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May 17, 2024

Welcome to the May 17, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

The Ripple Effect

By Kara Bishop

Every year, the North Plains Groundwater Conservation District puts on the Save the Planet Water Festival for fourth-grade students in the Panhandle.  And every year, the students walk into the classroom for the cotton session that we host confused about why cotton is at the water festival.

They may be confused, but they’re still excited. It’s one of the highlights of my year to go to this event and see nine- and ten-year old children excited about cotton. To see them light up when I tell them cotton is in ice cream and money. To see them immediately try to take their shirts off to check their clothing label after we talk about the damage microplastics in water can do to humans and wildlife alike. To see them excited when they realize their water festival T-shirt is 100% cotton.

And by the end of the day, nearly 300 students have been told to check their clothing labels for cotton, to purchase cotton-rich apparel and to tell everyone they know to do the same.

This type of outreach doesn’t get the same attention as others. It’s not considered a top priority for everyone. But I would argue it’s one of the most important things that we do. One of the most effective ways to create a consumer demand for cotton is to start with the young minds.

When they’re in the halls comparing how much cotton they have in their clothes, I see cotton’s future. And that may seem dramatic, but my son is nearly in fourth grade, and he brings home information to me all the time and insists that we act on it. These children can influence their families in ways that we underestimate.

And who knows? Maybe some of them will tell their familes about the amount of plastic humans consume in a week — in large part to washing polyester clothes — and it will be the change we’ve been waiting to see.

It was a great week in Perryton and Dalhart. We appreciate North Plains Groundwater Conservation District for allowing us to be a part of this important education opportunity. And God bless these kids — they love to learn and now they love cotton!

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USDA NASS Final 2023 County Production Estimates Released

The USDA National Agricultural Statistics Service (NASS) released final county production estimates for Upland cotton on Friday, May 10 and the data shows Texas produced 2.7 million Upland cotton bales in 2023. Texas High Plains cotton production is an estimated 1,468,151 bales for the year.

Among High Plains counties that have official NASS data to review, only 5 counties produced more than 100,000 bales in 2023. Those counties were: Lubbock -177,500; Crosby – 134,500; Floyd – 134,000; Hockley – 130,000; and Hale – 119,000.

According to the January 2, 2024 USDA Farm Service Agency (FSA) Certified Acreage report High Plains producers planted 3.442 million acres in 2023, while acres remaining for harvest totaled 1.341 million. Weather related losses led to 60% abandonment of planted acres in the region.

The USDA NASS data is a testament to the tough growing conditions that plagued the state in 2023. Unfortunately, the agency only published county-level data for 61 of the 162 counties that planted cotton in 2023, which equates to only 38% of raw data reported.

Only 22 counties in PCG’s  42-county service area had official USDA NASS data released. Production from the remaining counties was estimated using a calculated USDA NASS district average yield from published county data and January certified acreage data.

The preceding paragraphs lead to a question of NASS relevancy. Is this USDA faction useful anymore? Given their recent discontinuation of the cotton objective yield survey and all county estimates for crops and livestock, which is data that industry has relied upon for years, it’s certainly something to think about. While we appreciate our colleagues at the state and regional offices who strive to do their job, the necessity of this entity, given the way they operate at the federal level, is definitely questionable.

STAX Payments Likely

It appears most of the cotton producers across the High Plains who purchased coverage under the 2023 Stacked Income Protection Plan will receive indemnity payments under the policy.

This should certainly be the case for non-irrigated acres covered under a 2023 STAX policy, as almost every High Plains County is likely to see a maximum indemnity payment calculated. For irrigated cotton the STAX payment outlook is less clear, although most counties are expected to see some level of indemnity.

Using USDA data to get a sense for where final STAX yields might land it appears that irrigated cotton in most High Plains counties is likely to receive some level of payment under the 2023 STAX policy. A majority of irrigated STAX payments are likely to be less than the maximum possible under the policy.

Irrigated STAX policies in two counties, Hale and Crosby, appear to be “on the bubble” in terms of triggering a 2023 STAX payment. Whether or not these two counties trigger an irrigated STAX payment will depend on the final production numbers reported to USDA Risk Management Agency.

Final payment amounts will be determined by the USDA Risk Management Agency using 2023 production data reported by producers.

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Upcoming Events

Plains Cotton Growers Advisory Group Meeting
Date: May 24, 2024
Location: PCG Conference Room, Lubbock, Texas

South Plains Field Scout School
Date: May 31, 2024
Location: Hale County Extension Office, Plainview, Texas

Plains Cotton Growers Advisory Group Meeting
Date: June 7, 2024
Location: PCG Conference Room, Lubbock, Texas

 

For a full list of upcoming events, see the Events Page.

