Friday, June 12, 2009                                 By Shawn Wade

      This week High Plains agriculture was well represented during a hearing on proposed Climate Change legislation by the full House of Representatives Committee on Agriculture.

      Lubbock Congressman Randy Neugebauer and Midland Congressman Mike Conaway, who both serve on the House Agriculture Committee, expressed similar concerns during the hearing.

      Getting to the heart of the matter, Rep. Conaway noted that global warming is an issue that ignores national boundaries. He further stated that even if the underlying science supporting global warming is correct, the proposed economic costs to agriculture and U.S. consumers is "too steep a price to pay for a plan that cannot even begin to guarantee that it will be able to meet its objectives because the problem lies largely outside of the jurisdiction of the legislation at hand."

      "The U.S., while the world's most industrialized nation, is no longer the largest emitter of carbon dioxide," said Conaway. "The United States cannot unilaterally address such an issue. A global problem requires a global solution."

      In his statement, Rep. Neugebauer noted that the proposed legislation would "raise the cost of fuel and electricity in ways people have never seen before, and it will prove detrimental to rural economies."

      Both Congressmen expressed their thanks for the opportunity to express their concerns and gain additional clarification about the proposed legislations impact on agriculture to House Agriculture Committee Chairman Colin Peterson (D-MN).

      In his opening statement Rep. Conaway noted that Chairman Peterson has consistently emphasized the concerns and interests of rural America and agriculture over the political aspects of the climate change issue.

      Conaway added that he hoped other House leaders would take a similar stance to ensure that the bill's potential impacts are fully understood and the concerns of agriculture and other adversely impacted constituencies are clearly heard and taken into account before the legislation moves forward.




      Two conferences designed to explore the opportunities and alternatives available to landowners with expiring Conservation Reserve Program contracts have been scheduled in Amarillo and Lubbock.

     "After CRP: Wildlife, Farming and Grazing" conferences, sponsored by the Texas AgriLife Extension Service, will run from 8 a.m. to 3:15 p.m. on June 17 and June 18, said Ken Cearley, AgriLife Extension wildlife specialist in Canyon.

     The conferences will be alike, varying only by regional differences, he said. Each will offer three general continuing education units toward pesticide applicator re-certification.

     The June 17 conference will be at the Texas AgriLife Research and Extension Center-Amarillo, 6500 W. Amarillo Blvd.

      The June 18 conference will be at the Texas AgriLife Research and Extension Center-Lubbock, 1102 E. F.M. 1294.

     "If you're thinking about the future management of the land that you currently have under a CRP contract, or you are starting to consider various alternatives and would like to know what others exist, these conferences will provide some answers," Cearley said.

     They both will address: compliance issues, cost-assistance programs, land management and economics with wildlife in mind, the economics of farming and grazing alternatives, impacts on land value and the effect on future eligibility for federal farm programs.

     In addition to CRP contract holders, those contemplating or involved in buying or selling CRP land, agency personnel, educators and others with an interest in sound land management will likewise benefit from the program, Cearley said.

     Conference partners include Farm Service Agency, Natural Resources Conservation Service and Texas Parks and Wildlife Department.

     After June 12 registration will be $50. Lunch, refreshments and conference materials will be provided with registration.

     Participants may register online at or by phone by calling 979-845-2604. For more information about this conference, contact Cearley at or call 806-651-5760.



June 8, 2009


         COTTON USA and Arrow launch new collection of men's shirts. As COTTON USA's newest licensee in Thailand, Arrow marked the new partnership via a mall event and the launch of their new "American Academy" collection. More than 500 consumers attended the fashion show and mini-concert. A road show to eight universities and 35 shopping malls around the country will follow. As a market leader, Arrow is innovative in fabric development and will launch some of Cotton Incorporated's fabric innovations in the near future.

         CCI co-sponsors Evteks home textile and trade fair in Istanbul. Turkey's Prime Minister Recep Tayyip Erdogan opened the fair, welcoming more than 75,000 visitors. An estimated 3,000 visitors to the COTTON USA stand at the show learned about the U.S. cotton industry's solid track record on producing cotton in a sustainable manner. CCI distributed brochures and buttons featuring messages such as "My natural choice is cotton" and invited visitors to participate in CCI's "Natural World" T-shirt design contest. During the fair, CCI reinforced contacts with leading European retailers and identified two potential COTTON USA licensees.

