Cotton News

Joe Outlaw Testifies at Subcommittee Farm Bill Hearing

Texas Upland Cotton Planting Progress Chart

Ranking Members Request Withdraw of Brief in Roundup Case

West Texas Agricultural Chemicals Institute Annual Meeting Scheduled

In Case You Missed It

Joe Outlaw testifies before the House Agriculture Committee Subcommittee on General Farm Commodities and Risk Management on June 9, 2022.

On Thursday, the House Agriculture Committee Subcommittee on General Farm Commodities and Risk Management held a hearing to review the 2018 Farm Bill. The hearing is part of a series of hearings by the House Agriculture Committee in preparation for the 2023 Farm Bill. 

Among the expert witnesses who testified was Joe Outlaw, Ph.D., professor, extension economist and co-director of the Texas A&M University Agricultural and Food Policy Center in College Station, Texas.

Subcommittee chair Rep. Cheri Bustos (D-Ill.) called the meeting to order saying that since the 2018 Farm Bill was written, farmers have experienced multiple economic impacts, including a trade war with China, marketing and supply chain disruptions caused by the COVID-19 pandemic, historic weather events, and extreme volatility in commodity and input markets — caused, in part, by the Ukraine invasion. “All of these conditions provide indications of how our current Farm Bill has been functioning,” she added.  

The witnesses were asked to testify concerning how commodity programs have worked for producers as a safety net, as well as the role the Federal Crop Insurance Program has played in helping producers manage risk. 

Joe Outlaw Testimony
Outlaw’s testimony summarized a recent report from the Agricultural and Food Policy Center that analyzed farm profitability in 2022, relative to 2021, of 64 representative crop farms in the face of higher input and output prices. The report is titled “Economic Impact of Higher Crop and Input Prices on AFPC’s Representative Crop Farms,” and can be read here.

Key points from his testimony include the following:

• “While some producers were able to benefit by locking in input prices early in 2021 for this year’s crop, most indicated very little ability to lock in these prices even when using their normal tax management strategy of prepaying inputs. Simply put, the input suppliers would not lock in a price until the producers agreed to take delivery. Almost every respondent stated they were going to do their best to reduce input usage in the face of the highest costs of production they had ever experienced.”
• “The news is full of stories about inflation that is averaging 8.5% so far this year for the average American. The lowest year-over-year inflation farmers are seeing is twice that on seed with most categories many times higher. Commodity prices, while generally higher in 2022, are up less than 8%. If not for the incredible productivity of the U.S. farmer, there would be a major financial crisis in agriculture.”
• “Net cash farm income in 2021 included a significant amount of ad hoc assistance. Absent another infusion of assistance in 2022, we estimate that significant increases in input prices will result in a huge decline in net cash farm income in 2022 — compared to 2021.”
• “The analysis hinges on producers receiving the higher commodity prices forecasted by the Food and Agricultural Policy Research Institute with average yields. With drought being experienced across a significant portion of the country and many other areas facing excess moisture, this assumption may be overly optimistic. Having worked with farmers located across the U.S over the last 30 years, I want to make sure you understand we are talking about historic amounts of capital that farmers are putting at risk.”
• “Throughout my career, I have referred to the programs in Title I and Title XI as the three-legged stool that serves as the safety net for U.S. producers. The specific commodity programs in Title I have changed over that time, but all generally have the same objective to make-up for shortfalls in prices or incomes. The current programs, agriculture risk coverage (ARC) and price loss coverage (PLC) and the non-recourse commodity loan program, serve as two of the legs while the federal crop insurance program serves as the third leg.”
• “The following are what I believe to be the most significant shortcomings of all three legs of the stool. Most of my suggestions require additional resources that may be difficult to secure but are necessary.”
  • “Price loss coverage (PLC) was established in the 2014 Farm Bill using the cost of production as the basis for setting the level of protection for each covered commodity through reference prices. Counter-cyclical price protection programs like PLC have been used in the U.S. since the 1970s with the notable exception of the 1996 Farm Bill. In the PLC program, I believe your colleagues decided to cover a significant amount (roughly 75 to 85%) of total costs of production realizing the likely negative consequences of providing price protection at higher levels. PLC rates worked fine while inflation was fairly low; however, the reference prices set in the 2014 Farm Bill and continued in the 2018 Farm Bill are in dire need of increases to remain relevant. Producers’ costs have increased substantially, and the current reference prices are not providing a relevant amount of protection.”
  • “Agriculture risk coverage (ARC) was also established in the 2014 Farm Bill as a second attempt at providing producers a revenue-based safety net program to replace the overly complicated and not widely used average crop revenue election (ACRE) program first used in the 2008 Farm Bill. ARC uses a 5-year moving average of historical prices and yields to establish a benchmark that is used to determine the level of protection producers receive. While good when coming off of relatively high prices, ARC proved worthless when prices declined and remained relatively flat, providing little protection to producers. This is why that while widely chosen over PLC early in the 2014 Farm Bill, ARC was largely abandoned as a choice of safety net program in recent years. The problem with ARC is that it assumes the historical revenue levels were the appropriate levels that producers should be supported at without any basis such as protecting some level of costs for making that claim. Since ARC has the reference price embedded in the calculations, raising reference prices will make ARC more attractive as a revenue protection safety net alternative.”
  • “Assuming these two alternatives are used going forward, instead of forcing producers to pick the tool (ARC or PLC) they want, I would suggest allowing them to receive the benefits of whichever is higher in a given year. This would cost nothing more than if the producers have chosen wisely and selected the appropriate tool and would take a major decision away that only serves as a major distraction to their work in trying to grow a crop. Historically high input costs have also highlighted the shortcomings of basing the safety net on prices and/or gross incomes alone. This may present an opportunity to explore adding margin coverage. However, ARC & PLC have been popular, so I would urge you to proceed with caution. Dairy offers an instructive example. Dairy margin coverage was added in the 2014 Farm Bill, but the initial version was a flop that has taken years (and a lot of money) to improve.”
  • “The non-recourse marketing loan program works as it was designed more than four decades ago; however, despite modest increases for some commodities in the 2018 Farm Bill, the rates have largely remained unchanged over the past 30 years, losing ground to inflation. Providing producers the ability to take out a storage loan or receive a loan deficiency payment on a crop is a very useful marketing tool. The rates need to be raised to increase the amount of the crop that is being protected which will cost money but is significantly less expensive to do at current price levels.”
  • “Federal crop insurance is an enormously successful public-private partnership that today stands as the primary safety net tool for U.S. producers. This is due to the program largely using futures prices to annually adjust the amount of protection producers can select. While crop insurance is popular with producers, the little-known secret in the farming community is that bankers “encourage” producers to purchase buy-up levels of crop insurance as a means of protecting the producer and the operating loan banks make to producers. As I have said many times in front of Congress… do no harm to crop insurance and stop outside interest groups from tying provisions of their pet projects to crop insurance – for example, linking climate change practice adoption to insurance program subsidy levels. This runs the risk of creating an unlevel playing field for producers by distorting protection levels and leaving some producers with less protection due to their lack of feasible climate change mitigation alternatives.”
• “While this hearing is about the farm bill, I would be remiss if I didn’t mention the last 5 years of ad hoc disaster assistance. I believe the upcoming farm bill provides a clear opportunity to help address some of the shortcomings ad hoc assistance was designed to address. In the case of WHIP, WHIP+, and ERP, they all essentially are designed to help cover the large deductibles producers face in their crop insurance policies. While the ad hoc assistance over the last 5 years has been vital, it comes LONG after the disaster has come and gone and has been limited to specific causes of loss. Perhaps most important, ad hoc assistance is, by definition, not guaranteed. Farmers already face enough risks and uncertainty – ideally, they wouldn’t have to guess at what the safety net might look like as they struggle to put a crop in the ground.”

To watch the livestream of the hearing, click here.

Sen. John Boozman (R-Ark.), ranking member of the Senate Committee on Agriculture, Nutrition, and Forestry and Rep. Glenn “GT” Thompson (R-Pa.), ranking member of the House Committee on Agriculture, are calling on the Biden administration to withdraw its current brief before the Supreme Court in a case involving the Environmental Protection Agency’s (EPA) federal registration authority of Roundup, an essential glyphosate-based herbicide used for crop protection.

In a letter to President Biden, the ranking members question the White House’s rationale for filing the brief based on a “change in administration” and seek answers as to why the Solicitor General modified its long-standing position that EPA maintains federal preemption authority on all crop protection tools without consulting the relevant agency subject matter experts.

“Such a reversal coupled with the lack of consultation with subject matter experts is incredibly concerning. Simply citing a ‘change in administration’ as a cause and justification for completely undermining an agency’s federal preemption authority, clearly established by Congress, is egregious. The Solicitor General’s actions not only insert significant ambiguity into FIFRA [Federal Insecticide, Fungicide, and Rodenticide Act], but also upends a host of statutory preemption authorities and the general use of crop protection tools, and further threatens global food security,” Boozman and Thompson wrote.

The ranking members’ letter spells out the negative long-term consequences the Ninth Circuit’s decision would have should it be allowed to stand.

