RMA Issues Procedures For InclusionOf
Unginned Production In Growers APH Records

Friday,February 10, 2006                         By Shawn Wade

      Awelcome feeling of relief is settling over West Texas cotton growers followingthe USDA Risk Management Agency's publication of a Manager's Bulletin allowingall harvested production from insurable acreage on a farm, includingdeterminations of production harvested but destroyed prior to ginning, will beincluded in the growers Actual Production History.

      RMA'saction comes following requests by PCG, the National Cotton Council and WestTexas Congressional offices for the Agency to review the issue and work towarda solution.

      Priorto today's action, which becomes effective immediately and is applicable to2005 crop harvested production for use in 2006 APH calculations, growers whoseharvested cotton was destroyed prior to ginning were unable to include adetermination of the amount of that production for APH purposes.

      Inaddition to being effective for the 2005 crop year the bulletin's effects willextend to the upcoming 2006 crop year and be fully incorporated into RMAprocedure in 2007.

      RMAhas addressed this situation with the following language excerpted from thebulletin: "4. If no claim has been filed, all harvested production, ginned andunginned, and any appraised unharvested production will be included asproduction for the purpose of APH if the producer certifies, and has acceptableproduction records, to support such production. Use the Cotton Loss AdjustmentStandards Handbook to determine production for harvested cotton."

      Inorder to determine the amount of production from unginned cotton, producerswill rely on their insurance provider to verify the number of modules throughthe gin and then determine how much lint to include using the procedures inRMA's Cotton Loss Adjustment Standards handbook. The documentation of thisprocess by the insurance provider would then serve as the production record forthe unginned production.

      PCGadds that growers across West Texas appreciate RMA's efforts to develop andimplement a solution to this vexing problem and offers its thanks to RMAAdministrator Eldon Gould and RMA staff in Kansas City and Oklahoma City fortheir work on this issue.

 

PCG Releases2006 Seed Cost Calculator;
Grower Choices Span 140 Varieties

Friday,February 10, 2006                         By Shawn Wade

      Anupdated version of Plains Cotton Growers' popular Seed Cost Calculator is nowavailable for the 2006-growing season. Growers can download the calculator at http://www.plainscotton.org.

      The2006 version includes 140 conventional, Roundup Ready, Roundup Ready FLEX,Liberty Link, Bollgard and Bollgard II, Widestrike and numerous stacked geneversions of these technologies. A total of 12 brands of cotton planting seed,from nine companies, have been identified as available for sale in West Texasin 2006. Should information on additional varieties become available, an updateto the spreadsheet will be developed and posted on PCG's website.

      At140, the list of varieties available in the West Texas market in 2006 is some40 percent higher than the number of choices growers had in 2005. The obviouscontributor to the jump has been the launch of new Roundup Ready FLEX andRoundup Ready FLEX stacked varieties in 2006.

      Producersinterested in downloading and using the new calculator can get a copy from thePCG website (www.plainscotton.org).The PCG calculator is an interactive Microsoft Excel spreadsheet that allowsproducers to calculate an estimated cost per acre for both seed and technology,based on published suggested retail prices.

      Theweb page also includes links to the free program Open Office. Open Office canopen and run Microsoft Excel spreadsheets for users that do not have MicrosoftExcel on their computers.

      ThePCG calculator contains all of the functionality it had in 2005, including theability for a grower to select up to nine varieties, from the list companiessay will be available in the West Texas market in 2006, and compare them sideby side.

      Thecalculator also gives growers the ability to see how various seed andtechnology combinations compare on a per-acre cost basis using their own targetseeding rate expressed in plants per acre or calculated as a function of rowwidth and number of seed planted per foot of row.

      ThePCG spreadsheet will also show how much of a grower's per-acre cost isattributable to the cost of seed and technology, respectively, and the amountof change that occurred from 2005 levels.

      PCG's2006 Seed Cost Calculator will also show the effect of Monsanto's 2005 and 2006Cap Cost Program for its technology products. The Cap Cost program puts anupper limit on the per acre technology cost of Monsanto traits when the seedingrate exceed approximately 56,000 seed per acre.

      Additionally,the calculator includes separate worksheets that group varieties by type(Conventional; Roundup Ready & Liberty Link; Roundup Ready FLEX; RoundupReady FLEX with Bollgard II or Widestrike stacked; Bollgard/Bollgard II,Roundup Ready with Bollgard/Bollgard II technology, and Roundup Ready withWidestrike technology).

      Alsoincluded with this year's calculator is a brief description of the variousReplant and/or Crop Destruct programs that are being offered to growers by seedcompanies in 2006.

 

Upland Cotton Average Price Received by
Growers: August-December 2005

      The following table shows theaverage price received each month by farmers and the associated weightedaverage price based on prices and cumulative marketings from August 1 throughDecember 31, 2005.

      The 2005 Counter-cyclical paymentrate authorized under the 2002 Farm Bill will be based on the 12-month WeightedAverage Price Received by growers. For cotton the 12-month Weighted AveragePrice will reflect price and marketings for the 2005 marketing year. The 2005cotton marketing year began in August 1, 2005 and ends July 31, 2006.

 

Average Price Received For 2005-crop Upland Cotton (Weighted by Marketings)

 

 

Marketings

Prices

 

(000's of Running bales)

(cents/Lb.)

 

Monthly

Cum.

Monthly

Weighted

August

1,233

1,233

42.10

42.10

September

518

1,751

44.30

42.75

October

911

2,662

48.50

44.72

November

1,831

4,493

48.50

46.26

December

3,264

7,757

47.90

46.95

January

na

na

49.60*

na 

Source: National AgriculturalStatistics Service; * = preliminary