PCG’s 48th Annual Meeting April 7, 2005 -
Lubbock Memorial Civic Center

Friday,April 1, 2005                               By Shawn Wade

      Lessthan one week remains until the 48th Plains Cotton Growers AnnualMeeting. This year’s PCG Annual Meeting will take place on Thursday, April 7,2005 in the Lubbock Memorial Civic Center Banquet Hall.

      PCG’smeeting is being held in conjunction with the Texas Cotton Ginners’ Convention& Trade Show on April 7-8. The TCGA Convention & Trade Show is alsobeing held at the Lubbock Memorial Civic Center.

      Registrationfor PCG’s Annual Meeting begins at 8:30 a.m. All cotton producers and alliedcotton industry members are encouraged to attend and hear the latest cottonrelated information from a talented line-up of speakers.

      Addressingthe PCG membership this year are Dr. Mark Lange, President and CEO of theNational Cotton Council of America, and Mr. Jim Wiesemeyer, Vice President forInforma Economics and leading Washington, DC-based agricultural journalist andpolicy analyst.

      AdditionalPCG agenda items include a Texas State Farm Service Agency Update from TexasState FSA Commodity/Compliance Division Chief Ted Peabody, Jr., of CollegeStation, and a 2005 Crop Preview from Dr. Randy Boman.

      ThePCG membership will also hear the following annual reports: a President’sReport from PCG President Rickey Bearden of Plains; a PCG Executive VicePresident’s Report from Steve Verett; and a Plains Cotton Improvement ProgramReport from PCIC Chairman Dale Swinburn of Tulia.

 

FSA Still Working Kinks Out Of 2003/2004
Crop Disaster Program Sign-up Process

Friday,April 1, 2005                               By Shawn Wade

      Technicaldifficulties, incompatible files formats and missing data continue to frustrateFarm Service Agency officials as they prepare to assist growers with the2003/2004 Crop Disaster Program (CDP) sign-up process.

      Whilemany county FSA offices have scheduled CDP appointments beginning April 4, aproblem with data provided by the USDA Risk Management Agency could cause anadditional delay for FSA offices that are otherwise ready to begin takingapplications electronically. Having an accurate data set from RMA records savesa tremendous amount of time and makes the process almost effortless. Missing orinaccurate data can delay the application process and puts additional strain ongrowers and county FSA personnel.

      Untilthe problems with the initial RMA data set are fully corrected, however, itappears that growers with early CDP appointments should consider gathering thenecessary documentation to complete the sign-up process manually. Otherwise,rescheduling their appointment for another time could be the best option. It isalso recommended that growers contact their local FSA office to determine whattheir situation may be in this regard.

      Inan effort to assist producers and FSA staff who will be impacted by the currentdelay, Plains Cotton Growers, with the help of Texas Cooperative Extension RiskManagement Specialist Jay Yates of Lubbock, has updated their 2003/2004Disaster calculators with the county average yields and prices that will beused by FSA to calculate CDP benefits. County average yields for upland cotton,corn, sorghum, wheat and peanuts have been prepared by the Farm Service Agencyand included in the PCG spreadsheets for every county in Texas. There are threeversions of the PCG Disaster Calculators available for growers to estimate2003/2004 CDP benefits.

      ThePCG Single Farm calculator is designed to estimate CDP benefits from cottonlosses on a single farm or unit. The PCG Multi-Farm calculator will estimatebenefits from cotton losses on multiple farms or units and aggregate theresults. The third and last version is the PCG Multi-farm/Multi-cropcalculator. This calculator will allow losses from cotton, corn, sorghum, wheatand peanuts to be put in by crop insurance unit and then estimate total CDPbenefits across several units.

      Dueto the wide variety of business structures out there, none of the PCGcalculators attempt to quantify the effects of the $80,000 payment limitation thatis included in the 2003/2004 CDP rules.

      Usingthe PCG calculators will also help growers gather the information used by FSAduring the CDP sign-up process. Growers who use the PCG calculators beforegoing to the FSA office to complete a CDP application should have all theinformation necessary to prove actual production levels and document cropinsurance yields, payments and premium amounts.

      Touse the PCG calculators a grower should first determine the loss year in whichthey will apply for benefits. Growers can then input what crop was produced,the county where the crop was grown, whether the unit was irrigated or dryland,verify if the crop was insured or not and if it was carried to harvest.

      Inaddition to the information outlined above, growers will also need to have thefollowing information to estimate CDP benefits: Actual Production History (APH)yield used to determine the insurance guarantee for each qualifying unit;Harvested production or amount of cotton counted against the insurance guaranteein the year of loss; Planted acres for each qualifying unit; Share ofproduction (percent); Gross insurance indemnity for each qualifying unit; and,the Crop insurance premium paid on each qualifying unit.

