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Cotton News

April 5, 2024

Welcome to the April 5, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Discrimination Lawsuit Filed Against USDA for Implementation of 2022 Emergency Relief Program

A lawsuit was filed against USDA in the U.S. District Court Northern District of Texas – Amarillo Division last Friday (March 29) by Texas farmers for discrimination in USDA’s methodology of the 2022 Emergency Relief Program (ERP).

USDA set a dangerous precedent in the design of the 2022 ERP. While the 2020-2021 program provided adequate disaster relief based on insurance records in phase 1, USDA began shifting toward tax record evaluation in phase 2. Despite heavy feedback on the challenges with 2020-2021 ERP phase 2 from producers and agricultural groups, the shift became more drastic in the 2022 ERP.

USDA enacted a new progressive payment factor for 2022 ERP on their own accord, deviating further away from the methodology used for 2020-2021 ERP — disregarding the legislative intent of how the disaster relief should be distributed. Essentially, with the way the 2022 program was set up, farmers with some of the heaviest losses received the least amount of aid if they did not qualify as a socially disadvantaged producer or entity.

When challenged on his implementation of the 2022 program, Secretary Vilsack dismissed the unequal distribution of aid, claiming Congress did not provide him with adequate funding. If the philosophy used to develop the 2022 program goes unchecked, we will see even more discriminatory actions from USDA. We hope this suit will set a new precedent for fair and equal distribution of disaster relief funds in the future.

Representing the plaintiffs is the Southeastern Legal Foundation, a national nonprofit legal organization dedicated to defending liberty who have handled similar cases in the past. PCG will keep you updated of ongoing developments within this case.

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The 67th PCG Annual Meeting Proves the Future is Bright

April 2 was a good day.

More than 330 producers and industry representatives gathered at the Overton Hotel & Conference Center in Lubbock, Texas, for the 67th annual meeting of Plains Cotton Growers Inc.

The theme for this year’s meeting was “Build for the Future,” which was woven throughout the day in our general session segments and breakout sessions. Here are the highlights.

The U.S. Farm Report was taped at the annual meeting on April 2 and will air on Saturday morning at April 6.

The U.S. Farm Report

U.S. Farm Report Host Tyne Morgan led a roundtable discussion with National Cotton Council Vice President of Economics and Policy Analysis Jody Campiche, Texas A&M University Agricultural Food and Policy Center Co-Director Bart Fischer, and Combest, Sell & Associates Chief Economist Brad Weddelman. The discussion involved how the current economic outlook of the cotton industry would affect future decisions and outcomes.

The episode will air April 6, Saturday morning, on local affiliates and RFD-TV.

Cotton Segment Panel

Cotton Segment Panel

Following the U.S. Farm Report, PCCA CEO and President Kevin Brinkley moderated a panel representing six segments of the cotton industry. Panelists included Spring-Lake Earth Producer and PCG Officer Brent Coker, North Gin Manager Jordy Rowland, Farmers Cooperative Compress President and CEO Eric Wanjura, PYCO Industries President Robert Lacy, and American Cotton Shippers Association President Buddy Allen.

When discussing hard times, Lacy said the following regarding the future:

“None of us would be in this business if we didn’t have faith. We all remember hard years in our careers that we weren’t sure we were going to make it out of, but we’re still here. I have faith that we will have good times again.”

Keynote Speaker David Avrin

Keynote Speaker David Avrin

Customer service expert David Avrin discussed future proofing businesses through service and management.

Here are some key takeaways:

  • You have to do business as if every one of your customers is armed with a video camera — because they are.
  • 63% say a convenient customer experience is more important than a friendly customer experience. – 2022 ACA Report
  • There is 100 times a better chance of winning the business with a reply within five minutes. – Harvard Business Review

We are so appreciative of our membership and industry friends for spending the day with us and for our sponsors who made the whole event possible.

Platinum: AgTexas, Capital Farm Credit, StoneX

Gold: BASF, Deltapine

Silver: Farmers Cooperative Compress, West Texas A&M University

Bronze: First United Bank, Jolly Crop Insurance, Peoples Bank,  Plains Cotton Cooperative Association, TTU Davis College of Agriculture, Vista Bank, Wellington State Bank

Gray: ECOM USA, Cargill, City Bank, Corteva, Lubbock National Bank, Tucker Oil Company

Other: AgWomen Connect, The Cotton Board, Sound Agriculture

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Upcoming Events

Lower Rolling Plains Ag Conference
Date: April 10, 2024
Location: Scurry County Coliseum, Snyder, Texas

Plains Cotton Growers Advisory Group Meeting
Date: April 12, 2024
Location: PCG Conference Room, Lubbock, Texas

Plains Cotton Growers Advisory Group Meeting
Date: May 10, 2024
Location: PCG Conference Room, Lubbock, Texas

For a full list of upcoming events, see the Events Page.

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March 22, 2024

Welcome to the March 15, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Editor’s Note: The email sent Friday, March 22, included information about the Agricultural Pesticides Waste Collection Event. This event has been postponed. Details to follow – stay tuned.

Key Issues Addressed at House Ag Appropriations Subcommittee Hearing

As reported by Jim Wiesemeyer, ProFarmer

At the House Agriculture Appropriations Subcommittee held a hearing on 2025 budget requests from the U.S. Department of Agriculture (USDA). The subcommittee heard from USDA Secretary Tom Vilsack regarding this request, which is set at $25.1 billion — a $2.2 billion increase from the previous year. Here are some key issues addressed by Vilsack and the subcommittee.

Key Issues

Commodity Credit Corporation

Subcommittee Chair Andy Harris (R-MD) expressed apprehension about the potential misuse of Commodity Credit Corporation (CCC) funds to advance political agendas not authorized by Congress. Harris said he is concerned that the CCC “continues to be treated like a slush fund to advance political priorities not directed by Congress.” He also noted that he has read Vilsack’s comments in news articles over the past few weeks “suggesting that you can use CCC funds to help farm safety net programs outside of the regular farm bill process,” adding he is “perplexed as to how USDA would be able to do this, as establishing reference prices and farm programs is done by Congress, the Legislative branch, not the Executive branch.” He said he hoped his colleagues at the House and Senate Ag Committees can complete a farm bill this year, “but if not, that does not give USDA the green light to start raiding the CCC to de facto set up new programs not authorized by Congress.”

Vilsack told Harris he wants “to make sure that you and I have a meeting of our minds on the utilization of CCC as it relates to the farm bill. I never suggested nor did I ever say that we would be using the CCC outside the scope of farm bill discussions and negotiations. What I did say was, in order for us to have a farm bill, it’s going to be necessary for members of the Ag Committee to be creative how they can use the resources within the CCC at their instruction and direction to be able to provide the relief and assistance they’re looking for to bolster our safety net. That’s what I said, that’s what I meant, and I just want to make sure the record is clear about that.”

