Cotton News

Cotton industry with Sen. John Cornyn (R-TX).

This week Plains Cotton Growers participated in 31 meetings and fundraisers in two days on Capitol Hill. It was a fast and furious fly-in as all commodity groups and associated industry swarmed Congress to advocate for farm policy.

Cotton Industry with Senate Committee on Agriculture, Nutrition and Forestry Ranking Member Sen. John Boozman (R-AR).

“This was a well-designed and strategically calculated effort by many national, state and regional groups,” said PCG CEO Kody Bessent. “It was also unique — we don’t typically see a cotton producer, wheat producer, sorghum producer, peanut producer etc. and a lending institution all walk into the same meeting, but that’s what happened this week. We all worked together to paint the picture of farm country’s suffering.”

Members of Congress had been hearing from their constituency during the August recess and the timing of this fly-in couldn’t be better as it was fresh on their minds and they were ready to work. There were several encouraging experiences that the PCG delegation witnessed.

“I was encouraged by Sen. Cruz listening to us and immediately instructing his staff to communicate our issues and put pressure on the Senate to work on a farm bill,” said Travis Mires, PCG President. “I feel more optimistic about things than I did before we went.”

“We walked into every meeting a little differently this year than in the past,” said Brent Coker, PCG Vice President. “There wasn’t any small talk — we got down to business. This

PCG President Travis Mires visits with Rep. Clay Higgins (R-LA).

week was productive, and I feel Congress began to really understand just how badly farmers are hurting.”

“I was encouraged by all the collaboration that PCG had with the other commodity groups and organizations,” said PCG Chairman Martin Stoerner. “We had one collective voice, and I felt that was powerful.”

While the group was in D.C., a memo was issued by House Ag Committee Ranking Member David Scott to his democrat delegation. He stated, “We all know that Congress needs pressure to act. That is why Chairman Thompson, Chair Stabenow, Ranking Member Boozman and I agree we are better off without another extension at this point. The farm groups are also asking Congress to continue to work on passing a full farm bill this year and are not supporting any extension at this time.”

Congress may have a limited number of days left in session to get a farm bill and disaster-economic assistance package accomplished by the end of the calendar year, but the pressure is real, and they understand the urgency and importance of getting it done. There are ongoing efforts for a continuing resolution to keep the government running at the end of this month, and we’re optimistic that Congress will function and work for the people as is their charge.

Cotton Industry with Sen. Jerry Moran (R-KS).

That being said, we cannot let up on our own communication efforts. We must let them know continuously what agriculture needs. We are all ambassadors of our industry, so continue to engage with your U.S. Congressman and Senators in every way possible. Your call provides real-time information that helps them as legislators and helps drive federal policy for the betterment of our industry and nation.

Welcome to the September 6, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Secretary Vilsack Claims Farmers are Fine Financially

PCG is Headed Back to the Hill! 

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In Case You Missed It

By Kara Bishop

The USDA Economic Research Service released the 2024 Farm Sector Income Forecast report, and I’m starting to think the Secretary of Agriculture is living in an alternate reality.

He issued a response yesterday that left me and others scratching our heads, so I’m going to break it down.

Today’s farm sector income forecast shows that, while the projection shows a decline from the 2022 record high, 2024 is expected to close out a four-year streak of net farm income that’s above the 20-year average…

Oh yea, farm income for 2024 is going to be above the 20-year average — let’s all celebrate. Because the 20-year average is what farmers are concerned about. The 20-year average is going to keep farm operations in business. The 20-year average is going to save America.

NO ONE CARES ABOUT THE 20-YEAR AVERAGE!

Here’s what we know. Inflation is insane. Interest rates are insane. Cost of goods is insane. Cost of production is insane. Commodity prices are insane. It doesn’t matter where our current farm income sits in comparison to any average you come up with, row crop farmers aren’t profitable — much less breaking even.

Even Agri-Pulse sniffed that out, saying:

“But the rosier forecast masks tremendous variation between sectors. Unexpected gains in the livestock and poultry sectors are helping offset huge drops in sales across major row crops, including corn, soybeans, cotton and wheat.”

For the prior four years, net farm income was consistently at or below that historic average, even before the COVID-19 pandemic…

Cue the election year sensationalism. In translation, Vilsack claims farmers were not making money under the Trump Administration. Farmers were suffering under the Trump Administration compared to the Biden Administration. And honestly? No one cares about that either. The smoke and mirrors routine is getting old.

Let’s stick to the matter at hand: profitability for row crop farmers is nonexistent in 2024 and at the current trajectory, not looking good for 2025, either.

Without question, despite a softening of input costs, returns to crop producers remain a challenge as we recover from shocks in the market, such as Russia’s war in Ukraine.

When did input costs “soften?” Once a cost goes up it rarely comes back down. Let me know if you’ve noticed costs of goods and services going down in your business operating budgets. And I have no doubt that the Russia-Ukraine conflict affected the market. However, he’s omitting one of the biggest reasons we have market issues. Our trade deals flat out suck. Our trade deficit is higher than it ever has been, and we’re letting other countries run over us when it comes to agricultural exports.

…farmers will continue to see declining production expenses led by feed, fuel and fertilizer helping to offset lower commodity prices. Farmers’ equity in their farm operations also continues to increase, rising 2.7% since last year.

I think it’s inaccurate to apply data universally to farming. Farm operations are different depending on how you farm, what you farm, where you farm, etc. Applying the equity increases that livestock producers have experienced to all farmers unilaterally is dishonest.

The Biden-Harris Administration continues to fight for a system where family farms work for the family, not the other way around. Our investments in climate-smart conservation, on-farm renewable energy, domestic fertilizer production, expanded local meat processing, organic markets, and procurement from local and smaller-sized operations are contributing to a more resilient, robust and diversified food and farm sector so that all farms can thrive, not just the top earners. In addition to expanding access to crop insurance, which is vital in the face of increasing natural disasters and global disruption to markets, the next Farm Bill must cement this approach to investing in farms of all sizes, and move us away from a dangerous ‘get big or get out’ approach.

This is Vilsack’s story and he is stickin’ to it.

The idea that the big farms, the “top earners” are corporate farms is a myth — 98% of U.S. farms are family owned (ironically the source for this statistic is USDA). The large-scale family farms are responsible for 90% of the production. That doesn’t make them big farmer monsters preying on the small rooftop tomato growers. It means they assume 90% of the risk as well.

Originally when this country was founded, the American dream was to work hard, and pass that work ethic on to your kids. Provide them with a legacy to protect and pass on to their children. That’s why people flocked to America: the freedom to build something that would last. According to Vilsack, the American dream is “dangerous” and needs to be punished with weird calculations, dishonest averaging and a farm bill that penalizes those who have built generations of equity. The circumstances of 2024 are threatening the American dream. The cost of doing business compared to the profitability of said business is killing the American dream. However, it’s the American dream — the 10% of farms providing 90% of this nation’s production — propping this country up amid all the crises she’s currently drowning in.

