- Cotton's Agenda -

New And Improved
  

 
Immediately after emerging from its Annual Meeting in early 2007, the National Cotton Council began expending considerable time and energy on ensuring sound policy is contained in new farm legislation.

How did the industry prepare?

The NCC responded to the Administration’s proposal by appointing a working group to help the U.S. cotton industry reach consensus on farm policy that ensures the ability to provide a reliable supply of quality fiber at competitive prices to domestic and international customers. When incorporated into new farm law, the policy would provide: 1) an effective economic safety net for producers and 2) improved market orientation. After much study, the working group recommended changes in a number of existing marketing loan provisions with the goal of improving competitiveness, speeding movement of cotton to the market as well as strengthening the industry’s ability to defend the marketing loan – including WTO compliance. Declining U.S. mill cotton demand also prompted us to ask Congress to establish a competitiveness assistance program for the textile industry as part of the cotton program.

In testimony before appropriate House and Senate subcommittees, NCC Chairman John Pucheu and other NCC leaders reaffirmed the NCC’s position that new farm law must include a marketing loan which is available without limitations and an accurate world price discovery mechanism; a direct payment for predictability and stability; and a counter-cyclical program to provide support when prices are low. Also presented was the industry’s opposition to lower payment limits, more stringent qualifications or any changes in the adjusted gross income test that’s in the current farm law. Producer delegations from across the Cotton Belt reinforced those needs with a consistent message to their lawmakers, emphasizing that more restrictions to commercial-size operators would, in effect, be unilaterally disarming U.S. agriculture relative to our competitors.

What is the status of new farm legislation?

The House-passed Farm, Nutrition and Bioenergy Act of 2007 incorporated many NCC-sought provisions that reform and improve the cotton program. After the Senate Agriculture, Nutrition & Forestry Committee released its proposed commodity title, American Cotton Producers Vice Chairman Chuck Coley joined me in seeking a consensus response from national commodity organizations. Our groups urged Congress to move expeditiously with new farm legislation providing balanced support for all commodities.

As the farm legislation development process continues, the NCC will act to prevent damaging amendments, including a Grassley-Dorgan amendment on payment limits and amendments with prohibitively restrictive Adjusted Gross Income means tests, from inclusion. The NCC also will continue to mobilize its membership in urging Congress to find the important balance in support of commodities, nutrition, conservation and energy.

Mark Lange is president and chief executive officer for the National Cotton Council of America. He and other NCC leaders contribute columns on this page.