“If the Ninth Circuit’s decision is left in place, not only will growers lose a critical tool from their toolbox, but EPA’s registration process will eventually evolve into a state-by-state patchwork that will thwart the science-based and risk-based process Congress has specifically directed EPA to carry out.  Importantly, any marketplace confusion will take place during an emerging global food crisis and growing food insecurity,” Boozman and Thompson wrote.

Read the full letter here.

The 70th West Texas Agricultural Chemicals Institute (WTACI) Annual Meeting will be held at the FiberMax Center for Discovery on Sept. 14, 2022.

“We have a great speaker lineup that will tackle weather, multi crop IPM, weeds and more,” said Joni Blount, WTACI president. “There will also be a panel on supply chain issues and what to expect in the future with views from distributors, fertility experts and growers.” 

Follow WTACI on Facebook and Twitter for more information.

Fertilizer Prices Have Dropped 

Cotton Growers Crop Scan Ag Report (Kerry Siders) 

Faces of Cotton: Quentin Shieldknight

Top 10 Takeaways of FSA/RMA Call on ERP

U.S. Cotton Consumption Increased

In the News

New Heat Unit Calculator

In Case You Missed It

Quentin, Logan, Hayden, Kristin and Kinley Shieldknight

April 8, 2021

Quentin Shieldknight was in the worst shape of his life — or so he thought. “Man,” he said looking at one of his field hands while working in the grain bins, “There’s got to be something wrong here. I can’t breathe.”  

Tomorrow I’m hitting the gym, he thought as he struggled to distract himself from the pain in his legs.  He finds the auger plugged up at the bottom of the grain bin and he and his team begin kicking it and hitting it with a long rod trying to break up the clog. He starts panting, then panicking as he struggles to bring breath into his lungs. “Quentin, man, you got to get out of here,” the hands yelled at him. He slowly makes his way to his pickup holding his head in his hands, willing himself to calm down so he can breathe normally. He sits there for two hours. Something’s not right.

Shieldknight Land and Cattle: It’s a Family Affair

Quentin Shieldknight, a fourth-generation farmer, runs a family business planting corn and cotton while raising commercial and registered Red Angus cattle in Spearman, Texas. His dad, Fred, still shows up to work every day. “I’ve told him to go enjoy his grandkids and semi-retire,” Quentin said. “But he’s still boss and shows up every morning to run the show.”

His sister, Kelly Jack and her husband Ty are both heavily involved in the operation.  Kelly is the accountant and office manager, while Ty handles maintenance and manages cattle.  Quentin’s cousin, Colby, also works on the farm helping run the cattle side of the business, while aunt Marcia takes care of life insurance and generational succession planning.

His younger sister Clara developed the farm’s website and her husband, Chris, manages the farm’s security and information technology operations. They live and work in Borger, Texas, but have two boys, Cy, and Cal, who love coming to help at the farm, while simultaneously throwing dirt and calling coyotes.

Quentin went to Texas A&M University where he met his wife, Kristin. “Literally sat on the bus next to her on the way to ‘fish camp’ as incoming freshmen,” he added. They will be celebrating their 18^th wedding anniversary this year and have three children: Kinley (14), Hayden (11) and Logan (8). Kristin is the director of innovation and technology for Spearman Independent School District, and their children are heavily involved in FFA, 4-H, athletics and, of course, the family farm.

April 9, 2021

After going to bed with a fever, Quentin gets up the next day to work cattle. However, he finally gives up at lunch and heads to the hospital. They run some tests and he lets the nurse know he can’t breathe. Pulse oxygen reading is questionable so they take an X-ray of his chest. It’s probably because I’ve been in a grain bin for two days, he thinks to himself, that’s why my lungs don’t sound right. After the X-ray, hospital staff decide to do a CT scan and tell Quentin to go home and keep his phone close — they’ll call in four to five hours when they get the results. They end up calling him 10 minutes later before he’s even left the hospital.

From Corn to Cotton

After earning his bachelor’s degree in agronomy and plant and soil science, Shieldknight became a certified crop adviser. He provided crop consulting in the Spearman area through a private company, an experience that enhanced his success in his own farming operation. Shieldknight Land and Cattle farms 10,000 acres and has 650 cows in the herd (not including calves and bulls).

Cotton is up in the rotation for this crop season, having planted mainly corn and milo last year. In May, Quentin and company planted 2,800 acres of irrigated cotton and about 3,000 acres of dryland. “We had our first circle of cotton in 2011, and it fared better than the corn did,” he said. “In preparation for this year, we are planting more cotton than corn hoping to make a decent crop.”

The Shieldknight farm engaged in conventional tillage practices until 2003. “I think my degree helped me bring some conservation practices back to the farm,” Shieldknight added. “When I came back, we started strip-tilling and we’re now a strip-till, minimum-till farm.” They also implemented cover crops into their operation in the last three years. “We’re still learning on that, but I think we’ll eventually get it figured out and reap the benefits,” he said.

Learning to apply cover crops in a low rainfall area has its challenges. So far, the Shieldknights have tried tillage radish, rapeseed, cow peas and winter peas. This summer, they’ll be planting some millet blends in combination with cow peas, working with Jeff Miller, owner of ForeFront Agronomy LLC. Since they planted corn and milo last year, they left the stalks up for cover this spring. “We’ve had fields blow out so many times and really don’t want that to happen this year,” he added. “I guess you could call us trashy cotton farmers.”

April 9, 2021

All of a sudden, everyone is in the emergency room lobby looking for him. A nurse grabbed his arm, saying, “Mr. Shieldknight, you need to go back to your room right now and I suggest you call your wife.” He lays down only to feel a huge needle immediately jabbed into his stomach. His primary care physician was driving in from out of town, battling 65 mile-per-hour winds to get to the hospital.  

The emergency department attending physician walks into Quentin’s room. “You have blood clots in your lungs, Mr. Shieldknight,” he said. “They’re really bad — I don’t know that I’ve ever seen a set of lungs with this many clots in them, ever.”

All he could think of was, are you kidding me? And then it hit him. His uncle died from a blood clot in 2011. This is serious. The nurse places an oxygen mask over his face.

From Beef to Compost

Not only does Shieldknight run the family business, but last fall, he co-founded a gypsum and compost business with Caleb Patterson, serving Spearman, Perryton, and Gruver areas. He said they don’t really have an official business name, adding, “We’re the crap spreaders — that’s the nicest way to say it anyway.”

Summertime is also beef time. Shieldknight Land and Cattle sells beef from Spearman all the way down to south of Houston, making them a state-wide beef operation.

They project to sell 80 whole beefs this year — they also sell quarters and half-sides.  “We’re blessed to be able to feed people,” Shieldknight added. “And it’s important that we do it the right way and help communities.”

To advance this effort, Shieldknight Land and Cattle will be opening beef stores where small towns have lost their grocers. They opened their first one in Shelby’s Bridge Gift & Thrift Shop in Sudan, Texas, this May. They are in talks with other small communities to help them bridge gaps in their meat supply as well.

April 9, 2021

While he’s trying to gather his composure, his aunt Marcia bursts into the room. Everyone is trying to talk to him, but she says, “Stop! I’m going to pray.” Everyone stops. And she prays, “Father God, please heal Quentin’s lungs, dissolve the clots, and be with the doctors and nurses as they care for him. Please heal him in Jesus’ name.” As a community pastor joins his aunt in prayer, the care team is calling an ambulance — though they wish it were a helicopter. “I have medivac insurance,” he tells them, giving a nurse his insurance card. The doctor calls the helicopter staff who say, “We can’t get there in this wind.” The doctor decides to send Quentin’s scans to the helicopter staff. They call back. “We’ll be there in 10 minutes.”

They transport him from Hansford Hospital to BSA Hospital in Amarillo, Texas. As he’s in flight, his labored breathing begins to ease to the point where he no longer needs the oxygen mask. A calm comes over him during the helicopter ride. I’m going to be OK, he says to himself. I’m going to be OK.

To this day, Quentin’s hematologist can’t believe he’s still alive. Every time, he walks into a follow-up appointment, the doctor says, “I’ve never seen that many clots in a set of lungs ever and the patient survive.”

Quentin has Factor V Leiden Thrombophilia, an inherited blood clotting disorder. He will be on blood thinners for the rest of his life. While farming is tough, staring death in the face can shift your perspective.

“How do you survive if you don’t have faith in the farming industry?” he asked. “I don’t know how you do it without faith. Besides 2011, I don’t know if it’s ever been this hard to just get going, get the crop in and stay motivated.

“But every day, I’m still breathing. Every day, I still have something to look forward to. I used to be in the worst mood every evening when I came home — made my family miserable. But lying in a hospital bed thinking that I was about to meet my Maker woke me up. This life is hard. It’s unfair. But the reward is just around the corner if we just keep going. It’s going to be a great year, one way or another.”

Results from the most recent economic evaluation of the Cotton Research and Promotion Program found strong, positive returns for cotton producers and importers as a result of the Program. The study shows that consumption of cotton products has increased by about 14 percent thanks to the program. That is approximately 2.47 million bales more annually. The full report is available here.

Farm Bill Field Hearing Scheduled in Arkansas – The Senate Agriculture Committee has scheduled its second farm bill field hearing in the home state of the committee’s top Republican, Sen. John Boozman (R-Ark.).  The hearing will be held on June 16 in Jonesboro, Arkansas and will be livestreamed here.

