HIGH PLAINS 2009 PRODUCTION ESTIMATE LOWERED
BY USDA AS AREA READIES FOR HARVEST

Friday, October 9, 2009                             by Shawn Wade

      The USDA objective yield survey results collected between September 24 and October 6 have lowered 2009-crop cotton yield expectations and dropped projected cotton production in the High Plains region by 330,000 bales.

      Based on the revised figures the area is forecast to produce approximately 3.79 million bales during the 2009 production season. Statewide, the October production estimate scaled Texas Upland cotton prospects back 400,000 bales to an even 5 million bales for 2009.

      The fact that USDA lowered High Plains yield estimates didn't catch too many folks by surprise since recent weather patterns haven't been conducive to cotton maturity.

      What was surprising to some people were the magnitude of the changes, which dropped yields by 86 pounds per harvested acre in Texas crop reporting district 1-N and by 57 pounds per acre in district 1-S. Only time will tell how closely yield forecasts from survey fields match up with the rest of the crop.

      While the October report officially lowers High Plains prospects to 3.79 million bales, there is still a chance that the area will reach the 4 million bale mark once everything is harvested and ginned.

2009-crop Upland Cotton Production Estimates

Texas Reporting District, October 9, 2009

Districts

Planted

Harvested

Yield

Production

 

1,000 acres

Pounds

1,000 bales

1-N

595.0

505.0

950.0

1,000.0

1-S

2,685.0

2,025.0

661.0

2,790.0

2-N

325.0

280.0

531.0

310.0

2-S

505.0

450.0

352.0

330.0

4

60.0

59.0

447.0

55.0

7

175.0

160.0

735.0

245.0

8-N

50.0

30.0

640.0

40.0

8-S

340.0

20.0

480.0

20.0

9

90.0

85.0

424.0

75.0

10-N

-

-

-

-

10-S

75.0

30.0

960.0

60.0

Other districts

100.0

56.0

643.0

75.0

STATE    

5,000.0

3,700.0

649.0

5,000.0

Source: National Agricultural Statistics Service

 

COTTON RESEARCH & PROMOTION PROGRAM
SETS REFERENDUM TO ENACT 2008 FARM BILL CHANGE

Friday, October 9, 2009                            

      The U.S. Department of Agriculture (USDA) has announced that a referendum will be conducted among U.S. Upland cotton producers and importers beginning take place on October 13, 2009, and continue through November 10, 2009.

      The USDA Agricultural Marketing Service (AMS) is proposing to amend the Cotton Research and Promotion Order to implement changes made by Congress in the 2008 Farm Bill.

      In the farm bill the states of Kansas, Virginia and Florida were recognized as separate states to be included in the definition of "cotton-producing state" as defined in the Cotton Research and Promotion Act (Act).

      According to the Act, a referendum among cotton producers and importers is required to amend the Order or any of its provisions. The AMS is providing an opportunity for all eligible persons to vote on the amendments to the Order.

      Producers will have an opportunity to vote by mail or through their respective Farm Service Agency County office. All known cotton importers will be mailed a ballot and referendum instructions. Ballots will also be available on the Internet at http://www.ams.usda.gov/cotton.

     The final referendum rules and the proposed rule and referendum order will be published in the Oct. 5, 2009, Federal Register, and can be found on the Internet at: http://www.regulations.gov.

 

FSA ANNOUNCES START OF 2010 DCP AND ACRE
SIGNUP; SIGN-UP PERIOD ENDS JUNE 1, 2010

Friday, October 9, 2009                             by Shawn Wade

      On October 7 Agriculture Secretary Tom Vilsack opened enrollment for both the 2010 Direct and Counter-cyclical Program (DCP) and the Average Crop Revenue Election (ACRE) program. The sign-up period will remain open through June 1, 2010.

      In order to streamline the process and ease workload on county office personnel, Vilsack urged producers to make use of the USDA eDCP automated website to sign up. Producers wanting to sign-up for the 2010 DCP or ACRE programs in person can visit any USDA Service Center to complete their 2010 DCP or ACRE contract.

