Texas Cotton Producers & Texas State Support
Committee Elect 2004-2005 Officers

LUBBOCK, April 23, 2004                    By Shawn Wade

      Texas Cotton Producers, Inc.representatives came together in Austin, April 20, to discuss cotton issues andelect a new slate of officers to guide the organization through the 2004-05growing season.

      TCP is composed of the nineregional cotton producer organizations in Texas and represents cotton growersstatewide.

      Elected to serve as TCPPresident for the 2004-05 was Sam Simmons of Harlingen, Texas. Simmons serveson the TCP Board on behalf of the producer membership of the Cotton and GrainProducers of the Lower Rio Grande Valley association.

      Joining Simmons as TCP VicePresident 2004-05 is Ronnie Gerik of Aquilla, Texas. Gerik serves on the TCPBoard on behalf of the membership of the Blacklands Cotton and Grain ProducersAssociation.

      During the meeting the TCPBoard received an update on legislative and trade issues impacting cotton fromCraig Brown, Vice President - Producer Affairs for the National Cotton Council.

      During the meeting the TCPBoard also discussed the recently called special session of the TexasLegislature that began April 20. The primary issue discussed by the TCP Boardwas school finance reform and the possible effects that issue could have onagriculture.

      Following the TCP meetingmembers of the Cotton Incorporated Texas State Support Committee met on April21 to consider research requests for funding in 2005 and to elect 2004-2005Officers.

      Members of the Texas StateSupport Committee elected to serve in 2004-05 were: Chairman Jay Jaecks Jr. ofTaylor, Texas; Vice Chairman Robert Englert of Norton, Texas; and SecretaryJames L. Brown of Muleshoe, Texas.

      The CI State Support programprovides an opportunity for cotton producers to direct an extensive array ofresearch activities within the framework provided by Cotton Incorporated.

      Through the program 5 percentof the CI operating budget is returned to cotton producing states to be usedfor research and promotion activities. It is estimated that Texas will receivesome $750,000 through the State Support program in 2005. Together, committeemembers approved a preliminary project list and allocated funds to carry outthe research.

      The Texas State SupportCommittee allocates research funds by a formula that allocates one-half oftotal State Support dollars to support research relevant to the entire state.The remaining money is then divided among the nine growing regions based oneach region's percentage of statewide production averaged over the last threegrowing seasons.

      Based on this formula, HighPlains cotton producer leaders were able to select 14 projects for 2005 fundingtotaling approximately $246,000.

      Research issues addressed bythe State Support Program include genetic improvement; irrigation andfertilization management; harvesting, ginning, and processing; and marketingand economics.

 

2004 Loan Table Will Reflect Markets Preference for
Longer, Whiter Upland Cotton

LUBBOCK, April 23, 2004                    By Shawn Wade

      Following USDA’s April 12release of the 2004 Upland Cotton Loan Premium and Discount tables, HighPlains’ cotton growers will find several things to be happy about as theyprepare for the 2004 growing season.

      Overall the new tables presenta mixed bag for producers, but the majority of the improvements lie in theportion many producers have set their sights on through the rapid adoption ofvarieties that produce longer and stronger fiber.

      The good news is that acrossthe board loan rates for White Grades (11-71) with Staple lengths of 32 orbetter will start off higher in 2004. In just about every case, producerslanding cotton in these categories gain ground through either higher premiumsor lower discounts.

      Developing the final 2004schedule of premiums and discounts, and maintaining the appropriate relativerelationships between qualities within the structure of the loan table, was alittle bit of a challenge according to USDA officials.

      Most of that challenge wasthe result of the 2003 marketing year creating some unusual results when theprevious loan table and the Spot market averages for the first seven months ofthe 2003 marketing year were averaged to begin the process.

      As is often the case, theinitial formula derived table didn't suggest uniform changes and required somefinal adjustments to keep things in line.

      Premiums and discounts tablesfor other High Volume Instrument (HVI) measured cotton quality components alsoproved to be a mixed bag in the end. Changes range from no adjustments to thepremium and discount table for Length Uniformity to multiple changes in thetable for Micronaire.

      In the 2004 Micronaire tableproducers will see cotton with Staple lengths of 32 and shorter get higherdiscounts for low mike readings from 2.7-3.4 as well as a slightly lowerpremium for mike readings from 3.7-4.2 in 2004.

      Cotton with Staple lengths of33 and longer will see a slightly larger micronaire premium for bales withreadings of 3.7-4-2 while mike readings of 2.7-3.4 will change anywhere from +5to –15 points from the 2003 table.

      Strength discounts, trendedupward with slightly lower discounts for readings 25.4 g/tex and lower.Strength readings from 25.4 g/tex through 29.4 will have no premium in 2004,while readings above 29 will receive slightly lower premiums compared to 2003,ranging from 30 to 60 points.