USDA Announces Signup for the Commodity Container Assistance Program – Agriculture Secretary Tom Vilsack announced USDA will begin accepting applications for the Commodity Container Assistance Program (CCAP).  USDA’s Farm Service Agency will make payments to eligible owners or designated marketing agents of U.S. agricultural commodities based on the number of eligible shipping containers utilized from March 1, 2022, through December 31, 2022, from the Port of Oakland or the Northwest Seaport Alliance to ship agricultural commodities to their designated markets on container ships. Eligible commodities include agricultural commodities (other than tobacco) which are grown or produced in the United States for food, feed, or fiber, and products made from those commodities, including certain forestry products.  Read more here.

Chinese Interest in U.S. Ag Assets Could Pose Security Risks, Federal Report Says –A report by the U.S.-China Economic and Security Review Commission warns China could gain further leverage over U.S. supply chains by purchasing agribusinesses and land in the United States, reduce U.S. competitiveness by stealing intellectual property, and create bioweapons using DNA from genetically modified American crops. Read more here.

An all-inclusive heat unit calculator has been brought back to the High Plains. “We’ve felt the absence of this tool for the last few years, and are excited that it has been brought back,” said Kody Bessent, PCG CEO. “It’s a unique tool that will be valuable as we move into the fall.”

To view the heat unit calculator, please visit:
cotton-stress-lab.us/locations. 

Study Shows Herbicide Tolerant Cotton Has No Adverse Environmental Impacts

It Rained!

Mental Health and Agriculture: There is Always Hope

Cotton Industry Seeks Volunteer Leaders

USDA to Allow Producers to Request Voluntary Termination of CRP Contract

Top Six ERP Checklist Items for Eligible Farmers

In Case You Missed It

Prior to the rains this week, 90% of Texas was covered in drought, with West Texas and the Panhandle under the most severe conditions. More than 3 inches of rain fell in Muleshoe, while Lubbock recorded 0.82 inches.

Plainview producer Steve Olson said more chances of rain were in the forecast. 

“It totally changed the game for us,” he told Farm Journal. “I absolutely believe it saved some of our crop. At least we have a chance to produce a crop now, while before there was no hope.” 

“Hopefully this moisture will aid planted fields and help those waiting on moisture to get planters going,” Murilo Maeda, Texas A&M AgriLife Extension Cotton Specialist-Lubbock, reported in the latest AgFax newsletter. “Across Texas, growers have continued to make progress. 

The latest USDA crop progress report indicates 44% of cotton acres planted, up from 30% last week.

The recent rains eased some of the more exceptional and extreme drought conditions in the PCG region.

Agriculture is known to have numerous unique occupational hazards. Physical hazards include heat and sun exposure and the potential dangers of working with heavy machinery. Working out in the elements also brings the risk of venomous snakes, spiders, and disease-carrying mosquitos. What is less often discussed, however, are the mental and emotional hazards associated with working in agriculture. The volatile farm economy, long days at work, social isolation, and natural disasters can add stress beyond what is expected or tolerated in other industries.

May is Mental Health Awareness Month and is a significant opportunity to remind anyone struggling that they are not alone and do not have to suffer in silence. A 2021 poll commissioned by the American Farm Bureau Federation found that farmers and farm workers were more comfortable talking to friends, family, and doctors about stress and mental health than in 2019. Open dialogue about stress and mental wellbeing can help reduce stigma in the community, which is often cited as a barrier to seeking care for a mental health challenge. Emotional wellness is a key dimension of our health and must be maintained, just like physical wellness, to live a fulfilling life. If you are struggling or notice someone else struggling, seek help. Recovery from a mental health challenge or illness, like recovery from a heart attack or other physical illness, is possible.  There is always hope.

The following resources are designed for agricultural producers and families:

• Ag Law in the Field Podcast Mental Health Episodes: https://aglaw.libsyn.com/category/Mental+Health+
• Commodity Classic Mental Health on the Farm Panel Recording:  https://commodityclassic.com/mental-health-on-the-farm
• Do More Ag Foundation:  https://www.domore.ag/
• National Agricultural Law Center Compilation of Mental Health Resources by State:  https://nationalaglawcenter.org/center-publications/family/mentalhealth/
• National Suicide Prevention Hotline:  https://suicidepreventionlifeline.org/
• Southwest Ag Center: https://www.uthct.edu/southwest-center-for-agricultural-health-injury-prevention-and-education/agstress/
• Ted Matthews YouTube Channel: https://www.youtube.com/channel/UCSvJTRFczJh8DJwWmAx7NpQ

Authors:  Miquela Smith, MPH Extension Program Specialist – Health and Tiffany Dowell Lashmet, Associate Professor & Extension Specialist – Ag Law

The success of the High Plains cotton industry, like any group effort, is directly tied to the willingness of qualified individuals to volunteer to serve in various leadership positions.

PCG encourages all qualified individuals in the High Plains interested in serving as a representative to the Cotton Board, National Cotton Council or Cotton Incorporated, to contact PCG CEO Kody Bessent at 806-792-4904 for more information.

The U.S. Department of Agriculture (USDA) will allow Conservation Reserve Program (CRP) participants who are in the final year of their CRP contract to request voluntary termination of their CRP contract following the end of the primary nesting season for fiscal year 2022. 

Participants approved for this one-time, voluntary termination will not have to repay rental payments, a flexibility implemented this year to help mitigate the global food supply challenges caused by the Russian invasion of Ukraine and other factors. 

USDA also announced additional flexibilities for the Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP).  

Today we began mailing 303,000 pre-filled applications for the Emergency Relief Program (ERP), a new program designed to help agricultural producers impacted by wildfires, droughts, hurricanes, winter storms, and other qualifying natural disasters experienced during calendar years 2020 and 2021.

To apply for ERP Phase 1, here’s what you need to do:

1. Check Your Mailbox

The form being mailed to you includes eligibility requirements, outlines the application process, and provides estimated ERP payment calculations. Producers will receive a separate application form for each program year in which an eligible loss occurred. Receipt of a pre-filled application is not confirmation that a producer is eligible to receive an ERP phase one payment. This application takes about 0.176 hours (that’s less than 15 minutes) for producers to complete, compared to the former Wildfire and Hurricane Indemnity Program – Plus application which took several hours for producers to complete and even longer for FSA staff.

The deadline to return completed ERP applications to FSA is Friday, July 22, 2022.

If you have NAP coverage, you will receive pre-filled ERP applications later this summer. Details on ERP Phase 2 will be forthcoming as well.

First page of the Emergency Relief Program (ERP) Phase 1 application mailed to eligible farmers on May 25, 2022

2. Check Your Eligibility

ERP covers losses to crops, trees, bushes, and vines due to a qualifying natural disaster event in calendar years 2020 and 2021.

Eligible crops include all crops for which crop insurance or NAP coverage was available, except for crops intended for grazing.

Qualifying natural disaster events include wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought*, and related conditions.

*Lists of 2020 and 2021 drought counties eligible for ERP are available online.

3. Check Required Forms on File with FSA

Producers must have the following forms on file with FSA:

• Form AD-2047, Customer Data Worksheet.
• Form CCC-902, Farm Operating Plan for an individual or legal entity.
• Form CCC-901, Member Information for Legal Entities (if applicable).
• Form FSA-510, Request for an Exception to the $125,000 Payment Limitation for Certain Programs (if applicable).
• A highly erodible land conservation (sometimes referred to as HELC) and wetland conservation certification (Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification) for the ERP producer and applicable affiliates.

If you have previously participated in FSA programs, you will likely have these required forms on file. However, if you’re uncertain or want to confirm the status of your forms, contact your local FSA county office.

4. Check Historically Underserved Status with FSA, If Applicable

The ERP payment percentage for historically underserved producers, including beginning, limited resource, socially disadvantaged, and veteran farmers, and ranchers will be increased by 15% of the calculated ERP payment.

To qualify for the higher payment percentage, eligible producers must have the following form on file with FSA:

• Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification.

5. Check Your Future Insurance Coverage

All producers who receive ERP phase one payments are statutorily required to purchase crop insurance, or NAP coverage where crop insurance is not available, for the next two available crop years, as determined by the Secretary.

Coverage requirements will be determined from the date a producer receives an ERP payment and may vary depending on the timing and availability of crop insurance or NAP for a producer’s particular crops. The final crop year to purchase crop insurance or NAP coverage to meet the second year of coverage for this requirement is the 2026 crop year.

6. Check Your bank

Once the completed ERP application for payment is submitted to and signed by FSA, producers who have direct deposit should look for payment within three business days.

More Information

We have additional resources, including:

• ERP May 16, 2022 New Release
• ERP Fact Sheet
• Answers to Frequently Asked Questions (FAQs)
• Emergency Relief Webpage
• ERP Notice of Funding Availability

– Zach Ducheneaux, Administrator of USDA’s Farm Service Agency

High Plains IPM Podcast – May 25, 2022

Texas Supreme Court Ruling on Water Rights

Emergency Relief Program’s Payment Calculations 

EPA Looks for Farmer Feedback

Upland Cotton Production for 2021-Crop; 2022-Crop Estimates

In Case You Missed It

As announced in Monday’s Cotton News, the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) announced the Emergency Relief Program (ERP) on May 16th. The ERP represents the next round of disaster assistance authorized by last fall’s Extending Government Funding and Delivering Emergency Assistance Act, which authorized $10 billion to help crop and livestock producers impacted by adverse weather conditions that occurred during the 2020 and 2021 calendar years. 