So, in the end, is Secretary Vilsack clueless? I don’t think he is. I think he knows exactly what he’s doing and it’s time to call a spade a spade. Weaponizing USDA against the very people it was designed to support is shameful. The election year antics are getting ridiculous.

Get your crap together man. Before most of the farms are gone rendering nutrition programs and small farmers pointless. You care about the hungry? Prove it.

By Kara Bishop

We’re headed back to Capitol Hill September 9 to advocate for a 2024 Farm Bill and economic stimulus package. It will be an exciting time as most of the cotton industry will be present in D.C.

Last Friday, the Southwest Council of Agribusiness hosted a Farm Bill Summit where people from across the nation gathered to gain insight on the Farm Bill and state of affairs for the agriculture industry at large.

“The number of people at this event shows just how bad everything is,” one attendee commented.

The data painted a bleak picture of farm country’s future should nothing change, while also highlighting the need for a farm bill and economic assistance.

In this entire event, one key moment stuck out to me. Toward the end, PCG CEO Kody Bessent said, “I’m pumped about this farm bill, and I think you’ll be so proud of the work that’s been done to bring it to fruition. I believe it will be enacted at the end of this calendar year, and we’re also working on economic relief to bridge the gap between now and when the Farm Bill goes into effect.”

I’m used to hearing him say this. He says it often, and I believe him — he should know as he’s been doing the work.

What was interesting was the crowd’s reaction. They didn’t expect a positive position on farm policy amid all the challenges that producers are facing. Even some of his colleagues were actually uncomfortable with what he said. And I have a theory as to why.

Defeat is comfortable.

We don’t put much stock in optimism or hope for that matter. It’s more comfortable to participate in negativity. You don’t get hit as much if you keep hope from rising. You don’t get disappointed if you don’t expect anything. If you keep close to the fire, you’re just going to get burned.

It goes against the grain to act excited about anything right now in the agriculture industry. And, honestly, it takes guts to express that excitement. We tend to enjoy a negative majority and it’s more comfortable to complain than it is to fight in the arena.

People were taken aback by Kody’s comments and questioning whether he could possibly be right given the circumstances farmers are facing today. I would argue they’re asking the wrong question.

Here’s a better one. Which advocate is more effective with Congress: the excited one or the one who expects to lose? Which one is going to keep trying? Which one is going to keep making progress?

The only constant thing in this world is change. The only solution to change is adaptation. Whether it’s an organization or an entire industry, it either adapts or it dies.

Defeatists don’t adapt. They’ve given up. They’re no longer thinking outside the box. They’re no longer looking for solutions, much less advocating for them.

I don’t have rose-colored glasses on, and the men and women who are flying in next week to fight for agriculture don’t, either. We understand it’s bad in farm country. We understand there is real suffering going on. But at the end of the day, if we’re really going to survive as an industry, we must decide whether we’re going to operate as winners or losers.

Which one are you?

Welcome to the August 23, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

The Main Reason Polyester is Killing Us

NCC, USDA Announce 4-Bale Module Averaging Pilot

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In Case You Missed It

Cotton Industry Needs to Plant a New Seed

By Kara Bishop

Holiday Happening is an event put on by the Junior League of lubbock every year in November. My mom and sister and I have attended the event for over 10 years. All the trendy boutiques are there selling the latest fashion finds, toys, gadgets, etc. It was my first Holiday Happening event that introduced me to Barefoot Dreams.

Every boutique had an item from Barefoot Dreams. When I first discovered them a decade ago, they had the softest blankets, coziest pajamas and hands-down best socks, according to every store owner and customer at Holliday Happening. The CozyChic line of luxuriously soft lounge wear was selected as an “Oprah’s Pick,” which was and still is a huge deal for a business owner.

From what I remember and can find online, the founder of Barefoot Dreams was looking for buttery soft blankets and clothes for her babies, and, in the 90s, there wasn’t much to choose from. She founded her own company to provide the cozy feel of staying in and loving your babies, which has evolved into a multi-million-dollar brand that has something for everyone.

Barefoot Dreams owns the young female market, while also taking large ownership of the mothers of these young females, too. The moms want the latest fashion for their girls and then discover that they also enjoy the products. Influencers with millions of followers love Barefoot Dreams and offer their products in giveaways and paid partnerships. A Barefoot Dreams blanket was seen used by Khloe Kardashian on the hit TV-show, “Keeping up with the Kardashians.” These blankets consistently sell out during the Nordstrom’s Anniversary Sale, and they’re not cheap with their $180 price tag.

The fabric lines that they’ve created are a marketer’s dream. All targeted toward people who desire comfortable clothes. And during the COVID-19 pandemic, the work-from-home athleisure market exploded, funneling more and more consumers into Barefoot Dreams’ cozy, soft space.

CozyChic was their first and bestselling fabric line. And it’s 100% polyester microfiber.

In a New York Times article published in 2021, Deborah Young, a textile historian and professor at the Fashion Institute of Design and Merchandising, referred to Barefoot Dreams fabric as, “…not your father’s polyester. Microfiber is incredibly fine, like silk. We never managed to imitate silk chemically, but ultimately came closer by making one finer than silk.”

The rest of Barefoot Dreams’ fabric lines and types are the following (in order of how they are listed on the website):

• CozyChic Lite: nylon/rayon (from bamboo)
• Cozychic Ultra Lite: nylon/viscose
• Luxe Milk Jersey: modal/spandex/acrylic
• Malibu collection: washable knits (includes some cotton)
• Sunbleached Cotton (There is a link to shop on each fabric they list, but it’s broken or no items exist when you click the link for Sunbleached Cotton.)
• EcoChick and Eco CozyChic: 100% recycled polyester
• CozyTerry: 38% rayon, 35% cotton, 27% polyester
• LuxeChic: polyester/spandex
• ButterChic: marketed as athleisure wear and consists of 91% polyester, 9% spandex (10% of cotton can be found in the lining of the shorts in some of the items)
• CozyChic Cotton: 60% cotton, 40% polyester
  • It’s the last fabric line listed on their site, and not one item in this line is included in their “customer favorites” section.

Look at the names of the fabrics they use for their apparel. Cozy, butter, luxe, Malibu — these all speak to consumers as breathable, soft, comfortable must-haves.

I subscribe to multiple apparel companies to study their marketing, and this article was born from a recent email I received from Barefoot Dreams. The subject lines of the last five emails I have received from them are:

1. Find joy in relaxation with comfy pieces
2. Coziest. Sleepwear. EVER.
3. Experience unmatched luxury with 15% off
4. Cozy up to Fall styles
5. “Induces Immediate Calm”

Email marketing example from Barefoot Dreams.

My generation of consumers (I’m 35 years old) is fully convinced that polyester microfiber is the luxurious thing to wear and purchase. They will spend hundreds of dollars on this material, which leads me to believe it’s not just the cost of cotton that’s causing people to choose polyester. It’s also the language used.

