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Cotton News

May 26, 2023

Welcome to the May 26, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Upland Cotton Production in the US, Texas and PCG Service Area

The U.S. Department of Agriculture (USDA) National Agricultural Statistics Service released its latest crop production report May 12, 2023. 

2022 Production

According to the report, an estimated 13.6 million acres were planted nationwide. Seven million of those acres were harvested, producing nearly 14 million bales. 

Texas planted 7.85 million acres, harvesting 2 million for an estimated production of 3 million bales. 

The Texas High Plains planted roughly 4.8 million acres and harvested 961,000 of those acres for a production estimate of 1.5 million bales. 

Carson County holds the title for most production in the 2022 crop year with 113,800 bales, while Hockley County came in fifth at 94,700 bales. 

A full report of PCG’s 42-county production numbers can be found here.

2023 Forecast

USDA’s initial projection for 2023/24 U.S. cotton production is 15.5 million bales, 7% (1 million bales) above the final 2022/23 estimate. The Prospective Plantings report estimates 2023/24 cotton planted area at 11.3 million acres, 2.5 million acres below the 2022/23 estimate. Market price, weather, production costs and potential program benefits will all play a key role in determining planted cotton acres this year, according to the USDA Cotton and Wool Outlook report released in May. USDA will update the plantings estimate at the end of June. 

Advisory Group Outlook

cotton field after a rain

Mark Brown captured rain standing in a field in Crosby County. “It’s been months since I’ve seen something like that,” he said.

This morning (May 26, 2023) the Plains Cotton Advisory Group gathered to discuss crop conditions. Rather than focusing on the lack of rain, current weather conditions provided a new topic: planting when it’s wet.

While there are challenges associated with rain like difficulty in meeting planting deadlines, soil temperatures not quite warm enough and the increased potential for hail with weather events in this region, the overall consensus was summed up by South Texas Cotton and Grain Executive Director Jeff Nunley. “I will say, having moisture is way better than being dry.” 

When 65% of the High Plains and the state consists of dryland cotton acres, rain is a necessity for higher production levels. To make an average or above average crop, the group agreed a dryland crop has to be made. 

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NASA’s Role in Agriculture

NASA expects to work more closely with farmers and other members of the agriculture community through a new program called Acres.

Established in March, Acres is a consortium of partners working across the U.S. agricultural spectrum to develop observatory-based data and tools to help increase food production, while protecting or restoring soil, water and other natural resources, says Alyssa Whitcraft, founding director and a professor in the department of geographical sciences at the University of Maryland. University staff provide administration and oversight for Acres.

Three of the consortium partners’ broad objectives for Acres include:

1. Supporting a deeper understanding of U.S. agricultural land use, productivity and sustainability.

2. Developing on-farm decision support tools for smart agronomy.

3. Strengthening environmental and human resilience to climate change and global hazards.

Rhonda Brooks
Farm Journal

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Ag Census Deadline: May 31

WUSDA’s National Agricultural Statistics Service (NASS) says the deadline for producers to return 2022 ag census forms is Wednesday, May 31, either by mail or online at www.agcounts.usda.gov.

USDA NASS is reminding ag census recipients that if they produced and sold $1,000 or more of agricultural product in 2022, or normally would have produced and sold that much, they meet USDA’s definition of a farm.

However, landowners who lease land to producers, those solely involved in conservation programs, and even those who may not have farmed in 2022 are still required to respond. 

Producers who received the ag census but do not fit the definition of a farm, are no longer farming, never farmed, or have another update for NASS should write their status on the form and mail it back.

Ag census data are used by agribusinesses, educators, researchers, federal and local government, and many others when making decisions about farm programs, loans, insurance, rural development, disaster assistance, and more. Not responding means not being represented in these widely used data, and therefore risk being underserved. For assistance filling out the ag census, call 888-424-7828.

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May 19, 2023

Welcome to the May 19, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

50-Year Fumigation Rule Lifted on U.S. Cotton Imports

The Bangladesh government has lifted its fumigation requirement on U.S. cotton imports, which has been in effect for nearly 50 years. 

This shift will remove a significant export barrier for U.S. cotton to Bangladesh, as well as saving Bangladeshi mills time and money as they look to the U.S. to fill their cotton fiber import needs. 

Bangladeshi mills have been paying over a million dollars annually to cover unnecessary fumigation costs imposed on cotton imported from the U.S.

U.S. exporters will continue to use APHIS-generated phytosanitary certificates, but under the new regulation, the certificate will have additional language confirming no live boll weevils are in U.S. baled cotton. APHIS will issue revised instructions for exporters.

