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August 19, 2016
 

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PAST ISSUES/ARCHIVES
 
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Court Defers on WOTUS Rule

A three judge panel from the Eleventh Circuit Court of Appeals decided not to consider the Waters of the United States (WOTUS) rule and deferred to the Sixth Circuit Court of Appeals which previously had ruled that it had jurisdiction to challenges to the rule.

The Eleventh Circuit held oral arguments in a case brought by 11 states including Alabama, Florida, Georgia, Kansas, North Carolina and South Carolina. That Court felt that its continued hearing of the case would be duplicative.

To date, numerous states and industries have filed suit against the rule. In 2015, the Sixth Circuit issued a "stay" of the rule until it concludes its review of the cases which likely will be consolidated into a single case.

 
Rulemaking Notice Issued on Estate Tax

The Internal Revenue Service recently issued a Notice of Proposed Rulemaking and Notice of Public Hearing regarding the proposed limitations of valuation discounts that reduce the overall value of assets currently available to family-owned businesses which, in turn, lower an individual's estate and gift tax liability at death.

Under the proposal, the valuation discount that is given for the transfer of assets that have limited liquidation rights would not apply for "deathbed" transactions but only to transfers that occur three years or more before the death. These changes would apply to all business structures including C corporations, S corporations, partnerships and LLCs.

The Federal Register notice is on the NCC's website at www.cotton.org/issues/2016/upload/16irsrule.PDF. Comments are due by November 2 and a public hearing is scheduled for December 1.

 
EPA Granted More Time on Chlorpyrifos Decision

In a decision made on August 12, the 9th Circuit Court of Appeals determined that they would give the EPA an additional three months to decide whether to allow the continued use of chlorpyrifos. The Court believes this extension will allow EPA enough time to review the Federal Insecticide, Fungicide, and Rodenticide Act Scientific Advisory Panel's (SAP)recently released report on the pesticide and make a reliable, science-based decision. This extension comes in response to requests from both the agency, which asked for an additional six months, and pesticide manufacturers and commodity groups, which wanted a full year.

Chlorpyrifos, which is a widely used pesticide on more than 50 crops, has been under scrutiny by the EPA since it proposed to revoke all food tolerances for the chemical in October 2015. Following the proposal, the 9th Circuit Court of Appeals ordered EPA to make a final decision on the chemical by December 30, 2016, which, as of last Friday, has been extended to March 31, 2017.

Over the next seven months, the agency likely will conduct additional scientific analysis to address the concerns raised in the SAP report as well as clarify its basis for determining specific thresholds. The NCC continues to work with others in the agriculture community to ensure EPA is relying on credible scientific data and requiring all studies be subject to the same requirements as those required of registrants.

 
NCC Hires Steve Hensley for Regulatory Position

Steve Hensley joined the NCC to fill the open position of manager, Science and Environmental Issues in the Washington, DC, office. For the past 13 years he worked at USA Rice, most recently as its senior director, Regulatory Affairs, where he was responsible for the association's regulatory and environmental issues. He has spent most of his career in Washington working on agricultural regulatory and environmental issues for various trade associations.

Hensley will be working with both the NCC's Technical Services department and the Washington office to help address many of the regulatory concerns currently facing the cotton industry, including pesticide registrations, biotechnology, feed safety regulations, and water issues.

 
Far West Producers See Texas Operations

Arizona and California cotton producers saw cotton and other agriculture-related operations in Texas on August 15-18 on the last of this season's four NCC's Producer Information Exchange (P.I.E.) tours.

Sponsored by Bayer CropScience LP through a grant to The Cotton Foundation, the P.I.E. has exposed more than 1,100 U.S. cotton producers to innovative production practices in Cotton Belt regions different than their own. The program aims to help the producer participants boost their farming efficiency by: 1) gaining new perspectives in such fundamental practices as land preparation, planting, fertilization, pest control, irrigation and harvesting; and 2) observing the unique ways in which their innovative peers are using current technology.

The eight tour participants were: Arizona – Sam Daley, J.R. Howard and Matthew Palmer, all of Thatcher; and Thomas Wuertz of Coolidge; and California – Travis Fugitt of Bakersfield; Cannon Sanchez of Hanford; and Douglas Mederos and Mike Silva, both of Tulare.