If you’ve ever seen the movie “Inception” with Leonardo DiCaprio, you’ll remember that the premise behind the movie is planting an idea in someone’s head that motivates their actions and future. That is what polyester champions have done. They’ve planted an idea in our minds about the luxurious, silky, softness of synthetic fibers, so we believe it and purchase it.

I’m not saying that the founder of Barefoot Dreams had some evil plot to manipulate us with polyester fabric. She just wanted to solve a problem and thought that polyester microfiber was the answer.

We are only now understanding the impact polyester and microplastics have on our bodies and planet. Much like the evolvement of cigarettes — where we initially never gave it a second thought to now convinced of how unhealthy it is — so, too, is polyester harming our systems and environment.

That’s why it is so important for each of us to use the research available from Cotton Incorporated and spread awareness of the following:

• The harm of synthetic fibers;
• The softness of cotton;
  • I’m currently wearing a shirt made of 90% cotton and 10% spandex that would rival any butter leggings on the market — it’s one of the softest shirts I own.
• The odor control and coolness of cotton fiber;
• The durability of cotton apparel compared to synthetic;
• Cotton’s superior performance.

And above all of that, the single greatest thing any of us can do is purchase cotton. As consumers, we need to demand cotton products.

Barefoot Dreams has a limited supply of cotton apparel/accessories, but they do have them. Here are some cotton items for sale in their online store:

• Towel Terry Braided Slippers (cotton house shoes!)
• Towel Terry Sandal ($25!)
• More cotton items

Cotton Incorporated’s website The Fabric of Our Lives has a virtual “cotton shop” that you can purchase cotton clothing from as well.

We have to plant new seeds in society’s mind regarding cotton fiber and apparel using the resources I’ve shared here. And that’s going to require each and every one of us sharing this information with someone else.

Happy planting!

NCC Press Release

MEMPHIS – The National Cotton Council (NCC) and the United States Department of Agriculture (USDA), are pleased to jointly announce the launch of the 4-Bale Module Averaging Pilot Program. This voluntary program, part of the USDA’s Cotton and Tobacco Program, aims to enhance cotton bale fungibility through modern techniques, increasing efficiencies in warehouse bale selection and improving overall quality. The initiative stems from the collaborative efforts of the NCC’s Cotton Flow Committee and the Quality Task Force, which identified cotton bale fungibility as a key area of mutual interest.

Gary Adams, NCC President and CEO, stated, “I am pleased we are able to jointly announce this pilot program. We believe this represents an important step forward in enhancing cotton bale fungibility and improving U.S. cotton’s competitive position.”

The pilot program includes specific criteria for averaging bales and reporting data back to customers. Participation is flexible, allowing customers to submit modules in multiples of four up to a total of 48 bales.

For more information on the pilot program and how to participate, please visit http://www.ams.usda.gov/about-ams/4-bale-module-averaging-pilot.

Welcome to the August 16, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Congress Goes ‘Back to School’ in September: Will We Get a Farm Bill When They Come Back?

Initial 2024 Acreage and Crop Estimates Released August 12

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In Case You Missed It

Will we get a Farm Bill when they come back?

By Kody Bessent

There’s something about summer break that prepares students to go back to school. It’s the recharge and reset everyone needs from nine and a half months of rigorous learning. I think the same can be true for the August recess that Congress experiences every year. They come back from their one month out of session reinvigorated for the work that needs to be done to wrap up legislation for both the fiscal and calendar year.

While they’re back in their hometowns and off Capitol Hill, Americans are inundated with headlines and video clips of how inept Congress is at its job.

So many of these narratives have made people question the possibility of a Farm Bill.

First off, I believe we will get a Farm Bill done. Will it be before the current bill expires at the end of September? Honestly, that’s unlikely. Can it be done before the end of the calendar year? I believe so and it should be.

The basic function of Congress is to enact laws that influence the daily lives of Americans and is intended to serve as the voice of their constituency. Their sole responsibility is to approve funding for government functions and programs, including the Farm Bill, and oversee the implementation of such programs.

Media outlets and “keyboard warriors,” most of whom have been “Negative Nancies” lately, simply need to pipe down on Farm Bill commentary. Keep in mind the aforementioned thrive on readership and the engagement that “drama” provides. The sensationalized coverage can distract Members of Congress from doing their jobs as elected officials. And let’s face it: there’s no better drama than down playing Congress’ ability to enact a new and enhanced Farm Bill — especially in an election year.

It can be easy to join the negativity when you’re immersed in it. While we can’t control some of these circumstances, we can control our reaction.

Here are some action items I’m suggesting for all of us.

1) Take a breath and remove yourself from the theatrics you see in the news/social media or on television. Congress can function. It’s not always easy or pretty, but they can enact policy for the betterment of the agriculture industry and people in general.

2) Cll your Member of Congress. Times are extremely tough in farm country across the U.S. We know this because we are in it, but those outside of our livelihoods and industry don’t.

PCG Area Representatives:

Rep. Jodey Arrington: (202) 225-4005

Rep. Ronny Jackson: (202) 225-3706

Rep. August Pfluger:  (202) 225-3605

PCG Area Senators:

Sen. John Cornyn: (202) 224-2934

Sen. Ted Cruz: (202) 224-5922

Don’t get me wrong, we have great champions in Congress like House Ag Committee Chair Glenn “GT” Thompson (R-PA) and Sen. John Boozman (R-AR) as well as other allies and their staff trying to address challenges in the farming community on a daily basis. However, they, and members in our service area like Rep. Jodey Arrington (R-TX), need to hear from you regularly. The only way for them to keep an accurate pulse on the economy and communities they represent is to hear from you. Your feedback makes them more effective Congressional Members and educates their staff on important agricultural issues. Serve as a resource for yourself and your industry by sharing your story, frustrations, concerns and successes.

As a reminder, here are the base priorities that PCG is advocating for in the Farm Bill:

• Increase the statutory seed cotton reference price to better reflect costs of production — the House Agriculture Committee bill does this.
• Remove the prohibition of PLC enrollment and the purchase of Stacked Income Protection (STAX) or at a minimum enhance the Supplemental Coverage Option (SCO) so it is on parity with STAX — the House Agriculture Committee bill does this.
• Enhance the upland cotton marketing loan program by raising the level of the loan rate and modernizing the loan repayment provision — the House Agriculture Committee bill does this.
• Provide a mechanism for assistance to cotton’s infrastructure — the House Agriculture Committee bill does this.

Economic Stimulus Opportunity

While Congress can — and, again, I say will — enact a Farm Bill before the end of the calendar year, it will take time for producers to see the benefits. The agriculture industry cannot wait much longer for assistance, which is why it is so important that Congress also focus on developing a bridge of support that addresses the current financial crisis that producers and industry are facing today. The rise in inputs compared to current marketing conditions must be addressed to keep producers in business. If not, we will most likely see negative impacts on the industry such as bankruptcy and mental health decline.

