No Word On Final 2008 CC Program Payments;
Estimates Point To Max Cotton CC Payment Rate

Friday, October 2, 2009                             by Shawn Wade

      As the calendar moves from September to October, High Plains cotton producers are rapidly shifting into the harvest phase of the 2009 cotton production cycle. Accompanying their shift in focus is a renewed interest in USDA's schedule for releasing final 2009 Direct and 2008 Counter-cyclical program payments authorized by the Farm Bill.

      Assuming the USDA pulls the trigger on the final payments for the Direct and Counter-cyclical programs in the near future, their timing will be just about perfect for producers working out their last major investments in the 2009 cotton crop.

      Most growers have already figured out where they stand financially in regard to 2009 crop production expenses and are counting on this month's final DCP program payments to provide that last infusion of working capital needed to bring in their current crop.

      The 2008 Farm Bill authorizes the final DCP payments to be made in the Fall. This handy bit of scheduling is what allows the payments to be a timely capital infusion for producers at the end of the growing season. It is likely that FSA is on the verge of making these decisions and could announce the final 2008 CC payment information as early as next week.

      An FSA notice (DCP-224) posted September 28 indicates software issues might temporarily delay issuance of some, but not all, final 2009 Direct payments.

      Assuming the Weighted Average Price Received by growers for 2008-crop Upland cotton avoids any major adjustments once USDA inserts final monthly price and marketing information, it appears the final payment rate for the 2008 Upland Cotton Counter-cyclical program will be the statutorily allowed maximum of 12.58 cents per pound.

      Growers who received the 40 percent advance 2008 CC payment in February 2009 would receive a final payment calculated at 7.55 cents per pound under this scenario.

      In addition to the final 2008 CC payment, producers should also expect to see an announcement regarding payment of the balance of 2009 Direct payments for Upland cotton as well.

      Just like Counter-cyclical program payments, growers who did not request an advance 2009 Direct payment will receive a final payment calculated using the full 6.67 Upland cotton Direct payment rate. Growers who received the 22 percent advance Direct payment will receive a final 2009 Direct payment calculated using a final payment rate of 5.2-cents per pound.

      The 2008 Counter-cyclical payment rate authorized under the 2008 Farm Bill will be based on the 12-month Weighted Average Price Received by growers. For cotton the 12-month Weighted Average Price will reflect price and marketings for the 2008 marketing year. The 2008 cotton marketing year began August 1, 2008 and ended July 31, 2009.

 

      The following table shows the estimated average price received each month by farmers and an estimate of the weighted average price received by farmers based on prices and cumulative marketings from August 1, 2008 through July 2009.

Average Price Received For 2008-crop Upland Cotton (Weighted by Marketings)

 

Marketings

Prices

 

(000's of Running bales)

(cents/Lb.)

 

Monthly

Cum.

Monthly

Weighted

August

1,144

1,144

56.50

56.50

September

95

1,239

61.10

56.85

October

578

1,817

55.50

56.42

November

978

2,795

53.10

55.26

December

781

3,576

51.90

54.53

January

1,849

5,425

46.10

51.65

February

739

6,164

41.60

50.45

March

764

6,928

41.00

49.41

April

1,205

8,133

45.30

48.80

May

462

8,595

46.40

48.67

June

358

8,953

46.40

48.58

July

1,427

10,380

47.20

48.39

Source: National Agricultural Statistics Service

West TX Flow Meeting Set For October 15

Friday, October 2, 2009                             By Shawn Wade

      The Texas Cotton Association's 2009 West Texas Cotton Flow/Marketing meeting has been scheduled for October 15 in Lubbock.

      Speakers participating in this year's Flow Meeting include representatives from Texas AgriLife Extension, the Texas Transportation Commission, the American Cotton Shippers' Association, the National Cotton Council and the Washington, DC-based Agriculture Transportation Coalition. TCA President Ted Morley, Cargill Cotton Co., in Cordova, TN, will preside over the meeting and Lubbock Cotton Exchange President Mike Canale will provide the welcome and invocation.