Farm Income

Ranking Subcommittee member Sanford Bishop (D-Ga.) noted that in 2022 when net cash farm income reached a record high at over $200 billion, 13% of commercial farms, 50% of intermediate farms and 63% of resident farms had negative farm income. He that Vilsack’s prepared remarks mentioned several programs that help grow markets for American farmers that receive mandatory funding. Bishop asked: “How can we on the Appropriations Committee support and grow the farm economy on the discretionary side of the budget?” Vilsack quickly answered, “Continued support for local and regional food systems. The reason being that when farmers are operating under the normal food system, they get roughly anywhere from $0.15 to $0.20 of the food dollar. When they sell locally directly to their consumer, they get anywhere from $0.50 to $0.75 of the food dollar. So, to the degree to which you can continue to support local and regional food systems and the programs that are already in USDA, supporting our processing initiative, for example. Continuing to support renewable energy production. Why? Because it’s an opportunity for a new commodity, a new stream of income for producers.” Vilsack added are the transitioning to more renewable sources of energy. “Farmers have the ability to provide excess energy and therefore additional income. And finally, making sure that we continue to support the conversion of agricultural waste into a wide variety of bio-based products, everything from sustainable aviation fuel to bioplastics and everything in between.”

Aid to Cotton and Peanut Growers

Rep. Bishop said that he is hearing from a lot of peanut and cotton growers from the southeast as well as agribusiness owners and bankers, that farmers are struggling financially. “Much of it is due to the dramatic increase in farm input costs, high interest rates, weak exports. And as you know, the financial situation on the farm impacts many aspects of the rural community. With the farm bill not yet in place for the 2024 crop year, would you support a one-time payment to peanut and cotton producers to help them until we can get the farm bill in place for the ‘25 crop year?” Vilsack said he would work with Bishop’s staff to see what might be possible. “I would say that we are continuing to get resources out under the emergency relief program. There are also additional programs and additional opportunities for additional assistance for your producers, in addition to or in lieu of a single payment,” Vilsack added. Bishop then noted that an aid payment was done “previously for rice producers, I think for the 2022 crop, through an appropriations bill.” Vilsack acknowledged that occurred but noted “we had to give up something in order to be able to finance the $250 million that went to rice producers. I’m not sure what you’re willing to give up or what members of this Committee are willing to give up or what I’m willing to give up.”

H 2-A Program

Rep. John Moolenaar (R-Mich.) expressed concerns about the challenges faced by small farms, particularly regarding the rising labor costs under the H-2A program. He highlighted the strain that this places on farmers in his district, many of whom are facing financial hardships and potential closure due to unsustainable wage rate increases. Moolenaar proposed the Supporting Farm Operations Act to pause these increases for two years and provide relief to struggling farmers. However, Vilsack emphasized the need for broader systemic reforms, suggesting that freezing wage increases alone may only delay inevitable problems. The discussion became contentious as Moolenaar pressed Vilsack on his actions to support American farmers and address the Department of Labor’s role in imposing escalating labor costs. Vilsack defended the use of data-driven decisions but faced criticism from Moolenaar, who argued that the current approach threatens the viability of American farms. Despite the heated exchange, Vilsack reiterated his commitment to advocating for farmers and farm workers, emphasizing the importance of finding solutions that benefit both parties. However, Moolenaar remained skeptical and urged Vilsack to take more decisive action to address the challenges faced by American farmers.

Women, Infants and Children (WIC) Program

Highlighting the significant increase in funding for the Women, Infants, and Children (WIC) nutrition program, Subcommittee Chairman Andy Harris (R-Md.) emphasized the program’s bipartisan support and its importance in providing nutritious support to mothers, infants, and children. However, he raised concerns about the accuracy of USDA’s projections regarding WIC participation and food costs, particularly considering recent claims about decreased inflation and food prices. Harris questioned the necessity of the proposed funding increase for WIC, citing declining participation rates and conflicting data on food costs. He wants to understand the rationale behind the Biden administration’s budget requests.

Rep. Rosa DeLauro (D-Ct.) told Vilsack that she was “intrigued by the new proposal to backstop WIC funding so we do not face nutrition assistance cliffhanger like we just went through.”

Rep. Dan Newhouse (R-Wash.) raised the issue of shrinkflation, citing an example of reduced milk carton size impacting compliance with WIC rules. He asked whether the WIC food package provided flexibility to cover smaller containers. Vilsack indicated that there may be flexibility in certain circumstances and offered to look into the specific issue raised by Newhouse.

Supplemental Nutrition Assistance Program (SNAP)

Harris stressed the importance of adhering to legislative directives and urged honest discussions on federal subsidies for “unhealthy food in the SNAP program.” He detailed that over the past 20 years, “multiple cities and states have asked USDA for the ability to restrict SNAP purchases of sugary drinks, but each time those requests have been denied. As we work through the FY ’25 process, it’s important that we look for ways to best return SNAP, the largest food assistance program in America, back to its original purpose of advancing the nutrition needs of participants, not providing empty calories, which in fact could be potentially harmful to long-term health.”

Harris noted that he is a strong supporter of establishing a SNAP pilot program that restricts unhealthy food or beverages from being purchased with SNAP benefits. He said he was disappointed the FY 2024 Appropriations bill did not include funding to implement a small voluntary pilot program to see how it might help with health outcomes and prevent chronic disease. He asked Vilsack if USDA has the authority to approve a demonstration project, which would be similar to a pilot, that allows states to restrict certain foods or beverages. Vilsack said, “We’d have the authority to work collaboratively with the state, assuming that the process contained proper evaluation. One of the big problems, Mr. Chairman, has been the lack of evaluation in what has been presented to us by states and cities in terms of the programs that they want to adopt. There’s a tendency to think this is a relatively simple process… But we would have the authority to do it. But we’d want to make sure, if we did it, that there would be a strong evaluation component to it.”

Harris said he was glad to hear that USDA has the authority to approve a pilot program, but told Vilsack that “since your first appointment as Secretary of Ag, the obesity rates among U.S. adults have increased by almost 9%, from 33.8% in 2007, 2008, to 42% of Americans in 2017, 2018. About half of all Americans now have one or more preventable chronic disease, most of them diet related or linked to diet in some cases. So, given this rise in obesity rates, is there any evidence that the SNAP-Ed and the Healthy Incentive programs have been effective in having reduced obesity among SNAP participants?” Vilsack said there is research to indicate that “the availability of SNAP does result in healthier choices being made by SNAP families.”

Harris also said that along similar lines is the Summer EBT program for children is now permanent. “States operating the Summer EBT run the SNAP model. So again, allowing access to sugary beverages, salty snacks, the whole deal, but interestingly, Indian tribal organizations operate the WIC model. So as I understand it, families receiving Summer EBT under the WIC model are purchasing WIC approved foods, which we both I think recognize are generally much more nutritious foods than the wide variety of foods available under SNAP. Do you think that recipients could benefit if states operate a WIC model under the Summer EBT program like tribal organizations do to ensure that we’re providing kids with healthy food during the summer? Just like USDA does for instance, during the school year and the national school lunch and school breakfast programs? Vilsack responded: “I think it’s more complicated than that.” Vilsack added: “There’s a fairness and a consistency issue. If indeed the goal here is for taxpayer dollars to be directly linked to more nutritious decisions, are you going to make that same decision for a farmer emergency relief? A farmer gets emergency check from the government, cashes it, goes to the grocery store. Are you going to restrict him from — why not? Fundamentally, that’s the issue. It’s absolutely the issue.” Harris countered: “Mr. Secretary, the difference is we’re not buying food for the middle-class people. We’re buying food…” Vilsack interrupted saying, “But you are, absolutely you are if you get any federal assistance.”

