TCA Board Suspends Plan To Change Organization's FOB Trading Rule
Friday, February 6, 2004 By Shawn Wade
The Board of Directors of the Texas Cotton Association voted to indefinitely suspend the implementation of a proposed modification to the organization's FOB Trading Rules that would have changed the way the seller invoices the buyer.
Theproposed rule would have all warehouse charges deducted from invoice andeliminated the five free days of storage allowed to the buyer.
Insuspending implementation of the proposed rule the TCA Board determined, afterinput from several cotton industry groups, including Plains Cotton Growers,that the underlying concerns prompting the proposed change were not currentlypertinent to the majority of the Texas cotton trade.
TCA will continue to recognize the organization's current FOB TERMS and leave their current trading terms under Rule 9 FOB TERMS Clause 1 FOB COMPRESS and Clause 2 FOB CARS/TRUCKS unchanged for the 2004 marketing year.
WhileClause 1 and Clause 2 were left unchanged, the TCA Board did eliminate severaloutdated clauses that are no longer pertinent to the way cotton is traded. Theelimination of these clauses will have no effect on the way cotton is currentlytraded.
Text of the updated TCA Rule 9 FOB TERMS will be available on the organization's website (www.tca-cotton.org) after February 9, 2004.
TCAPresident Mike Canale, of Lubbock, said, “The reason for proposing the changewas that the TCA Board felt having a single, standard way of trading cottonwould be beneficial to both the buyer and seller. Our attempt in this regardwas to create a rule that provides the buyer and seller with a price quote thatis comparable in terms to currently published USDA spot quotes and is similarto the terms under which a majority of cotton is traded in the Mid-South andSoutheast.
“The TCABoard listened to the feedback it received from the different segments anddecided it was best to keep our current trading terms in place at this time. Weunderstand the importance of working with each segment as we continue to try toimprove the industry as a whole.”
PCGExecutive Vice President Steve Verett said the decision to delay implementationof the proposed rule was good news for both producers and cotton ginners.
“PCGappreciates the willingness of the TCA Board to listen to the concerns othersegments voiced regarding the proposed rule and their willingness to suspendits implementation,” said Verett, “We look forward to working with TCA and withthe other segments to determine how the industry as a whole can best achievethe goals envisioned by the TCA Board.”
The TCA Board continues to support afuture change and believes there are significant benefits to standardizing themanner in which cotton is traded. They have pledged to continue working withother industry segments to achieve their goal of standardizing trading rules inthe future.
Duncan To Host Producer Forum on Ag WaterConservation Demonstration Initiative
Friday, February 6, 2004 By Shawn Wade
SenatorRobert Duncan, R-Lubbock, will host a producers forum on February 10, 2004 todiscuss the Agricultural Water Conservation Demonstration Initiative set forthby the Texas Water Development Board.
Themeeting, which starts at 8:30 a.m., will be held at the United StatesDepartment of Agriculture Plant Stress Laboratory located at 3810 4thStreet in Lubbock.
TheDemonstration Initiative is an effort by the State of Texas to encourageon-farm agricultural water conservation.
Waterissues continue to be a growing concern among both rural and urban populations.It is vital that agriculture interests actively participate in the water debateand in the development of the new program.
Duringthe meeting, Senator Duncan hopes to gather ideas and gain insight fromagriculture producers on how to achieve future conservation goals and maintainthe profitability of agriculture operations that rely on irrigation.
Duncannotes that before the initiative moves forward, it is important to hear fromthe producers who are a critical part of the state's economy and should be anequally critical player in the development of the Agricultural WaterConservation Demonstration Initiative.
Wateris expected to be a central issue for the Texas Legislature when it convenes in2005.
ProductionConference & Expo
Thursday,February 19, 2004
LubbockMemorial Civic Center
Registration7:30 – 8:15 a.m.
CEU's Will Be Available
Cotton Variety Panel Discussion
Peanut and Grain Outlooks
Pesticide Laws and Regulations