Upland Cotton Average Price Received by
Growers Through January 2006

Friday, March 3, 2006                                By Shawn Wade

      Cumulative Uplandcotton marketings for the first half of the 2005-marketing year surpassed the10.1 million-bale mark in January according to information released February 28by the USDA National Agricultural Statistics Service.

      USDA estimatedthat January 2006 marketings were 2.42 million bales with an average sellingprice of 48.6 cents per pound. Data for December 2005 indicate 3.264 millionbales marketed at an average price of 47.9 cents per pound.

      Based on thesesnumbers the 2005 Upland Cotton Weighted Average Price calculated throughJanuary 2006 stands at 47.34 cents per pound. This indicates that 2005Counter-cyclical payments will ultimately be based on the maximum 13.73-centpayment rate allowed by current program rules. So far the calculated 2005Weighted Average Price is still more that four cents below the 52-centthreshold where Counter-cyclical payment rates begin to drop.

      Based on thelatest figures over half of the 2005 crop cotton marketed to date was traded inDecember and January. Figuring in the level of activity being reported by HighPlains cotton warehouses, February marketings should also remain strong andprovide another significant bump to the cumulative marketing total. Thepreliminary mid-month price reported for February 2006 was 48.3 cents perpound.

      The 2005Counter-cyclical payment rate authorized under the 2002 Farm Bill will be basedon the 12-month Weighted Average Price Received by growers. For cotton the12-month Weighted Average Price will reflect price and marketings for the 2005marketing year. The 2006 cotton marketing year began on August 1, 2005 and endsJuly 31, 2006.

      Thefollowing table shows the average price received each month by farmers and thecalculated weighted average price based on estimated cumulative marketings andprices reported by the National Ag Statistics Service through January 2006.

Monthly Average Price Receivedfor

2005-crop Upland Cotton ThroughJanuary 2006

(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

2,420

10,177

48.60

47.34

February

na

na

48.30*

na 

Source:National Agricultural Statistics Service; * = preliminary

Giant Side ofTexas Shows
United Front InWashington DC

Friday, March 3, 2006                                ByRoger Haldenby

      Steve Verett, Executive VicePresident of Plains Cotton Growers, Inc., and current PCG President RickeyBearden were in our nation's capital this week with members of the LubbockChamber of Commerce, representatives from Texas Tech University and the TTUHealth Sciences Center, members of the Lubbock City Council and numerous otherregional dignitaries and businessmen.

      Verett, as well asrepresenting PCG and the region's agricultural interests along with Bearden inmeetings with Congressional Representatives, Senators, hill staffers and agencypersonnel, led the group as Chairman of the Lubbock Chamber of Commerce.

      The Lubbock delegationexpressed specific concerns over numerous budget and legislative issues butstood solidly together as a community in expressing those concerns on a unitedfront. Lubbock Chamber representatives from the medical, business andeducational sectors showed their solidarity behind agriculture in all themeetings with the legislators and advisors, according to Verett.

      "These shared concernsover the recent budget reconciliation and the Administration's proposed budgetcuts from Medicare, Education and Agriculture are important to all of us in thecommunities that comprise our Texas High Plains region. We are working inunison to see as many as possible of these reductions restored, for the good ofus all," commented Verett.

      The group's second day inWashington included meetings with Amarillo Congressman Mac Thornberry andrepresentatives of the U.S. Chamber of Commerce.

      To Rep. Thornberry the groupexpressed its appreciation for the legislation he recently filed to extend the2002 Farm Bill beyond its scheduled 2007 expiration. Thornberry explained thatthe legislation's intent is to make sure that a route exists for the U.S. tomaintain a stable agriculture policy until the WTO's Doha Round agriculturenegotiations are completed.

      The Lubbock contingent wasalso invited to a briefing with the U.S. Chamber of Commerce and supplied aWest Texas perspective on current immigration and trade issues.

 

3rd Cotton Inc / NYBOT Cotton Marketing Workshop Set

Friday, March 3, 2006                                By Shawn Wade

      For the third year the NewYork Board of Trade, Cotton Incorporated and Plains Cotton Growers are hostinga free "Hedging with Options for Cotton Producers: Basic and IntermediateWorkshop" that is designed to help producers develop and sharpen their cottonmarketing skills.