Bangladesh’s Agricultural and Commerce Ministries’ decision to lift the fumigation requirements on U.S. cotton came after six Bangladesh Ministry of Agriculture delegation members joined a CCI-sponsored U.S. cotton tour. 

The Bangladesh Ministry of Agriculture delegation met with U.S. cotton industry representatives and visited cotton fields, gins and warehouses, and the USDA Agricultural Ginning Research Laboratory.

The tour included a review of the U.S. cotton industry’s successful Boll Weevil Eradication Program and its modern cotton harvesting and ginning techniques. 

Bangladesh currently ranks as the No. 2 global importer of cotton, according to the May 2023 USDA FAS global market analysis. 

Although there is domestic cotton produced in Bangladesh, it is 1% or less of total demand. 

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2022 Emergency Relief Program

Agriculture Secretary Tom Vilsack today announced plans to roll out $3.7 billion in Emergency Relief Program (ERP) and Emergency Livestock Relief Program (ELRP) assistance to crop and livestock producers who sustained losses due to a qualifying natural disaster event in calendar year 2022. USDA is sharing early information to allow producers time to gather documents in advance of program delivery. Through distribution of remaining funds, USDA is also concluding the 2021 ELRP program by sending payments in the amount of 20% of the initial ELRP payment to all existing recipients.

“U.S. agricultural producers nationwide endured crippling natural disaster events in 2022 including a megadrought, Hurricane Ian, epic flooding and catastrophic wildfires. To say these events were costly is an understatement,” Vilsack said. “Last year USDA streamlined the delivery of natural disaster assistance, speeding up the timing of payments and cutting the time spent on paperwork by 90% or one million hours relative to previous disaster programs. While we will use the same streamlined approaches, funding is limited and significantly less than the estimated losses. We are designing payment factors that ensure the fair, equitable and efficient delivery of program benefits to help as many producers as possible offset the significant financial impacts resulting from these ongoing and widespread natural disasters.”

Background

On December 29, 2022, President Biden signed into law the Disaster Relief Supplemental Appropriations Act, 2023 (P.L. 117-328) that provides about $3.7 billion in financial assistance for agricultural producers impacted by wildfires, droughts, hurricanes, winter storms and other eligible disasters occurring in calendar year 2022.

Additionally, the Act specifically targets up to about $500 million to livestock producers for losses incurred due to drought or wildfire in calendar year 2022.

ERP 2022 for Crop Producers

USDA, through the Farm Service Agency (FSA), intends to deploy the lessons learned from the development and implementation of ERP and ELRP for previous years’ losses to ensure expedited assistance for 2022 losses.

Based on positive feedback from producers, stakeholder groups and FSA county office staff, USDA intends to provide an ERP track for producers who had coverage through Risk Management Agency’s federal crop insurance or FSA’s Noninsured Crop Disaster Assistance Program (NAP). Through a streamlined application process, USDA intends to be in a position to send pre-filled applications directly to eligible producers in early summer.

For producers who have not been able to avail themselves of risk management coverage or whose losses were not covered, USDA intends to offer a program track to access ERP assistance with assistance provided to producers who suffered a decrease in allowable gross revenue in 2022 due to necessary expenses related to losses of eligible crops from a qualifying natural disaster event.

Instead of implementing these program tracks as two separate phases on different timelines, FSA intends to make both tracks available to producers at the same time, noting that the first track will follow a streamlined process with less paperwork burden, based on existing, available risk management data. The second ERP track would require that producers provide FSA with certain information related to revenue.

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WASDE Analysis

U.S. cotton is projected to plant less acreage in 2023 but will see higher production than in 2022.

The 2022 cotton crop saw a record level of abandonment, with 13.76 million acres planted but only 7.31 million acres harvested, mainly due to dry conditions in Texas.

Currently, USDA projects 11.26 million acres planted with 8.71 million acres harvested. It will be important to keep an eye on acres abandoned as the year advances, with growing conditions in West Texas remaining dry. In the May WASDE, U.S. cotton production is projected at 15.50 million bales, a 7% increase from 2022. 

On the demand side, exports are expected to increase by 0.9 million bales to 13.5 million bales. With higher exports, cotton ending stocks are projected to decrease by 0.20 million bales to 3.30 million bales. 

The average farm price is projected to weaken to 78 cents per pound. 

William Maples, Ph.D.
Extension Economist
Mississippi State University

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Letter to the Editor: W.B.’s Suitcase

W.B. was a good farmer and friend. I enjoyed working with him at Plains Cotton Growers. Reading your article made me think of the first time W.B. came with me to Washington D.C. 

He had brand new luggage with him that required a key to open. 