Farm Loss and Land Conversion

Rep. Newhouse expressed concerns about the challenges faced by rural communities and family farms, particularly in light of the rate at which farms are disappearing. He highlighted the adverse wage rate as one of the significant costs burdening farmers and emphasized the need for action to rein in labor costs. Vilsack acknowledged the long-standing issue of farm loss and land conversion. Vilsack detailed that “since 1981, the U.S. has lost 544,000 farms. That is the same number of farms that exist today in North Dakota, South Dakota, Minnesota, Wisconsin, Illinois, Iowa, Nebraska, Colorado, Missouri, and Oklahoma. We’ve lost 151 million acres of land that was in farming that’s no longer in farming. That’s the land mass of Florida, Georgia, South Carolina, North Carolina, Maryland, and most of Virginia. So, this is not a new issue.” Vilsack attributed this trend to a system focused on productivity rather than income sources, leading to income concentration among a small percentage of farms. Vilsack stressed the importance of creating additional revenue streams for farmers to improve their financial stability. Vilsack urged Congress to pass immigration reform, specifically the Farm Workforce Modernization Act, to address labor challenges in agriculture. He emphasized the need for bipartisan cooperation and criticized political obstacles hindering the passage of crucial legislation. Newhouse affirmed efforts to advance the Farm Workforce Modernization Act in both the House and Senate, acknowledging the difficulties in navigating the legislative process.

Threats from China

Rep. Hinson expressed concerns about the safety of the U.S. food supply in the face of potential threats from adversaries like the Chinese Communist Party (CCP). She highlighted the need for better coordination and updated procedures to monitor foreign agricultural land purchases, referencing a recent report from the Government Accountability Office (GAO). Vilsack acknowledged the progress made in implementing GAO recommendations, including improved coordination with the Committee on Foreign Investment in the United States (CFIUS) and efforts to update the Agriculture Foreign Investment Disclosure Act (AFIDA) handbook. He emphasized the challenges posed by the decentralized nature of real estate transactions across the country and the need for ongoing improvements.

Hinson also raised concerns about the heavy reliance on China for critical agricultural inputs such as vitamins B6 and C. Vilsack underscored the importance of reducing reliance on foreign adversaries for key inputs like fertilizer, while acknowledging the delicate balance required in maintaining trade relationships with countries like China, which are significant customers for American agricultural products.

In response to questions about preventing supply chain bottlenecks and incentivizing domestic production, Vilsack suggested leveraging tools like the tax code, rural development programs, and business incentives to encourage investment in domestic production facilities and enhance the business environment for new ventures.

Their discussion highlighted the complex interplay between national security concerns, trade relationships, and domestic production capabilities in ensuring the safety and resilience of the U.S. food supply chain.

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Cotton Industry Awards

Our members received some accolades in March!

Thomas Cleveland, TIGA outgoing president with Carson County Gin Manager Keith Mixon.

Thomas Cleveland – Outgoing President

The Texas Independent Ginners Association (TIGA) held its annual meeting March 11-13 where they awarded outgoing president Thomas Cleveland for his service. Cleveland is the superintendent of Carson County Gin in White Deer, Texas.

David Foster, long-time owner of D&J Gin in Floyd County.

David Foster – Distinguished Service 

The TIGA meeting also awarded long-time ginner David Foster for his service to the industry. Foster and his brother Jody bought the gin in 1984 before selling it to Windstar Corporation in 2023. They ginned their one millionth bale in 2022 and have been actively involved and supportive of the cotton industry for more than 35 years.

Guyle Roberson – Cooperative Ginner of the Year

At the Texas Agricultural Cooperative Council annual meeting — held March 17-19 — Guyle Roberson was named Cooperative Ginner of the Year. Roberson manages Texas Producers Coop in Sudan and Amherst, Texas. To learn more about Roberson, you can read his Plains Cotton Growers Faces of Cotton story installment.

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Upcoming Events

Moore County Gin Grower Appreciation Lunch
Date: March 28, 2024
Location: Moore County Gin, Dumas, Texas

Plains Cotton Growers Board of Directors Meeting
Date: April 1, 2024
Location: Overton Hotel & Conference Center, Lubbock, Texas

Plains Cotton Growers 67th Annual Meeting
Date: April 2, 2024
Location: Overton Hotel & Conference Center, Lubbock, Texas

For a full list of upcoming events, see the Events Page.

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March 15, 2024

Welcome to the March 15, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Coexist in a Land of Uncertainty – Cotton Segments Represented at PCG Annual Meeting April 2

At this year’s annual meeting, Plains Cotton Growers is proud to showcase one of the most unique things about the cotton industry: how well we work together.

Our cotton segment panel will feature representation from producers, gins, warehouses, merchants/shippers and oil mills. We’re excited to hear from these panelists as they provide an outlook for the current state of the industry as well as what the future holds.

Meet the Panel

Brent Coker, Lamb County Producer

Brent Coker is a producer in Lamb County, a PCG producer-director for Springlake-Earth Cotton Growers, and currently serving as the Secretary/Treasurer for Plains Cotton Growers.

Jordy Rowland, North Gin Ltd.

Rowland serves as the manager of North Gin in Dimmitt, Texas, in Castro County and grew up on a farming operation in Castro where his father grew cotton, corn and wheat. Under the tutelage of Jim Bradford, the founder of the Windstar Corporation, he assumed the manager position in 2014.

Buddy Allen, American Cotton Shippers Association

Buddy Allen has experience in agriculture from several vantage points. Allen has been involved in legislative and regulatory matters through his service to the staff of United States Senator Thad Cochran and his partnership in The Macon Edwards Company, a Washington based government affairs firm. He has engaged in agricultural financial services through his participation in the creation and opening of Covenant Bank. Allen is an active stakeholder in a vertically integrated agribusiness encompassing a production farming operation, ground and areal application services, seed and crop protection retail, ginning, an extensive grain storage and shipping operation, and agricultural real estate holdings in Mississippi. Additionally, Allen is a partner in Miss Cal Orchards, a California based almond farm.

Allen serves in numerous leadership positions throughout agriculture and conservation spaces. In 2015, he was named a “Champion of Change for Sustainable Agriculture” by President Obama. Allen currently serves on the Agricultural Advisory Board of the Commodity Futures Trading Commission.

In January of 2019, Allen was named President and CEO of The American Cotton Shippers Association, where he leads their policy development and advocacy on both domestic and international matters.

Allen is a native of Belzoni, Mississippi, an Ole Miss graduate, and is married to the former Allison Allen of Tunica, MS. Together, they have three daughters.

Robert Lacy, PYCO Industries Inc.

Robert Lacy, Jr. – President & CEO, PYCO Industries, Inc.

Robert grew up in a farming and ranching family in West Texas and Eastern New Mexico.  He graduated from Eastern New Mexico University in 1982 with a BBA degree.  In 1984-1990, Robert worked at Paymaster Oil Mill in Lubbock, Texas holding positions of scale clerk, transportation, and marketing.  From 1990 until the present time Robert has been with PYCO Industries, Inc. (formerly Plains Cooperative Oil Mill).  His job duties have been marketing, VP Marketing, Senior Vice-President, and currently he is the President and CEO.  Robert has a combined 39 years of experience in the cottonseed processing business and has been active in many industry and community organizations over the years.  He has been married for 41 years to his wife Karyn and has two children and two grandchildren.