The announcement is good news for producers who have been waiting more than eight months for the program. “This week’s announcement of the Emergency Relief Program has been highly anticipated for several months,” explains Kody Bessent, Plains Cotton Growers Inc. (PCG) chief executive officer. “PCG, working alongside the National Cotton Council, Congress and other advocacy groups, has been encouraging the USDA to implement the program as quickly as possible to deliver this much-needed assistance to producers.

“We appreciate FSA working to streamline the application process and incorporating the changes Congress approved. The efforts are intended to improve the program as compared to disaster assistance provided to growers for losses incurred in 2018 and 2019 through WHIP-Plus.” 

Details on how the USDA FSA plans to deliver ERP are still somewhat sparse, however, the publication of the Federal Register notice announcing the availability of funds for the program, published on May 18^th, paints a picture of how FSA will proceed. We now have information regarding ERP coverage factors and how payments will be calculated, as well as how FSA will apply pay limits, determine payment eligibility and other components of the program.

Simply put, the Phase 1 ERP benefit will be calculated using a similar formula as the previously implemented WHIP-Plus program and prorated by 75% to ensure that total ERP payments do not exceed available funding. Phase 1 ERP payment calculations will be based on the type and level of crop insurance obtained by the producer using the ERP factor in place of the insurance coverage level.  This calculated amount will then be adjusted by subtracting the net crop insurance indemnity already received for losses minus service fees and producer-paid premiums.

Based on PCG and NCC’s interpretation of the ERP rule, below are a few regional examples of potential disaster assistance to the producer. Any discrepancy in payment once a producer receives the official USDA pre-filled application must be done by contacting their crop insurance agent if a producer believes any of the information on the form is incorrect and, as we understand the program today, the adjusted payment will be corrected in the implementation of Phase 2 ERP at a later date.

ERP Revenue Protection (RP) Upland Cotton Payment Example – Hansford County

*Calculations based on interpretation of ERP rule by Plains Cotton Growers and National Cotton Council.

*Examples based on February projected price period and October harvest price period.

*The structure of payment calculations for WHIP+ and ERP are similar except the ERP expected crop value is calculated using the higher of the projected price and harvest price.  WHIP+ only used the projected price to calculate the expected crop value.

ERP Revenue Protection (RP) Upland Cotton Payment Example – Crosby County

*Calculations based on interpretation of ERP rule by Plains Cotton Growers and National Cotton Council.

*Examples based on February projected price period and October harvest price period.

*The structure of payment calculations for WHIP+ and ERP are similar except the ERP expected crop value is calculated using the higher of the projected price and harvest price.  WHIP+ only used the projected price to calculate the expected crop value.

USDA FSA intends to start mailing pre-filled applications to eligible participants as early as May 23rd for losses incurred in 2020 and 2021. Phase 1 is based on completed crop insurance or NAP loss records. Separate application forms will be generated for each production year. Please note that FSA will mail application forms for policy holders with 2021 crop year coverage under Stacked Income Protection (STAX), Supplemental Coverage Option (SCO), Enhanced Coverage Option (ECO), Margin Protection (MP), and Area Risk Protection Insurance (ARPI) when the final data for these products becomes available.

Producers who receive ERP Phase 1 payments are required to purchase crop insurance at a coverage level equal to or greater than 60% for the next two available crop years, just as they did with WHIP-Plus. Phase 2 ERP will be implemented at a later date and will fill gaps and cover producers who did not receive payment under Phase 1 ERP, including producers who had a shallow loss that didn’t trigger an indemnity for crop insurance. 

If a producer or eligible participant has any questions as the Phase 1 ERP is implemented, we encourage them to contact PCG, NCC or their local FSA office. 

To download a printout of this article, click here.

2021 Production

The U.S. Department of Agriculture (USDA) reported 2021 upland cotton production at 17.191 million bales nationally — an increase of 3 million bales from 2020. For the 2021 season the Plains Cotton Growers Inc. 42-county service area produced 4,592,515 million bales, after planting 4,011,501 acres and harvesting 3,457,749 of them. Lynn County came in at the top with 452,200 bales followed by Lubbock and Gaines Counties. A complete list of 2021 cotton production from PCG’s 42-county service area is available for download here.

2022 Projection

According to the National Cotton Council, the U.S. Department of Agriculture (USDA) projects 2022-2023 U.S. upland cotton production to be 16.5 million bales. Mill use is projected at 2.5 million bales, while exports are projected to be 14.5 million bales. The estimated total offtake stands at 17 million bales. With beginning stocks of 3.4 million bales, this would result in U.S. ending stocks of 2.9 million bales at the end of the 2022 marketing year and a stocks-to-use ratio of 17.1%.

The High Plains is expected to plant roughly 4 million acres this season.

Article on Bryan Baker, producer in Sudan, Texas

Live from the Turnrow: Agronomist Wes Rodgers

Classing Process Evaluated

New Lubbock Classing Office

Consumers and Cotton

USDA Announces Emergency Assistance Program

The 2021 crop year will be memorable for years to come: timely rain and above-average yields combined with the most prolific and unprecedented upheaval of the global economy in history — triggered by the COVID-19 pandemic.

The cotton classing division was not immune to these economic struggles facing labor shortages, supply chain issues and operation/efficiency issues. Traditional classing timelines were heavily impacted as well as dissemination of final data records, which ultimately led to a delay in cotton marketing.

On May 11, 2022, U.S. Department of Agriculture Agricultural Marketing Service (USDA-AMS) Cotton and Tabaco Program Deputy Administrator Darryl Earnest and his team — associate deputy administrators Ronald Robbins and Monica Alexander and deputy director of grading Byron Cole — came to the Plains Cotton Growers Inc. office in Lubbock. At the request of PCG and other Texas cotton industry organizations, they came to review the 2021 classing season and discuss plans for 2022, including the opening of the new cotton classing facility In Lubbock.

USDA-AMS classed roughly 17 million samples, 8.38 million of which came from Texas. USDA-AMS strives to achieve a 72-hour turnaround on classing samples — from the time the sample arrives at the classing office until the classing record is on file.

Few offices were able to meet the 72-hour goal consistently during the 2021 season. According to USDA-AMS, the main causes for delay in service last season were:

• Shortage of available seasonal labor
• Absenteeism
• Frequent turnover
• Low productivity while training new employees
• Delays in getting vital equipment serviced or repaired (an air dryer in the Lubbock office broke down and it took a week to repair instead of the normal time of one day)
• Delays in arrival of needed parts and materials

In hitting the 72-hour target, Lamesa was the most successful, meeting the goal 70% of the time. The Abilene and Lubbock offices struggled, coming in at 37% and 13%.

For the season, USDA-AMS regional classing offices in the PCG region reported averages for the number of days received samples waited to be classed:

Abilene: 5

Lamesa: 2.4

Lubbock: 8.5

The maximum number of days that samples waited to be classed:

Abilene: 11.5

Lamesa: 6

Lubbock: 18

Labor Challenges

The 2021 crop year saw unprecedented labor shortages across the board — classing offices across the country were no different. “There were significantly fewer seasonal labor applicants than in previous years,” Earnest said. “I’ve never seen anything like the labor challenges we faced in 2021 in more than 30 years of working here.”

The classing process has always operated off a three-shift system, Earnest said. Yet for the 2021-crop, only one facility (the Macon, Georgia office) was able to partially staff the third shift. All offices left their applicant registers open the entire season to acquire additional labor, but few candidates applied.

Potential Solutions to Labor Challenges

For the coming year, Earnest said that USDA-AMS will raise its minimum wage to $15 per hour, which affects 72% of the agency’s seasonal work positions. “We’re hopeful this will make us more competitive in filling positions for this year’s classing season,” he added. They are also working on additional incentive-based programs to offer in the coming year, while also taking a more innovative approach to reaching potential candidates.

To help offset some of the absenteeism, USDA-AMS is considering more flexibility in shift schedules to meet the needs of workers juggling multiple jobs or college students. Alexander met with the Texas Tech University College of Agricultural Sciences and Natural Resources on May 10^th to discuss a possible collaboration between local classing offices and college students seeking work experience and college credit.

USDA-AMS will be increasing its permanent staff as well, while also cross-training them to manage multiple duties. They are planning to invest in multiple permanent graders who can also float to fill other positions as needed. “One thing to keep in mind is that we are looking to hire a capable and secure seasonal and permanent labor force,” Earnest added. “We’re not just looking for warm bodies. We need people who can do this job efficiently so we can serve our customer base.”

Automation should also offset some labor challenges, especially in the new Lubbock classing office. Whereas the old classing office needed 55 employees to be considered fully staffed, the new facility will only need 34. USDA-AMS is looking to renovate other classing offices to achieve this same efficiency in the future.

In response to industry requests, USDA-AMS sent out weekly updates on the status of classing operations to all gins during the 2021 season. They plan to do this again for 2022, starting at the beginning of classing season. These updates will include classing status, samples received, total carryover, days behind and any pertinent information about local office operations.

PCG requested that additional explanations about labor or equipment challenges be included in the updates to provide context behind the numbers to further benefit PCG members. USDA-AMS said that would investigate the best way to present this information.

