Big Crop Keeps Getting Bigger; High Plains
Forecast Up To 6.16 million Bales for 2010

Friday, October 8, 2010                             By Shawn Wade

      USDA has taken another look at the 2010 Upland cotton crop and deemed it just a little bit better than it was one month ago.

      According to the newly released October 8 USDA Crop Production Report, U.S. Upland cotton production is forecast at 18.375 million bales, up 35,000 bales from the September 10 report.

      At the state level, Texas led the way on the increases with the 2010 crop climbing 100,000 bales to 8.9 million.

      Breaking down the Texas numbers shows that 90,000 more bales are expected to come from the High Plains and crop reporting district 1-S, although that number that is slightly offset by a 10,000 bale reduction in district 1-N production.

      The extra 80,000 net bales push the High Plains production forecast to 6.16 million bales for 2010. If obtained, that figure would best the 2005 crop's High Plains production record of 5.627 million bales by almost half a million bales.

      Changing district yield forecasts contributed to the differences in the estimated production on the High Plains. The 10,000 bale decline that brought the district 1-N estimate down to 1.67 million bales was created by a modest six pound decrease in the forecast yield.

      On the positive side, though, yields in district 1-S were raised 15 pounds, to 759 pounds per acre, which increased estimated production in that district to 4.49 million bales.

      As was noted last week the High Plains harvest is getting off to a very good start. Early returns, which have been heavily weighted to the dryland side thus far, are looking good as reports from the field indicate strong yields coming from both dryland and irrigated cotton and everything getting solid quality readings thus far.

      The table below includes district level figures for Texas as reported by the Texas Agricultural Statistics Service and published by USDA NASS on October 8, 2010.

 

Texas District Estimates 2009 and 2010*

Upland Cotton

Planted Acres

Harvested Acres

Yield per Acre

Production

2009

2010

2009

2010

2009

2010

2009

2010

District

1,000 acres

1,000 acres

pounds

1,000 bales

1 - N

600.0

810.0

501.0

760.0

880

1,055

918.0

1,670.0

1 - S

2,667.0

2,950.0

1,929.0

2,840.0

642

759

2,579.0

4,490.0

2 - N

340.5

375.0

286.0

370.0

594

688

354.0

530.0

2 - S

509.0

515.0

407.0

510.0

369

602

313.0

640.0

4

62.5

110.0

56.7

105.0

477

731

56.3

160.0

7

176.0

200.0

136.2

195.0

579

615

164.2

250.0

8 - N

51.5

55.0

24.2

53.0

712

1,087

35.9

120.0

8 - S

338.0

280.0

16.7

275.0

356

925

12.4

530.0

9

90.5

136.0

77.4

130.0

526

775

84.8

210.0

10 - S

74.7

95.0

23.2

90.0

602

800

29.1

150.0

OtherDist.

90.3

74.0

42.6

72.0

826

1,000

73.3

150.0

State

5,000.0

5,600.0

3,500.0

5,400.0

634

791

4,620.0

8,900.0

Source: National Agricultural Statistics Service;
* = preliminary October 2010

NASS: Final 2009 Upland Cotton Average Price Received Allows Small '09 Final CC Payment

Friday, October 8, 2010                             By Shawn Wade

      USDA's National Agricultural Statistics Service has announced the revised Average Price received by Growers for the 2009 Upland cotton marketing year. The revised figure indicates that, nationwide, producers received an average price of 62.9 cents per pound for their 2009 crop cotton.

      The good news for growers in the report is that the revised figures only made a small difference in the calculated final 2009 Counter-cyclical payment rate and it looks like growers will indeed receive a final 2009 CC payment later this month.

      Official word on the final 2009 Counter-cyclical payment will come from the USDA Farm Service Agency soon. A quick bit of math indicates that FSA should announce a final 2009 Counter-cyclical payment rate of 1.68 cents per pound.

      Growers who asked for and received an advance 2009 Counter-cyclical payment in February 2010 would receive a final payment rate equal to 0.65 cents per pound, the difference between the final CC payment rate and the 1.03 cent per pound advance payment rate.

      Revised monthly marketing and price numbers will be published at the end of October 2010.

 

Bill Gillon Named New Cotton Board CEO

Friday, October 8, 2010                            

      The Cotton Board is pleased to announce William A. "Bill" Gillon as its new President and CEO. Cotton Board Chairman. Craig Shook, a producer from Corpus Christi, Texas, stated "Bill brings an outstanding record of achievement and service within the cotton industry to the Cotton Board. He is respected throughout agriculture as well as the U.S. Department of Agriculture. He shares our goal of ensuring the Cotton Research and Promotion Program is utilized to increase consumption and enhance demand of cotton for the benefit of brands, retailers and cotton producers."

      Gillon is currently the principal of Gillon & Associates, PLLC, a law firm specializing in agriculture and business law. He has been active in agriculture law and policy for more than 25 years, having served as General Counsel to the National Cotton Council of America, Senior Counsel for the Committee on Agriculture Nutrition and Forestry of the U.S. Senate, and as an attorney in the Office of General Counsel at the U.S. Department of Agriculture. Gillon has also served as an official advisor to the U.S. Government on agricultural trade matters and as a board member of several local organizations.