Eric Wanjura, Farmers Cooperative Compress

Eric is the CEO of Farmers Cooperative Compress in Lubbock, Texas. A Lubbock native, Eric attended Texas Tech University where he earned his Bachelor’s in Agricultural Economics and his Master of Agriculture. He has worked at Farmers Cooperative Compress since 2005 and took on the role as CEO in July of 2020. Eric and his wife Christine have three children, Sarah, Ben, and Hugh, and two international students from China that have become a part of the family, Chen and Eric. Christine is the Superintendent of Catholic Schools for the Dioceses of Lubbock and Amarillo.  Sarah earned her food science degree from Texas Tech University and now works as a business development manager for HEB’s seafood category.  Their second, Ben, is an Officer in the US Air Force and is currently in pilot training.  Their youngest, Hugh, attends Texas A&M University and is studying Agricultural Economics.

Panel Moderator: Kevin Brinkley, Plains Cotton Cooperative Association

Kevin Brinkley is the president and CEO of Plains Cotton Cooperative Association, headquartered in Lubbock, Texas. PCCA is a grower-owned marketing cooperative supplying high-quality, sustainable cotton from Texas, Oklahoma, and Kansas to textile mills worldwide.

Originally from Burnet, Texas, Brinkley graduated from Texas Tech University with bachelor’s and master’s degrees in Agricultural & Applied Economics. He served as an economist for the National Cotton Council until 2000, when he joined The Seam, an online trading and agri-tech company, eventually becoming chairman and CEO. He became CEO of PCCA in 2015.

Since 1989, Brinkley has used his knowledge and experience to promote U.S. cotton and ensure the success of American cotton farmers in global markets. He is Vice Chairman of the National Council of Farmer Cooperatives. He is an advisor on trade policy to U.S. Secretary of Agriculture Tom Vilsack and United States Trade Representative Katherine Tai.

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Upcoming Events

Auxin Herbicide Required Training – Levelland
Date: March 21, 2024
Location: Levelland County Extension Office

Moore County Gin Grower Appreciation Lunch
Date: March 28, 2024
Location: Moore County Gin, Dumas, Texas

Plains Cotton Growers Board of Directors Meeting
Date: April 1, 2024
Location: Overton Hotel & Conference Center, Lubbock, Texas

Plains Cotton Growers 67th Annual Meeting
Date: April 2, 2024
Location: Overton Hotel & Conference Center, Lubbock, Texas

For a full list of upcoming events, see the Events Page.

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March 8, 2024

Welcome to the March 8, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Editor’s Note: Right after the newsletter was sent to inboxes, the spending package — passed by the House on Wednesday — cleared the Senate. The legislation has now been sent to President Biden’s desk, averting a government shutdown for the rest of the 2024 fiscal year.

Producers, warehousers, merchants and researchers gather to review 2023 research projects and discuss 2024 research proposals.

Together to Advance High Plains Cotton

The Plains Cotton Growers conference room was busy on Thursday, March 7, as the Plains Cotton Improvement Committee (PCIC), consisting of growers, warehousers, merchants and researchers came together to discuss 2023 and vote on 2024 research projects. As PCIC Chair Barry Evans stated in his opening remarks, “We’re privileged to have this opportunity to come together and continue this great work.”

The great work began in the 1980s as High Plains cotton producers and industry came together to find a way to advance cotton’s potential in this region. Back then the reputation of High Plains cotton wasn’t what it has grown into today, which proves the legitimacy of this unique producer-funded research initiative called the Plains Cotton Improvement Program.

Eric Englund, producer in Lubbock County has served on PCIC since 2018. “We fight aggressive disease in our fields on my farm,” he added. “The continual effort to improve cotton seed varieties is one of the biggest benefits for me as a producer.”

Englund’s two main battles are nematodes and fusarium wilt. He works with Terry Wheeler to identify problem areas and treat them accordingly. If not addressed, nematodes can kill his yields.

“If we plant a non-resistant variety then by the time the plant is six inches tall, it’s dead,” he said. “We’ll lose the entire crop without a nematode resistant variety.”

Jonathan James, producer in Crosby and Floyd Counties, has also served on PCIC since 2018. “It’s important to me to see the future in seed development and disease research,” he said. “We deal with verticillium wilt and emergence issues with our cotton, so I find value in participating in the Regional Agronomic Cotton Evaluation trials.”

At the conclusion of the meeting, the committee voted to fund 2024 research projects for a total of $440,500.

Below are some of the highlights from the day of presentations.

Highlights from the Plains Cotton Improvement Committee Meeting March 7

Upcoming Events

Pesticide Applicators Training (To Obtain TDA License) – Levelland
Date: March 14, 2024
Location: Levelland, Texas

Auxin Herbicide Required Training – Levelland
Date: March 21, 2024
Location: Levelland County Extension Office

Moore County Gin Grower Appreciation Lunch
Date: March 28, 2024
Location: Moore County Gin, Dumas, Texas

Plains Cotton Growers Board of Directors Meeting
Date: April 1, 2024
Location: Overton Hotel & Conference Center, Lubbock, Texas

For a full list of upcoming events, see the Events Page.

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March 1, 2024

Welcome to the March 1, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Still Standing: The Fighting Spirit of Aud

Texas Panhandle Wildfires Burn Through One Million Acres

By Kara Bishop

 

If you ever want to know when you’re about to arrive in Canadian, Texas, just look for Aud.

Photo Credit: Jake Reeves, “Post Cards from the Panhandle” Facebook Group.

She’s a bright green dinosaur sitting atop a hill just south of the Hemphill County Seat. The creation of Gene Cockrell named after his wife, Audrey. A focal point for kids traveling to see grandparents in the summer and a symbol of happiness for a small Panhandle town.

And for the past few days, she’s been all over the news. Except this time, she’s surrounded by smoke.

Photo Credit: Chad Casey, Fox 4 Storm Chaser

Multiple wildfires began eating their way through the Texas Panhandle on Monday. With 50 to 60 mile-per-hour winds on both Monday and Tuesday with little containment progress, more than 1 million acres have burned. More land mass than the entire state of Rhode Island.

It’s a heartbreaking situation. People have lost homes, livestock, and loved ones. There are many photos on social media showcasing the devastation of land, cattle and communities.

You can find all the news you want to on this fire online. Everyone is covering it, so I’m not going to.

Today, I’m going to focus on Aud and what she represents.

I don’t know why Gene Cockrell made a concrete dinosaur and put it on top of a hill. A dinosaur statue seems like an odd thing to add to pastureland. Some say he did it to let the children know when they were almost home after long car rides. It’s a cool story and could be true based on the multitude of memories shared on social media of coming over the top of the hill and seeing Aud on their way into Canadian when traveling.

Whatever the reason, the dinosaur statue could not be more fitting for times like these. Most people believe that the Behemoth referenced in chapter 40 of Job in the Bible is a type of dinosaur. In verse 23 of that same chapter the text says, “Behold if the river is turbulent he (Behemoth/dinosaur) is not frightened; he is confident though Jordan rushes against his mouth.”