Classing Fees to Increase

Given the rising operational costs, increasing the minimum wage and equipment costs, Earnest announced that USDA-AMS will be raising its classing fees by 20 cents — from $2.30 per bale to $2.50 per bale.

The price increase will take effect on July 1, 2022.

USDA-AMS Lubbock Classing Office Area Director Danny Martinez and his team are currently moving into the new Lubbock classing office, which

USDA-AMS Cotton and Tobacco Program Deputy Director of Grading Byron Cole shows North Gin’s Jordy Rowland and Edcot Gin’s Phillip Kidd cotton samples the new Lubbock classing office will use to test the machines in the coming weeks.

will now be located on Texas Tech University campus.

Martinez, along with Earnest, gave PCG and associates an early tour of the new building and what the revamped classing process will look like.

Earnest explained that everything in the new facility was designed with conservation in mind. Recyclable materials were used throughout the

building. Designed into the new facility is a one-of-a-kind HVAC system, which is specifically engineered to make the most efficient use of energy

throughout the operation.

The Lubbock classing office intends to have a grand opening in August 2022. PCG will have a video tour available so stay tuned.

The U.S. Department of Agriculture (USDA) announced today that commodity and specialty crop producers impacted by natural disaster events in 2020 and 2021 will soon begin receiving emergency relief payments (likely in June) totaling approximately $6 billion through the Farm Service Agency’s (FSA) new Emergency Relief Program (ERP — formerly known as WHIP+).

How to Apply — Phase 1

To simplify the delivery of ERP Phase 1 benefits, FSA will send pre-filled application forms to producers whose crop insurance and NAP data is already on file because they received a crop insurance indemnity or NAP payment.

This form includes eligibility requirements outlines the application process and provides ERP payment information.

Producers will receive a separate application form for each program year. Receipt of a pre-filed application is not confirmation that a producer is eligible to receive an ERP Phase 1 payment. Producers will need to return completed and signed ERP Phase 1 applications to their local FSA county office.

Producers must have the following forms on file with FSA within a deadline that will be announced soon:

• Form AD-2047, Customer Data Worksheet
• Form CCC-902, Farm Operating Plan for an individual or legal entity
• Form CCC-901, Member Information for Legal Entities (if applicable)
• A highly erodible land conservation (sometimes referred to as HELC) and wetland conservation certification (Form AD-1026 Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification) for the ERP producer and applicable affiliates.

Most producers — especially those who have previously participated in FSA programs — will likely have these required forms on file. However, those who are uncertain or want to confirm should contact their local FSA county office.

In addition to the forms listed above, certain producers will also need to submit the following forms to qualify for an increased payment limitation or payment rate:

• Form FSA-510, Request for an Exception to the $125,000 Payment Limitation for Certain Programs.
• Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification, for the applicable program year.

How Payments are Calculated — Phase 1

ERP Phase 1 payments for crops covered by crop insurance will be prorated by 75% to ensure that total ERP payments, including payments under ERP Phase 2, do not exceed the available funding. ERP Phase 1 payments for NAP-covered crops will not be prorated due to the significantly smaller NAP portfolio that only covers smaller acreages and specialty crops that are not covered by crop insurance.

USDA Risk Management Agency (RMA) and FSA will calculate ERP Phase 1 payments based on the data on file with the agencies at the time of calculation. The ERP Phase 1 payment calculation for a crop and unit will depend on the type and level of coverage obtained by the producer. RMA and FSA will calculate each producer’s loss consistent with the loss procedures for the type of coverage purchased but using the ERP factor in place of the coverage level. This calculated amount would then be adjusted by subtracting out the net crop insurance indemnity or NAP payment, which is equal to the producer’s gross crop insurance indemnity or NAP payment already received for those losses minus service fees and premiums.

For more information, visit the ERP fact sheet.

USDA Designates 209 Texas Counties as Primary Disaster Areas for Drought

ACP Discusses Dicamba Label

Kansas Passes Boll Weevil Legislation

Cotton and Wool Apparel Program

In Case You Missed It

The natural disaster designation allows the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) to extend much-needed emergency credit to producers recovering from natural disasters through emergency loans.

Emergency loans can be used to meet various recovery needs including the replacement of essential items such as equipment, reorganization of a farming operation, or the refinancing of certain debts. FSA will review the loans based on the extent of the losses, security available and repayment availability.

In the Texas High Plains region, all 42 counties represented by Plains Cotton Growers Inc. are designated as primary disaster areas for drought.

According to the U.S. Drought Monitor, these counties suffered from a drought intensity value during the growing season of D2 (drought-severe), D3 (drought-extreme) or D4 (drought-exceptional) for eight or more consecutive weeks.

Between 1949 and 1957, Texans experienced the second-, third- and eighth-driest single years ever in the state. The 1950s drought was described by a state water official as “the costliest and most devastating drought in 600 years.

Enter 2011. The drought in this year surpassed all years in the 1950s drought as the driest year in Texas ever on record with 14.8 inches of total rainfall.

However, 2021-2022 may be crowned champion of a game no one wants to play. Some counties in Texas haven’t seen rainfall since August 2021. The U.S. Drought Monitor comparisons of current-day conditions and May 2011 prove producers are in the midst of worsening drought conditions this crop year.

Ironically, at the same time, cotton market prices are hitting record highs. “I think every farmer wants to make a crop this year,” said Quentin Shieldknight, producer in Hansford County. “It’s just a matter of faith and help from Mother Nature at this point. Things can always turn around. They have before.”

PCG joins producers in praying for rain.

The American Cotton Producers (ACP) held its spring meeting in Dallas, Texas, April 27^th and 28^th.

Rod Snyder, Environmental Protection Agency agricultural advisor, updated the ACP on the EPA’s new Endangered Species Act Workplan to address the legal challenges to pesticide registrations that have been prevalent in federal courts. Regarding dicamba, Snyder stated there are no plans by EPA to change the dicamba label for the 2022 crop year. However, EPA is working closely with the registrants to make possible amendments to the label for 2023.

Darryl Earnest, deputy administrator of the U.S. Department of Agriculture Agricultural Marketing Service, provided an overview of the labor challenges faced by the classing offices in 2021, which caused significant delay in the grade turnaround to gins and producers. Similar issues are expected in 2022 due to significant labor shortages, increasing wage rates, COVID-19 protocols and supply chain issues. The NCC has requested $4 million in fiscal year 2023 appropriation that would assist in increasing automation at the classing offices to assist with long-term labor challenges. Earnest also announced a $0.20 (from $2.30 to $2.50) increase in the cotton classing fee.

Leon Sequeira, former Assistant Secretary of Labor in the George W. Bush Administration, brief ACP on current issues within the H-2A program and the bureaucratic constraints that hamper H-2A’s effectiveness. He also provided a short and long-term outlook of possible immigration reforms proposed in Congress as well as an update on the Farm Workforce Modernization Act.

House Bill 2559 would establish the Kansas Cotton Boll Weevil Program. While boll weevils are not in Kansas, lawmakers wish to create a prevention program for these insects since the boll weevil remains a threat to emerge from a stronghold on Texas’ southern border with Mexico, according to Tim Carpenter with the Kansas Reflector.

The bill would allow the boll weevil program’s board of directors to establish a cotton pest monitoring plan, including the authority to enter private property to inspect fields. If boll weevils or other pests are discovered, the board could develop an eradication plan. The bill would allow the board to levy an assessment on cotton bales, paid by the grower at the time of deposit at the cotton gin, to fund the program.

Gov. Laura Kelly approved the bill on April 25, 2022. The bill summary can be found here: bit.ly/37nFtCd.

The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) is announcing the availability of $50 million for the new Cotton and Wool Apparel Program (CAWA), which will support the domestic markets for wool and Pima cotton by assisting eligible apparel manufacturers of men’s and boys’ worsted wool suits, sport coats, pants or Pima cotton dress shirts, Pima cotton spinners and woold fabric manufacturers and wool spinners.

The COVID-19 pandemic dramatically reduced the demand for these types of clothing, textiles and threads and, in turn, the market for the raw commodities. CAWA will assist in the development and restoration of the market for domestically produced cotton and wool products and ultimately for the underlying commodities.

To be eligible for CAWA, an applicant must have experienced a decrease of at least 15% in calendar year 2020 gross sales or consumption of eligible products described in this document compared to the applicant’s gross sales or consumption in any selected calendar years 2017, 2018 or 2019. Payments to eligible entities will be based on their pre-pandemic market share relative to other similar applicants subject to payment limitations.

The eligibility requirements, payment calculation and application procedure for CAWA can be found here: bit.ly/37pqtE2.

High Plains Update (May 4, 2022) from Texas A&M University AgriLife Research Entomology 

Crop Scan AgReport: Cotton Planting Begins (Kerry Siders)

Solid Week for Upland Cotton Export Sales

Monthly Cotton Market Roundtable Set for May 12

Faces of Cotton: 20 Questions with Tony Williams

Soil Stewardship

Blue Jeans Go Green Initiative

Reliance on H-2A Workers Spikes

PPF Gin and Warehouse, LLC Wins Module Truck Case

In Case You Missed It

Today is Tony Williams’ last day working for the Texas Cotton Ginners’ Association (TCGA). I called him on Monday — his last day in the office — and since I knew he was busy getting ready for his annual ginners’ fishing trip, we played 20 questions.

