letter also noted the ability to immediately expense capital purchases 1) provides an incentive for farmers and ranchers to invest in their businesses and 2) offers the benefit of reducing the record keeping burden associated with the depreciation.

Section 179 small business expensing provides agricultural producers with a way to maximize business purchases in years when they have positive cash flow. Under the expired law, the maximum amount that a small business can immediately expense when purchasing business assets instead of depreciating them over time is $25,000 adjusted for inflation. The letter strongly encouraged the restoration of the maximum amount of expensing under Section 179 to $500,000 as it was previously set in '14 and to reinstate the expired 50% bonus depreciation for the purchase of new capital assets, including agricultural equipment and buildings.

It is expected that Congress will attempt to extend these provisions prior to year's end.

The USDA Animal & Plant Health Inspection Service's (APHIS) Biotechnology Regulatory Services (BRS) held its annual stakeholder meeting to foster transparency and engagement in the BRS program. During the meeting, BRS reflected on activities over the past year and gave insight on what to expect in FY16. In addition, they discussed their cooperative activities and stakeholder engagement with the Food & Drug Administration (FDA) and EPA as well as described their current thinking regarding a potential new proposed rule.

Among the many meeting items covered was a USDA, FDA and EPA staff discussion of the coordination between their agencies to revise the Coordinated Framework (CF) for the regulation of biotechnology products. Staff explained these agencies have developed a small working group which includes equal representation from each agency as well as White House staff. The goal of this workgroup is to determine the responsibility of each agency in updating the CF and to develop a long-term strategy to ensure a positive future for biotech products.

APHIS' staff stated that after initial revisions are made to the CF, they will hold two stakeholder meetings to receive feedback on the changes and take additional comments.

APHIS also gave an outline of their current thinking on a proposal for Part 340, a rule responsible for regulating certain genetically engineered organisms. Their proposal's main goal is to move from the current standard of "regulate first; analyze second" to "analyze first; regulate second." To do this, APHIS would categorize plant/trait combinations and put them through an initial risk-assessment for noxious weed and plant pest risks. The assessment's outcome then would determine whether a specific combination falls under its regulatory authority. Pro-biotechnology groups are worried that the initial trigger for the upfront risk assessment is too broad as it includes not only transgenics, but also cisgenics and gene editing. APHIS plans to continue stakeholder engagement on this issue and publish a proposed rule by next summer.

The NCC, along with other agricultural industry members, will stay engaged on these various biotech issues and continue communication with the various agencies.

Dec. 15 is the last day for discounted registration for the '16 Beltwide Cotton Conferences (BWCC) to be held on Jan. 5-7 at the New Orleans Marriott Hotel. Registration costs before Dec. 15 are: $175 for NCC/Cotton Foundation members, university and USDA researchers, Extension personnel, associations and consultants; $300 for non-NCC members; and $80 for students.

Instructions for registration and housing, a schedule of events and general information are at www.cotton.org/beltwide, where the final BWCC program will be posted by early-to-mid December. On-site conference self-registration kiosks will be available 24 hours a day beginning on the evening of Jan. 4. Beginning on the morning of Jan. 5, NCC staff will be available for attendees needing assistance with registration and name badge printing.

Attendees at the '16 BWCC will have access to individual reports and panel discussions with information for helping them make key cotton decisions related to research, production and marketing. The BWCC will begin at 1 pm on Jan. 5 with a half-day Cotton Consultants Conference session that will focus on new developments from industry, including discussions and reports on new varieties, chemistries and emerging technologies. That session also will include a report on "The Value of Drones in Extension Education" and two presentations on smartphone applications: 1) scheduling irrigation in cotton and 2) monitoring nodes above white flower.

In the Jan. 6 Consultants Conference joint sessions with the Cotton Insect Research And Control and Weed Science conferences, attendees will hear presentations on managing bollworms in Bt cotton in the Southeast and Mid-South and seed treatments/alternatives for managing tobacco thrips in the Southeast and Mid-South along with "Cover Crop Value in Managing Palmer Amaranth Now and in the Future" and "Auxin-Tolerant Cotton: Managing Both Weeds and Off-Target Movement." The Consultants Conference joint session with the Cotton Agronomy & Physiology Conferences will feature reports on: "Beltwide Summary on the Impact of Potassium Applications on Cotton Yield," "Beltwide Evaluation of the Effect of 2,4-D Drift on Cotton," "2015 Beltwide On-Farm Cotton Variety Performance" and "Best Management Practices for Irrigating Cotton." The 11 cotton technical conferences, ranging from agronomy to weed science, will meet concurrently beginning on the morning of Jan. 6 and conclude by noon on Jan. 7.

Following the BWCC, registered attendees may access selected recorded presentations through the Confex Podium website.

The annual BWC brings together those with a stake in a vigorous US cotton production sector, university and USDA researchers, Extension personnel/agents, consultants, and industry sales/support personnel.

Net export sales for the week ending on Nov. 12 were 216,600 bales (480-lb). This brings total '15-16 sales to approximately 4.3 million bales. Total sales at the same point in the '14-15 marketing year were approximately 6.5 million bales. Total new crop ('16-17) sales are 616,500 bales.

Shipments for the week were 62,800 bales, bringing total exports to date to 1.6 million bales, compared with the 1.4 million bales at the comparable point in the '14-15 marketing year.

Note: Cotton's Week will not be published on Nov. 27 due to the Thanksgiving holidays.