      Gillon has worked on the cutting edge of legal and business developments in agriculture and has experience with new innovations, like electronic warehouse receipts, precision agriculture, genetically enhanced commodities, and organic agriculture.

Continued on page 2

      His legal work for the cotton industry includes defending the Cotton Research & Promotion Program from constitutional challenges and representing the industry in the World Trade Organization case brought against the U.S. cotton program by Brazil. While in Washington, DC, Gillon wrote significant pieces of agriculture, agricultural trade, and conservation legislation and regulations implementing important conservation and agriculture programs.

      Chairman Shook, who led the Search Committee comprised of Cotton Board producer and importer members, said, "With Gillon's leadership, I am confident the Cotton Board will rise to meet new challenges and will ensure our research and promotion program continues to be the best in the world."

      Shook and other board members made a point to thank Lisa Droke, Vice President of Finance & Administration, who has served as interim CEO when commenting on Gillon's hire.

      Gillon will begin his new role as the Cotton Board's CEO on October 18, 2010. Gillon and his wife, Adrienne Pakis-Gillon, live in Germantown, TN, and have two children.

 

USDA NRCS Extends 2011 Conservation Stewardship Program Sign-up Period

Friday, October 8, 2010                            

      The USDA Natural Resources Conservation Service (NRCS) is accepting applications from Texas agricultural landowners for the next Conservation Stewardship Program (CSP). The ranking period cut-off date for producer applications in the program has been extended to January 7, 2011.

      "CSP supports ongoing stewardship of private agricultural lands by providing payments for maintaining and enhancing natural resources," said Don Gohmert, NRCS state conservationist for Texas.

      Congress limited enrollment for CSP, nationally, to 12.7 million acres per year. Applicants will be ranked on state-identified primary resourced concerns, which in Texas are water quantity, soil erosion, plant health and condition, water quality, and animal health.

      Producers are encouraged to apply for CSP now to ensure their applications will be considered during this funding and ranking period. However, they can make their final decision to participate in the program before they sign a contract. The CSP final rule, which establishes the policies and procedures for the program was published in the Federal Register on June 3, 2010.

      CSP, authorized in the 2008 Farm Bill, offers payments to producers who maintain a high level of conservation on their land and who agree to adopt higher levels of stewardship. Eligible lands include cropland, pastureland, rangeland and non-industrial forestland.

      Potential applicants are encouraged to use the CSP self-screening checklist to determine if the new program is suitable for their operation. The checklist highlights basic information about CSP eligibility requirements, contract obligations and potential payments. It is available from local USDA Natural Resources Conservation Service offices or on the NRCS Web site at http://www.nrcs.usda.gov/programs/new_csp/csp.html.

 

 

THE COTTON USA ADVANTAGE

CCI FAX – October 7, 2010

         USDA's Foreign Agricultural Service (FAS) Compliance reviews CCI's Market Access Program (MAP), Foreign Market Development (FMD) and Emerging Markets Program (EMP) activities. The reimbursements reviewed totaled $52.7 million for the period June 1, 2009 to July 31, 2010. The FAS Compliance, Security and Emergency Planning Division concluded that CCI fulfilled its financial and administrative responsibilities under the programs, claimed expenses that were authorized and reasonable, and claimed contributions that were allowable and properly documented. There were zero findings. This outstanding result has been a pattern achieved by CCI since 1993 and enhances CCI's competitiveness for future market development funding from USDA.

         Two U.S. retailers - Charming Shoppes and IC ISSACS - visit El Salvador and Honduras. The purpose of the visit was to meet with garment and fabric makers that are capable of offering fashion knitted garments for women and men. The CBI Region is an excellent sourcing option for U.S. retailers for its proximity to the U.S. market and for its duty-free advantage under CAFTA. Frontier Spinning Mills, a U.S. mill that is part of the COTTON USA Sourcing Program, also participated in the event.

         COTTON USA, Western Europe, kicks off the start of a new advertising campaign. Under the supervision of the European CCI team, German photographer Beate Hansen shot a series of photos reflecting the feel and spirit of the COTTON USA Mark. Using high quality cotton apparel and home textiles from international brands and young designers, the new European Brand Equity Building campaign will highlight the versatility of the world's favorite fiber. The campaign will start appearing in high profile consumer publications such as Vogue and Elle as well as leading textile trade magazines in Germany, Italy and the UK in January 2011.

      CCI Andean Region and Cotton Incorporated Mexico present fashion forecasting. The offices worked together to carry out three meetings in Medellin revealing fashion forecasts for Fall/Winter 2011-2012. The one-on-one and group presentations by Cotton Incorporated energized key customers in Colombia including: Vestimundo S.A., Fabrica de Calcetines Crystal S.A., Coltejer S.A., Fabricato Tejicondor S.A., CI Jeans S.A. and Codintex S.A., among others. The forecasts attracted 169 attendees from 31 textile and apparel companies.

      Color strips and COTTON USA notebooks and pens were distributed to all participants, and fabric swatches were provided to pre- selected companies. Attendees said this information has high credibility and contributes to making better decisions regarding cotton fashion collections.