1. What are you most looking forward to in retirement?

I met my wife, Lagina, in 2015 and we eventually married and live in CorpusChristi. So I’ve spent the past seven years driving back and forth from Austin to Corpus Christi. It will be nice to wake up on Monday morning knowing I don’t have to start the journey back to Austin. Plus, I’m looking forward to helping my wife run her business, Stover Equipment Co, Inc. and watching my step-daughter, Jayna, graduate college and my step-son, Jaxon, graduate high school.

Tony Williams and his family: Jaxon, Jayna and Lagina.

2. What would you consider your greatest accomplishment at TCGA?

The Texas Cotton Ginners’ Trust that we developed out of TCGA in 1994. It’s a separate entity now, but I was proud to be a part of developing a way for the cotton ginning industry to find affordable and available workers’ compensation insurance.

3. Is there anything that you weren’t able to accomplish?

It’s minor but it’s something I’ve always wanted to do. I’ve always admired the Texas and Southwestern Cattle Raisers Program member signs and wanted to provide that for our ginners to put on their outdoor sign or in their office. I’m sure the guys will take up that mantel.

4, What was your greatest challenge as executive vice president?

Tony Williams cuts the ribbon at his first TCGA trade show as TCGA executive director in 1991.

One month after I began working at TCGA, I was named executive vice president. That wasn’t the original plan, so I was thrown into the deep end pretty quickly. The support staff I had was new, too. I discussed the possibility of getting my old job back and telling the ginners to find someone else because I was only 26 years old, but they stuck with me. They had my back from day one and said they would take care of me no matter what. So I hit the ground running and never looked back.

5. That seems like an overwhelming life experience. What made you decide to stick it out?

Well, I like a challenge and I’m not afraid to tackle the hard tasks. I had a fire in me to be successful and the support of the ginners made me want to work hard for them.

6. What’s your favorite memory of your time at TCGA?

In 2005, I was given the TCGA Life Member award. My mom was always a special person in my life, and she wasn’t able to attend the award ceremony. I did not know I was the recipient and when they called my name, I realized they were broadcasting the ceremony to my mom so she could watch me receive it. That was a big deal in 2005. She ended up passing away that same year, so I was so grateful she was able to participate.

7. Do you have a favorite motivational quote?

I don’t know if this is a legitimate quote or if I made it up, but I always tell people, “Keep plowing forward.” I rarely look back — I just keep going — and I usually tell people to do the same thing. You can’t make progress if you’re not moving forward.

8. What’s your favorite song?

There are several but “Amarillo by Morning” by George Strait is probably my No. 1.

9. Who was your favorite co-worker? (wink wink)

I can’t play favorites! But I have always said that the best thing I ever did was hire Kelley Green. He saved the gins on the environmental regulations. I still remember meeting Kelley at the Capitol building in Austin and offering him the job. I had a great team and they made me look good. I enjoyed working with everyone.

10. What piece of advice would you give aspiring professionals today?

Make sure the career you choose is something you are passionate about. I was very passionate about the job at TCGA. I had grown up around agriculture and knew that what TCGA did was important. Find what drives you and pursue it passionately.

11. Do you have any hobbies?

My favorite is probably saltwater fishing. I also play golf and enjoy bird hunting.

12. Do you have any pets?

Right now I have a Boxer named Ginger and a Shitzu (if you want to call it that) named Max. I love dogs but I ended up with a cat in the marriage named Reese. We get along O.K., but I’m just not much of a cat person.

13. What’s your favorite color?

Blue.

14. What’s your favorite sport to watch?

College football.

15. What’s your favorite food? (This might have been the toughest question I asked.)

Oh man, I’m going to say chicken-fried steak. I should probably say my wife’s roast, which is great. But I think I’ll stick with chicken-fried steak. Final answer.

16. Who would you consider your No. 1 mentor throughout your career?

There are two. Having lost my father at age 15, my FFA teacher Finus Branham took me under his care and set me on a path toward pursuing a career in agriculture. Clemon Montgomery, who was running Texas Cottonseed Crushers Association at the time, guided and helped me tremendously in learning the ropes in Austin and the Texas Legislature.

17. Looking back on your career, is there anything you would’ve done differently?

I wish I would’ve documented more stories from industry veterans and taken more photos of my time at TCGA.

18. Can you sum up your TCGA experience in one word?

Fortunate.

19. What was the coolest part of this job for you?

In this job, I touched every single person’s life every day. There’s a good chance that every person is either wearing some cotton or using it in household products. Or they’re using cottonseed oil in cooking or other products. It’s kind of corny but I like the fact that what I do impacts everyone’s life, because, in some form or fashion, everyone is consuming or using cotton.

20. What will you miss the most about TCGA?

The people are what make this industry great. Cotton is a lovely product. It does a lot for our region, state and world to produce the fiber we do here, but it’s produced and ginned by some amazing people. And that’s why I have loved what I do for the 33 years I was privileged to do it. I’ve been so blessed to have the opportunity to work in this industry.

TCGA Staff: Tony Williams, retired, Aaron Nelson, Communications Manager, Kelley Green, new executive vice president, and Duncan McCook, Regulatory Affairs Manager

Plains Cotton Growers Inc. joins organizations across the stae to highlight theimportance of land stewardship during Texas Soil Stewardship Week April 24th through May 1st. 

“Soil is the foundation to everything,” said Mason Becker, producer in Terry County in an interview with Farm Policy Facts. “The soil is your savings account — every farmer will tell you that. If you don’t take care of your savings account, then you won’t have anything in the ‘bank’ when you need it.” 

The Texas State Soil and Water Conservation Board and Soil and Water Conservation Districts (SWCD) across Texas have been working to encourage wise and productive use of natural resources since 1939,   

“I’m constantly trying to learn how God created the world, how it functions and what I can do to work alongside it,” said Jeremy Brown, producer in Dawson County, in an interview with Southwest FarmPress.

Since 2006, Cotton Incorporated’s Blue Jeans Go Green program has collected denim (made from cotton) so it can be recycled back to its original fiber state and transformed into something new.

To date, the program has diverted 2,100-plus tons of denim from landfills and recycled more than 4 million pieces of denim. You can stop by the PCG office to donate your denim or visit: bluejeansgogreen.org 

Access to farm labor continues to be a significant challenge for specialty crop growers, who face challenges filling positions with domestic workers. This is due in part to the physical and temporary nature of employment, and the ability of employers to offer salaries that are competitive against employment opportunities in other sectors. Farm wages were only 59% of the wage rate of comparable positions in other industries in 2020.

Read the full story on Southern Ag Today.

As we reported earlier this month, the Supreme Court of Texas handed PPF Gin & Warehouse, LLC a big win by denying Delta County Appraisal District’s petition for review. The arguments and rulings related to this case can be found here: bit.ly/3LAhy1h. 

This entire case began when Delta County Appraisal District assessed PPF for the value of their module trucks. PPF argued that the module trucks are specially designed trucks used for gathering and removing cotton from the field during harvest time and should therefore be considered machinery used in the production of farm products. 

In other words, PPF argued that these trucks are not taxable since they meet the definition of agricultural equipment. This argument is very similar to the one we used when arguing that the module truck driver position qualifies for the H-2A program. PPF has been making this argument with the Delta County Appraisal District since 2018, but after not making any progress, they sued the Appraisal District and won in trial court. Delta County appealed, but the Texarkana Court of Appeals affirmed the trial court’s opinion. Finally, the Texas Supreme Court denied Delta County’s petition for Review, which essentially means they refused to hear this case.

Now, what does this mean going forward? It would seem to me that this means the value of the module trucks will need to be removed from each gin’s rendition, which is a major win for the entire ginning industry in Texas. The trial court also ordered Delta County to “inform the appropriate taxing units of this correction, as required by the Texas Tax Code.” I am certainly no tax or legal expert, but the ruling sounds to me like they are saying that this will apply to all appraisal districts. It is too early at this point to know how this will play out throughout Texas. It is possible that all the appraisal districts will see this case, and simply drop all the module trucks off the renditions this year. It is certainly also possible that they may try to make an argument that the PPF situation is somehow different and that this case is not applicable to all gins in Texas. The PPF case has handed the Texas cotton ginning industry a major victory, and now in my opinion we need to follow through. When you receive your property tax rendition this year, check it out and see if the module trucks are included in the valuation. If they are, I would sure talk to your appraisal district about the PPF case and contest the inclusion of module trucks in your property valuation. One would think that the appraisal district would be very hesitant to deny the appeal, considering the PPF case. If they do try to argue that your gin or your situation is somehow different from PPF, then please let your association know – we would like to keep a close eye on the impact this ruling will have on the gins throughout the state. In addition, be sure your tax professional is aware of this ruling, in addition to your appraisal district. As always, please give us a call if you have any questions, or need any more information related to this or any other regulatory issue affecting your operation.

Kelley Green, Texas Cotton Ginners’ Association

Western Caucus Visits West Texas

Research Highlight 

FSA State Executive Director Appointed

2022 Upland Cotton Loan Chart Released

In Case You Missed It

LtoR: Martin Stoerner, PCG President, Walt Hagood, Noureddine Abidi, Ph.D., Dan Newhouse (R-Wash.), Fred Keller (R-Pa.), Jodey Arrington (R-Texas), Ronny Jackson (R-Texas), Tracey Mann (R-Kan.), Jason Smith (R-Mo.), Michelle Fischbach (R-Minn.), Mike Conaway and Eric Hequet, Ph.D.

