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May 24, 2024
 

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PAST ISSUES/ARCHIVES
 
Cotton's Week: June 7, 2024
Cotton's Week: May 31, 2024
Cotton's Week: May 24, 2024
Cotton's Week: May 17, 2024
 
 


 

Farm Bill Advances Out of the House Agriculture Committee

The Farm Bill was reported out of the House Agriculture Committee by a bipartisan vote of 33-21 at the conclusion of a marathon markup that ended after midnight this morning. The next step in the process is for the legislation to head to the House floor, where it faces an uncertain future in a narrowly divided chamber. The timing of potential floor consideration is unknown.

In opening remarks, Chairman GT Thompson (R-PA) stated that the Farm Bill “strengthens the rural economy across every region, every state, and every congressional district.” However, Ranking Member David Scott (D-GA) voiced concerns about the bill’s funding offsets. 

The opening remarks set the pattern for the entire markup: Most of the Committee’s Republicans expressed strong support for the Farm Bill, while most Democrats were largely critical. However, the tone of most of the markup was civil, and many amendments were adopted with bipartisan support, including a measure offered by Representative Ronny Jackson (R-TX) calling for a report on the methodology used to implement the Emergency Relief Program for 2022.

The Farm Bill that advanced out of Committee addresses many of the NCC’s key priorities. Importantly, the legislation raises the seed cotton reference price to 42 cents per pound; increases premium support for the Supplemental Coverage Option to 80 percent while raising the top coverage level to 90 percent; raises the upland cotton Marketing Assistance Loan rate to 55 cents per pound and makes numerous revisions to the loan program provisions to improve cotton flow; increases the Pima cotton loan rate to $1.00 per pound and adds marketing loan repayment provisions; increases the Economic Adjustment Assistance for Textile Mills rate to five cents per pound; and doubles funding for USDA’s commodity trade promotion initiatives. 

Prior to the markup, the NCC had sent a letter at https://bit.ly/3KkF7Mo to Thompson and Scott strongly endorsing the legislation and highlighting the need for urgent action.

The NCC released a statement at https://bit.ly/44Y0qx0 applauding the House Committee on Agriculture’s Farm Bill legislation. 

 

 

Trade Promotion Funding Awarded

USDA announced that Cotton Council International (CCI) will receive $19 million in funding from the new Regional Agricultural Promotion Program (RAPP).

RAPP is geared toward applicants seeking to open markets in Africa, Latin America, the Caribbean, and South and Southeast Asia. CCI has long been a leading recipient of USDA trade promotion funding and this award is the third largest among agricultural organizations.

 

AM Radio Legislation Moves Forward

The House Energy and Commerce Subcommittee on Innovation, Data, and Commerce advanced legislation offered by Representatives Bruce Westerman (R-AR) and Josh Gottheimer (D-NJ) to require automakers to maintain AM radio capability in new vehicles. 

The bill, titled the AM Radio for Every Vehicle Act, will likely receive further consideration from the full Energy and Commerce Committee in the coming weeks. A Senate version of the bill was reported out of the Commerce, Science, and Transportation Committee last year.

In December, the NCC joined over 20 organizations in an endorsement letter of the AM Radio for Every Vehicle at www.cotton.org/issues/2024/upload/24radlet.pdf.

 

NCC Files Extension Request for Acephate

The NCC asked the Environmental Protection Agency (EPA) in a letter at https://bit.ly/3yw3Cno to extend the July 1 deadline for public comments on Acephate by 60 days in order to give more time for NCC to work with the registrants to provide additional data. EPA's current proposal is to ban the use of Acephate in agriculture.

EPA indicated a lack of data for their conservative decision to ban Acephate to protect human health and the environment. NCCs currently is working on comments in an attempt to preserve the use of this important product for cotton.

 

Best Practices for Processing Suspect Fire Bales at Gins and Warehouses

Coordinated fire prevention efforts between cotton gins and cotton warehouses is necessary to minimize the risk of fire hazards in the storing and shipping of lint. To address this issue, the NCC identified these best practices to be used when detecting and handling suspect fire bales where a visible flame was present in the gin; a detection device alerted a risk and was verified by gin staff; an odor of fire was present; or any other flame risk where ignition could be possible is found. These best practices are recommended by the NCC as a minimum standard when working with insurance companies. 