      Inaddition to production losses, producers are also eligible for CDP benefits oncotton quality losses. County FSA offices are in the process of receivingsoftware that will determine eligibility and compute Quality Loss Program (QLP)benefits on a bale-by-bale basis. The program will use bale quality dataprovided by various marketing pools and associations across the U.S., easingthe documentation requirement for both producers and county FSA personnel.

      Whilefew QLP applications are expected on the 2003 crop, some producers may have tolook closely to determine if their 2003 production losses will provide greaterdisaster benefits than might be available on the 2004 crop because of lowquality. Cotton bales qualify for a QLP payment when their CCC loan value is 20percent below the 5-year average loan value for cotton classed at theapplicable USDA Cotton Classing facility.

      QualityLoss Program eligibility thresholds are established based on the USDA-AMSCotton Division Classing office that provided the official classificationresults for the producer. For purposes of the 2003/2004 QLP, the followingaverage loan rates will be used to determine QLP eligibility for cotton classedat USDA Classing facilities.

 

Average Loan Values For 2003/2004 Quality LossProgram

By USDA-AMS Cotton Classing Office

 

Office Location:

2003

2004

Lubbock, TX

$0.48562

$0.49027

Lamesa, TX

$0.49657

$0.49928

Abilene, TX

$0.48635

$0.48837

Corpus Christi, TX

$0.50116

$0.50855

Memphis, TN

$0.50639

$0.51166

Dumas, AR

$0.50276

$0.50597

Rayville, LA

$0.49110

$0.49823

Birmingham, AL

$0.49479

$0.50044

Macon, GA

$0.49663

$0.50221

Florence, SC

$0.50451

$0.50901

Phoenix, AZ

$0.51984

$0.52240

Visalia, CA

$0.49407

$0.55270

 

FREE Options and HedgingWorkshop April 12

      For the second year the New York Board of Trade, Cotton Incorporated and PlainsCotton Growers are hosting a free “Hedging with Options for Cotton Producers:Beginner and Intermediate Workshop” that is designed to help producers developand sharpen their cotton marketing skills.

      Thisyear’s workshop will be held on Tuesday, April 12, 2005 at the Holiday InnHotel & Towers, located at 801 Avenue Q in Lubbock. The workshop will runfrom 8:00 a.m. through 5:00 p.m. Lunch will be provided to all workshopparticipants.

      Workshoptopics include: ”Why are options on cotton futures critical to your business?”;What can options do for you and how?”; “Actionable hedging strategies”; andpresentation of a 2005 Market Outlook by Texas Cooperative Extension EconomistDr. John Robinson of College Station.

      Forinformation about the conference contact Tim Barry at the New York Board ofTrade (212-748-4096), Jeanne Reeves at Cotton Incorporated (919-678-2370) orShawn Wade at Plains Cotton Growers, Inc. (806-792-4904).

      Registrationis required for the conference and participants can register by telephone oremail. Telephone registrations can be directed to Raquel Allen (212-748-4094);Kay Wriedt (919-678-2271); or Julie Wheeler (806-792-4904).

      Emailregistrations should be sent to one of the following addresses: rallen@nybot.com at the New York Board of Trade, or kwriedt@cottoninc.com at Cotton Incorporated.

 

Texas Cotton Association Annual Meeting Set for April 27-29, 2005

      TheTexas Cotton Association’s 94th Annual Convention has been scheduledfor April 27-29 at the OMNI Austin Hotel Downtown. All cotton industryrepresentatives are invited to attend.

      Featuredat this year’s TCA Convention will be The Honorable Charles Stenholm who willbe addressing “The Politics of Cotton” during the Convention’s general session.Friday, April 29.

      Alsoon tap will be a special Open Session on Thursday, morning April 28 featuringNational Cotton Council General Counsel and Trade Policy Consultant Bill Gillonof Memphis, Tennessee. Gillon will report on the FY2006 Budget process, the WTODoha Round agricultural negotiations, the Central American Free Trade Agreementand discuss the recent WTO Appellate Body ruling on the Brazil Cotton case.

      Additionalinformation and registration information for the TCA Convention can be found onthe organizations website: www.tca-cotton.org

 

 

Don’t Forget!!

48th Plains Cotton Growers, Inc.

Annual Meeting

 

Thursday,April 7, 2005

Registration - 8:30 a.m.

Program Start -9:00 a.m.

 

Featured Speakers:

Mark Lange

National Cotton Council, Memphis, TN

Jim Wiesemeyer

Informa Economics, Washington, DC