Plains Cotton Growers Inc. CEO Kody Bessent assisted in explaining fiber quality of High Plains cotton.

Rep. Jodey Arrington (R-Texas) hosted members of the Congressional Western Caucus Wednesday, showcasing West Texas as the nation’s leading region for agriculture/energy production, education, and research and development.

While touring Texas Tech University (TTU), the caucus visited the TTU Fiber and Biopolymer Research Institute (FBRI), learning about research dedicated to improving cotton quality and U.S. textile production. 

The FBRI serves the research needs of university researchers, cotton breeders, public agencies and textile manufacturers as an international leader in enhancing fiber quality.

Eric Hequet, Ph.D., Paul Whitfield Horn Distinguished Professor at FBRI, took the caucus on a tour of the institute showcasing the production and manufacturing of textiles from gin to mill. 

Throughout the tour, congressional members asked questions and explored opportunities for the U.S. to manufacture high-quality textiles.

Root-knot nematode. Photo Credit: AgFax

High Plains cotton producers battle drought, wind, wildfires and more when it comes to bringing in good yields. However, weather conditions aren’t the only threat to cotton crops.  Terry Wheeler, Ph.D., professor of plant pathology at Texas A&M AgriLife Research, has dedicated the majority of her career to combating roundworms, (nematodes) in cotton crops. Her work is supported by the Plains Cotton Improvement Program.

Q: What types of nematodes are primarily present on the High Plains?

A: Root-knot nematodes have been in the High Plains region for a long time. Gaines County and Terry County have the largest number of cases of these pests. Root-knot nematodes prefer a sandy soil — they move from the soil into the root system of the plant. They feed off the nutrients of the plant and grow very large (for a plant parasitic nematode) affecting the vascular system of the plant. Most nutrients and water go to the nematodes in this case rather than the plant, which negatively impacts yield by roughly 25%.

Reniform nematodes are newer to the region, discovered in the early 1980s. While we don’t quite understand why the damage is so severe with reniform nematode, we do know that reniform nematode is lethal to plants causing upward of 70% yield loss on average. These nematodes are found primarily in Lynn County, and have spread into surrounding areas.

Q: How do you control nematode infestation?

A: Nematodes are a long-term problem. There are multiple things you can try, but they might not be feasible for every operation. You can rotate another crop in to prevent an escalation of the nematodes, but peanuts are about the only crop you can rotate with for root-knot nematode, — other than that, it’s best to leave it fallow ground. With reniform nematode, sorghum and corn are also rotational options.

There are several chemical control options; however, I don’t recommend chemical control this season in the current climate. These chemicals need to be watered in well and while chemical control was a great option last year with all of the rains we received last spring, it’s probably not your best option this year.

The best option I’ve found through my research is to plant nematode-resistant seed varieties. You can significantly decrease nematode activity if using resistant varieties.

Q: When is a nematode infestation the most destructive?

A: Usually when you have root-knot nematodes in combination with Fusarium wilt, you’re looking at more than 75% to 80% yield loss because you can lose 75% to 80% of your stand in a severe infestation. We have yet to find a way to treat or prevent Fusarium wilt effectively, though some varieties are less susceptible to Fusarium wilt. This disease prefers a relatively warm spring season and spring rain. There also needs to be a good number of both root-knot nematodes and the Fusarium wilt fungus present in the field as well. Basically, the two together create a perfect storm of ultimate yield loss. Root-knot nematodes tend to be present every year on some level, but Fusarium wilt is more sporadic and difficult to predict. Fusarium wilt is present in all the counties where root-knot nematodes are problematic (Gaines, Terry, Lubbock, Lamb, Yoakum, Cochran and Hockley counties).

Kelly Adkins has been appointed FSA State Executive Director for Texas

A native of Haskell, TX, Adkins was raised on a small family farm in Haskell County where he attended the local high school, and later, Texas Tech University. While at Texas Tech, Adkins worked at the Texas A&M Agricultural Research and Experiment Station where he gained a deeper knowledge of agriculture. Upon his graduation, Adkins took a position with the FSA. Kelly has enjoyed a long career serving the farmers and ranchers of Texas. He has held a variety of positions during his tenure at FSA including County Executive Director in Grimes and Randall Counties, District Director, TASCOE Director, Mediation Coordinator, and as a County Office Trainee Program Trainer and Instructor. Kelly currently lives in Canyon, TX and spends his time helping run a small farming/cattle operation in Randall County.

The United States Department of Agriculture Farm Service Agency released the 2022-crop Upland Cotton Loan Premium and Discount tables on April 18th. The consistent theme we see in the charts this year, compared to the 2021 tables, are smaller premiums and also smaller discounts — especially in the White grades 11-41 and Staple lengths 34 and longer.

The revised premium and discount tables apply to the Base Loan rate for Upland cotton, which has also been announced and remains at 52 cents per pound for the 2022 crop.

The 2022 chart also adds to the increase in discounts for plastic contamination in the discount schedule for Extraneous Matter, specifically for Level One and Level Two Plastic, to reflect the market’s continued focus on this type of lint contamination.

When prices are high like they have been during the 2021-crop marketing year, premiums and discounts in the subsequent year’s loan table tend to move toward each other. The higher overall price for cotton makes the full application of discounts or premiums less critical in establishing the sale price.

As a result of this dynamic, Color/Leaf/Staple combinations that normally receive a discount will see slightly smaller markdowns under the 2022 loan chart compared to 2021. However, premium qualifying Color/Leaf/Staple combinations will be smaller in 2022.

As noted earlier, the 2022 premium and discount table for Extraneous Matter saw another significant increase in the discounts applied to bales identified as containing Plastic. Discounts for Plastic jumped the most — increasing to -4000 points for both Level One and Level Two plastic contamination.

Overall, the tables for other types of Extraneous Matter, Micronaire and Length Uniformity have mostly small five- to 10-point adjustments for 2022. The biggest change was in the Strength table where readings from 30 to 33.9 grams per tex (g/tex) will see smaller premiums and larger discounts.

Bales with Strength readings from 25.9 g/tex and below will receive significantly higher discounts with increases ranging from -100 to -140 points more than the previous year.

This is the second year the Upland Cotton Strength table includes significant changes as well. In 2021, growers saw higher discounts for Strength readings below 25.9 grams per tex. The discount for a Strength reading for the 24-24.9 and 25-25.9 ranges changed the most with an additional discount of 140 points, or 1.4 cents per pound, added to the existing discount level. Discounts for lower Strength readings were also increased.

The following table provides comparisons between 2021 and 2022 loan values for White Grades 11-41 and Light Spot grades 12-42, Staple 34 through 38 and higher.

Complete 2022 Loan Premium and Discount tables and loan charts with calculated values based on the 2022 schedule of premiums and discounts will be posted on the Plains Cotton Growers website at: https://www.plainscotton.org/loan-charts

Faces of Cotton: Guyle Roberson

Wildfire Havoc

Fertilizer Price Impact Report

Replant Requirements for ELS Cotton

In Case You Missed It

Guyle Roberson (left) and his brother Randy.

Waiting for his turn to run drills, Guyle Roberson breathed in and out, clenching and unclenching his hands. Jogging in place, staring at the other players also working to change their destiny. This is it, he thought, this is my moment. My chance. They call his name. He steps out on the field.

Producer Seth Sowder and Guyle Roberson with the first ginned bale of cotton in 2021.

An hour later, he’s cut from the team.

Reflecting on chasing a football career, Roberson isn’t bitter, which says a lot about his character. An All-American offensive tackle at Lubbock Christian College (now Lubbock Christian University), he suffered a knee injury that hurt his chances of playing professionally. However, he didn’t quit. He worked his way up to playing for the Twin City Cougars, a minor league in California, and a good season there gave him his shot to try out for the Houston Oilers.

While he didn’t make a career out of playing football, the discipline and teamwork the sport taught him can be seen throughout his life. The farm boy from Amherst has had quite a ride so far. 

One Second …

Born and raised on a farm in Lamb County, Roberson was no stranger to working.  Farming alongside his father and brother was special. “While I never made a career out of farming,” he said, “I won’t ever forget how working with my family shaped me as a person.”

After football didn’t work out, Roberson worked for Lubbock Power and Light. He spent the next 21 years there working his way to manager of three departments and 45 employees. “Teamwork was crucial in that role,” Roberson said. “And, in a way, I believe it helped prepare me for the one I’m in now at Texas Producers Co-op.”

Two Seconds …

In 2008, Roberson was approached by Amherst gin board members asking him to run the gin. When he walked in the doors that May, he locked eyes with all his high school football and little league teammates, including his former little league baseball coach, and knew he had made the right decision. “It felt like a family reunion,” Roberson added. “I had been gone for a while and it was nice to be back home.”

Roberson is a numbers guy. He likes collecting data and measuring trends. He quickly automated the bale count system at the gin and analyzed components that led to inefficiency. Once he had measurements in place, he began prioritizing which concerns were of greatest importance.