As soon as we got to our rooms, he realized he couldn’t find the key and was locked out of his suitcase. We got it figured out without having to break into his luggage. The situation wasn’t funny to him until after the fact. 

After I read the article, I called him and we picked back up right where we left off many years ago. We spent a lot of time on the phone that afternoon, but as the article stated, we both have plenty of it. 

-Don Johnson, former PCG executive vice president (1965-1997)

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PCG Educates the Next Generation

Fourth graders from seven different elementary schools in Ochiltree County were excited to learn about cotton May 16, 2023, at the water festival put on by the North Plains Groundwater

PCG Director of Field Services Mark Brown discusses cotton bales with fourth graders in Perryton, Texas, at the North Plains Groundwater Conservation District water festival.

Conservation District.

The students were able to touch seed cotton, cotton lint and learn about the different products made from cotton. Some of their comments were pretty entertaining: 

“Cotton is in ice cream? That’s so cool.”

“I’ve washed lots of dollar bills on accident – there’s cotton in money?” 

“I guess you could say money does grow on trees!” 

“I busted a baseball once, all that fluff in there was cotton?” 

Director of Field Services Mark Brown emphasized the drought tolerance of cotton and the enhanced efficiency of cotton producers’ water usage over time. 

Inspiring passion in future generations for this way of life is a privilege we get to participate in as an organization. It takes hours of travel time and preparation, yet the enthusiasm for cotton is all worth it as we hope to produce more advocates for the cotton industry and production agriculture. 

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May 12, 2023

W.B. Criswell

Welcome to the May 12, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

About Time: Reflections of a Cotton Industry Pioneer

By Kara Bishop

W.B. Criswell, Lubbock County producer, served as PCG President from 1975 to 1977.

On a quiet neighborhood street in Idalou, Texas, sits a 92-year-old man looking for ways to pass the time. Time is funny that way. One minute you’re at the peak of your career, raising children, serving on multiple civic and industry boards. Vacationing. Taking pictures. Preserving memories, and then the next minute comes.

And the memories are all you have left.

The fireplace is decorated with those memories, the office is lined with plaques and certificates of accomplishments. The TV plays in the background to break through the deafening silence. And the old grandfather clock ticks on.

Tic..tic…tok. Tic…tic…tok.

To his neighbors, he’s a quiet, older gentleman, keeping to himself and suffering loss the past couple of years. They have no idea of the trailblazer that still resides in the heart of W.B. Criswell. Even today, the cotton industry feels his impact.

THE BEGINNING

On March 10, 1951, Criswell married fellow Idalou native, Jo Ellen Barnhart. They moved to Melbourne, Florida, shortly after — a member of the U.S. Air Force during the Korean War, Criswell was stationed at Patrick Air Force Base.

Together, they spent four years raising two children, Rodney and Teresa, in an 8-foot by 23-foot trailer.

When W.B.’s service ended, the Criswells moved back to Idalou where they welcomed their third child, Gary, and began farming in 1956.

W.B. always knew farming would be his livelihood and was the third generation of his family to carry the torch.  While reading the paper one day, he came across an advertisement of a monthly meeting. The organization was in its early infancy — established just a few months before W.B. moved back home. The name? Plains Cotton Growers.

“I believed in the mission,” W.B. recalled. “I knew it was important for farmers to have a voice in policy, so I became a member that day.”

THE PIONEER

Even in the U.S. Air Force, W.B. was a forward thinker. He worked in the research department developing ways to enhance satellite technology for communication devices.

“The foundation of the technology on that right there came from our work in the military,” he added, pointing to the smartphone on the table.

The first “module builder” was developed on W.B.’s farm. From 1975 to 1976, Cotton Incorporated would use W.B.’s land and resources to develop a module builder — allowing for more efficient transport of cotton to the gins.

“All of the farmers were waiting on a certain amount of trailers to carry their crop to the gins,” he recalled. “We tried the ricker first, which was more of a storage container for the cotton until the next available trailer arrived for transport. The following year, we were able to build modules that could be transported by trucks. And that’s when we started making strides in efficient cotton transportation.”

W.B. spent the next three decades actively involved in PCG, assuming the president’s role in 1975. He was a member of the Cotton Incorporated Board of Directors and a delegate of the National Cotton Council. During his presidential tenure, he advocated for the cotton industry in Washington D.C., helping to develop the 1977 U.S. Farm Bill.

Every weekend for four months during the summer of 1976, W.B. flew into Washington where his Congressman, Rep. George H. Mahon (D-Texas), was waiting for him. There was much work to be done.

