NCC Commends House Conferees’ Farm Bill Proposal and Urges Timely Acceptance by Senate Leadership

MEMPHIS – The National Cotton Council today declared its appreciation for the House conferees’ "extraordinary efforts" to reach agreement on U.S. farm policy and called for Senate acceptance so 2002 crop year implementation can be achieved.

In a letter to House Agriculture Committee Chairman Larry Combest (R-TX), NCC Chairman Kenneth Hood said the package proposed today by House conferees "reflects a continuing commitment to develop new farm policy that addresses the critical problems facing U.S. production agriculture. Today’s proposal is an innovative compromise that provides cost effective and sound farm policy for America’s farmers and ranchers."

"The U.S. cotton industry now wants the Senate leadership to accept this offer and deliver a farm bill for the President’s signature immediately so benefits can be applicable to the 2002 crop year," Hood said.

The letter stated that the House package: 1) provides a meaningful safety net for all agricultural producers, 2) does not discriminate against commercial-size operations that produce the bulk of U.S. agricultural commodities, and 3) is consistent with existing U.S. international trade obligations and sensitive to ongoing World Trade Organization negotiations.

"We believe this balanced proposal supports U.S. farmers and ranchers without stimulating overproduction or generating other market distortions," the Gunnison, MS, producer said. "The proposed conservation programs are generous and appropriate."

Hood said the House proposal provides a cost effective loan rate for cotton. It also maintains the availability of marketing certificates for loan redemptions and cotton’s 3-step competitiveness program, including the elimination of the 1.25-cent Step 2 threshold for the first two years.

"This package contains what U.S. cotton has called for from the outset of farm bill discussions - the combined use of the loan, fixed, decoupled payments and a counter-cyclical program," Hood noted.

Today’s House proposal also offers modest increases in the popular Conservation Reserve and Wetlands Reserve programs and includes funding for the Conservation Security Program, which would provide for a pilot program to explore incentive payments for farm stewardship practices.