Throughout 2024, the National Cotton Council (NCC) continued to translate policy into practice, with concerted efforts aimed at improving the U.S. cotton industry’s overall financial health.
What has been the focus of the National Cotton Council throughout 2024?
The NCC has proactively communicated its priorities to Congress and the Administration, advocating for a meaningful farm bill that incorporates an effective safety net and comprehensive risk management tools. Over the course of the year, NCC staff have informed many new Congressional Members about the vital role of production agriculture in the national economy, the importance of strong farm legislation, and the challenges facing U.S. agriculture. The one-year extension approved by Congress and signed by President Biden in 2023 covered this year’s crop. However, the NCC emphasized to Congress that merely extending the current bill was insufficient as a safety net due to the production costs at that time. We stressed that it was critical to pass a new farm bill to increase reference prices to a more significant level.
NCC staff remained engaged throughout the process, acknowledging it could extend into 2025. We emphasized the need for Congress to pass a new Farm Bill for the 2025 crop and provide short-term support for disaster and economic losses related to the 2024 crop. Growers could not face another season without resolving the cotton safety net shortfalls and receiving interim economic assistance until new farm bill benefits were realized.
What action did the National Cotton Council take to advocate for a new farm bill?
In September, the NCC led a letter to House and Senate leaders, urging for a new farm bill with better safety net provisions for producers. Over 300 organizations representing commodities, lenders, and rural interests signed the letter, highlighting that the current Title I safety net had not kept up with inflation. It also addressed other challenges in the agricultural sector, such as a projected $42.5 billion trade deficit and $540.8 billion in agriculture sector debt, the highest inflation-adjusted level since at least 1970. Alongside the letter, the NCC coordinated visits with multiple commodity groups and lenders to nearly 100 House and Senate offices, including key Congressional Leadership offices in both Chambers.
What challenges and strategies have been addressed to enhance the U.S. cotton industry’s competitiveness?
In August, the Council formed a Strategic Planning Task Force with eighteen industry members from all segments and regions. The Task Force assessed global economic and competitive challenges facing the U.S. cotton industry and identified strategies to enhance its competitiveness. The Task Force noted serious headwinds, including the gap between rising production costs and falling market prices, increased competition from Brazilian and Australian cotton, and a surge of Chinese polyester in the market.
On the regulatory front, the industry faced a setback when the 9th Circuit Federal District Court in Arizona vacated the dicamba label for over-the-top use. In response, the EPA allowed growers to use existing dicamba stocks for the 2024 crop. The NCC then turned its focus on securing a new label for 2025.
The NCC continues to support the U.S. Cotton Trust Protocol, a sustainability initiative aimed at improving cotton’s marketability. Our industry has a great opportunity to provide the data and supply chain transparency needed by brands and retailers. The NCC reported that planted acreage enrolled in the Trust Protocol grew to 2.1 million acres, a 31% increase from the previous year, demonstrating a strong commitment to responsible production.