The dinosaur mentioned there stood strong and never wavered though the river rushed at him. Fire rushed Canadian earlier this week, and Aud is still standing.

She represents the resilience of Panhandle Texans because they have been through it the past couple of years. Last May, our social media feeds were full of people trying to help Perryton after the tornado ripped through the town. Now, everyone is banding together to help Hemphill, Hutchinson and all counties affected.

Watching the ag community take care of their own is a beautiful thing, even amid devastation. While we wish so badly this tragic event had not happened, it does illustrate the beautiful dimension to humanity when we all come together.

Aud the dinosaur outside Canadian surrounded by scorched acres. But she’s still standing.

Plains Cotton Growers is praying for all those affected by the Panhandle wildfires. And one day, we won’t endure tragedy as Isaiah says:

“But now thus says the LORD…I have called you by name, you are mine. When you pass through the waters, I will be with you; and through the rivers, they shall not overwhelm you; when you walk through fire you shall not be burned, and the flame shall not consume you.”

How You Can Help:

Here are reputable crisis relief resources actively seeking to help our ranching neighbors – many of whom have lost land, livestock, and homes:

WRCA Natural Disaster Relief Fund

Texas and Southwestern Cattle Raisers Association Disaster Relief Fund

TDA STAR Fund

Texas Tech University School of Veterinary Medicine Relief Drive

  • Accepting water, food and supplies at 7671 Evans Drive, Amarillo, TX 79106
  • Contact Tommy Butler: 806-228-0511

Texas Farm Bureau Texas Panhandle Wildfire Relief Fund

Examples of Neighbors Taking Care of Neighbors

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Upcoming Events

Great Plains Soil Fertility Conference
Date: March 4-5, 2024
Location: McKenzie-Merket Alumni Center, Lubbock, Texas

Plains Cotton Advisory Group Meeting
Date: March 8, 2024
Location: PCG Conference Room

Auxin Certification Training – Lubbock 
Date: March 8, 2024
Location: AgriLife Research and Extension – Lubbock Center

Pesticide Applicators Training (To Obtain TDA License) – Levelland
Date: March 14, 2024
Location: Levelland, Texas

For a full list of upcoming events, see the Events Page.

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February 23, 2024

Welcome to the February 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.

Bear and Bull and Bales, Oh My!

In the January 12 issue of Cotton News, we highlighted our keynote speaker for our 67th annual meeting, David Avrin. For the February 23 issue, we are going to highlight the U.S. Farm Report and some of our special breakout sessions.

The U.S. Farm Report

This year, PCG will host the U.S. Farm Report at its annual meeting. U.S. Farm Report Host Tyne Morgan comes back to the PCG stage with three renowned, heavy-hitter economists: Jody Campiche, Bart Fischer and Brad Weddelman.

Jody Campiche, National Cotton Council Vice President of Economics and Policy Analysis

Jody Campiche is the vice president of Economics and Policy Analysis for the National Cotton Council. She prepares the economic outlook for global cotton markets and monitors general economic conditions and other commodity markets with attention to their impacts on the cotton economic situation.  Campiche also coordinates and develops analyses of alternative farm and trade policies as they relate to the U.S. and global cotton and textile industries. The Oklahoma native was raised on a farming operation and joined NCC in 2015.

Bart Fischer, co-director of the Texas A&M University Agricultural Food and Policy Center

Bart Fischer serves as the co-director of the Texas A&M University Agricultural Food and Policy Center as well as a senior advisor for federal relations in the Office of the Vice Chancellor for Texas A&M AgriLife. Fischer’s applied research focuses on solving real-world policy problems for agricultural producers and on anticipating potential policy changes for Congress to consider. Fischer served the House Agriculture Committee for more than eight years before joining Texas A&M. He is the fifth generation to be raised on the family wheat, cotton and cattle operation in Southwest Oklahoma.

Brad Weddelman, Combest, Sell & Associates Chief Economist

Brad Weddelman provides keen insight and economic analysis on matters of policy for clients and lawmakers as the chief economist for Combest, Sell & Associates in Washington D.C. Additionally, he assists with client casework where he interacts regularly with officials at USDA’s Farm Service Agency and Risk Management Agency. A native of Napoleon, Ohio, Weddelman was raised on his family’s wheat, corn and soybean farm.

Breakout Sessions - 12:55 p.m. to 2:30 p.m.

Following the keynote address, the meeting will continue upstairs with attendees’ choice of breakout sessions. The first session will be from 12:55 p.m. to 1:35 p.m. followed by the second session from 1:50 p.m. 2:30 p.m. Guests also have the option to join the StoneX Cotton Marketing and Hedging Workshop from 12:30 p.m. to 5:30 p.m.

Click on the image to view the StoneX workshop agenda.

Breakout Session No. 1 - 12:55 p.m. to 1:35 p.m.

There are two learning opportunities to choose from in Breakout Session No.1

The Importance of Advocacy and the Legislator’s Role

This panel will feature Texas Senator Charles Perry (District 28), Texas Representative Carl Tepper (District 84) and invited Texas Representative Dustin Burrows (District 83). They will provide insight on the inner workings of the Texas Capitol as well as how their farming constituents and groups can help them serve agriculture’s best interests. The panel moderator will be PCG CEO Kody Bessent.

The Financial Future of Agriculture

This panel will feature AgTexas Farm Credit Services Chief Executive Officer Kayla Robinson, CoBank Regional Ag Easts Lead Relationship Manager Mike Cowley and a representative from Capital Farm Credit. These financial experts will talk interest rates and the future of agricultural financing for farming operations. The panel moderator will be Greg Taylor, partner with D. Williams & Co., Inc. Certified Public Accountants.

Breakout Session No. 2 - 1:50 p.m. to 2:30 p.m.

There are two learning opportunities to choose from in Breakout Session No. 2.

Handing Down Your Legacy — What You Need to Know About Transitioning Off the Farm

The speaker for this session is Amber Miller. Miller is a partner with Crenshaw, Dupree & Milam, LLP, who specializes in helping clients with agricultural and business law matters. Miller’s focus is primarily property rights and real estate, entity formation and corporate law, contract drafting and negotiations, while also assisting clients with federal regulatory compliance and administrative law matters and commercial litigation.

The Future in Seed/Chemistry Development and Regulation

Panelists include a Syngenta representative, Kenny Melton, BASF, Matt Peeples, Bayer, Cameron Oliver, Corteva, and Tom Brooks, Americot. The panel moderator will be Texas A&M AgriLife Lubbock Center Cotton Extension Specialist Ken Legé.

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Upcoming Events

Olton Crops Conference
Date: February 28, 2024
Location: Olton Ag Pavilion, Olton, TX

Auxin Herbicide Required Training – Levelland 
Date: February 29, 2024
Location: Levelland, TX

Great Plains Soil Fertility Conference
Date: March 4-5, 2024
Location: McKenzie-Merket Alumni Center, Lubbock, Texas

Plains Cotton Advisory Group Meeting
Date: March 8, 2024
Location: Plains Cotton Growers Conference Room

For a full list of upcoming events, see the Events Page.