Three Seconds …

Guyle Roberson (right) with long-time patron Charles Hines from Littlefield, Texas.

The customers were also part of the analysis process. Roberson assessed where they could provide more value for customers and made strides to improve and maintain product quality both in and out of the gin. “We weren’t just ginning their cotton,” Roberson added. “We wanted to provide more than that.” It worked. The Amherst gin grew by 15% in the first few years of Roberson’s leadership.

Four Seconds …

In 2016, Roberson was approached about a possible merger between Sudan’s gin and Amherst. He immediately went to his brother, who sat on the board for Amherst to get his opinion. The merger went through that June.

“Mergers are…I guess emotional is the right word for it,” Roberson added. “A lot of emotions when merging two gins into one co-op.”

Guyle Roberson with Greg Harper of Sudan, Texas.

The merger gave birth to the Texas Producers Cooperative Association — a $28 million company, averaging 105,000 ginned bales a year.

Five Seconds

While the primary function is ginning cotton, the Texas Producers Co-op doesn’t see a lot of downtime in the off-season. As soon as the last bale is ginned, the co-op begins preparing and planning for next year. “That’s when our agronomy season begins,” Roberson adds. “We start looking at seed varieties pretty quickly after ginning.”

The co-op also runs a farm store and automotive shop year-round.

Six Seconds …

Guyle Roberson and his wife Sherri.

Roberson married his wife, Sherri, 31 years ago and has three children. His oldest daughter, Meagan Hunton, is a medical office manager in Amarillo, Texas. Randi Brooke Sheffy is a radiologist in Dimmitt, Texas, and the youngest, Shane Roberson, is a 3D prop artist in Austin, Texas. He also has a six-year-old granddaughter named Zoey.

Roberson’s brother, Randy, was always the one he went to for advice. “He was my go-to, my rock,” Roberson said. “His character was unmatched.”

When Sudan and Amherst merged, Randy decided to allow his board position to go up for re-election. “He volunteered to do that for me since I would be the CEO,” Roberson added. “He was afraid it would look bad for me to have my brother as an Amherst representative for the merged co-op. He was selfless like that.”

Randy died suddenly January 18^th — the day after his 58^th birthday. Twelve days before losing his brother, Roberson lost his mother.

“My mother lived such a full life, leaving no stone unturned,” Roberson added. “What a blessing to be raised by her. Losing my brother was a total surprise. It’s been rough, but I was so blessed to love and be loved by both of them.”

Guyle Roberson and the Eight-Second Ride band. Members include: Guyle Roberson, lead vocals/guitar; Mike Ritchie from Springlake, Texas, on bass guitar; Clay Gibson from Levelland, Texas, on lead guitar, David Newton from Abernathy, Texas, on drums. Also pictured is PCG Director of Field Services Mark Brown from Lubbock, Texas, on fiddle.

Seven Seconds

Roberson grew up singing in church and learned to play the guitar. In 1986 he formed a band and played gigs on the weekends. He’s currently the lead singer and guitar player for Guyle Roberson and the Eight-Second Ride. Sometimes, you can catch Mark Brown, PCG director of Field Services, playing the fiddle with the band.

Eight Seconds

Guyle Roberson and Sudan employee Beth Wallace.

When he’s not singing and picking, he’s studying reports. All the entities of the co-op generate reports that he evaluates and transfers to an excel spreadsheet. “I want to be able to compare our operations to the month before or year before to make sure we’re on the right track,” Roberson added. “There’s always room for improvement and I would hate for us to become complacent, which would lead to loss of growth.”

Roberson manages 40 full-time employees at the co-op and around 100 employees during ginning season. The teamwork spirit ingrained in him from sports is attributed to his success. “We wouldn’t be able to do this if we didn’t all work together,” he added. “Not only work together but work together well.”

Guyle Roberson gives gin tours to elementary students.

Roberson may not have achieved his initial dreams of professional football, but he couldn’t ask for a better destiny than the one he’s been given.

Wildfire in south Levelland caused the mayor to issue an emergency evacuation of the area April 12th.

In March, state and local resources responded to 726 wildfires that burned 164,257 acres across the state. From March 21 through March 28, fire resources responded to 121 wildfires that burned 35, 728 acres including the Crittenberg Complex in Coreyell County, the Eastland Complex in Eastland County, the Das Goat Fire in Medina County and the Ramsey Fire in Brown County, according to the Lubbock Avalanche-Journal. 

On April 12th, the south side of Levelland was issued an order of evacuation after a grass fire broke out near highway 385 north of the airport. Minimal damage was reported. By 4 p.m. fire progression had stopped. Roads reopened at 5 p.m.

At 6:39 p.m. that same evening, a fire was reported at Premier Park Equestrian Center in Lubbock. One home and a barn were lost — all horses and people were safely evacuated.

More than 40% of the state is in an extreme drought. The fire in Eastland County was unusually intense due to a weather phenomenon known as a Southern Plains Wildfire Outbreak (SPWO). SWPOs are characterized by dry vegetation, dry west-southwest winds, low humidity, above average temperatures and sunny skies.

Dawson County and several others in the immediate area are now included in a wildfire disaster declaration, which Gov. Greg Abbott originally issues last month.

Andrews, Borden, Dawson, Gaines, Howard, and Martin Counties were among 56 counties added on April 1 to a disaster proclamation originally issued by Abbott on March 18. The original proclamation, issued following the disastrous wildfires that hit the Eastland area, covered only 11 counties but additional counties have been added several times. The declaration now lists 67 counties scattered across various parts of the state.

Use caution when operating equipment and machinery and stay safe!  

Texas A&M University economists will soon deliver a report to Congress that will show the surging fertilizer price impact on U.S. farmers is over double the drag estimated in a report late last year. Lawmakers may use the information to decide whether to push a program that would temper some of the price implications.

The United Nations said Russia is the world’s No. 1 exporter of nitrogen fertilizer and No. 2 in phosphorus and potassium fertilizers. Its ally Belarus, also contending with Western sanctions, is another major fertilizer producer. Many developing countries — including Mongolia, Honduras, Cameroon, Senegal, Ghana, Mexico and Guatemala — rely on Russia for at least a fifth of their imports.

The Russia/Ukraine war also has driven up the already exorbitant price of natural gas, used to make nitrogen fertilizer. The result: European energy prices are so high that some fertilizer companies “have closed their businesses and stopped operating their plants,” said David Laborde, a researcher at the International Food Policy Research Institute, according to the Associated Press.

Jim Wisemeyer, ProFarmer

Producers on the Texas High Plains considering Extra Long Staple Cotton insured under Written Agreement (WA) should be aware an ELS cotton policy includes some interesting and maybe unexpected requirements regarding crop damage and replanting determinations. 

For ELS cotton to be insurable under a written agreement, the final plant date (FPD) for the written agreement is based on the county upon which the ELS written agreement is based. In the High Plains region, the majority of FPDs are based on Ward County, Texas or Eddy County, New Mexico, both of which have an FPD of April 30th.

Another important difference between an ELS policy and the Upland cotton policies we are more familiar with is that an ELS cotton policy has different rules when it comes to replanting a damaged or destroyed crop. 

Like Upland cotton, the determination that it is practical to replant a damaged or destroyed ELS cotton crop is a decision made by the Approved Insurance Provider (AIP). The AIP’s determination is governed by the U.S. Department of Agriculture Risk Management Agency’s definition of practical to replant and based on an expectation of growing a successful crop.

What is different about the ELS policy, however, is that when an AIP determines it is practical to replant a producer must replant either ELS cotton or Upland cotton in order to maintain coverage under the ELS policy. When Upland cotton is replanted the ELS policy utilizes a calculation that converts the Upland cotton produced to an equivalent ELS cotton production amount that is used to determine if a loss was incurred under the policy. 

A producer can decide not to replant ELS or Upland cotton when the AIP determines it is practical to replant. However, no coverage is provided. The acreage is removed from the acreage report, no indemnity is due, no replant payment is made and no premium is earned or payable.

According RMA policy, which is explained in the Frequently Asked Questions document “Double Cropping Revision and Practical to Replant” (https://www.rma.usda.gov/News-Room/Frequently-Asked-Questions/Double-Cropping-Revision-and-Practical-to-Replant), a producer is not required to replant a damaged crop, even when an AIP determines it is practical to replant, and has the option to plant a different crop instead.

In the FAQ RMA provides the following answers to the questions “Is a policyholder forced to replant their crop?” and “What if it is determined practical to replant and the acreage is planted to another crop?”

Is a policyholder forced to replant their crop?

No. However, in accordance with the crop insurance contract, if it is determined practical to replant the insured crop and it is not replanted, no coverage for the insured crop will be provided and no premium will be due.

Therefore, it is always the policyholder’s choice whether to replant a damaged crop; however, if it is determined practical to replant by the approved insurance provider and the policyholder elects not to replant, no coverage is provided. The acreage is removed from the acreage report, no indemnity is due, no replant payment is made, and no premium is earned nor payable.

What if it is determined practical to replant and the acreage is planted to another crop?

The initially-planted crop that was lost and determined practical to replant is removed from the acreage report and no coverage is considered to have existed. If the policyholder decides to plant another crop instead of replanting the damaged initial crop, the crop planted may be insured provided it meets all insurability requirements and will be considered the first insured crop.