The 1973 Farm Bill terminated a $10 million annual authorization for cotton promotion and research facilitated by Cotton Inc. and reduced the commodity payment limit for producers from $55,000 (1970 Farm Bill) to $20,000.

W.B. Criswell’s best crop year was 1973. He made 1.5 bales per acre.

After months of advocacy and education, the agriculture industry was happy with the strength of the 1977 legislation.

In this legislation, Title XIV: National Agricultural Research, Extension and Teaching Policy Act was established, which designated the U.S. Department of Agriculture as the lead federal agency for agricultural research, extension and teaching in the food and agricultural sciences.

It also established a target price program, in which the government would pay the difference to producers should the market price fall below the agreed-upon benchmark.

“I believe the 1977 Farm Bill was the foundation of all future legislation,” W.B. said. “It did a lot for producers when it was passed.

The two crop years after the 1977 Farm Bill went into effect were good years; therefore, the government didn’t have to worry about the parity price payments. However, 1979 went differently.

“When the government realized they were going to have to pay a pretty hefty price difference — I believe market prices were in the low 50s — they modified the ruling,” W.B. added.

This was one of the “straws that broke the camel’s back,” resulting in the 1979 “Tractorcade,” where thousands of farmers rallied on the National Mall. Tractors were everywhere. At 15 miles-per-hour, farmers covered maybe one hundred miles per day, often resting their equipment on the side of the highways leading to Washington. They traveled in convoy fashion, and according to the Smithsonian Institution Archives, “descended on the nation’s Capitol Feb. 5, 1979.”

“I knew of several who went,” W.B. recalled. “But from an organization standpoint, PCG decided that we would strive for change through policy. That was our whole mission.

Cotton Incorporated developed the module builder on W.B. Criswell’s farm in 1976.

“While those were some interesting times, I learned so much those few months on the Hill and the two years I was PCG President. I am a better person because of it and am proud of the work we accomplished.”

THE ENTREPRENEUR

W.B. wasn’t just a farmer. He was also a cowboy, home renovator and custom harvester.

He bought 10 Registered Black Angus heifers in 1956. “I knew that if I needed money in a pinch, or had a bad crop year, I could sell some cows to stay afloat,” he said.

At one point, W.B. and his business partner, Buddy Hettler, were working with 2,200 head.

They worked cattle all over West Texas and whether they were close to home or in the Plainview area, their wives would still bring them dinner. The men were always amazed that no matter how many miles away from home they were, the food was always hot.

W.B. bought two cotton strippers so he could add another stream of income to his bottom line. The crop seasons in different regions worked well for his side business. “We’d plant our cotton, then head to South Texas to harvest theirs,” he added.

In the middle of farming cotton, working cattle and serving on bank boards, PCG board, city boards and civic duties, W.B. headed to the bank to ask for a home construction loan. “I wanted to flip some houses in Ruidoso, New Mexico,” he recalled. “The bank didn’t like it — thought it was not worth the risk — but they worked with me anyway and it was a profitable venture.”

Originally, W.B. started with 160 acres in 1956, working his way up to just shy of 1,000 before retirement. He still remembers his best crop.

“It was 1973,” he said. “I made 1.5 bales per acre that year.”

Even with his responsibilities, one of W.B.’s favorite things about his livelihood was the ability to be with his children.

W.B. Criswell’s oldest son, Rodney, sits on the family tractor.

THE FAMILY MAN

“While you worked long hours farming, you could be present to watch your kids play sports or extracurriculars,” W.B. said. “I had to make the hours up, of course, but I always liked that farming allowed me to be present.”

He and Jo Ellen enjoyed 70 years of marriage together. They travelled to all 50 United States promoting cotton everywhere they went. His wife served as president of the Lubbock County Women’s Cotton Ancillary and was Chair of the Lubbock County Miss Cotton Contest in the 1970s. She had a knack for conservation — rarely threw anything away — was resourceful to the point of purchasing a TV with S&H green stamps and was renowned for her letter correspondence. Jo Ellen passed away April 15, 2021.

While the Criswell kids were busy with school and sports growing up, they also worked on the farm, and even after graduation, Rodney helped with the custom harvesting business, farmed for himself for several years, and sprayed fields for the boll weevil eradication program. He is now retired, driving a truck for Idalou Co-op Gin when they need him.

Teresa served as a Gaines County extension agent for many years, and is now retired from working as the state 4-H director in College Station.

Gary, a sales representative with Becknell Wholesale Company, developed a love for motorcycles, along with his father. They often rode together, and even this year, W.B. drove his convertible alongside Gary enjoying the hill country on the ride that he and 20 others from the Lubbock area go on every year.