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Texas High Plains Planting Conditions – May 15, 2024

Some folks were fortunate to receive good rainfall over the weekend, while others missed out.  We were hoping to plant a RACE trial somewhere today (Monday, 5-13), but all the grower cooperators who were ready to plant were either too wet or too dry…for those who do not live in West Texas, this is normal.  If you have moisture in your fields, it is ‘go-time’ for most of you!

Here is a summary:

TX Panhandle

  • Spearman & Panhandle:  be aware of the nighttime lows in the 50s, as well as the chance of rain on Wed/Thurs.
  • Dumas:  The low tonight is quite cool, so I would avoid planting today (Monday, 5-13), but the conditions remainder of the week look very good.

Click on the image above to download the PDF.

Southern High Plains

  • Plainview:  be aware of the nighttime lows in the 50s, and good rain chances Wed/Thurs; also be cautious about low and high temperatures on Thursday.
  • Lubbock & Lamesa:  If you have moisture, it is time to plant!   Moisture is the larger concern over temperature at this point.

Click on the image above to download the PDF.

We need to watch the precipitation forecast Wed/Thurs this week very closely.  The only rainfall predicted after that system is on Tuesday, May 21, but that is an eternity in West Texas.  For drip fields, light water pivots and dryland, remain alert and be ready to plant when a field receives some moisture.  For those south of Lubbock, there is ample time to plant the cotton crop; however, for those in the TX Panhandle and for some in the Plainview area, time is closing in with regard to moisture.   In the meantime, this is a great time to burn down any weeds that are present in the field.  Starting clean is key to making the most of your soil moisture.

If you want your specific location (down to the field level), you can access your own tailored planting conditions forecast on demand with a calculator from North Carolina State University.  Go to:  https://products.climate.ncsu.edu/ag/cotton-planting/  The map will default to a location in NC, but you can scroll the map to your specific location and click on a field.  Click ‘submit’ and the tool will provide a 2-day planting conditions forecast with commentary.

2024 Farm Bill Information Released

Both chambers have released overviews of their respective farm bill packages.

House Agriculture Committee Chair Glenn “GT” Thompson (R-PA) said, “This bill is a product of an extensive and transparent process, which included soliciting feedback from members of both political parties, stakeholder input from across the nation, and some tough conversations. Each title of this farm bill reflects a commitment to the American farmer and viable pathways to funding those commitments, and is equally responsive to the politics of the 118th Congress. The Committee on Agriculture will mark up this bill on May 23, and I hope for unanimous support in this endeavor to bring stability to producers, protect our nation’s food security and revitalize rural America.”

You can read the House farm bill overview here.

Senate Agriculture, Nutrition and Forestry Committee Chair Debbie Stabenow (D-MI) also released her version of the legislation. “This is a serious proposal that reflects bipartisan priorities to keep farmers farming, families fed, and rural communities strong,” she said. “The foundation of every successful Farm Bill is built on holding together the broad, bipartisan coalition of farmers, rural communities, nutrition and hunger advocates, researchers, conservationists, and the climate community. This is that bill, and I welcome my Republican colleagues to take it seriously and rejoin us at the negotiating table so we can finish our work by the end of the year. Farmers, families, and rural communities cannot wait any longer on the 2024 Farm Bill.”

You can read the Senate farm bill overview here.

Ranking Member of the Senate ag committee John Boozman (R-AR) issued a statement regarding Stabenow’s release, saying:

“Chairwoman Stabenow and I have had several conversations about getting our ideas down on paper, so the release of the majority’s framework is a welcome development. My colleagues and I will be soliciting input from stakeholders as we consider these ideas alongside the approach we have constructed in our framework, which will be released after the House considers its bill in the coming weeks. With Chairwoman Stabenow releasing a framework that reflects Senate Democrats’ priorities, and Chairman Thompson’s work to advance legislation out of committee this month, I’m optimistic that real progress on the farm bill can still occur this Congress.

Our actions must reflect the realities in farm country. Farmers are facing challenging times that, by every metric, are likely to continue in the coming years. Considering the farm bill only comes around every five years, we must ensure we do right by our farmers and make meaningful investments in the risk management tools they rely on to weather the storm.”

Bill mark-up for the House version is May 23. As of press time, the Senate has not scheduled their work session. If you have questions, call the office at 806-792-4904.

The Details Behind the 2022 Emergency Relief Program

If you haven’t read PCG CEO Kody Bessent’s take on the new 2022 Emergency Relief Program, click here.

