USDA Issues Final 2009-Crop Upland Cotton
and Peanut Counter-Cyclical Payments

Friday, October 25, 2010                         

      Agriculture Secretary Tom Vilsack announced today that USDA has issued final 2009-crop counter-cyclical payments to farmers enrolled in the direct and counter-cyclical program for upland cotton and peanuts. The Food, Conservation, and Energy Act of 2008 (Farm Bill) requires 2009 final counter-cyclical payments to be made as soon as practicable following the end of the marketing year, but no sooner than October 1, 2010.

      "The counter-cyclical payment is another important tool that USDA's Farm Service Agency provides for farmers who produce various crops, including cotton and peanuts," said Vilsack. It is vital that we continue to support the hard work of the farmers we depend on these payments to help produce these crops."

      Counter-cyclical payments are administered by the Farm Service Agency. The final counter-cyclical payment rate for upland cotton is 1.68 cents per pound. Producers who accepted a partial payment of 1.03 cents per pound in March 2010 will receive 0.65 cents per pound or the difference between the final rate and the partial payment. The 2009 marketing year average price for upland cotton was 62.9 cents per pound.

      USDA announced on October 4, 2010, that the final counter-cyclical payment rate for peanuts is $25.00 per ton ($0.0125 per pound). Producers who accepted a partial payment in March 2010 received $9.20 per ton ($0.0046 per pound). They are due an additional $15.80 per ton ($0.0079 per pound).

      The 2009 marketing year average price for peanuts was $434 per ton ($0.217 per pound). According to FSA data, counter-cyclical payments for 2008-crop upland cotton exceeded $1.2 billion so the 2009 crop upland cotton payments are less than 2008 crop. There were no 2008 crop peanut counter-cyclical payments.

      The counter-cyclical payment rate is the amount by which the target price for each commodity, specified by the 2008 Farm Bill, exceeds its effective price. The effective price equals the direct payment rate plus the higher of either the national average market price received by producers during the marketing year or the national average loan rate for the commodity.

      A table displaying the target price, average market price, loan rate, direct payment rate, effective price and final counter-cyclical rate for peanuts and upland cotton is available at http://go.usa.gov/aKS .

      For each commodity, the counter-cyclical payment for each crop year equals 85 percent of the farm's base acreage multiplied by the farm's counter-cyclical payment yield multiplied by the counter-cyclical payment rate.

      For more information on the direct and counter-cyclical payment programs, visit your local FSA office or the FSA website: http://www.fsa.usda.gov.

 

2011 Beltwide Cotton Conference
Early Housing Deadline October 31

Friday, October 29, 2010                         

      NCC and Cotton Foundation members can make early room reservations through Oct. 31 for the 2011 Beltwide Cotton Conferences. Open housing reservations can be made beginning on Nov. 1.

      The forum is set for January 4-7, 2011 at the Atlanta Marriott Marquis. Conference information, including instructions for early housing and registration, is available at http://www.cotton.org/beltwide .

      Among key issues to be addressed at the forum's Cotton Production Conference are herbicide resistance prevention/management, various insect pest concerns and irrigation. Attendees also will hear about what went right and wrong in the 2010 growing season and "what's down the road" in terms of pricing, technology and production systems.

      The Cotton Consultants Conference will be offered for the fourth consecutive year. The Conferences also include the Cotton Foundation Technical Exhibits and 11 Cotton Technical Conferences.

 

 

The COTTON USA Advantage

CCI FAX – October 29, 2010

Turkish Textile Exporters Establish New Trade Links

         Leading executives from Turkish COTTON USA-licensed textile companies recently were introduced to garment manufacturers from Egypt, Morocco and Tunisia in the first sourcing forum of the COTTON USA Mediterranean Supply Chain Marketing (SCM) program.

         Fifty-three executives joined the event that was designed to open new business relationships between the U.S. cotton-rich textile licensees for yarn, denim, knits, wovens and shirting in Turkey and garment manufacturing companies from Egypt, Morocco and Tunisia.

      In the conference section of the Forum, participants heard presentations on "Future Global Sourcing Trends," "Changes in U.S. and European Sourcing" and "The Global Cotton Price Situation." A panel of brands/retailers from France (Intersport), Italy (Gruppo Coin) and the UK (Marks and Spencer) discussed how their garment sourcing has changed after the economic crisis. In the trade fair, COTTON USA-licensed Turkish textile firms met one-on-one with buyers to review their latest collections and placed more than 100 sample orders. Some 225 personal meetings were scheduled during the day-and-a-half trade fair.

         Preliminary results from an exit survey of buyers reveal estimated new business orders to be placed exceed $4 million.

         The Forum attracted eight journalists from national Turkish newspapers, television news and the trade press. Within the first 24 hours after the event, the Forum received extensive TV, national daily newspaper and online coverage.

         The COTTON USA SCM Program coordinates a range of private buyers' tours across the world to major textile supply countries. These events are centered around U.S. cotton content in the supply chain and are tailored to highlight the benefits of the local textile industry, with the main focus on allowing buyers and suppliers to meet. Buyers are selected on an invitation-only basis and suppliers are vetted in order to ensure they are COTTON USA qualified quality suppliers. Buyers' tours typically include showroom visits, factory visits and private trade fairs.

 

Cotton Quality Report

      The following is a summary of the cotton classed at the Lubbock and Lamesa USDA Cotton Division Cotton Classing Offices for the 2010 production season.

2010 High Plains Cotton Quality Summary

 

Current Week:

 

Office

Bales

Color

Leaf

Staple

Lamesa

96,618

21+ - 80.3%

31 - 12.7%

2.52

35.34

Lubbock

259,791

21+ - 89.5%

31 - 4.8%

2.49

35.93

 

Mike

Strength

Uniformity

Bark

Lamesa

4.48

29.63

80.85

10.3%

Lubbock

4.02

30.40

80.71

10.7%

 

 

Season Totals To Date:

 

Office

Bales

Color

Leaf

Staple

Lamesa

198,705

21+ - 79.7%

31 - 14.7%

2.48

35.18

Lubbock

689,427

21+ - 89.8%

31 - 6.0%

2.45

35.75

 

Mike

Strength

Uniformity

Bark

Lamesa

4.42

29.33

80.75

8.2%

Lubbock

4.02

30.10

80.62

6.8%

Source: USDA AMS