All of you are ambassadors of our industry, so call your Member of Congress. Attend town hall meetings. Utilize email, text and social media to create awareness of your situation. These actions will further elevate the overall cotton industry’s initiatives and advance the development of strong farm policy. Not only to help you in your time of need as producers and industry, but also to help the general consumer. If we concentrate on engaging with Congress during their “summer break,” then they may reconvene in September equipped, energized and passionate about enacting strong farm policy.

By Shawn Wade

USDA’s National Agricultural Statistics Service has issued its first estimate of Upland cotton production for the 2024 growing season projecting an Upland crop of 14.55 million bales – some 1.5 million bales below market expectations.

This first production estimate, combined with the release of USDA Farm Service Agency’s August 12 certified acreage report have provided much-needed insight into this year’s crop prospects.

The biggest surprise was probably the sub-15 million bale projection for Upland cotton production, which was fueled by a U.S. planted acreage number that is more than 500,000 acres less than USDA’s June 30 Planted Acreage estimate and 2.5 million acres of abandonment.

USDA FSA certified acreage data shows 10.785 million acres planted to Upland cotton in 2024. That number is likely to climb slightly higher as late acreage certifications are processed, but aligns well with NASS’s planted acreage number of 10.974 million.

Most of the difference in U.S. acreage can be attributed to fewer planted acres in Texas. Initially estimated at 6.44 million on June 30, the August FSA acreage report shows Texas producers planted approximately 5.83 million acres of Upland cotton – a difference of 450,000 acres.

Cotton producers on the Texas High Plains have reported 3.843 million acres planted in 2024. That’s an increase of 400,000 acres from the region’s 2023 planting total and accounts for 80% of the additional acres planted in Texas this year.

Failed acres will play a huge role in the ultimate size of the crop at the national, state and regional levels. It is no surprise that most eyes will focus on the Texas High Plains to see how much of the area’s non-irrigated acreage ultimately makes it to harvest.

As reported in the August certified acreage report, failed acreage nationwide is relatively small, totaling only 488,599 acres through August 1 —  87% of those failed acres (423,542 acres) have been reported in the Texas High Plains region.

While that number is a large portion of total U.S. failed acres to date, those 423,542 acres equate to a current abandonment rate of only 11% across the 42 counties that comprise the Texas High Plains region. Unfortunately, there is a strong indication that a significant number of the High Plains’ non-irrigated acres will end up failed due to hot and dry conditions that have persisted throughout the months of July and August this far.

In 2023 non-irrigated abandonment across the High Plains region climbed from 12% to 75% between August and the end of the season. High Plains crop conditions are somewhat better in many areas this year, so there is some hope that non-irrigated abandonment will be smaller than what was experienced in 2023. Only time will tell where things ultimately end up.

USDA NASS has forecast Texas harvested acreage at 3.65 million indicating abandonment will eventually reach 2.3 million acres statewide.

Welcome to the August 9, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

The Good, The Bad and the Ugly (Crop Conditions Report)

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In Case You Missed It

Crop Conditions in the PCG Service Area

By Kara Bishop

While the area received some rain in July, the High Plains of Texas is experiencing continuous 100-degree days (cold front of 90s this week) and most of the crop needs another rain now. Some fields already have plants shedding fruit to deal with the heat stress. No fruit equals no bolls to harvest.

“While some cotton could rejuvenate and start setting new fruit if it received a rain in the next couple of days, we’re running out of time on getting plants going again and putting a fruit load on for harvest,” said Burt Heinrich, producer in Lubbock County. “We’ve seen it happen before, but it usually takes a lot of rain.”

Producers are concerned about boll size in this area. The fruit is not growing like it should while the plant deals with extreme heat and little moisture, even in irrigated cotton.

The fruit that is still hanging on is now susceptible to pests like stink bugs.

“Stink bugs love quarter-size bolls,” said Suhas Vayavhare, extension entomologist for Texas A&M AgriLife Research and Extension Center in Lubbock. “They penetrate the boll trying to get to the seed, so there’s extensive damage that can be done. It also allows for pathogens to get inside, which causes the boll rot.”

Vyavhare said one stinkbug per six feet or 20% boll damage is considered the threshold where treatment is needed.

“Protecting from both stinkbugs and boll worms is key right now and we tend to miss the stinkbug activity in August, leading to yield consequences later,” he added.

Based on current conditions, it will likely be a short crop year though better than the last two, according to PCG CEO Kody Bessent.

“I’ve heard when you drive from Midland up to the Northern Panhandle, you will see the southern third of our area’s crop is in poor condition, the central third is hanging on but needs a rain now; and the northern third looks pretty good.”

Regardless of circumstance, the price is not there. The agricultural economy is moving further away from break-even conditions, much less profitability. The health of the ag industry has been on life support the past couple of years, and if Congress doesn’t pass a farmer-friendly Farm Bill along with economic stimulus support this year, then they might as well pull the plug on farm country. The ag economy has direct impact on local, state and national economies and it’s time to get serious about taking care of it. Producers and industry need to call their U.S. Senators and Representatives to let them know the dire situation they are in. Farmers and agriculture need relief now. Call Congress and let them know. It’s time to storm the gates.

Rep. Jodey Arrington: (202) 225-4005

Rep. Ronny Jackson: (202) 225-3706

Rep. August Pfluger:  (202) 225-3605

Sen. John Cornyn: (202) 224-2934

Sen. Ted Cruz: (202) 224-5922

Welcome to the August 2, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Everything is A-OK in Mayberry! Right?  Financial Burdens Crushing Producers, Infrastructure

Factsheet on Plant Growth Regulator Now Available

In Case You Missed It

Financial Burdens Crushing Producers, Infrastructure

By Kara Bishop

On February 14, 2024, Secretary Vilsack addressed the House Agriculture Committee. He looked Rep. Austin Scott (R-GA) right in the eyes and said, “The time period of 2021-2023 represents the highest level of farm income in the last 50 years.”

And, while he may be right, I would argue that gross income doesn’t amount to a hill of beans compared to net. Gross farm income can be as high as it wants to, but profit margins just aren’t there. So what good is income if there’s no profit?

It’s time to stop fighting over the Farm Bill and pass this legislation to save farm country.

The reality:  producers are looking at the same commodity price from the 1970s, which is grossly disproportionate to actual production costs.

“In my 29 years in agriculture banking, cotton prices have predominantly stayed in the 65- to 75-cent range,” said Mike Metzig, Market President of Lending for AgTexas Farm Credit Services. “However, the cost of goods, services, labor and equipment has skyrocketed.”

During my interview to become the communications director for Plains Cotton Growers, I asked the officer team to identify the greatest challenge to their livelihoods. They all said input costs — and that was at the end of 2021 (an above-average crop year). Throughout my tenure here, I’ve interviewed farmers of different ages, genders and operations. They all echo the same sentiment. Input costs’ relationship to commodity prices doesn’t pencil.

