Friday, May 9, 2008                                    By Shawn Wade

      Farm Bill negotiators gathered in the Longworth House Office Building in Washington, DC Thursday afternoon to announce a final agreement on the oft-delayed 2008 farm Bill.

      Culminating a process started nearly three years ago, the press conference provided a glimpse of the bipartisan support that will drive the legislation over the finish line and to the desk of President George W. Bush by the end of next week.

      Despite what appears to be considerable bipartisan support for the final bill, White House spokesmen continue to indicate a strong likelihood that the President will veto the legislation when he receives it. That warning has prompted a renewed effort in Congress to assemble a veto-proof margin of support for the bill.

      ìCotton producers on the High Plains will be relieved to know that the finish line for the farm bill is now within reach and that Congress plans to approve the Farm Bill Conference Report next week,î says PCG Executive Vice President Steve Verett. ìWe canít say that everything in the bill is like we envisioned it ought to be, but that is a sentiment virtually every constituency impacted by the legislation is feeling today.

      ìWe will be actively encouraging our High Plains Congressmen and our Senators to vote for the final bill and to also work diligently to ensure the support of their urban counterparts.î

      Verett notes that agriculture is second only to the energy complex in economic importance to the Texas economy and it is hard to imagine a compelling reason for any member of the Texas Congressional delegation to vote against the bill.

      The legislation contains monumental investments and implements significant reforms in several key areas including nutrition, commodity support, conservation and specialty crop provisions.

      Among the most visible of the changes from cottonís perspective is the inclusion of a laundry list of cotton program reforms, mostly in the marketing loan program, and significant reforms in the area of pay limits that will also impact cotton producers.

      With any piece of legislation as far-reaching and complicated as the farm bill the devil will be in the details, not all of which are known at this time. The only analysis that you can make at this time is that there will be a mix of positive and negative impacts on growers depending on their individual situation, crop mix and location.

      Perhaps the biggest changes will be in the area of payment limitations and Adjusted Gross Income (AGI) eligibility requirements. Elimination of the 3-entitiy rule in favor of direct attribution of payments to individuals and modifications to spouse eligibility rules are bundled with a new and somewhat confusing mix of AGI eligibility tests in the new bill.

      As with all other aspects of the bill, Conference Report language and the final legislative text will be the key to divining the intent of Congress. House Agriculture Committee Chairman Collin Peterson indicated during Thursdaysí press conference that this information, along with final Congressional Budget Office scoring for the final provisions would be made available early next week.

      A comprehensive run-down of the pay limit, AGI and Commodity program changes will be provided as soon as the final legislative language and conference report are published.

 

Friday, May 9, 2008                                    By Shawn Wade

      Continuing their effort to relate cottonís natural attributes to consumers in order to increase demand for cotton, Cotton Incorporated has launched a consumer-directed marketing campaign to maximize exposure of their recently introduced ìNaturalî Seal of Cotton trademark.

      Officially called the "A Natural Part of Everyday Life" Mall Campaign, the campaign aims to break through the clutter in sustainability marketing that seems to confuse consumers. The concept is to deliver a sincere, relevant message utilizing the tagline, "A Natural Part of Everyday Life."

      The campaign will be brought to life on large-scale mediums such as sky banners, elevator door art, floor graphics, etc. In addition, the chance to win an iPod will drive customers to TheFabricofOurLives.com where they can submit their sweepstakes entry.

      ìWith the average consumer visiting a mall 2.9 times a month, malls are an excellent venue for this campaign,î states J. Berrye Worhsam, president & CEO, Cotton Incorporated.

      One of the central objectives of the branded campaign is to break through the clutter in sustainability marketing that seems to be confusing consumers.

      ìDelivering a clear, relevant message using the tagline ëA Natural Part of Everyday Life,í we think will help consumers remember cottonís many attributes and in general, encourage them to choose cotton and cotton products when shopping,î adds Worsham.

      A total of 85 malls (at least one in each of the 50 states) will host the campaign in a rolling format from April through December. The campaign itself will be brought to life through large-scale mediums like sky banners, elevator door art and floor graphics. ìWe are also partnering with retailers who are providing sales incentives and sweepstakes messaging that will drive consumers to TheFabricofOurLives.com to submit an entry in a drawing for an iPod,î concludes Worsham.

      To gauge the success of the campaign, Cotton Incorporated will evaluate attendance, gift-with-purchase sales results and impression numbers as well as monitor website visits in qualitative research.

      The campaign was launched in April 2008, around Earth-week and will continue through December, visiting different malls at different times.

      To see when the campaign will be in a mall in your area visit: www.cottonboard.org

 

 

Friday, May 9, 2008                                   

      Officials with the USDA Natural Resources Conservation Service (NRCS) are urging farmers to consider USDA compliance and program eligibility before converting Conservation Reserve Program (CRP) acres to cropland production.

      ìMore than 1 million acres in Texas covered under CRP contracts will expire in the next year and a half, and we could see a lot of land use changes, especially in the Panhandle region,î said Don Gohmert, NRCS state conservationist for Texas. ìWe want landowners to understand options available to them and what they need to do to remain in compliance for USDA programs.î

      Conservation compliance, which began with the 1985 Farm Bill, is still in effect. Compliance means that farmers need to control erosion on highly erodible land, which includes CRP acres, in order to stay eligible for USDA program benefits, including farm loan programs, disaster assistance, commodity price supports, and conservation programs.

      According to NRCS, the most common ways farmers get out of compliance with USDA is by eliminating soil-conserving crops, such as forage species, and adding a tilled crop, such as corn or cotton. When the farmer changes his soil cover from permanent grass to annually-tilled crops, he/she should always consider conservation compliance when planning their rotations, in addition to commodity prices.

      ìThe lure of high crop prices may have landowners considering plowing up grassland and planting it to a commodity crop,î Gohmert said. ìNot only are there compliance issues to consider, but landowners should also look at what is best for the land.î

      According to Lori Ziehr, NRCS state agronomist, much of the land enrolled in CRP was classified as highly erodible, meaning it is susceptible to wind and/or water erosion. ìThat soil has not changed over the years the land was in CRP,î she said. ìIf those acres are returned to cropland, landowners will need to take certain measures to ensure those acres will not erode beyond a level that the soil can tolerate.î

      For example, Ziehr said that a certain percentage of the field may need to be planted to high residue crops each year or that contour windstrips be left at certain intervals to prevent erosion. In some cases, she said, fields may already have terraces that need to be maintained to remain in compliance and help lower the potential for erosion.

      Before a landowner takes any action at all, Ziehr encourages them to visit their local NRCS field office to find out what a compliance plan would entail and if there are any financial cost-share programs to help off-set some of the conservation costs. ìA landowner has more options when his land is still in grass,î she said. ìGrazing former CRP acres is another option to consider.î

      CRP is a voluntary program through which farmers and ranchers to plant grasses and trees on marginal cropland acres in exchange for rental payments. The USDA Farm Service Agency administers CRP; NRCS provides technical assistance for the program.