On April 16, they parted ways in Junction, Texas. Gary headed back to the Corpus Christi area; and W.B. came back to Idalou with some merchandise that Gary had asked him to return to Bucknell.

W.B. was home for an hour before Rodney came through the door to tell him Gary had a fatal accident. “He told me he was going to take a route we never take; it has a lot of curves and winding road, and we lost him.”

Time seems even slower now, yet the clock’s rhythm never changes.

Tic…tic…tok. Tic…tic…tok.

The paths he forged for the cotton industry may be forgotten by most; however, the influence lives on as others take up the mantel to protect and promote the interests of High Plains cotton producers.

Outliving friends and family, he sits in the same silence he’s been in for two years waiting for time to pass. But, that’s OK. He knows Gary is keeping Jo Ellen company as they also wait on him.

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May 5, 2023

Welcome to the May 5, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

High Plains Pre-Planting Conditions

With planting season right around the corner, everyone is on the same page.

It needs to rain. 

Lubbock County and surrounding areas received a much-needed drink the evening of May 2 and early morning May 3. “We thank God for that, but Levelland only registered about 0.26 inches,” said Kerry Siders, Integrated Pest Management extension agent for Cochran, Hockley and Lamb Counties. “We need some more.” 

The Lord must have been listening. Some parts of Lubbock and Lynn Counties have received 1 inch to 1.89 inches of rain in the last 48 hours. Levelland received an additional 0.41 inches last night, according to Siders who is the National Weather Service observer for Levelland.

Moisture Concerns 

While we could always use more timely planting rains, producers saw a morale boost after last week’s tease of wet weather that never happened. 

“Looking at regional moisture from last night (May 2), it looks like Gaines County might have been a big winner with some areas that received three-quarters to 1 inch of rain,” Siders added. “And we had a good amount of rain over a large area, but some areas still didn’t see much precipitation. We’re still very much in drought.” 

Texas A&M University AgriLife Extension Service has identified a prime target date range of May 15 to May 20 to start evaluating moisture, soil temps and air temperature for planting. The nighttime temperatures begin to level out around that time above 60 degrees, so the risk of chilling injury is lessened. 

“With the size of equipment today, I think most of these producers can get across the majority of their acres in a timely fashion,” Siders said. “I know we’re always concerned about getting the crop in early so we don’t get caught with cold weather in October, but that won’t matter if we can’t get a stand up. It wouldn’t hurt to wait a little bit and see if we can catch a little more rain before planting.”

According to Siders, it wasn’t unheard of for people 25 years ago to say that rain supplements irrigation. “That’s the furthest thing from the truth today. It’s the opposite. Irrigation can’t keep up anymore. We must have rainfall.” 

Soil Temperatures

Looking at the forecast, Siders believes we’re “over the hump” on low soil temperatures. While occasionally below 55 degrees, soil temps are trending upward. 

“I have been concerned about some of the colder temperatures and cold fronts that have blown in earlier this month, but it looks to be levelling off.” 

What’s the Plan? 

Siders said he’s cautiously optimistic about this crop year. 

“I’ve yet to see much benefit from this supposed El Nino pattern, but we may see it kick in.” 

Producers feel they’re in the same mode as they were a year ago today — almost a repeat of last year. “And until we see this drought broken with sufficient rainfall, we’re probably going to hold our cards tight to the chest this year before we pull the trigger.” 

Siders is hopeful that we’ll see more rain over the next 10 to 14 days and believes that most producers are patiently waiting it out as well. 

“We haven’t received a 40-inch rainfall season since 2004 and it’s been a while since we’ve seen more than 20 inches. However, at this point, we’d all be more than happy with our yearly average of 17 in this area.” 

In terms of plans, producers usually have two or three, Siders added. A plan for several scenarios makes a smart producer since every year different circumstances are experienced. 

“That’s the nature of this business we’re in,” he said. “And thank God, we’ve got the best farmers in the world making these decisions.”  

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Weather Outlook

Jacob Riley, chief meteorologist for KLBK-TV. Photo credit: KLBK.

Jacob Riley, chief meteorologist for KLBK-TV, told the Lubbock Chamber of Commerce Agricultural Committee that this year will be better than last year. “But we probably won’t have any drought-busting rains.”

Over the next six to 10 days, most of the region has a slightly above-average chance for precipitation, while the eight to 14 day forecast (May 11-17) shows a 50% chance of above-average precipitation. 

“Unfortunately, this could come with hail, high winds and possibly severe storms,” Riley added. 

Overall things are looking to get a little bit more active through May as we head into the weekend of May 13 in terms of moisture.

