In conjunction with the Mid-Year Board Meeting, the Council convened a Strategic Planning Task Force, consisting of eighteen industry members representing all segments and production regions. The purpose of the Task Force was to assess the global economic landscape and competitive forces facing the U.S. cotton industry and identify strategies, policies and initiatives that will enhance the competitiveness of U.S. cotton, U.S. cotton textile products and U.S. cottonseed.
The Task Force noted the serious headwinds facing the U.S. cotton industry, perhaps none more pressing than the alarming gap between increased production costs and declining market prices. Task Force discussions also acknowledged the increased competition in global fiber markets from Brazilian and Australian cotton production, as well as the flood of Chinese polyester entering the market.
As a result of the meeting, the Task Force presented an action plan to the Board of Directors outlining several recommendations for industry action designed to increase competitiveness and build demand for U.S. cotton. The action plan was approved by the Board, and Council staff will work through the appropriate committees to implement the recommendations.
USDA Announces Inflation Reduction Act Funding
The USDA has announced new funding for the Agricultural Conservation Easement Program (ACEP) for fiscal year 2025, supported by the Inflation Reduction Act. This program, managed by the Natural Resources Conservation Service (NRCS), aims to conserve wetlands, agricultural lands, and grasslands, protecting them from conversion and enhancing their role in carbon sequestration and other environmental benefits.
Applications for ACEP are accepted year-round, with key deadlines on October 4, 2024, and December 20, 2024. The program prioritizes protecting grasslands and agricultural lands at risk of conversion, along with specific state priorities. Additionally, ACEP is part of the Justice40 Initiative, which ensures that 40% of the benefits flow to disadvantaged communities.
To streamline the process, NRCS is simplifying appraisals, land surveys, and certification processes. This funding builds on previous investments and aims to maximize the environmental benefits of conservation easements.
To learn more about NRCS programs, producers can contact their local USDA Service Center.
Deatherage Named Associate Deputy Administrator of AMS Cotton & Tobacco Program
Gretchen Deatherage will start as the new Associate Deputy Administrator of the AMS Cotton & Tobacco (C&T) Program on September 9, 2024, joining the Program’s other Associate Deputy Administrator Monica Alexander. Gretchen has been with USDA’s AMS Cotton & Tobacco Program for 32 years, starting as a Field Representative in Altus, OK, and holding various positions including Commodity Grader, Classing Supervisor, and Shift Supervisor.
In 2003, she joined the Standardization & Engineering Division in Memphis, TN, and became Deputy Director of Standardization in 2005. She was promoted to Director of the division in 2020, serving as a technical expert in HVI testing and cotton classification, and representing the C&T Program on international committees.
Deatherage is from Victoria, TX, and holds a Bachelor of Science Degree in Agricultural Business with a minor in Economics from Sam Houston State University.
Federal Lawmakers to Face Government Funding Challenge
The House of Representatives and Senate are both scheduled to return to session on Monday after a six-week recess.
The immediate priority of both chambers will be to pass 12 appropriations bills to fund the government in the 2025 fiscal year. So far, the House has only advanced five of the 12 appropriations bills, and no government funding bill has yet passed both chambers of Congress and been signed into law.
Among the bills the House has not yet advanced is the appropriations bill to fund USDA and the Food and Drug Administration, which provides $25.87 billion in topline spending in FY25. This legislation was reported out of the House Appropriations Committee in July by a 29-26 vote and was initially slated to head to the floor soon after. However, the bill was ultimately pulled from consideration after some conservatives voiced concerns with the legislation.
If all 12 appropriations bills, or a continuing resolution, are not passed before the current fiscal year ends on September 30, the government will fully or partially shut down.
Cotton Foundation Hosts Federal Regulators for Midsouth Tour
The Cotton Foundation hosted 15 federal regulators from the EPA's Office of Pesticide Programs, Fish and Wildlife Service, and USDA's Office of Pesticide Management Policy for a three-and-a-half-day tour of the cotton industry in the Midsouth. The tour featured a variety of activities, including a session on cotton agronomy led by NCC Technical Services staff, a visit to the USDA-AMS Cotton Classing Office, and farm tours with six NCC producer members across Tennessee, Missouri, Arkansas, and Mississippi. During the tour, attendees gained firsthand insights into pesticide regulation economic impacts on farm businesses. NCC member producers also had the chance to discuss current pest management challenges, such as input costs, pesticide availability, and pesticide resistance management. One tour attendee from the EPA commented, “The cotton folks are passionate about what they do. Cotton farming isn’t just a business, it is a part of who they are.”
Export Sales for Week Ending August 29
Net export sales for the week ending August 29, 2024 were 224,100 bales (480-lb.). This brings total ‘24-25 sales to approximately 4.9 million. Total sales at the same point in the ‘23-24 marketing year were approximately 5.5 million bales. Total new crop (‘25-26) sales are 358,300 bales (480-lb.). Shipments for the week were 175,300 bales, bringing total exports to date to 682,400 bales, compared with the 974,500 bales at the comparable point in the ‘23-24 marketing year.