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February 19, 2024

Welcome to the February 19, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Highlights from the National Cotton Council Annual Meeting

From February 16 to February 18, the Plains Cotton Growers Inc. delegation voted to approve important regulations impacting the national cotton industry and participated in discussions to continue to improve and enhance the industry at the National Cotton Council Annual Meeting in Orlando, Florida.

While there, PCG producers attended committee meetings with all cotton industry segments as well as the American Cotton Producers meeting and Texas Cotton Producers meeting. Here are the highlights in order of the NCC agenda.

PCG Delegates/Committee Appointments

Farm Program & Policy Committee:

Brent Coker – Lamb County (Alternate: Thomas Kennedy, Lubbock County)

Bryan Patterson – Lubbock County (Alternate: Seth Sowder, Lamb County)

International Trade Policy Committee:

Rex Kennedy, Lubbock County (Alternate: Rhett Mimms, Lubbock County)

Travis Mires, Lynn County (Alternate: Cody Ellison, Gaines County)

Quentin Shieldknight, Hansford County (Alternate: Greg Slough, Hansford County)

Nick Nelson, Castro County (Alternate: Katy Holladay, Dawson County)

Public Relations & International Market Development Committee:

Scott Harmon, Lubbock County (Alternate: Greg Glover, Potter County)

Research & Education Committee:

David Carter, Hockley County (Alternate: Barry Evans, Swisher County)

Packaging and Distribution Committee:

Jon Jones, Floyd County (Alternate: Steve Olson, Hale County)

Brent Nelson, Lamb County (Alternate: Glen Phipps, Dawson County)

Health Safety & Environmental Quality Committee: 

Jeremy Brown, Dawson County (Alternate: Justin Cave, Midland County)

Mark Howard, Dallam County (Alternate: Dee Vaughan, Moore County)

Johnie Reed, Swisher County (Alternate: Steve Verett, Crosby County)

American Cotton Producers Delegates:

Martin Stoerner, Floyd County

Stacy Smith, Lynn County

Cotton Council International Delegates:

Barry Evans, Swisher County

Brent Nelson, Lamb County

Cotton Council International Board of Directors Meeting

This year, PCCA Export Sales Manager Carlos Garcia fulfilled his term as CCI Chair.

PCCA Export Sales Manager Carlos Garcia accepting his plague of service from CCI for serving as their Chair and President.

“We greatly appreciate Carlos’ outstanding leadership and contributions to the U.S. cotton industry while serving as both president and chairman of CCI for both 2022 and 2023,” said Steve Dyer, incoming CCI Chair and cotton merchant from Tennessee. “Mr. Garcia served with vitality, dedication, vision and endurance in the Cotton USA program around the world.”

In 2023, CCI hosted 30 Cotton USA events in 20 countries, according to CCI Executive Director Bruce Atherley. In his report, Atherley expressed concerns about Brazil’s competitive advantages over the U.S. as they’ve increased their promotional efforts copying some of CCI’s structure.

“The two things we have that Brazil does not is our supply chain transparency and trust protocol program,” he added. “It’s these two things that will separate us from Brazil if we continue to enroll producers and brands/retailers into the protocol program.”

The deadline to upload 2023 bales into the U.S. Cotton Trust Protocol program is March 1, 2024.

The deadline to enroll your 2024 crop into the protocol program is midnight on March 30, 2024.

American Cotton Producers Business Session

It was a packed agenda with a packed house at the American Cotton Producers Meeting in Orlando.

Political Perspectives on the 2024 Farm Bill

The program began with Anne MacMillan, a political strategist and contracted lobbyist for National Cotton Council.

Key takeaways from her report:

  • House is likely to flip back to blue.
  • Senate is likely to flip red with 23 democrat seats up for grabs compared to just 11 republican seats. Republicans only need to net two seats to take the majority. “So the standoffs we’re seeing politically probably won’t change, they’ll just be rearranged.”
  • The Farm Bill is stuck. “I mean that with no disrespect to any of the Congressional staff members that are present, but it doesn’t seem that efforts are moving forward in regard to the Farm Bill.”
  • She also echoed everyone else’s sentiments that have discussed the Farm Bill this year (or politics in general): “In the 25 years, I’ve been doing this — I started with the 2002 Farm Bill — this is the strangest it’s been on Capitol Hill regarding farm policy. My job is to fix problems in Washington, and I can’t fix this one.”
  • However, she remains hopeful. “I’ve known all these people forever, and I know the desire for action is there. I believe they will figure it out.”

2024 Farm Bill Priorities from ACP/PCG

  1. ARC/PLC
    • Increase the statutory seed cotton reference price in this program to better reflect current costs of production.
  2. Crop Insurance
    • Expand the availability of the Stacked Income Protection Plan (STAX) by removing the prohibition of PLC enrollment and the purchase of STAX coverage.
    • Urge the accelerated development of federally assisted insurance or other risk management programs such as but not limited to grants, cost-share programs, low interest loans or other related program for cotton ginning, warehousing, merchandising, textile manufacturing and crushing operations to mitigate the risk of losses associated with reduced processing volume attributable to a significant decline in crop production.
  3. Cotton Loan Program
    • Enhance the Upland cotton marketing loan program by raising the level of the loan rate and modernizing the loan repayment provisions.
    • Improve the safety net for Pima cotton producers by increasing the level of the loan rate and establishing marketing loan repayment provisions similar to Upland cotton.

Read the full advocacy paper.

Texas Cotton Producers Business Session

Texas Cotton Producers Chair Chris Hirt conducts the meeting while PCG CEO Kody Bessent takes the minutes.

There were uplifting reports around the room bright and early Saturday morning at the Texas Cotton Producers business session.

“This will be the best planting start we’ve had in four years,” said Jon Gwynn, South Texas producer.

“This will be the best planting start we’ve had in longer than that,” Matt Huie, South Texas producer added to Gwynn’s comment.

While producers were talking about receiving some moisture and stabilized intended planting acres, NCC field representative Rick King commented, “It’s been a while since we’ve heard this!”

Infrastructure Assistance Efforts Continue

The quest for infrastructure assistance started as early as December 2022, when PCG instigated an effort to include disaster assistance for cotton infrastructure the federal 2022 omnibus spending package. Unfortunately, while a valiant effort was made, the initial federal attempt succumbed to political adversity and was left out of the final legislation.

As the Texas 88th Legislative Session convened, PCG and others spent the duration of the session working to develop a one-time block grant that cotton infrastructure could qualify for to help keep them in business following one of the most catastrophic years in cotton production history. PCG lead the effort with the support of more than 170 agricultural organizations and cotton infrastructure segments advocating for the Texas legislature to pass much needed assistance.

While the Texas legislature was unable to muster the political means to include the request in the end, PCG has not given up, and we continue to look for legislative vehicles both at the federal and state level to develop disaster assistance in the near-term for cotton infrastructure. As part of a long-term solution for infrastructure, PCG, along with other Texas groups, have been looking into a research study on harvest incentives.

During the TCP session, South Texas Cotton and Grain Association Executive Director Jeff Nunley, presented the idea of funding this study — conducted by the Texas A&M University Agricultural Food and Policy Center — to explore options for harvest incentives for producers. South Texas producer Jon Whatley made the motion seconded by Rolling Plains producer Richard Goana.