      Kicking off the meeting will be a report on the status of the 2009 High Plains crop from Texas AgriLife Extension Cotton Specialist Dr. Randy Boman. Following the crop report meeting participants will hear an update on Texas Department of Transportation activities from Texas Transportation Commission member Fred Underwood of Lubbock. ACSA Second Vice President Phil Bogel, of Toyo Cotton in Dallas, will present a report on current ACSA activities.

      Rounding out the program will be an overview of U.S. transportation policy relative to ag exporters from Mr. Peter Friedman, Washington lobbyist for the Agriculture Transportation Coalition, and a panel discussion on the status of transportation alternatives for the 2009 crop.

      Confirmed participants in this year's West Texas Cotton Flow panel are: Warehouse - Mike Riley, Central Compress and Warehouse Company, of Sudan; Steamship - David Kalata, V.P. Westbound pricing, Hyundai Merchant Marine, of Dallas; Truck - Mike McBain, owner, R&T Truck of Lubbock and Laredo; and Shipper - Rick Shepard, Traffic Manager, Plains Cotton Cooperative Association of Lubbock.

      In addition to the above named individuals Lee Origer, BNSF Railroad of Fort Worth has been invited to address the outlook for railroads 2009.

      Anyone interested in obtaining more information or attending this year's West Texas Flow/Marketing Meeting can find what they need at the Texas Cotton Association's website, located at http://www.tca-cotton.org, or by calling Kandice Poteet in TCA's Dallas office at 972-283-2822.

 

2009 High Plains Event Calendar

 

 

Industry Field Days:

Date:

All-Tex Seed Field Day

October 7

 

 

Waste Pesticide Cleanup Dates:

Information:

October 12 - Lubbock County

Crop Production Services, 880 Industrial Drive, Slaton, TX

Contact Lubbock County Extension Agent Mark Brown at 806-775-1680 (cm-brown@tamu.edu) for more information.

 

October 14, 2009 - Gaines County

Agriliance, 101 Loop Hwy (US 83), Seagraves, TX

Contact Gaines County Extension Agent Terry Millican at 432-758-4006 ext. 238 (gaines@ag.tamu.edu) for more information.

 

 

Want the facts about the U.S. farm policy.

Get what you need at:

http://www.farmpolicyfacts.com

 

Revised 2009 High Plains/Northern Rolling
Plains Harvest Aid Guide Now Available

Friday, September 18, 2009                      By Shawn Wade

      The clock on the 2009 crop is rapidly winding down and the focus of High Plains cotton producers is rapidly shifting to the figuring out which harvest aid regimen they will implement this growing season.

      The best place for growers to go for sound advice in the harvest aid arena is the newly updated 2009 Harvest Aid Guide published by Dr. Randy Boman, Cotton Agronomist, Texas AgriLife Extension.

      A newly revised 2009 Harvest Aid Guide is now available on the Lubbock TAMU Research and Extension Center website. A downloadable copy of the 2009 Harvest Aid Guide can be found at:

http://lubbock.tamu.edu/cotton/pdf/2009HarvestAid.pdf

 

October 1 Upland Cotton AWP Announcement

      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, October 2, 2009, through midnight, Eastern Time, Thursday, October 8, 2009.

      The next announcement of the AWP, FCA, CCA, and LDP The next announcement of the AWP, FCA, CCA, and LDP rate for upland cotton will be on Thursday, October 8, 2009, at 4:00 p.m., Eastern Time.

 

UPLAND COTTON ANNOUNCEMENT

October 1, 2009

                                                                                                   Cents/lb.

Adjusted World Price (AWP)                                                       47.60

Fine Count Adjustment (FCA) 2008 Crop                              0.07

Fine Count Adjustment (FCA) 2009 Crop                              0.00

Coarse Count Adjustment (CCA)                                                    0.00

Loan Deficiency Payment Rate                                                    4.40

 

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

FE Price                                                                                    63.97

Adjustments:

         Avg. costs to market                             -13.07

         SLM 1-1/16 inch cotton                - 3.30

Sum of Adjustments                                                                 -16.37

ADJUSTED WORLD PRICE                                                47.60