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June 24, 2016
 

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PAST ISSUES/ARCHIVES
 
Cotton's Week: April 26, 2024
Cotton's Week: April 19, 2024
Cotton's Week: April 12,2024
Cotton's Week: April 5, 2024
 
 


 
Don’t Delay -- Sign Up For Cost-Share Program

The NCC continues to remind producers who are eligible for USDA’s new Cotton Ginning Cost-Share (CGCS) program that they can now sign up for the program until Aug. 5, ’16 -- and there will be no extension of that deadline. Payments will be made shortly after an individual signs up.

A CGCS fact sheet, including payment calculation information, is on the NCC’s website at www.cotton.org/issues/2016/upload/16cgcsfact.pdf. More information also is at www.fsa.usda.gov/cgcs and in the Farm Service Agency’s (FSA) recently issued Notice CN-1057 – “Cotton Ginning Cost-Share (CGCS) Program for 2015 Cotton Crop” at www.cotton.org/issues/2016/upload/ginnote.pdf. Producers also may contact their local FSA offices. To find your local FSA office, go to http://offices.usda.gov

 

Hearing Focus: EPA’s Sound Science Use

The House Committee on Science, Space, and Technology held a hearing that focused on investigating the science behind EPA’s recent actions. EPA Administrator Gina McCarthy testified on EPA’s behalf.

Rep. Smith (R-TX), the Committee’s chairman, began the hearing by raising concerns about the science behind EPA’s regulatory actions and stated, “This is an EPA that intentionally chooses to ignore good science.” He and other Committee members also expressed their displeasure with the current lack of communication between the EPA and Congress on congressional oversight measures and stated that EPA is trying only to further their “political agenda” with recent rules.

McCarthy apologized for any lack of communication from EPA and promised responses and results for the concerns the Committee raised.

Ranking Member Johnson (D-TX), who was one of the few Democratic Committee members present at the hearing, praised EPA and Administrator McCarthy for work on climate change issues and asked that the Committee let EPA continue to do its job. Some Republicans on the Committee raised concerns with issues such as the Waters of the US (WOTUS) rule, glyphosate research, ozone regulations and the Clean Power Plan. Other Congressional oversight issues also were discussed.

Rep. Lucas (R-OK) raised additional concerns with the posting of the EPA’s final report on the herbicide glyphosate by its Cancer Assessment Review Committee that was removed soon after being posted on the EPA website. Administrator McCarthy testified that the document was released mistakenly as it had not yet been reviewed by all the proper agencies. She also noted that the final version will be released to the public “as soon as possible.”

Reps. Moolenar (R-MI) and Lahood (R-IL) spoke up about WOTUS, questioning the science behind the rule and its impact on the agricultural interests in their districts. When asked by Committee members about support for WOTUS, McCarthy could not identify any agricultural group that currently supports the rule.

McCarthy closed by stressing that 1) EPA’s regulatory actions are backed with good science and 2) EPA has been working tirelessly to combat climate change in the United States and has made great strides in doing so.

 
NCC Submits Thidiazuron Comments

The NCC submitted comments to EPA on its proposed interim decision for registration of thidiazuron and urged the agency to ensure the risk assessment reflects real world scenarios rather than overstating the presence of pollinators in a precautionary manner. On April 21, EPA posted a notice announcing the availability of their proposed interim registration review for this defoliant to determine its effects on human health and the environment.

The NCC’s comments, on its website at www.cotton.org/issues/2016/thicom.cfm, emphasized the importance to cotton production of having thidiazuron available as part of a harvest aid program that enhances and synchronizes the natural process of leaves falling from the plant and the bolls opening to facilitate a one-time harvest -- and preserving yield and fiber quality. The comments noted that thidiazuron sets itself apart from other harvest aid products by: dropping leaves early thus preventing leaf trash or stains, effectively removing juvenile leaves, and inhibiting both terminal and basal regrowth. However, due to the complexity of most harvest aid programs, one product alone generally will fail to provide the desired results. Thidiazuron’s strengths make it a great tank mix partner with other products that excel in areas where thidiazuron is weak.

The NCC also agreed with EPA’s thorough review showing no human health risk and mitigation of any potential ecological risk, and encouraged the agency to engage in dialogue with the aerial application industry as it aims to appropriately address drift reduction in the agricultural industry. However, the NCC conveyed concerns it has with EPA’s lack of scientific credibility in favor of overly protective measures that jeopardize agriculture as well as the agency’s assertion that pollinator studies are justified when cotton plants have reached the harvest preparation stage.

The comments closed with the NCC 1) commending EPA on their recognition of the benefits and importance of thidiazuron as a cotton defoliant product and 2) stating it believes the product’s past history clearly highlights its safety relative to human health and the environment.

 
Committee Leaders Agree on GMO Labeling Bill

Senate Agriculture, Nutrition & Forestry Committee leaders came to a long-awaited agreement on a national labeling standard for genetically modified (GMO) foods. The agreement between Committee Chairman Roberts (R-KS) and Ranking Member Stabenow (D-MI) came after months of debate on the controversial issue since the House passed legislation in July ’15.

To gain more support from Democrats, the Senate bill includes language that differed significantly from the House bill. Most notably, the legislation requires mandatory disclosure of GMO ingredients on packages; whereas, in the House bill, disclosure was voluntary. However, under the Senate legislation, companies will have the option to disclose GMO ingredients in a number of different ways, including: a digital smartphone code (the industry’s preference) or through an on-package symbol or language that must be approved by USDA. All codes will be accompanied by the statement, “Scan here for more information.” Small companies also will have the option of using a phone number or website URL in place of the digital code.