Overall, temperatures will remain pretty mild compared to average over the summer season, Riley added. This will not be the hottest summer on record for the South Plains region or the state. 

“We will see bouts of monsoon moisture increase over the next several months, resulting in average precipitation through the growing season,” he said.  “Overall, drought conditions will likely slightly improve now through late summer.”

 

 

 

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Memories are Made in Cotton: Cotton Inc.’s New Advertising Campaign

Cotton Incorporated announced their new advertising campaign, which illustrates the common thread of our best memories: cotton!

Everyone has core memories made in cotton, but Cotton Inc.’s new campaign shows that cotton is as much a part of our future as it is our past.  

Watch the new commercial below.

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April 28, 2023

Welcome to the April 28, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Producer Perspectives on the 2023 Farm Bill

Shawn Holladay, producer in Dawson County, PCG past president and current chair of the National Cotton Council, testifies on behalf of the U.S. cotton industry at the House Ag Committee Subcommittee on General Farm Commodities, Risk Management and Credit’s hearing, “Producer Perspectives on the 2023 Farm Bill.”

The House Agriculture Subcommittee on General Farm Commodities, Risk Management and Credit held a hearing Wednesday, April 26, 2023, to review producers’ needs for the upcoming Farm Bill.

Among the witnesses was Shawn Holladay, Dawson County producer, PCG past president and current chair of the National Cotton Council. 

In Holladay’s opening statement, he emphasized key priorities of the Farm Bill that would be beneficial to the U.S. cotton industry.

Seed cotton reference price

“Since 2018, cotton costs of production have increased by 20 cents per pound, based on average yields of 800 pounds per acre,” Holladay. “For many producers, total production costs now range between 90 cents and $1 per pound, which exceed current futures prices trading in the mid-80s.” When calculated based on seed cotton, the total costs to produce a pound of seed cotton have risen nearly 9 cents since the 2018 Farm Bill, with current costs of production at almost 48 cents.

This is far above the seed cotton reference price of 36.7 cents per pound. 

“The current reference prices were set in the 2014 Farm Bill using 2012 data, which is outdated,” said Rep. Austin Scott (R-Ga.), subcommittee chair. “Even three years old would be too old at this point, given the increase in input prices.” 

When Scott asked for the break-even cotton lint price producers need in relation to the seed cotton reference price, Holladay answered: “To break even, a producer would need a 85 cent to 95 cent lint price depending on what all he put into his crop.” 

Multiple Representatives sitting on the subcommittee made mention of reference prices and the need to raise them to alleviate financial strain on producers.

Crop insurance

Currently, producers enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs are limited in their access to crop insurance, “due to a prohibition on the purchase of the Stacked Income Protection Plan (STAX) on their enrolled farm,” Holladay said. “At the beginning of the prohibition, during the 2019 crop year, most growers chose to enroll their base acres in PLC. However, with higher cotton futures prices for the 2021 and 2022 crops, and limited effectiveness of the current seed cotton reference price, STAX has become a more attractive option. 

Holladay emphasized to the subcommittee that producers should be able to manage risk based on the needs of their operation. Eliminating the prohibition on simultaneous enrollment in PLC and STAX, as well as boosting the top coverage level of STAX for those farms with no seed cotton base — or who forego enrollment in ARC/PLC — would allow them to tailor their risk management options according to the needs of their operation. In turn, this will also decrease producers’ reliance on ad hoc programs, putting producers in charge of their own production risks. 

Cotton loan programs

Mr. Scott also asked Holladay about the effectiveness of raising loan rates. 

“We use the marketing loan frequently in cotton,” he responded. “Most of our cotton is exported, so we experience unique issues in terms of shipping, storage and marketing.” He went on to say that raising the loan rate would not be a large cost item to Congress, yet would have a significant impact on the amount of working capital producers can obtain when prices have dipped to break-even or lower.” 

Even in times of higher market prices, the marketing loan programs are utilized by the cotton industry to provide cash flow for producers and flexibility in marketing to encourage orderly movement of the crop throughout the year.

Despite higher production costs, the maximum level of the loan rate has remained at 52 cents since 2002. 

Holladay said the level of the loan rate should be increased to better reflect current costs of production and recent market prices. 

“In addition, loan repayment provisions should be modernized to better reflect the competitive landscape in the global market and the higher storage and logistics costs facing the industry,” he added. 

While the hearing was divided into two different segments totaling more than six hours of discussion, subcommittee members were eager to hear how they could better serve Rural America.

As House Agriculture Committee Chair Glenn “GT “ Thompson (R-Pa.) stated in his opening remarks of the hearing, “To get the policy right, we need to hear directly from the voices in the countryside rather than the (Washington D.C.) Beltway.” 