The tour began in Lubbock where the group received an overview of the Texas High Plains from Plains Cotton Growers Executive Vice President Steve Verett, a presentation on the Plains Cotton Improvement Program from Carol Kelly with Texas A&M AgriLife Extension Service, and a report on the e3 Sustainable Cotton Program at Bayer's Seeds Innovation Center. In Meadow, the group toured Nick Seaton's and Anthony Ferguson's farms where they saw both conventional and organic cotton production as well as production of black eyed peas, peanuts and wine grapes. They also visited Cotton Creek Farms in New Home and toured other cotton farms in the area. In Plainview, the producers received a briefing from the Texas Alliance for Water Conservation on water conservation, watering systems and cropping systems.

The tour's last two days were spent in Texas' Coastal Bend area. In Corpus Christi, the group visited the Gulf Compress; the Port of Corpus Christi; Gatefront, LLC; the Texas Parks and Wildlife Marine Development Center and Stover Equipment Company for a look at module trucks and a discussion of round module handling. They observed ginning of round modules at the Edcot Gin Coop in Odem and toured individual farms in that area before looking at stripper harvesting with round module machines at Randy Rachal Farms in Taft. They also visited Bayer's field site in Taft. On the tour's last day, the producers saw local cotton and other agricultural operations in Kleberg County and got a report on the "Status of Boll Weevil Eradication in South Texas" from Texas Boll Weevil Eradication Foundation staff.

This season's other P.I.E. tours had Mid-South producers visiting the Carolinas; Southeastern producers seeing operations in Louisiana, Mississippi and Tennessee; and producers from Kansas, Oklahoma and Texas touring California's San Joaquin Valley.

 
US Cotton Elevated at Colombiamoda

COTTON USA recently promoted U.S. cotton yarns and fabrics at Colombiamoda, one of the most powerful textile trading platforms in Latin America. COTTON USA has participated in this trade show, called "The Colombian Fashion Week," for 10 years to reinforce awareness of U.S. textile mills among the regional industry.

At Colombiamoda, which had more than 23,400 visitors and 12,300 buyers representing 55 countries, COTTON USA sponsored "The Vogue Talents Corner" with Vogue magazine to encourage new designers in the region to use U.S. cotton in their collections. Some 90 fashion industry representatives attended the networking event.

In addition, COTTON USA highlighted cotton innovations through the launch of a "DryActive" collection with its licensee brand NEW PROJECT. The activewear collection is made with cotton fiber and Cotton Incorporated's Wicking Windows™ technology, a unique moisture management application for cotton that eliminates the feeling of wet, saturated fabric against the body. At the launch, NEW PROJECT met 55 business contacts, closed two sales and had five visits to its showroom.

COTTON USA also supported an activity with its licensee MARITHÉ + FRANÇOIS GIRBAUD to illustrate its sustainable practices in producing jeans with U.S. cotton, including how it uses laser machines for innovative finishes in the garments.

 
Sales, Shipments Strong

Net export sales for the week ending on August 11 were 230,400 bales (480-lb). This brings total 2016-17 sales to approximately 4.0 million bales. Total sales at the same point in the 2015-16 marketing year were approximately 2.7 million bales. Total new crop (2017-18) sales are 317,400 bales.

Shipments for the week were 187,200 bales, bringing total exports to date to 308,600 bales, compared with the 236,500 bales at the comparable point in the ‘15-16 marketing year.
 

 
Effective August 19-25, 2016

Adjusted World Price, SLM 11/16

 60.23 cents

*

Fine Count Adjustment ('15 Crop)

0.19 cents


Fine Count Adjustment ('16 Crop)

 0.29 cents


Coarse Count Adjustment

  0.00 cents


Marketing Loan Gain Value

 0.00 cents


Import Quotas Open

6

 
Special Import Quota (480-lb bales)

396,856


ELS Payment Rate

0.00 cents


*No Adjustment Made Under Step I

 
Five-Day Average

Current 5 Lowest 13/32 CFR Far East

77.66 cents


Forward 5 Lowest 13/32 CFR Far East

NA


Fine Count CFR Far East

 79.37 cents

 
Coarse Count CFR Far East

NA


Current US 13/32 CFR Far East

79.10 cents


Forward US 13/32 CFR Far East

NA