 

Emerging Leaders Program Participants Selected

Twelve U.S. cotton industry members have been chosen to participate in the National Cotton Council’s (NCC) Emerging Leaders Program for 2024-25. Participants include: PRODUCERS – Clint Dunn, Itta Bena, MS; Lambert Marshall, Scott, AR; Greg Riccomini, Bakersfield, CA; Todd Rovey, Buckeye, AZ; Greg Sikes, Brooklet, GA; and Jack Whatley, Odem, TX; GINNERS – Nathan Goldman, Casa Grande, AZ; Daniel Luehrs, Odem, TX; MERCHANTS – Brett Edgy, Savannah, GA; Jacinta Condon, Greenville, SC; WAREHOUSER – Chris Moore, Southaven, MS, and MARKETING COOPERATIVE – Zach Flowers, Clarksdale, MS.

Supported by a grant to The Cotton Foundation from Bayer, the Emerging Leaders Program provides participants with a better understanding of how the NCC conducts its mission of ensuring the U.S. cotton industry can compete effectively and profitably in the raw cotton, oilseed and U.S.-manufactured product markets at home and abroad. Specifically, participants get an in-depth look at: 1) the U.S. cotton industry infrastructure and the issues affecting the industry’s economic well-being; 2) the U.S. political process; 3) the NCC’s programs, as well as its policy development and implementation process; 4) Cotton Council International’s activities aimed at developing and maintaining export markets for U.S. cotton, manufactured cotton products and cottonseed products; and 5) the role that Cotton Foundation members play in fostering a healthy U.S. cotton industry.

The Program, now in its ninth year, also provides participants with professional development and communications training such as presentation and business etiquette, instruction for engaging with the news media, and utilizing social media tools and tactics.

Class members will participate in three sessions. The first session in Memphis and St. Louis will provide an orientation to the NCC, professional development and communication skills training and an agribusiness briefing. During the second session, class members will see policy development at the NCC’s 2025 Annual Meeting in February. The third session, to be conducted later in 2025 in Washington, DC, will provide a focus on policy implementation.

 

Mid-South-Southeast Gin School Registration Continues

U.S. certified ginners, gin managers and superintendents are urged to register for the Mid-South-Southeast Ginners School at the Abraham Baldwin Agricultural College in Tifton, GA, June 4-6. 

Online registration and course descriptions are at www.cotton.org/ncga/ginschool/index.cfm. The school will offer the Levels I, II and III courses as well as the continuing education courses. 

Programming is coordinated by the National Cotton Ginners' Association (NCGA), working with USDA’s Greg Holt and USDA’s ginning laboratories.

School cooperators include USDA's Agricultural Research Service, NCGA and its member associations, the NCC, the Texas Cotton Ginners Trust, Cotton Incorporated, gin machinery/equipment manufacturers and suppliers, and select land grant universities.

 

Sales, Shipments Steady

Net export sales for the week ending May 16, 2024 were 219,300 bales (480-lb.). This brings total ‘23-24 sales to approximately 12.7 million. Total sales at the same point in the ‘22-23 marketing year were approximately 13.5 million bales. Total new crop (‘24-25) sales are 1.7 million bales (480-lb.). 

Shipments for the week were 223,800 bales, bringing total exports to date to 9.3 million bales, compared with the 9.7 million bales at the comparable point in the ‘22-23 marketing year.

 

Capital Calendar

May 20

The Senate convened.

May 21

The House convened.

May 23

The House Agriculture Committee held a markup of the Farm Bill. More information and a link to view the markup can be found at  https://bit.ly/3QXgkC0.

Next Week

The House and Senate are in recess.

 

 
Effective May 24, 2024

 

Adjusted World Price, SLM 11/16 60.08 cents *
Fine Count Adjustment ('22 Crop)  0.23 cents  
Fine Count Adjustment ('23 Crop) 0.48 cents  
Coarse Count Adjustment 0.00 cents  
Marketing Loan Gain Value 0.00 cents  
Import Quotas Open 13  
Special Import Quota (480-lb. bales) 412,1623  
ELS Payment Rate 0.00 cents  
*No Adjustment Made Under Step I  
     
Five-Day Average  
Current 5 Lowest 13/32 CFR Far East 84.35 cents  
Forward 5 Lowest 13/32 CFR Far East  83.88 cents
Fine Count CFR Far East 86.32 cents  
Coarse Count CFR Far East 86.23 cents  
Current US 13/32 CFR Far East 86.40 cents  
Forward US 13/32 CFR Far East 86.55 cents