2010 DCP Details

      USDA computes DCP Program payments using base acres and payment yields established for each farm. Eligible producers receive direct payments at rates established by statute regardless of market prices. Counter-cyclical payment rates vary depending on market prices.

      Counter-cyclical payments are issued only when the effective price for a commodity is below its target price. The effective price is the higher of the national average market price received during the 12-month marketing year for each covered commodity and the national average loan rate for a marketing assistance loan for the covered commodity.

      For 2010, DCP program payments will be calculated using applicable direct and counter-cyclical program payment yields multiplied by 83.5 percent of the growers applicable, enrolled base acres.

      Eligible producers may request to receive advance direct payments equal to 22 percent of the 2010 direct payment at program sign-up and USDA will issue advance direct payments beginning December 1, 2009.

      Producers participating in the 2010 DCP program will also have the option to request advance counter-cyclical program payments equal to 40 percent of the projected counter-cyclical program payment rate. Advance 2010 counter-cyclical program payments, if available, will be announced at the mid-point of the applicable marketing year for eligible commodities.

ACRE Option Still Available

      In lieu of the 2010 DCP program producers will also have the option to sign-up for the Average Crop Revenue Election (ACRE) Program. Unlike the DCP program that uses a price-based safety net of counter-cyclical payments, ACRE provides a safety net based on state revenue losses and acts under DCP.

      It is important to remember that the decision to enroll a farm in the ACRE Program is irrevocable. The owner of the farm and all producers on the farm must agree to enroll in ACRE. Once enrolled, the farm shall be enrolled for that initial crop year and will remain in ACRE through the 2012 crop year.

      A farm's payment is based on a revenue guarantee calculated using a 5-year average state yield and the most recent 2-year national price for each eligible commodity. For the 2010 crop, the 2-year price average will be based on the 2008 and 2009 crop years.

      An ACRE payment is issued when both the state and the farm have incurred a revenue loss. ACRE payments are based on 83.3 percent (85 percent in 2012) of the farm's planted acres times the difference between the State ACRE guarantee and the state revenue times the ratio of the farm's yield divided by the state expected yield.

      The total number of planted acres for which a producer may receive ACRE payments may not exceed the total base on the farm. In exchange for participating in ACRE, in addition to not receiving counter-cyclical payments, a farm's direct payment is reduced by 20 percent, and marketing assistance loan rates are reduced by 30 percent.

      The electronic service saves producers' time, reduces paperwork and speeds up contract processing at USDA Farm Service Agency (FSA) offices. It is available to all producers who are eligible to participate in the DCP and ACRE Programs and can be accessed at www.fsa.usda.gov/dcp.

      To access the service, producers must have an active USDA eAuthentication Level 2 account, which requires filling out an online registration form at www.eauth.egov.usda.gov followed by a visit to the local USDA Service Center for identity verification.

      The June 1, 2010, deadline is mandatory for all participants. USDA will not accept any late-filed applications. For more information on DCP or ACRE, please visit your FSA county office or http://www.fsa.usda.gov.

 

 

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

Get what you need at:

www.farmpolicyfacts.com

 

 

2009 HIGH PLAINS EVENT CALENDAR

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.

 

OCTOBER 8 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 9, 2009, through midnight, Eastern Time, Thursday, October 15, 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 15, 2009, at 4:00 p.m., Eastern Time.

UPLAND COTTON ANNOUNCEMENT

October 8, 2009

                                                                                                   Cents/lb.

Adjusted World Price (AWP)                                                       47.34

Fine Count Adjustment (FCA) 2008 Crop                              0.00

Fine Count Adjustment (FCA) 2009 Crop                              0.00

Coarse Count Adjustment (CCA)                                                    0.00

Loan Deficiency Payment Rate                                                    4.66

 

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

FE Price                                                                                    63.71

Adjustments:

         Avg. costs to market                             -13.07

         SLM 1-1/16 inch cotton                - 3.30

Sum of Adjustments                                                                 -16.37

ADJUSTED WORLD PRICE                                                47.34