House Ag Committee Chair Glenn “GT” Thompson (R-PA) agrees, which is why he and the rest of the committee developed a bipartisan Farm Bill addressing the shortcomings of farm income by increasing the safety net and putting more money in the Foreign Market Development Program and Market Access Program.

To determine the validity of arguments made for a bill that increases the farm safety net, the House Ag Committee recently conducted a hearing on the financial conditions of farm country. One of the witnesses at the hearing was American Cotton Producers Chairman David Dunlow, who farms cotton, peanuts, soybeans and wheat in Gaston, North Carolina.

During his testimony Dunlow stated, “I have never known a worse time in my 40 years of farming. The stress alone has led to personal health issues as a I wonder how our operation will survive.”

Dunlow has been forced to refinance all the farmland he personally owns to pay his operating debts. He struggles to find any traditional lending institutions to fund his operation, so he must rely on credit from a private equity-funded institution at a higher-than-market interest rate.

“In 1990, the cost of a new cotton picker was around $40,000 and the price of cotton was 74 cents,” he added. “Today, a new cotton picker is $1.1 million, and cotton on the December 2024 futures market is still trading in the low 70s — nearly 35 years later.”

Production Decline

If you look specifically at the Texas cotton industry, you see two crop years showing devastating production numbers. Punishing drought wiped out the majority of the cotton crop in 2022 — with an abandonment rate of more than 73% according to USDA 578 data. The 2023 crop year was just about the same profit-wise. There was a little more rain, but more money spent on inputs as operations tried to make a crop without subsoil moisture.

Data from the USDA National Agricultural Statistics Service

Data from USDA National Agricultural Statistics Service

Producer and industry stress is high given the financial uncertainty everyone is under. “Just like producers, banks have experienced a ‘mixed bag’ of conditions as well,” Metzig said. “We had some producers that were short on equipment or land notes, but not so many that it exceeded our expectations. Most everyone was able to pay their operating note.”

However, during Dunlow’s exchange with Scott at the House Ag Committee hearing, an anecdote was shared involving a producer and banker. The producer asked, “If farmers have average yields, what percentage of farmers will you be able to finance next year?” The banker responded, “Maybe 80%.”

This leaves 20% of farmers out of business. Scott pointed out that in times past, a farmer would buy or take over the lease of farmland and expand their operation if someone went out of business. “However, in today’s ag economy, you can’t expand if you’re not cash flow positive,” Scott added.

While it may not be as drastic in our area, it’s a concerning trend that may be foreshadowing the demise of agriculture and the nation’s cotton industry as we know it.

Infrastructure Decline

It’s not just producers that need a good crop year. Cotton infrastructure desperately needs a crop. In the past two crop years, five gins closed in the PCG service area. One of those gins reopened for last season, three gins are dormant and one other gin is uncertain.  This is not counting the gins that are still viable but didn’t have a crop to process last year. Several are deciding whether they will open this year.

“When your livelihood depends on throughput, and your capacity exceeds your throughput for an extended period of time, then your business is going to be under serious economic strain,” said Mike Cowley, vice president and lead relationship manager for CoBank. “A healthy supply chain starts with a successful farmer. Farmers need a Farm Bill that will help them stay in business. If we’re going to penalize the most efficient producers in the world by not giving them a safety net that protects them, then we’re giving other countries a serious competitive edge — and that’s just one of the concerning ramifications.”

We’re all coming up with more questions than we are answers right now in this economy. Will more gins close? Will more farmers go out of business? When we do have a good crop, will there be enough infrastructure left to process it?

Right now, the future looks bleak. However, as one producer said to me six months after I started this job, “You can’t be a farmer without faith.”

I have faith that Congress will take the state of our ag economy seriously. The Senate needs to take our ag economy seriously. Secretary Vilsack needs to take our ag economy seriously. Telling the nation that farmers are fine because they’ve had the largest income in the last 50 years is irresponsible and damaging to the main sector that the U.S. Department of Agriculture has been charged to help.

If the goal is to protect the nutrition programs, then protect our farmers. They need relief.

Without them, we’re going to have a real hunger crisis on our hands.

P.S. Everyone needs to call their Representatives and Senators to tell them how desperately producers need this farm safety net that was passed out of the House Ag Committee in May. According to many in the industry, including Cowley, this bill does more for farmers than the last several — going back all the way back to 2002.

Rep. Jodey Arrington: (202) 225-4005

Rep. Ronny Jackson: (202) 225-3706

Rep. August Pfluger:  (202) 225-3605

Sen. John Cornyn: (202) 224-2934

Sen. Ted Cruz: (202) 224-5922

Welcome to the July 12, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

PCIP Strives to Fulfill Mission for Producers

2023 Final County Yields Announced; AIPs issuing 2023 STAX Payments

In Case You Missed It

Cotton Extension Specialist Ken Legé presents a RACE trial in Crosby County on July 12, 2024. Photo Credit: Brooke Shumate, Texas A&M AgriLife.

On July 12, the Plains Cotton Improvement Program took center stage at the Plains Cotton Advisory Group meeting, as Ken Legé provided a virtual tour of a Replicated Agronomic Cotton Evaluation (RACE) trial in Crosby County. Legé, the cotton extension specialist for the Texas A&M AgriLife Extension and Research Center in Lubbock, along with extension entomologist Suhas Vyavhare, provided insight into crop conditions and pest management practices on Jonathan James’ farm near Mount Blanco, Texas.

James has been a long-time committee member of the Plains Cotton Improvement Program (PCIP) and is participating in two RACE trials with Legé as the grower operator.

For his trials, James has two weather stations — one on his irrigated field and one on a dryland field. The real-time data is valuable to him as he makes decisions throughout the growing season.

“We all know that just because one area received five-tenths of precipitation, not every field did,” James added. “It’s nice to see the data prove the variability — these stations are a mile apart from each other and yet the rainfall difference is pretty significant.” Want to see the difference? Click here. 

Legé intends for the RACE trials to benefit prohttps://www.plainscotton.org/wp-content/uploads/2024/07/Screenshot-2024-07-12-at-5.36.15 PM.pdfducers and seed companies with data that will help determine the most successful cottonseed varieties for the Texas High Plains.

“We want this information to be useful for our producers,” he said. “That’s the whole mission of PCIP and extension’s partnership with this program.”

Behind the scenes of the RACE trial virtual showcase at the July 12 Plains Cotton Advisory Group Meeting. Photo credits: Brendan Kelly, TTU and Brooke Shumate (inset), Texas A&M AgriLife.

Weather Stations:

This year, the Plains Cotton Improvement Committee voted to fund the purchase of weather stations for the RACE trial plots. This data can be accessed in real time from your smartphone or computer. To view on your computer, visit http://www.weatherlink.com/ and create an account to search weather stations.