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PCG in DC

PCG CEO Kody Bessent, PCG President Martin Stoerner, STCGA President Paul Freund, PCG Executive Committee Member Steve Olson, Sen. John Cornyn (R-Texas), STCGA Board Member Jon Whatley, SRPCGA Board Member Doyle Schniers, STCGA Board Member Matt Huie, NCC Chair Shawn Holladay and STCGA Executive Director Jeff Nunley.

PCG joined South Texas Cotton and Grain Association (STCGA), Southern Rolling Plains Cotton Growers Association (SRPCGA) and the National Cotton Council (NCC) at the U.S. Capitol to advocate for a strong 2023 Farm Bill this week.

“It was an effective trip and one of many to come as the 2023 Farm Bill process is fully underway,” Bessent said. “We appreciate STCGA, SRPCGA and the NCC for their partnership on this trip and their efforts in emphasizing the need for strong farm policy for the cotton industry nationwide.” 

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April 21, 2023

Welcome to the April 21, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

2023 Upland Cotton Loan Chart Reinforces Market Demand for Quality

By Shawn Wade

The USDA Farm Service Agency released the 2023-crop Upland Cotton Loan Premium and Discount tables on April 17. 

The new 2023 premium and discount schedule continues to reinforce the market’s emphasis on quality and should reward growers who produce higher quality cotton. The Base Loan rate for 2023 Upland cotton was also announced and remains 52 cents per pound.

The 2023 tables reverse virtually all the changes made in 2022 when premiums and discounts were lowered, especially for White grades 11-41 and Staple lengths 34 and longer. In these Color/Staple combinations the 2023 table adds additional premium for Leaf grades 1-4 and increases discounts for higher leaf measurements. 

Beyond the Color/Staple/Leaf tables, the 2023 loan chart maintains the maximum -4000 discount for Level One and Level Two Plastic contamination in the schedule for Extraneous Matter, highlighting the significant problem this situation presents to textile mills and spinners.

For Upland Cotton the 2023 Strength table also includes significant changes for the second time in the past three years. In 2021, growers saw discounts for Strength readings below 25.9 g/tex increased significantly. Those discount levels were mostly unchanged in 2022 but have been bumped up again for 2023 as follows:

• 17.9 g/tex and lower – Discount increased by 100 points.

• 18-18.9 g/tex and 19-19.9 g/tex – Discount increased by 130 points.

• 20-20.9 g/tex and 21-21.9 g/tex – Discount increased by 130 points.

• 22-22.9 g/tex and 23-23.9 g/tex – Discount increased by 120 points.

• 24-24.9 g/tex – Discount increased by 115 points. 

• 25-25.9 g/tex – Discount increased by 105 points. 

Premium and discount tables for other types of Extraneous Matter, Micronaire and Length Uniformity have mostly smaller 5 to 25-point adjustments in 2023. 

The most change in these categories is found in the Micronaire table where discounts for measurements from 3.4 down to 2.7 will have smaller discounts with improvements ranging from 15 to 25 points. The other notable change is for Micronaire between 2.5 and 2.6 where the discount was reduced by 55 points from -1415 to -1360.

Complete 2023 Loan Premium and Discount tables and loan charts with calculated values based on the 2023 schedule of premiums and discounts will be posted on the Resources page of the Plains Cotton Growers website. 

The table above provides comparisons between 2022 and 2023 loan values for White Grades 11-41 and Light Spot grades 12-42, Staple 34 through 38 and higher.

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Advocacy for Cotton Infrastructure Assistance Continues at State Capitol

By Kody Bessent

South Texas Cotton and Grain Executive Director Jeff Nunley and PCG CEO Kody Bessent.

This week, Plains Cotton Growers, Inc. CEO Kody Bessent and South Texas Cotton and Grain Association Executive Director Jeff Nunley met with state lawmakers in Austin, Texas, to continue advocating for a one-time agriculture disaster relief grant for cotton infrastructure in the state budget.

In 2022, Texas suffered the most significant weather-related damage to crops of all U.S. states with over $6.4 billion in incurred losses — $2.9 billion in damages to cotton alone due to the prolonged drought conditions.

If adopted by the Texas Legislature, eligibility for the grant — subject to a rule — the following conditions are required:

  • The purpose of the grant must be to maintain agricultural supply chain resiliency;
  • The grant must be for land located on which losses occur in an area within a county identified by the United States Drought Monitor as having a D2 (Extreme Drought) for eight consecutive weeks or D3 (Exceptional Drought) during calendar year 2022; and
  • The applicant must demonstrate a decline of at least 30% in gross receipts or gross revenue in calendar year 2022 compared to calendar year 2021.