NCC General Session

NCC Chair and Dawson County Producer Shawn Holladay conducted the closing session of the National Cotton Council annual meeting. In the session, it was announced that the Committee for the Advancement of Cotton (PAC) raised more than $130,000 during the three-day meeting for it’s political advocacy efforts.

NCC Chair Shawn Holladay, Dawson County producer presides over the NCC General Session February 18.

 

Planting Intentions Survey

NCC Vice President of Economics and Policy Analysis Jody Campiche reported a U.S. planting estimate of 9.8 million acres for all cotton (ELS and Upland), down 3.7% compared to 2023. The survey was conducted in December and is a reflection of the time period when the surveys were completed throughout the U.S.

“Planted acreage is just one of the factors that will determine supplies of cotton and cottonseed,” Campiche added. “Ultimately, weather and agronomic conditions are among the factors that play a significant role in determining crop size.”

Planting intentions by region for Upland cotton are as follows:

  • Southeast (Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia) intend to plant just over 2 million acres, which is down 4.8% from last year.
  • Mid-South (Arkansas, Louisiana, Mississippi, Missouri and Tennessee) intend to plant just shy of 1.6 million acres, which is down 2.4% from last year.
  • Southwest (Kansas, Oklahoma and Texas) intend to plant roughly 5.7 million acres, which is 5.2% less than last year.
  • West (Arizona, California and New Mexico) is estimated at 147,000 acres, which is up from last year by 21.5%.

The 2024 estimated ELS acreage increased by more than 37% compared to last year at 202,000 acres.

Click image to view full NCC Economic Outlook Executive Summary.

Harry S. Baker Distinguished Service Award

PCCA Executive Director Kevin Brinkley accepts the Harry S. Baker Distinguished Service award on behalf of former PCCA Chairman Eddie Smith.

Former PCCA Chairman Eddie Smith was honored with the Harry S. Baker Distinguished Service Award February 18. PCCA Executive Director Kevin Brinkley accepted the award on his behalf.

“In life and industry challenges will come and go, but we must never stop pushing forward,” Brinkley said, reading from remarks Smith gave him.

Brinkley went on to say he was grateful to the industry for bestowing this well-deserved honor on Smith. “Whether you know Eddie or not,” Brinkley added, “your life has been positively impacted by him and his quiet leadership of this industry for several decades.”

Oscar Johnston Lifetime Achievement Award

Former Plains Cotton Growers CEO and Crosby County Producer Steve Verett received the Oscar Johnston Lifetime Achievement Award this year from the National Cotton Council.

Former PCG CEO Steve Verett, Crosby County producer, accepts the Oscar Johnston Lifetime Achievement Award.

“I want to thank the NCC staff and leadership for this award, as well as Patricia and my family,” Verett said when accepting the award. “I also want to thank my PCG family. It’s through their support that I was able to do anything.

“I came to my first NCC annual meeting in 1982 at 29 years old. I was mesmerized by all segments of the cotton industry coming together. It wasn’t always easy, but they were able to work out policy that could represent and benefit the whole industry. It was the envy of the commodity world — how the cotton industry could come together. When I came on as PCG CEO, my mission became fostering and enhancing volunteer leadership. Staff is critical, but the heart and soul and driving factor should always be the volunteer leadership. And the cotton council has always exhibited that.”

February 9, 2024

Welcome to the February 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.

Registration for the Plains Cotton Growers Annual Meeting is Now Open!

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Plains Cotton Growers Reacts to Dicamba Ruling

On February 6, a federal court in Arizona vacated the 2020 registrations for three dicamba products previously approved by the Environmental Protection Agency for over-the-top applications. According to the National Cotton Council, “The impacts of this ruling will be felt across the Cotton Belt as dicamba-tolerant varieties account for more than 75% of U.S. cotton acres.”

A prohibition of the use of dicamba products for the 2024 crop would add to the ever-growing list of challenges producers are facing of late. Producers on the Texas High Plains begin their planting season in May — they have already made their cropping decisions and have begun purchasing seed and other inputs for the season.

“The timing of this ruling will also not allow for the production of seed with alternative herbicide technology in time for 2024 planting,” the National Cotton Council said in a statement released on February 7. “Without widely available alternatives, losing the foundational herbicides in the dicamba-tolerant weed control system will put millions of acres in jeopardy of reduced production.”

With the persistent drought of 2022 and 2023, Texas High Plains cotton production doesn’t need another obstacle hindering production in the 2024 season.

“It’s unfortunate, after combatting an uncooperative Mother Nature and a volatile market, that we have this ruling staring us in the face to start 2024,” said PCG President Martin Stoerner. “And while things are uncertain at the moment, the impact of this ruling could have dire consequences to our industry.”

PCG CEO Kody Bessent added that PCG stands with NCC in urging EPA to immediately appeal the ruling.

“Our producers should have all crop protection tools available to them when producing our fiber,” he added. “Our local, state and national economies depend on it.”

On February 8, PCG submitted a letter in coordination with NCC to EPA requested they draft and grant an existing stocks order to provide producers the opportunity to access and apply the over-the-top dicamba products currently existing in the retail supply chain — especially since the 2024 season is already underway.

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Upcoming Events

Soil Health Symposium
Date: February 13-14, 2024
Location: West Texas A&M University

Getting to Know Your Soil
Date: February 15, 2024
Location: TTU Native Rangeland

Pesticide Applicators License – Levelland 
Date: February 15, 2024
Location: Levelland

Auxin Training – Hale County
Date: February 22, 2024
Location: Hale County Extension Office – Plainview

Managing Nutrition in Dry Regions Workshop
Date: February 22, 2024
Location: FiberMax Center for Discovery

For a full list of upcoming events, see the Events Page.

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February 2, 2024

Welcome to the February 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.

Registration for the Plains Cotton Growers Annual Meeting is Now Open!

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House Passes Tax Relief for American Families and Workers Act

By Kelly Jackson Hardy

This afternoon, the House of Representatives voted to pass the Tax Relief for American Families and Workers Act with a vote of 357-70.  As we discussed in a previous post, this bill is very taxpayer friendly with most of the significant provisions being retroactively applied to prior tax years.  The ten-year impact of the bill is approximately $78 billion.  For producers, the biggest benefits include:

  • Increase in the maximum refundable portion of the child tax credit from $1,600 to $2,000, phased in through 2025. The refundable portion would be based on the number of eligible children claimed as dependents and not calculations based on income.  The changes are retroactive to 2023, with the maximum refundable portion of the credit being $1,800.
  • For 2023, the much beloved 100% depreciation that has allowed so many machine sheds and so much tile on cash rented farms be written off, fell to 80%. A sliding scale to zero at a reduction of 20% per year was in place for the next 4 tax years.  The bill would extend 100% bonus depreciation retroactively to include property placed in service through December 31, 2025.
  • Companies, including many in ag, that invest in research and development received a nasty surprise last year when Section 174 became effective. Many of these companies were forced to capitalize and amortize their R&D expenses instead of deducting them as they have in the past.  In many cases it led to taxable income in situations where it was not expected.  The bill delays the application of this law to tax years beginning after December 31, 2025. No guidance has been provided as to how to claim a deduction in a tax year for which a return has already been filed, but one could expect the filing of an amended return would correct.
  • Limitations on the deduction of business interest hurt many of our marketing and supply companies in the calculation of their tax provisions this year. Interest rates are obviously higher and changes in the way that you determine allowable interest expense were not favorable. For the first time, depreciation and amortization could not be added back into the limiting calculation.  This tax bill revisits this calculation and allows for an EBITA based calculation to be reinstated for the interest limit for years beginning after December 31, 2023 and before January 1, 2026.  Taxpayers who saw negative impacts from the 2023 calculation could elect to restore the depreciation carve out for tax years beginning after 2021 and before 2024.
  • The Section 179 threshold would be increased effective for 2024 tax year as well as the minimum required payment amount for filing of Forms 1099.