DATES: Funding availability: Application period for Track 1 will begin October 31, 2023. Application period for Track 2 will begin October 31, 2023. Contact your local FSA office for instructions on how to apply for Track 2 — FSA will be mailing out pre-filled applications for Track 1. You may still apply for Track 1 if you do not receive a pre-filled application.

COMMENTS: The U.S. Department of Agriculture Farm Service Agency will consider comments received by January 2, 2024.

ADDRESSES: You may submit comments by the following method: Federal eRulemaking Portal: Go to https://www.regulations.gov and search for Docket ID FSA–2023–0020.

You may also send comments to the Desk Officer for Agriculture, Office of the Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503. Comments will be available for public inspection online at https://www.regulations.gov.

Track Overview

Track 1 will provide a streamlined application process for eligible crop and tree losses during the 2022 or 2023 crop years for which a producer had:

-A Federal crop insurance policy that provided coverage for crop production losses or tree losses related to the qualifying disaster events and received an indemnity for a crop and unit, excluding:

  • crops with an intended use of grazing,
  • livestock policies,
  • forage seeding,
  • Margin Protection Plan policies purchased without a base policy,
  • banana plants insured under the Hawaii Tropical Trees provisions, and
  • policies issued in Puerto Rico; or

-NAP coverage and received a NAP payment for a crop and unit, excluding crops with an intended use of grazing. The applicable Federal crop insurance policies and NAP provide payments to producers for crop and tree losses due to eligible causes of loss, as defined in the producer’s Federal crop insurance policy or NAP regulations and basic provisions. RMA and FSA are using data submitted by producers for Federal crop insurance or NAP purposes to calculate a producer’s eligible loss under Track 1. The Track 1 payment calculation is intended to compensate eligible crop and tree producers for a percentage of that loss determined by the applicable ERP factor, which varies based on the producer’s level of Federal crop insurance or NAP coverage.

Track 2 will provide assistance for eligible revenue, production, and quality losses of eligible crops not included in Track 1 — similar to Phase 2 of the previous ERP program. FSA has determined that the best estimation of such losses is a producer’s decrease in disaster year revenue compared to a benchmark year revenue, where benchmark year revenue represents a producer’s revenue prior to the impact of the qualifying disaster event.

Payment Factoring

According to the notice issued by USDA, progressive factoring will be used to calculate payments. See figure 1.

Figure 1 (click on image to download)

The basic examples used by the notice break down how payments will be calculated.

For example, to apply progressive factoring to a calculated loss (after subtraction of indemnities) of $5,000, FSA would multiply:

  • the first $2,000 by a factor of 100 percent ($2,000 × 100% = $2,000),
  • the second $2,000 by a factor of 80 percent ($2,000 × 80% = $1,600), and
  • the remaining $1,000 by a factor of 60 percent ($1,000 × 60% = $600).

The sum of those calculations is $4,200, which is the calculated ERP 2022 payment after progressive factoring.

For another example, to apply progressive factoring to a calculated loss (after subtraction of indemnities) of $430,000, FSA would multiply:

  • the first $2,000 by a factor of 100 percent ($2,000 × 100% = $2,000),
  • the second $2,000 by a factor of 80 percent ($2,000 × 80% = $1,600),
  • the third $2,000 by a factor of 60 percent ($2,000 × 60% = $1,200),
  • the fourth $2,000 by a factor of 40 percent ($2,000 × 40% = $800),
  • the fifth $2,000 by a factor of 20% ($2,000 × 20% = $400), and
  • the remaining $420,000 by a factor of 10 percent ($420,000 × 10% = $42,000).

The sum of those calculations is $48,000, which is the calculated ERP 2022 payment after progressive factoring.

For underserved producers, the producer’s share of the Federal crop insurance administrative fee and premium will be added to the resulting sum.

For all eligible crop producers, FSA will then apply a final payment factor of 75 percent, resulting in the producer’s calculated Track 1 payment. So in the example above, the $48,000 calculation will be factored by 75% resulting in a payment of $36,000 to the producer. We’ve provided visual aids below, which are available for download.

Click on the image to download.

Click on the image to download.

2023 Seed Cost Calculator Now Available

The 2023 version of the Plains Cotton Growers Inc. Seed Cost Calculator is available for download on the PCG website at the bottom of the “Resources” page. 

The PCG seed cost calculator is an interactive Microsoft Excel spreadsheet that allows producers to calculate an estimated cost per acre, for both seed and technology, based on published suggested retail prices.

Questions about the tool can be directed to Shawn Wade. 

Download the report here.