Other noteworthy aspects of the bill include: the use of a narrow definition of genetic engineering that would exempt biotech methods such as gene editing from having to be labeled; the standards will become mandatory once USDA’s Agricultural Marketing Service finalizes a rule disclosing the labeling requirements in the next two years; meat and dairy products would not be considered GMO just because the animals are fed GMO feed; and only states, not USDA, can require recalls on products that fail to comply with labeling requirements.

This legislation would nullify Vermont’s GMO labeling law set to go into effect on July 1. However, due to the lack of days left in the Congressional calendar because of the fall elections, it is unclear when the House and Senate will act on a final bill. In the meantime, the NCC and others in agriculture continue to work together to gain support for the bill to ensure a two-thirds vote in both chambers in the event of a presidential veto.

 
Hearing Held on Big Data in Agriculture

The House Agriculture Committee’s Subcommittee on General Farm Commodities and Risk Management conducted a hearing which highlights the technological advancements that have been made to benefit agriculture. The panel, which noted the government regulations that have hindered potential opportunities to help producers, focused on three technologies: manned airplanes, satellites and unmanned aerial vehicles (UAVs), also known as drones.

The images captured by each of these technologies have aided precision agriculture immensely, but some producers are concerned with privacy issues, particularly with the use of drones. However, Subcommittee members were assured that data is being kept secure and privacy is not being compromised.

The Federal Aviation Administration finalized Part 107 on their regulation, which allows for the commercial use of drones without special exemption.

Robert Blair, a farmer from north Idaho and vice president of Agriculture for the firm, “Measure, the Drone as a Service® Company,” testified that Part 107 was a “major milestone” for the UAV industry, but other restrictions such as the Beyond Line of Sight rule hinder farmers from using UAVs to their full potential, specifically those with thousands of acres and uneven terrain.

Aerial imagery allows for nitrogen monitoring, scouting of crops, nutrient and irrigation management, weed identification, and insect and disease detection. Such information can be delivered to the customer in a timely manner and can be communicated with a smartphone or computer systems on tractors. Blair argued that such high resolution images not only help producers with precision planting but also could be used by lenders and the crop insurance sector.

Blair also raised concerns with the lack of broadband coverage in many rural areas. The technologies mentioned rely on high-speed internet access, and without it, producers will be at a competitive disadvantage in today’s global markets. Producers using such technologies can improve efficiencies, help reduce risk, lower labor costs, and when used in collaboration with weather services, the images may even be able to help predict yields.

 
COTTON USA Fair Enhances Sourcing

Nearly 90 textile mills, apparel manufacturers, brands and retailers met recently in Cancun, Mexico, to participate in the COTTON USA Western Hemisphere Sourcing Fair and identify business partners for sourcing US cotton products.

The Fair brought together 15 US mills; 23 retailers/brands from the United States, Canada, Latin America and Europe; and 49 apparel manufacturing companies from Colombia, El Salvador, the Dominican Republic, Guatemala, Honduras, Mexico, Nicaragua and Peru. A panel of experts addressed the cotton price situation, quantified the value of time and provided trade policy updates. In the two days following the seminar, the participating US mills and retailers met with Central American, Mexican and Andean textile and apparel executives in private meetings to discuss business opportunities.

Participating US mills included: Alamac American Knits; Antex Knitting Mills; Buhler Quality Yarns, Corp.; CCW; Central Textiles/Cotswold Industries; Contempora Fabrics; Frontier Spinning Mills; Hamrick Mills, Inc.; Keer America; Milliken; Mocaro Dyeing & Finishing; Parkdale; Swisstex Direct; and Tuscarora Yarns.

Retailers and brands represented were: Adidas Group; Black Diamond Equipment; Carhartt; Cencosud Colombia, S.A.; Cutter & Buck; Exofficio; GAP, Inc.; Garnet Hill; H&M; Imerco, S.A.S.; Kayser Roth; Liverpool; Macy's; Nordstrom; Reitmans; Saga Falabella, S.A.; Target; Tiendas Paris Chile; Ripley, S.A.; Under Armour; URBN, Inc.; VF Sourcing; and Vineyards Vines.

 
Sales, Shipments Steady

Net export sales for the week ending on June 16 were 183,400 bales (480-lb). This brings total ’15-16 sales to approximately 9.4 million bales. Total sales at the same point in the ’14-15 marketing year were approximately 11.5 million bales. Total new crop (‘16-17) sales are 1.8 million bales.

Shipments for the week were 180,500 bales, bringing total exports to date to 7.7 million bales, compared with the 10.0 million bales at the comparable point in the ’14-15 marketing year. With a little less than two months remaining in the marketing year, weekly shipments must average roughly 211,200 bales to reach the USDA projection of 9.0 million bales.

 

 
Effective June 24-30, ’16

Adjusted World Price, SLM 11/16

 55.48 cents

*

Fine Count Adjustment ('15 Crop)

0.06 cents


Fine Count Adjustment ('16 Crop)

 0.16 cents


Coarse Count Adjustment

  0.00 cents


Marketing Loan Gain Value

 0.00 cents


Import Quotas Open

13

 
Special Import Quota (480-lb bales)

848,023


ELS Payment Rate

0.00 cents


*No Adjustment Made Under Step I

 
Five-Day Average

Current 5 Lowest 13/32 CFR Far East

73.21 cents


Forward 5 Lowest 13/32 CFR Far East

72.06 cents


Fine Count CFR Far East

 75.05 cents

 
Coarse Count CFR Far East

NA


Current US 13/32 CFR Far East

73.25 cents


Forward US 13/32 CFR Far East

73.45 cents