      This year's workshop will beheld on Tuesday, April 18, 2006 at the Holiday Inn Hotel & Towers, locatedat 801 Avenue Q in Lubbock. The workshop will run from 8:00 a.m. through 5:00p.m. Lunch will be provided to all workshop participants.

      Workshop topics include: "Whyare options on cotton futures critical to your business?"; What can options dofor you and how?"; "Actionable hedging strategies"; and presentation of a 2006Market Outlook by Texas Cooperative Extension Economist Dr. O.A. Cleveland ofMississippi State University.

      For information about theconference contact Tim Barry at the New York Board of Trade (212-748-4096),Jeanne Reeves at Cotton Incorporated (919-678-2370) or Shawn Wade at PlainsCotton Growers, Inc. (806-792-4904).

      Registration is required forthe conference and participants can register by telephone or email. Telephoneregistrations can be directed to Raquel Allen (212-748-4094) or Kay Wriedt(919-678-2271. Email registrations should be sent to one of the followingaddresses: rallen@nybot.com at the New York Board of Trade, orkwriedt@cottoninc.com at Cotton Incorporated.

 

TBWEF Announces 2006 Assessment Rates
and Dates For High Plains Zones

Friday, March 3, 2006                                ByRoger Haldenby

      At a recent meeting of theboard of directors of the Texas Boll Weevil Eradication Foundation in Abilene,approval was given to the 2006 assessments proposed by the grower committeesfrom the various eradication zones across the state.

      Assessments for the 2006 cropyear for High Plains zones will be as follows:

Zone

Assessment per Acre

Dryland

Irrigated

Northern High Plains

$6.00

$12.00

Northwestern High Plains

$3.50

$ 7.00

Panhandle

$4.00

$ 4.00

Permian Basin

$6.00

$12.00

Southern High Plains

$6.00

$12.00

Western High Plains

$6.00

$12.00

      There are "failedacres" policies in place for each of these zones that were also confirmedby the TBWEF board.

      In the Northern High Plainsand the Northwestern High Plains, acres failed at any time in the 2006 cropyear will be credited for 100% of the assessment.

      In the Panhandle, Permian Basin,Southern High Plains, and Western High Plains, acres failed prior to the finalUSDA Farm Service Agency certification date will be credited for 100% of theassessment. Cotton failed after that date will not receive any credit.

      The final FSA certificationdate for all these zones is July 17, 2006. The TBWEF expects to receive filesfrom FSA by July 31, enabling them to mail out assessment notices on or aroundAugust 18.

      Cotton growers paying theirassessment by September 14 will qualify for a 2% discount. The due date on 2006assessments for all these zones will be September 29, 2006.

 

Don't Forget:2006 PCG Seed Cost Calculator

      An updated version of PlainsCotton Growers' popular Seed Cost Calculator is available for the 2006-growingseason. The 2006 version includes 140 conventional, Roundup Ready, RoundupReady FLEX, Liberty Link, Bollgard and Bollgard II, Widestrike and numerousstacked gene versions of these technologies. A total of 12 brands of cottonplanting seed, from nine companies, have been identified as available for salein West Texas in 2006.

      Producers interested indownloading and using the new calculator can get a copy from the PCG website (www.plainscotton.org).

      ThePCG 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. Also included with this year'scalculator is a brief description of the various Replant and/or Crop Destructprograms that are being offered to growers by seed companies in 2006.

From The Archives

PCG News and History

News and events from the month of February :

1996 – The U.S. House ofRepresentatives approves its version of 1996 farm law without several cottonrelated amendments that would have gutted the cotton section of the House billand paves way for eventual passage of the 1996 Freedom to Farm Act.

1986 – Concerns and questions aboutthe newly formed Conservation Reserve Program (CRP) abound as PCG encouragesfarmers to do their homework and have a full understanding of the programbefore offering their bids.

1976 – USDA confirms that cottonquality data measured by instruments will, for the first time ever, be includedon the green cards of approximately 55,000 bales of the1976 High Plains crop.

1966 – New 1966 cotton programrules cause cotton producers on the High Plains to search for ways to getmaximum value from fertilizers, irrigations water and acres.

1956 – The newly formed PlainsCotton Growers, Inc. Finance and Membership Committee met February 15, 1956 todiscuss recommendations to the Board to establish the organization's financialand membership support structures.

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