         Buyers place orders for U.S. cotton-rich fabrics at Colombiatex 2009. COTTON USA sponsored the launch of new U.S. cotton-rich fabric lines by four licensees: Fabricato S.A., Pizantex S.A. and Protela S.A. from Colombia and Peru Pima S.A. from Peru. The companies displayed the COTTON USA Mark throughout their booths in sales brochures and alongside fabric swatches during the three-day fair. Heavy traffic at the booths ensured orders worth approximately $480,000, which COTTON USA expects to result in increased consumption of 1,356 bales of U.S. cotton during the first semester of CY2009. Fabricato S.A. is one of the largest textile mills in the Andean region of South America and a long-time COTTON USA licensee. Pizantex S.A., Protela S.A. and Peru Pima S.A. joined the COTTON USA program in 2008 and launched their first COTTON USA-qualified products during the show. Peru Pima S.A., participating in Colombiatex for the first time, finalized an order with one of the largest retail groups in Colombia.

         In Thailand, COTTON USA and ELLE (kids) launch campaign targeting budding fashionistas. The "COTTON USA Presents ELLE Fashionista" campaign's main objective is to increase retail sales. Parents who purchase a minimum $45 worth of ELLE COTTON USA licensed products are eligible to participate in a fashion training session. Man Kawee, Praew magazine's fashion editor, will lead the session educating children ages 6 - 10 on how to select, buy, mix and match cotton apparel (parents will also be involved). Also included is a training session by John Power Roberts that will help children build confidence, as they will participate on June 28 in a fashion show competition to become ELLE's presenter. The press conference and mini-fashion show to announce the start of the program drew 73 press reporters from 24 TV programs, 10 daily newspapers, six magazines and one radio station.




      The Department of Agriculture's Commodity Credit Corporation announced the adjusted world price (AWP) for Strict Low Middling (SLM) 1-1/16 inch (leaf grade 4, micronaire 3.5-3.6 and 4.3-4.9, strength 25.5-29.4 grams per tex, length uniformity of 79.5-82.4 percent) upland cotton (base quality), adjusted to U.S. quality and location, the fine count adjustment (FCA), the coarse count adjustment (CCA), and the loan deficiency payment rate that will be in effect from 12:01 a.m., Eastern Time, Friday, June 12, 2009, through midnight, Eastern Time, Thursday, June 18, 2009.



June 11, 2009





Adjusted World Price (AWP)




Fine Count Adjustment (FCA) 2008 Crop




Fine Count Adjustment (FCA) 2009 Crop




Coarse Count Adjustment (CCA)




Loan Deficiency Payment Rate








This week's AWP, FCA, and CCA are determined as follows:




FE Price








Avg. costs to market




SLM 1-1/16 inch cotton

- 3.70



Sum of Adjustments












Loan Schedule Premium for SM 1-1/8" Cotton




Market Premium for SM 1-1/8" Cotton:




FE Fine Count Price




FE Price

- 61.23



Less Market Premium




(cannot be less than zero)




(cannot be less than zero)




FE Price




FE Coarse Count Price

- 61.20



Adjustment to SLM 1-1/32 inch cotton

- 5.65



(cannot be less than zero)







      The Food, Conservation, and Energy Act of 2008 provides that the AWP may be further adjusted if the Secretary determines adjustment is necessary to 1) minimize potential loan forfeitures, 2) minimize accumulation of Government stocks, 3) ensure free and competitive marketing of upland cotton, both domestically and internationally, and 4) ensure an appropriate transition between current-crop and forward-crop price quotations. No adjustment has been made this week.

      Because the AWP for the period is less than 52.00 cents per pound, which is the base quality loan rate, the loan repayment rate during this period is equal to the AWP, adjusted for the specific quality and location. The loan repayment amount will be further adjusted by the application of a storage credit, and interest will be waived.

      Because the AWP is less than the 2008-crop loan rate, cash loan deficiency payments (LDPs) will be paid to eligible producers who agree to forego obtaining price support loans with respect to the 2008 crop. The payment rate of 7.54 cents per pound is the difference between the base loan rate of 52.00 cents and the AWP.

      The next announcement of the AWP, FCA, CCA, and LDP rate for upland cotton will be on Thursday, June 18, 2009, at 4:00 p.m., Eastern Time.


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