To access on your smartphone download the WeatherLink app by Davis Instrumentals. (Link to Apple device app) (Link to Android device app)

Once you’ve signed up and logged in, you can search weather stations by name. The table below lists the names of the weather stations (last column on the right) as well as county locations.

Welcome to the June 28, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Is The Muleshoe National Wildlife Rescue Stealing Cotton Acres?

Cotton Incorporated Launches “The Fabric of Now” Campaign

In Case You Missed It

In April four national wildlife refuges — including Muleshoe — received support from the federal government to expand their acreage. The original boundary set by the government limited potential growth, so the U.S. Department of Interiors lifted the boundary limitations.

However, there is no eminent domain process involved. It is all freedom of choice as to whether someone wants to sell their land to the refuge.

“Some of my best friends are cotton farmers,” said Jude Smith, manager of the Muleshoe National Wildlife Refuge and overseer of the expansion project. “We’re just looking to expand our conservation endeavors for wildlife and wetlands, but we’re not taking it by force.”

He went on to say some of the information being distributed by the American Stewards of Liberty group is a little misleading. The nonprofit champions private property rights and have dedicated a page of their website to what they call the “Muleshoe Land Grab.”

While the new plan allows the refuge to expand up to 700,000 acres in the Southern High Plains of West Texas and Eastern New Mexico, it doesn’t mean that the land will automatically be given to them or taken by force from the landowner. The plan will take decades to reach the goal set, according to Smith, and “will hopefully provide a flexible plan into the future for everyone involved.”

“Yes, it’s voluntary,” said Margaret Byfield, executive director of the American Standards of Liberty. “However, we are concerned that land will be taken under federal control through conservation easements or regulatory pressure from the government.

They create the problem for landowners by regulating practices through the Endangered Species Act, and then they come in with the solution: we’ll buy your land and then you won’t have to worry about it.”

Byfield goes on to say that conservation easements can potentially yield all control to the government as well. If entering a conservation easement contract, it’s important to read the fine print, and, according to Jay Bragg, associate director of Commodity and Regulatory Activities for Texas Farm Bureau, consult with your attorney, family and heirs. “This is a big decision,” agreed Smith. “No one should ever feel rushed to enter into an agreement.”

However, if landowners pay careful attention to their contracts should they desire to enter into one, they still retain ownership of the property even if they sell their development right through a conservation easement.

Byfield claims this plan was enacted to achieve the goals of the Biden Administration’s “America the Beautiful” initiative — also known as the 30×30 vision within Biden’s climate crisis executive order issued shortly after he took office in 2020. The 30×30 vision aims for the U.S. to conserve at least 30% of U.S. lands and freshwater and 30% of U.S. ocean areas by 2030.

“It’s all about government control, which will decimate local economies by taking land out of production and out of local County tax revenue,” Byfield added.

Smith emphasized the choice behind this plan. “It’s just an option for landowners who have been asking for this for more than a decade. They don’t have to sell, and we won’t take the land from them.”

PCG Key takeaways from visiting with both the American Stewards of Liberty and the Muleshoe National Wildlife Refuge:

• Read all the fine print from both sides.
• Talk to both parties before coming to an opinion.
• Calling this plan a land grab is inaccurate.
• There isn’t a “removal of acreage” — it’s an optional transaction should someone wish to sell or contract a conservation easement.
• If you “cross your t’s and dot your i’s” on the conservation easement contractual agreement, then you retain ownership rights of property.
• When evaluating land sales to the refuge or conservation easement, consult an attorney.
• Eminent domain is not involved in this process.
• This is not a federal mandate.

Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. 

This 30-second commercial airs on major networks and is titled, “The Fabric of Phone-Free Fridays.” 

Taking advantage of trending topics that reach the target audience (18- to 34-year old females) — like phone-free Fridays or sleeping in — Cotton Incorporated has two TV ad spots running on major networks focused on capturing attention spans and influencing them toward cotton fiber.

These commercials were crafted with intention. From the couple with their dog (consumers are much more likely to be impacted by a commercial that features a pet) showcasing the durability and comfort of cotton sheets to the trendy young people enjoying a Friday night dinner with friends.

“We slowed down the motion toward the end of the commercial and turned off audio to capture attention to the relaxation element that these consumers are seeking,” said Kim Kitchings, senior vice president of Consumer Marketing for Cotton Incorporated.

And it worked. Roughly one-third of consumers surveyed said the commercials made them think differently about cotton and cotton products. “Most people think of cotton in terms of underwear or white T-shirts,” Kitchings added. “We are breaking through that stigma with this campaign.”

This 15-second commercial airs on major networks and is titled, “The Fabric of Sleeping In.”

One consumer remarked that he or she didn’t realize that cotton was breezy until he saw the “Sleeping In” commercial showing cotton curtains blowing in the breeze. Another said the commercial made him think of how versatile the fabric is.

After watching the “Phone-Free Friday” commercial featuring young people eating spaghetti and spilling drinks, another consumer said, “It made me think that perhaps there are ways to get stains out of cotton easier than I have experienced in the past.” (This is another important stigma Cotton Incorporated is breaking and why the stain care section of The Fabric of Our Lives website is one of the most highly visited of the company’s web presence.)

The campaign is disseminated through multiple social media channels as well including Facebook, Instagram, Pinterest and TikTok.

The commercial content has been repurposed to fit social media formats and draw more attention to the versatility, comfort and durability of cotton fabric.

Cotton Incorporated has also latched onto the influencer space in social media. Social media influencers are similar to brand promoters. They use their content to build rapport with their followers, which makes them credible with their audience when they begin to recommend products. They highlight a brand’s message to specific target audiences and can have millions of followers depending on their influencer category.

Collaborations between brands and influencers is an effective marketing strategy for the 18–34-year-old range that Cotton Incorporated is focusing on currently. They’ve executed many of these partnerships, the most recent being the collaboration with Olympic gymnast hopeful Suni Lee and LoveShackFancy (a niche clothing store and e-commerce site with locations in predominantly affluent areas). The Cotton x LoveShackFancy collaboration will feature more than 100 cotton-rich items.

The exposure cotton has had through “The Fabric of Now” activities has been impressive. Millions of people have seen cotton through this promotion and are influenced to buy the products, which were designed with cotton materials.

There are future plans well underway to continue to increase cotton’s exposure to eager consumers, and PCG will continue to bring updates of Cotton Incorporated’s efforts on your behalf.

P.S. The U.S. Olympic Team’s opening day outfits will be designed by Ralph Lauren and will be made from denim! How exciting to see cotton win!

