SenateLeaders Reach Farm Bill Agreement

Friday, December 7, 2007                          By Shawn Wade

      Senate leaders have finallyreached agreement on how to proceed with the debate on the 2007 Farm Bill,opening the door for the process to begin on December 7. In reaching theiragreement, the two sides will limit the debate to consideration of a total of40 amendments, 20 from Democrats and 20 from Republicans and work to completethe bill by December 14.

      According to the latest newsfrom Washington, the first votes on farm bill are expected to occur as early asTuesday, December 11. If he can maintain the schedule it appears is beingdeveloped, Senate Majority Leader Harry Reid (D-NV) appears to be focused oncompleting the farm bill by December 14.

      Though significantly lessthan the nearly 300 amendments that were expected, the 40 amendments allowedunder the agreement will still several days to work through and are virtuallyguaranteed to include consideration of several potentially damaging amendmentsopposed by most mainstream agriculture groups.

      Growers and farm billsupporters are encouraged to stay in contact with their Senators and ask themto support the Committee bill and oppose damaging amendments. Senators shouldalso be asked to continue to work with the Agriculture Committee to reachagreement on as many of the 40 amendments as possible in order to furtherexpedite the process.

      Plains Cotton Growersofficials note that a number of the amendments that will be offered pose asignificant threat to the compromise reached by the Senate AgricultureCommittee and will negatively impact southern agriculture.

      Informationabout the most harmful of these amendments, along with contact information forTexas Senators John Cornyn and Kay Bailey Hutchison, is available on the PCGwebsite (www.plainscotton.org). Growers are encouraged to take the few minutes itrequires to communicate the importance of supporting the Committee bill andworking to defeat harmful amendments.   Outside of Texas, growers are alsoencouraged to contact their Senate delegation and send the same message. Contactinformation for all members of the Senate can be found at: http://www.senate.gov/general/contact_information/senators_cfm.cfm

FirstQuarter Price/Marketing Figures Issued

Friday, December 7, 2007                          By Shawn Wade

      CumulativeUpland Cotton marketings for the first three months of the 2007 marketing yeartotaled 3.084 million bales according to information released November 30 bythe USDA National Agricultural Statistics Service.

      Only 62,000 balesoff the pace set during the same period last season, the pace of shipments forthe first quarter of the 2007 Upland Cotton marketing year is good news togrowers. Equally favorable to growers with cotton to sell is the upswing thatcotton prices have seen over the last two months.

      The first monthof the marketing year included August prices that averaged 44.9 cents per poundand total marketings of just over 1.7 million bales. September brought asignificant jump in the average price received to 55 cents per pound, but adecline in total marketings to 373,000 for the month.

      According to USDAfigures released November 30, October 2007 cotton marketings totaled 949,000bales with an average selling price of 55.20 cents per pound.

      So far the 2007Upland Cotton Weighted Average Price, calculated through October 2007, standsat 48.93 cents per pound. The preliminary mid-month price reported for November2007 was 54.00 cents per pound.

      With the firstthree months of the marketing year now past, the calculated 2007 WeightedAverage Price is just over 3 cents below the 52-cent threshold where 2007-cropCounter-cyclical payment rates would begin to drop. If prices stay on an upwardtrend, it is possible that the projected 2007 Upland Cotton Counter-cyclicalpayment rate could be less than the 13.73 cent maximum when USDA determines ifit will offer an advance Counter-cyclical payment in February 2008.

      The followingtable shows the average price received each month by farmers and the associatedweighted average price based on prices and cumulative marketings from August 1through October 31, 2007.

      The 2007Counter-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 2007marketing year. The 2007 cotton marketing year began in August 1, 2007 and endsJuly 31, 2008.

Average Price Received For2007-crop Upland Cotton
(Weighted by Marketings)

 

Marketings

Prices

 

(000's of Running bales)

(cents/Lb.)

 

Monthly

Cum.

Monthly

Weighted

August

1,762

1,762

44.90

44.90

September

373

2,135

52.00

46.14

October

949

3,084

55.20

48.93

November

n/a

n/a

54.00*

n/a

Source:National Agricultural Statistics Service; * = preliminary

2007 Cotton Quality Summary

 

Week Ending December 6, 2007:

 

Office

Bales

Color

Leaf

Staple

Lamesa

87,588

21+

2.45

36.25

Lubbock

319,439

21+

2.40

36.08

 

Mike

Strength

Uniformity

Bark

Lamesa

4.18

30.20

80.94

6.0%

Lubbock

4.01

29.78

80.59

1.1%

 

 

Season Totals To Date:

 

Office

Bales

Color

Leaf

Staple

Lamesa

549,385

21+

2.21

36.09

Lubbock

1,832,862

21+

2.37

35.97

 

Mike

Strength

Uniformity

Bark

Lamesa

4.22

29.92

80.92

3.7%

Lubbock

4.08

29.62

80.65

1.4%