      Another area that will seechanges in 2004 is the discount schedule for Level One and Level Two bark. Thediscount for Level One bark in Texas, New Mexico and Oklahoma was increasedfrom 145 points in 2003 to 170 points in 2004.

      The Commodity CreditCorporation Premium and Discount tables provide the applicable premium anddiscount figures used to determine marketing loan values for cotton produced inthe United States and supplied as collateral to the CCC.

      Base loan rates for specificU.S. warehouse locations, also established by the CCC, remain unchanged in2004. For cotton warehoused at Lubbock, a 2004 loan value will be calculatedfrom a 51.6 cent per pound base, 40 points lower than the 52 cents per poundnational base loan rate for cotton.

      Producers wanting to see the2004 Loan Premiums and Discounts first-hand can download them from the PlainsCotton Growers website at http://www.plainscotton.org and follow the linksprovided.

      The table below providescomparisons between 2003 and 2004 loan values for White Grades 11-41 and LightSpot grades 12-42 Staple 32 through 35.


 

 

 

 

LOAN PREMIUMS AND DISCOUNTS FOR SELECTED GRADE, STAPLE LENGTH, AND LEAF CONTENT

OF 2004-CROP AMERICAN UPLAND COTTON

 

Base Loan Rate: LUBBOCK = 51.60 Ę/pound; U.S.= 52.00 Ę/pound

 

Staple

32

33

34

35

Color

Leaf

2003

2004

Change

2003

2004

Change

2003

2004

Change

2003

2004

Change

 

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

Loan

Loan

 

11&21

1 & 2

-275

-260

15

-95

-70

25

215

230

15

365

400

35

 

3

-285

-270

15

-100

-75

25

205

220

15

355

390

35

 

4

-320

-305

15

-155

-135

20

100

105

5

220

230

10

 

5

-420

-410

10

-270

-260

10

-150

-155

-5

-50

-50

0

 

6

-515

-510

5

-365

-360

5

-330

-335

-5

-260

-260

0

 

7

-675

-665

10

-525

-515

10

-505

-490

15

-455

-435

20

31

1 & 2

-290

-275

15

-115

-90

25

180

180

0

325

355

30

 

3

-300

-285

15

-120

-100

20

180

180

0

325

355

30

 

4

-340

-320

20

-170

-150

20

90

90

0

205

200

-5

 

5

-435

-425

10

-285

-275

10

-185

-190

-5

-80

-80

0

 

6

-535

-530

5

-385

-380

5

-360

-365

-5

-285

-285

0

 

7

-690

-675

15

-540

-525

15

-520

-505

15

-475

-455

20

41

1 & 2

-350

-325

25

-185

-165

20

70

70

0

195

200

5

 

3

-360

-325

35

-195

-175

20

60

65

5

190

195

5

 

4

-385

-360

25

-220

-205

15

Base

Base

Base

140

145

5

 

5

-495

-475

20

-345

-325

20

-255

-255

0

-180

-175

5

 

6

-605

-590

15

-455

-440

15

-440

-420

20

-385

-385

0

 

7

-755

-730

25

-605

-580

25

-585

-570

15

-585

-560

25

12&22

1 & 2

-350

-335

15

-180

-185

-5

75

70

-5

205

205

0

 

3

-365

-345

20

-185

-195

-10

55

50

-5

185

180

-5

 

4

-415

-410

5

-255

-260

-5

-35

-35

0

70

75

5

 

5

-500

-505

-5

-350

-355

-5

-240

-245

-5

-180

-185

-5

 

6

-605

-610

-5

-455

-460

-5

-430

-420

10

-385

-380

5

 

7

-760

-750

10

-610

-600

10

-610

-570

40

-580

-565

15

32

1 & 2

-395

-380

15

-225

-230

-5

5

-10

-15

115

100

-15

 

3

-395

-385

10

-230

-235

-5

-5

-20

-15

105

90

-15

 

4

-455

-450

5

-295

-300

-5

-100

-110

-10

0

-10

-10

 

5

-540

-550

-10

-390

-400

-10

-340

-350

-10

-280

-290

-10

 

6

-650

-660

-10

-500

-510

-10

-500

-485

15

-455

-460

-5

 

7

-800

-805

-5

-650

-655

-5

-650

-645

5

-645

-635

10

42

1 & 2

-480

-480

0

-330

-330

0

-195

-220

-25

-130

-155

-25

 

3

-485

-485

0

-330

-335

-5

-200

-225

-25

-140

-165

-25

 

4

-525

-525

0

-375

-375

0

-260

-275

-15

-195

-220

-25

 

5

-615

-625

-10

-465

-475

-10

-415

-430

-15

-380

-390

-10

 

6

-730

-740

-10

-580

-590

-10

-580

-575

5

-560

-560

0

 

7

-890

-885

5

-740

-735

5

-740

-725

15

-735

-725

10