Welcome to the June 21, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Faces of Cotton: Meet the Hollingsworths

CBO Releases Updated Budget and Economic Outlook

In Case You Missed It

By Kara Bishop

Three-year-old Robert Hollingsworth gets up early Saturday morning. It’s time to check on his crops. He pulls his little boots on and heads outside to start up his tricycle. He’s planted some wheat and hay grazer in some rows he set up in the front yard, much to his daddy’s dismay. It’s wet and muddy this morning — a little too treacherous for a tricycle ride. Little Robert stares at his trike and thinks. He has to check his crops, and while he could just walk the ten feet over there, his daddy always drives out to the farm. So, he needs to drive out to his just like daddy does it.

Suddenly it comes to him. He finds some baling wire out in the garage and wraps his front tricycle tire in wire. He’ll cut some deep ruts in the yard, but he won’t get stuck. After all, his horse needs hay so he must press on. At three years old, Robert has all the makings of an ingenious steward of the land. Just like his daddy.

Farming is all he knows and is all he has ever wanted to do. With 280 acres of land that his great-grandfather homesteaded in 1906, he dreamed of farming it like his father and grandfather before him.

But the challenges that plague farmers today were roadblocks for young producers like Robert back then as well. Access to land, crop prices and input costs kept Robert from making a true living off the land. He went to work for the Texas Department of Transportation (TXDOT) in Panhandle, Texas, in 1982.

Stretched Thin

While he had a full-time job, Robert still wanted to farm. It was a punishing schedule during planting and harvest seasons.

8:00 a.m. to 4:30 p.m. – work at TXDOT
7:00 p.m. to 2:00 a.m. – plow or plant at the farm
2:00 a.m. – 6:00 a.m. – nap, shower and get ready for work

When he had a spare moment, he worked on his sons’ race cars and took them to races on the weekends.

“If I could get four hours of sleep a night, I felt pretty lucky,” he said.

Robert may have been stretched thin, but that didn’t make him mediocre. For TXDOT, he invented a lay-down machine that fits on the front of a maintainer for paving roads. Robert’s invention would lay the road automatically with very little shovel work involved. His lay-down contraption became a model and showpiece for other districts to copy and implement into their processes. Because his innovation reduced man hours and manpower needed, the state of Texas saved $30 million annually on road systems.

He competed in state and national events with his invention — and won, giving the $10,000 in proceeds to the West Texas A&M engineering program.

Second Chance

On January 1, 2009, Robert transferred to the Groom TXDOT office and became Karen’s boss.

Neither Robert nor Karen could have imagined their union taking place. Both were convinced they’d never marry again. Both were content with that.

Finding each other just happened.

“It was from the Lord,” Robert said.

“It was weird,” Karen added. “The first time we held hands, I just knew I had the right person. I would have married him right then had he asked me to.”

When Karen’s job in Groom became a district-wide position, she transferred to the Pampa office. Robert and Karen began dating at that time and marry in 2010.

Enjoying the Reward

Today Robert and Karen live in a beautiful red barndominium they built five years ago after almost a decade of sketching, designing and dreaming.

They farm dryland milo, wheat, cotton and run a few cows. They love spending time with their grandkids and the RV life, when time allows, working together and playing pickle ball.

It took Robert years to acquire the land, equipment and assets needed to make farming work full time. He retired from TXDOT in 2012 and now does what he’s always wanted to do. Farm the land. While driving to a section outside of Claude, he said, “It took me 28 years to put this section of land together. I bought it piece by piece and had a couple of half circles sold out from under me a couple of times, but I finally got it.”

During Thanksgiving in 2016, Robert and Karen decided they were going to try growing cotton. Karen printed everything out she could find on it and made a book for Robert to study by the fire in the winter.

“I would cuss those boys around me for growing cotton, because I hated it so much,” Robert added. “We were grain farmers, so, when we decided it was a good idea to implement cotton into our rotation, I ate a lot of crow and apologized to every one of those guys. Cotton was just something we never thought we would grow, in fact, my dad would be rolling in his grave if he knew we were farming it today.”

Their 2017 crop was the best cotton crop they’ve harvested so far, producing 2.9 bales per acre of dryland cotton that year.

“The biggest things we learned were to not be afraid to plant that cotton seed a little deeper and to use plant growth regulator,” Karen said.

People often seem surprised at how well Robert and Karen work together. It’s not your typical husband/wife dynamic. But it’s not every day two people get a second chance at love, either. They’re grateful for each other and never take it for granted. They do it all, just the two of them, planting, spraying, harvesting year after year after year.

“We laugh together, we cry together, we play hard, we work hard, and we just enjoy life.” Robert said. “The Lord has blessed us and provided all we have ever needed.”The cotton they planted in late April came up and is still going strong.

“I have faith that the Lord will provide what I need,” Robert said. “He’s taken great care of me so far.”

By Jim Wiesemeyer, ProFarmer

The Congressional Budget Office (CBO) released its updated projections for the federal budget and economy from 2024 to 2034.

Key Highlights

Budget projections:

• 2024 deficit: Projected at $1.9 trillion, or $2.0 trillion (7.0% of GDP) when adjusted for timing shifts.
• 2034 deficit: Expected to reach $2.8 trillion (6.9% of GDP).
• 2024-2034 total deficit: Estimated at $24 trillion, 70% larger than the historical average relative to economic output.
• Federal outlays: Expected to rise from 24.2% of GDP in 2024 to 24.9% in 2034, driven by increased interest costs and spending on Medicare and Social Security.
• Federal revenues: Forecasted to increase from 17.2% of GDP in 2024 to 18.0% by 2027, stabilizing near that level through 2034.
• Public debt: Projected to rise from 99% of GDP in 2024 to 122% in 2034, surpassing its historical peak.

Changes in budget projections:

• The 2024 deficit is $0.4 trillion higher than previously projected in February 2024, due to:
  • $145 billion increase in student loan outlays.
  • $70 billion increase in deposit insurance outlays.
  • $60 billion increase due to newly enacted legislation.
  • $50 billion increase in Medicaid outlays.
• Over the 2025-2034 period, the cumulative deficit is larger by $2.1 trillion, mainly due to newly enacted legislation, including $95 billion for aid to Ukraine, Israel, and the Indo-Pacific region.

Economic projections:

• Economic growth: Expected to slow from 3.1% in 2023 to 2.0% in 2024.
• Inflation: Projected to be slightly lower in 2024 than in 2023, due to recovered supply chains, higher unemployment, and increased long-term interest rates.
• Interest rates: Short-term rates are expected to remain high, with the federal funds rate at its highest since 2001.

Immigration surge:

• From 2021 to 2026, net immigration is projected to be 8.7 million higher than historical levels.
• The surge is expected to increase nominal GDP by $8.9 trillion (2.4%) over the 2024-2034 period.
• The immigration surge will raise interest rates by 0.1 percentage point by 2034 and lower deficits by $0.9 trillion, with revenues increasing by $1.2 trillion and mandatory spending and interest outlays rising by $0.3 trillion.

