Friday, February 5, 2010                            By Shawn Wade

      Cumulative Upland cotton marketings for the first five months of the 2009 marketing year totaled 4.673 million-bales according to information released January 29, 2010 by the USDA National Agricultural Statistics Service.

      That figure is 1.097 million bales more than the amount marketed through the same period in 2008. USDA estimated December 2009 cotton marketings at 2.536 million bales with an average selling price of 62.8 cents per pound.

      The 2009 Upland cotton Weighted Average Price calculated through December 2009 stands at 60.49 cents per pound using figures from the five months of the marketing year.

      To date the calculated 2009 Upland cotton Weighted Average Price has climbed to 8.49 cents above the 52-cent threshold where the Upland cotton Counter-cyclical payment begin to drop below the 12.58 cent maximum payment rate. The preliminary mid-month price reported for January 2010 was 63.2 cents per pound.

      Based on these numbers it appears that USDA is taking its time to carefully evaluate all available data before deciding whether or not to offer an advance 2009 Upland cotton Counter-cyclical program payment. It is likely that an announcement will not be made until preliminary January marketing data can be weighed against information from the January World Supply and Outlook report.

      The 2008 Farm Bill allows partial CCP payments to be issued after the completion of 180 days of an applicable crop's marketing year when the crop's effective price falls below its target price. The effective price equals the direct payment rate plus the higher of either: (1) the national average market price received by producers during the marketing year; or (2) the national average loan rate for the commodity.

      Based on provisions of the 2008 Farm Bill, the Upland cotton Counter-cyclical payment rate goes to zero when the Weighted Average Price Received hits 64.58 cents per pound.

      Using marketing data available through the end of December, the projected 2009 Upland cotton CC payment rate would be 4.09 cents. Should preliminary January 2010 data match the levels reported for December, the projected 2009 Upland cotton CC payment rate would drop to around 3.14 cents per pound.

      The following table shows the average price received each month by farmers and the associated weighted average price based on prices and cumulative marketings from August 1 through December 31, 2009.

      The 2009 Counter-cyclical payment rate authorized under the 2008 Farm Bill will be based on the 12-month Weighted Average Price Received by growers. For cotton the 12-month Weighted Average Price will reflect price and marketings for the 2009 marketing year. The 2009 cotton marketing year began August 1, 2009 and ends July 31, 2010.

AVERAGE PRICE RECEIVED FOR
2009-CROP UPLAND COTTON
(Weighted by Marketings)

Source: National Agricultural Statistics Service; * = preliminary

 

Friday, February 5, 2010                            By Shawn Wade

      Wallace L. (Wally) Darneille, a Lubbock, TX, cooperative official, will serve as 2010 president of Cotton Council International (CCI). CCI is the National Cotton Council's (NCC) export promotions arm and carries out programs in more than 50 countries globally under the COTTON USA trademark.

      Darneille was elected at CCI's board meeting, one of several sessions convening at the NCC's 72nd Annual Meeting at the Peabody Hotel on February 4-8. He succeeds Clyde T. Sharp, an Arizona producer, who becomes CCI board chairman.

      Darneille, who is president and CEO of Plains Cotton Cooperative Association, serves on the boards of the NCC, AMCOT, Telmark, the Southwest Council of Agribusiness, the Texas Agricultural Cooperative Council, Denimatrix and The Seam. He also is chairman of the National Council of Textile Organizations. Darneille graduated cum laude from Dartmouth College, and earned his MBA from Auburn University.

      Other CCI officers elected for 2010 are: first vice president, John D. Mitchell, merchant, Cordova, TN; second vice president, James L. (Jimmy) Webb, producer, Leary, GA; and treasurer, John Burch, cooperative, Bakersfield, CA. Mark D. Lange of Memphis, TN, was re-elected secretary and Allen A. Terhaar of Washington, DC, was re-elected assistant secretary.

      Newly elected as CCI directors for 2010 were: Keith T. Lucas, cooperative official, Garner, NC; Kent D. Fountain, ginner, Surrency, GA; and Eduardo L. (Eddy) Esteve, merchant, Dallas, TX.

      Re-elected CCI directors include: Producers - Rickey L. Bearden, Plains, TX; Donald J. (Don) Cameron, Helm, CA; Dahlen K. Hancock, Ropesville, TX; Richard Kelley, Burlison, TN; Cliett A. Lowman, III, Kingsville, TX; K. Michael (Mike) Tate, Huntsville, AL; and W. Stewart Weaver, producer, Proctor, AR; Ginners - Thomas S. (Sid) Brough, Edroy, TX; Merchants - Philip R. (Phil) Bogel, Dallas, TX; T. Jordan Lea, Greenville, SC; Manfred Schiefer, Lubbock, TX; and G. William (Bill) Winburne, Phoenix, AZ; Cooperatives - Hank Reichle, Greenwood, MS; and Lonnie D. Winters, Lubbock, TX; Cottonseed Handler – Gail Kring, Lubbock, TX; Warehouser - Vance C. Shoaf, Milan, TN; and Manufacturers – Werner Bieri, Jefferson, GA; and Malloy Evans, Cheraw, SC.

 

 

 

      Local Soil and Water Conservation Districts are inviting the public to participate in Local Work Group (LWG) meetings to identify resource concerns and conservation priorities to be addressed through the 2010 Environmental Quality Incentives Program (EQIP). The meetings are being held across all counties in Texas.

      The LWG meetings will focus on the Environmental Quality Incentives Program and on new resource concerns identified in the recently passed Food, Energy and Conservation Act, also known as the 2008 Farm Bill. The new areas of emphasis include concerns and issues involving pollinating insects, organic farming and forestry.

      The purpose of the LWG meetings is to gather comments from local entities, especially farmers and ranchers that have an interest in local natural resource conditions and needs.

      The discussion and recommendations from the participants in the meeting will assist NRCS conservationists with program direction of the EQIP program and resource concerns for other USDA programs for Fiscal Year 2010.

      Anyone wanting additional information on the meetings, the EQIP program or the system used to rank resource concerns should contact their local NRCS Office or Soil and Water Conservation District.

 

2010 EQIP LOCAL WORK GROUP (LWG)
MANAGEMENT MEETINGS

Source: USDA NRCS