So how will these incentives be paid for?  The Joint committee on Taxation estimates that the early termination of the Employee Retention Credit program will result in a savings of nearly the full cost of the bill, with the JCT projecting $400 million of excess costs.  ERC promotors face stiff penalties and filings for credits would end today…January 31, 2024.

The Bill now progresses to the Senate.  Will it pass? Both sides of the aisle have incentives in either direction – 1) get something favorable done in an election year or 2) politicize three provisions that no one likes or benefits from (bonus depreciation, interest limitation and R&D capitalization) to make the other side look bad in an election year.  The IRS has already opened filing for the 2023 year and passage will impact a great number of returns, primarily through the child tax credit expansion and bonus depreciation.    If this passes, the IRS will have to rework its systems before it can accept returns as will the tax software providers.  It is possible we will see delays in the filing date and even more compression of tax season than has become the new norm.  BE PATIENT.  This is not the year to be in a hurry to file and it is much easier to wait than to amend.

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Upcoming Events

Dalhart Crops Conference
Date: February 6, 2024
Location: Frank Phillips College

PCG Advisory Group Meeting
Date: February 9, 2024
Location: Plains Cotton Growers Conference Room

Soil Health Symposium
Date: February 13-14, 2024
Location: West Texas A&M University

Getting to Know Your Soil
Date: February 15, 2024
Location: TTU Native Rangeland

For a full list of upcoming events, see the Events Page.

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January 26, 2024

Welcome to the January 26, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Registrations for the Plains Cotton Growers Annual Meeting is Now Open!

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‘We Feed the Masses’

First published in Agri-Pulse, written by South Texas Cotton and Grain Association Executive Director Jeff Nunley

“We feed the masses.” That was the response of one of my farmers to our Uber driver who shared with us that he was an organic “farmer” that had recently bought 15 acres in Pennsylvania to grow his own organic food. I was impressed with the insight of my farmer’s comment and how it relates to the war on “big” agriculture by many who have the misguided belief that a farm should be small, diverse, and focused on the wants of the wealthy elite rather than the needs of ordinary Americans who work hard to support their families and put food on the table.

U.S. Agriculture has evolved over decades to be the envy of the world in its ability to provide safe and abundant food and fiber for our country and the world. No other country enjoys a food supply that costs consumers on average less than 10% of their household income. Consumers take for granted that grocery shelves will be full of the items they want at prices that are reasonable and predictable.

Empty store shelves during the Covid pandemic, and more recently rampant inflation following the pandemic, brought into sharp focus how sensitive consumers are to scarcity and increasing food costs. More than anything else, these events reinforced the importance and strategic value of maintaining a strong, stable, domestic agriculture industry and providing a safety-net for the farmers that underpin the entire system.

The marvel of our U.S. food and fiber supply system is due to constant improvements in efficiency throughout the supply chain, but particularly due to improvements at the farm level – where it all begins.

When soldiers returned home after WWII, many pursued other opportunities rather than returning to the farm. For those who remained, farm size grew. Improvements in farm equipment, like tractors and harvest equipment, allowed farmers to cover more ground with less labor. Advances in agricultural science and technology along with the adoption of advanced farming practices have provided a constant pace of improvement that has evolved into the production agriculture we know today.

Today’s farmers produce more output with less inputs than ever before. Farmers use less fuel, fertilizer, water, pesticides, and labor for unit of output today than they did just 10 years ago. The average U.S. farmer has less environmental impact and produces more sustainably than anywhere else in the world. As a result of the constant improvements in efficiency on the farm, food prices have decreased over time. When I was in college in the mid-1980s, food costs were $1 of every $5 of household income. That number today is less than $1 of every $10 in household income, even factoring in that away-from-home consumption has increased over the same time. As farmers have increased efficiency, the gains have not translated into improved profits. Rather, these gains have been passed through the system to the ultimate benefit of consumers – this is the nature of commodity markets. Affordable food and fiber made possible by efficient, full-time farming operations underpins our economy by allowing consumers to spend more of their income on goods and services other than food and clothing.

Farming has always been a high-risk, capital intensive, and low profit margin business. Farmers’ income is a function of their yield (which depends on timing, weather, and skill) and the commodity price (subject to global supplies and the actions of foreign governments).

U.S. farm policy has evolved along with the changes in production agriculture with the consistent goal of providing a safety net that helps farmers survive weather and market conditions beyond their control. Farm Bill programs like counter-cyclical payments and crop insurance are intended to preserve the strategic resource of domestic agriculture knowing that farmers cannot enter and exit the business like gamblers at a roulette wheel.

Recently, Secretary of Agriculture Tom Vilsack has lamented that 84% of farm program payments go to only 12% of farmers in our country. What’s wrong with that? When you consider that 12% of farmers (roughly 240,000 farms) are responsible for over 80% of agricultural production in this country, it sounds like the support is going where it should. Keep in mind that this 12% are not “mega-farms”, rather the overwhelming majority are family farming operations with gross cash farm income above $350,000 that have grown to keep pace with the economics of low margins and high capital costs.

It troubles me that this USDA has decided the scales should be tipped in favor of small hobby farms like that of our Uber driver, who would qualify as a farmer in the eyes of USDA. But his livelihood does not depend on his farm like those full-time farmers that USDA has decided to penalize.

It also troubles me that this USDA and others have decided that the economic realities that created the marvel of our modern agriculture and food system are wrong, and they know better. I fear that the well-meaning, but ill-informed who believe we should divert support away from full-time farmers and instead target them to fashionable, feel good social engineering that benefits folks like our Uber driver will undermine an industry that provides the foundation for our country.

Finally, I fear that this increasingly popular notion that “big” agriculture is bad could lead us down the road to less efficient, more costly agriculture. The biggest loser of that will be American consumers, especially those who already struggle to put food on the table.

“We feed the masses.” Yep. That’s us. The 240,000 farmers that are the workhorses of our industry. We deserve to be treated fairly.

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Upcoming Events

Dalhart Crops Conference
Date: February 6, 2024
Location: Frank Phillips College

PCG Advisory Group Meeting
Date: February 9, 2024
Location: Plains Cotton Growers Conference Room

Soil Health Symposium
Date: February 13-14, 2024
Location: West Texas A&M University

Getting to Know Your Soil
Date: February 15, 2024
Location: TTU Native Rangeland

For a full list of upcoming events, see the Events Page.

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