CBO says that one culprit for the larger deficit this year is Congress’s recent military aid bill. But overall defense spending is still falling as a share of the economy and is expected to hit a postwar low of 2.8% of GDP in 2034. Also, if spending as a share of GDP remained at the pre-pandemic average, the deficit would be roughly $890 billion this year and $13.4 trillion smaller than CBO’s 10-year projection. This would keep debt as a share of GDP at roughly 90%.

Phillip L. Swagel, CBO’s Director, emphasizes that these projections incorporate the impacts of the immigration surge and recent legislative changes on the federal budget and economy.

CBO projects $1.9 trillion federal budget deficit for FY 2024. The Congressional Budget Office (CBO) estimates that the federal budget deficit for FY 2024 will reach $1.9 trillion, which is $400 billion higher than the estimate from four months ago. ($300 billion larger than last year’s deficit). The increase is attributed to President Biden’s student loan forgiveness program (which CBO estimates could cost $211 billion this year above what it estimated in February), spending on Ukraine, Israel, and the Indo-Pacific region, slow recovery of bank failure costs by the FDIC, and higher Medicare spending (higher enrollment). CBO increased its Affordable Care Act (ACA/ObamaCare) spending estimate by $22 billion for this year and $244 billion over the next decade. It also raised its ACA enrollment projection by four million for this year and an average of three million over the next 10 years.

Over the next decade, the CBO projects the deficit will total $24 trillion. Link to report.

— The interest burden of the debt is significant. According to EconoFact Chats (link):

• Interest payments on federal government debt are projected to be $892 billion in 2024,representing 3.1% of GDP. Net outlays for interest have never exceeded 3.2% of GDP since 1940.
• Interest payments, at 13% of federal spending in 2024, represent the third highest category of spending, ahead of spending on defense, Medicare and income security programs. This contrasts with the situation in 2017 when net interest payments made up 7% of government outlays.
• Projections of the interest burden of the debt have increased dramatically over the past four years. The Congressional Budget Office currently projects that interest payments on debt will be about 15% of federal spending in 2030. Four years ago, the projection for 2030 was about 9%.
• Rising levels of debt service contribute to fiscal challenges. Higher interest payments mean less government spending is available for defense, social safety net programs, research, and other important government functions like a farm bill.

CBO is big player in farm bill negotiations.

The CBO is the official scorekeeper of legislative proposals and in release a farm bill baseline. The ongoing farm bill debate has a $1.51 trillion baseline over ten years. While CBO on Tuesday updated its forecasts, the farm bill baseline remains the same because House Ag Chair GT Thompson (R-Pa.) got his proposal approved in his panel by the end of May.

CBO now says USDA’s use of its Section 5 authority under the CCC would total $12 billion from fiscal year (FY) 2025 through 2034. In February, USDA estimated that it would spend $15 billion over that period. But either tally is nowhere near the $50 billion or more the House Agriculture Committee needs to fund commodity program increases.

Link to CBO estimates of CCC spending

Link to CBO June 2024 baseline

Link to CBO June 2024 SNAP spending | Another link to CBP on SNAP

Stabenow uses CBO updates to make her farm bill case.

The new CBO projections “prove what we have been saying all along: the House Republican farm bill is unpaid-for, relying on magic math and wishful thinking,” Sen. Debbie Stabenow (D-MI) said in a statement. “In exchange for blocking USDA’s ability to provide real time assistance to farmers through the CCC to address emerging challenges, House Republicans received only a small fraction of the $50 billion hole they need to fill to pay for their bill,” she said.

Stabenow said her Rural Prosperity and Food Security Act “is meaningful and responsible.

“And, importantly, it does not fracture the farm and food coalition that is the foundation of every successful farm bill,” she added. “I did the hard work of securing new resources outside of the farm bill through $2.3 billion invested in trade promotion and food aid and a $5 billion commitment in bipartisan offsets from my Leadership. It’s time to get real and stop the posturing and the rhetoric. It’s time to negotiate in reality. My door is open.”

Sen. John Boozman (R-AR), ranking member of the Senate Ag Committee, told us via an AgriTalk interview on Tuesday (link) that he thinks the House needs to pass its farm bill to put pressure on Stabenow and Democrats.

Welcome to the June 14, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Sen. John Boozman (R-AR) Unveils Senate Ag GOP Farm Bill Framework

2024 Hailout/Replant/Late Plant Guide Released

In Case You Missed It

Following the Chairman’s mark of the 2024 Farm Bill on May 23, Senate Committee on Agriculture, Nutrition and Forestry Ranking Member John Boozman (R-AR) sought to maintain farm bill momentum by unveiling his proposed framework June 11.

Boozman’s proposal aligns closely with the House bill and includes increasing crop reference prices, expanding base acres, strengthening conservation and nutrition, and limiting the Secretary of Agriculture’s authority over the Commodity Credit Corporation, to name a few.

To download the comparison chart, click the image above.

A long-time dedicated advocate for U.S. farmers and ranchers, Boozman is insistent that “more farm be put in the farm bill.”

According to Senate Ag GOP analysis, the lack of funding in Title I of the 2018 Farm Bill was the catalyst behind the ad hoc disaster assistance paid out over the last six years.

Boozman stressed that more funding is needed for the farm safety net, which he says is taken care of in his bill.

“From the onset of this process, we have sought to draft a farm bill that reflects the needs of stakeholders, Boozman said. “The world has changed dramatically since the 2018 bill became law, and the unprecedented challenges and economic uncertainty that farmers face now are only projected to get worse in the coming years.”

We hope lawmakers will seriously consider the farm bill proposal from Senate Ag GOP and work together to create a bipartisan bill that protects our farmers and ranchers, thereby strengthening our industries and economies. We will continue to provide updates as we work toward finalizing a robust farm policy in 2024.

The primary objectives of this guide include providing producers with:

1. Guidelines for crop replant options after failed crops, especially cotton.
2. Assist with late-season planting decisions where timely planting, duration to crop maturity, and fall weather risk may impact successful cropping.
3. Provide contractor contact information as well as recent approximate pricing, particularly for crops where price is fixed at contract signing.
4. This information is applicable as well for the Texas Panhandle, Texas Rolling Plains, and the Concho Valley region. The planting dates will change for crop and location.

New information/What has changed since 2022?

Additions or significantly revised points include:

2024

• Comments on Enlist cotton and plant-back restrictions.
• The last recommended planting date for guar has been moved forward five days due to the need to plant earlier for a better chance at full maturity especially to help achieve better test weight to minimize a discount.

2023

• Guar Resources, Brownfield, TX, has reopened under a new owner and is contracting guar for 2023.
• “Sugarcane aphid” is in fact actually the sorghum aphid. Genetic tests confirm this. What we have known as SCA is not a new biotype. Management recommendations do not change with this new identification.
• The ethanol plant in Hockley Co. is reopened in fall 2023 giving local grain sorghum growers an additional potential and competitive market.
• Grain sorghum replant options now include herbicide tolerant hybrids that enable grass control in existing sorghum crops.

Download the report here.