Individual grants governed by this rider may not exceed $500,000.

This is a big initiative for the cotton industry, and if the agriculture disaster relief grant is adopted, it will go a long way toward maintaining the financial health and viability of the cotton industry until a more permanent risk management tool can be developed.

We are extremely grateful for Sen. Charles Perry (R-District 28) and Rep. Cecil Bell (R-District 3) for carrying this grant rider initiative on behalf of the cotton industry. As conferees have now been appointed this week by both the House and Senate, we look forward to working with them in the final stretches of the budget process to secure this critical funding initiative.

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April 14, 2023

Welcome to the April 14, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

More Rain or More Indecision?

Easter Sunday brought rain (and hail) to Lubbock County and other parts of the Panhandle and Southern High Plains, breaking a 46-day dry streak as Lubbock and surrounding areas hadn’t seen rain since Nov. 26, 2022.

Unfortunately, the hail that came with the weather event was the final nail in the coffin for some of the area’s winter wheat crop. Many producers in the area had considered bringing a wheat crop to harvest due to attractive wheat prices when compared to cotton. However, drought and hail will cause most to bale it instead, according to PCG Director of Field Services Mark Brown. “Wheat hay is selling for $200 per ton, which boggles my mind, so a lot of it will be baled and I’ve also heard of some chopping it for wheatlage.” 

As far as rain in the 10-day forecast is concerned, Brown commented, “There’s not much of a chance, but there is a chance.” 

The U.S. Drought Monitor for the state of Texas April 13, 2023, indicates majority of PCG region still in heavy drought despite Easter Sunday rain.

The lack of demand tanking cotton prices combined with continued drought with little relief has many producers still undecided on planting intentions across the High Plains. Ken Legé, Ph.D., cotton development specialist for Phytogen, supported this statement estimating that seed bookings for all brands are two to three weeks behind the normal time frame for the coming crop year. 

While those south of Interstate 40 are limited in planting options, producers in the Panhandle may plant more sorghum and corn silage this coming season. Attractive silage contract prices from dairies will heavily compete with northern acres this year.

However dryland farmers along the southern high plains may look to plant sorghum as its insurance coverage is more favorable in many cases. “Growers are very reluctant to commit to cotton for dryland acres,” Legé added. “While we suspect most of them will go to cotton, it will be more of a last-minute decision.”

While we all sit on the edge of our seats waiting ultimate decisions from producers, many industry veterans are experiencing déjà vu. 

“We don’t give up because we’ve seen this exact scenario many times,” said Brent Nelson, PCG chairman and producer in Lamb County. “I’ve seen it turn around and I’ve also seen promising crop years turn out bad, so I guess I would say, ‘stay tuned.’”

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Market Outlook

Cotton prices have been stuck in the 81- to 84-cent range over the last few weeks and seem content there. Expectation of that changing is hard to predict today.

“This is just my opinion,” said Darren Newton, Southwest Cotton Buyer for Viterra USA Agriculture, LLC. “It could take some time to get deeper into planting, new crop supply and the situation in West Texas to play out before the price may respond.” 

In terms of exports, 144,000 units sold this week, which is not as good as prior weeks but still a decent amount sold for this time of year, according to Newton. 

“We shipped 335,000 units, which was a great shipment, and that needs to continue as we finish off the crop year over the next 15 to 16 weeks,” he added. 

Overall, Newton said basis today for old crop has weakened with the May/July spread moving to even and inverting this week. Currently new crop basis seems to be bid about like last year and will move from that based on each regions crop size and quality expectations. “The market today seems pretty consistent to what we saw last year,” he added.  

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Rep. Jodey Arrington Joins Spring American Cotton Producers Meeting

Rep. Jodey Arrington (R-Texas), chair of the House Budget Committee, joined the spring meeting for American Cotton Producers (ACP) in Dallas on April 13 and 14.

Pictured: National Cotton Council Chair Shawn Holladay (and PCG board member), Rep. Arrington and ACP chair Nathan Reed, producer in Arkansas.

There he discussed reducing the national debt, while also building a strong, robust farm bill and supporting agriculture as the food and fiber segments are issues of national security. 

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April 6, 2023

Welcome to the April 6, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

The PCG office will be closed Friday, April 7. Happy Easter! 

A major 7.8 magnitude earthquake, followed by another strong quake devastated wide swaths of Turkey, devastating the center of the country’s textile production industry. Photo credit: Associated Press.

USDA Foreign Agricultural Service Cotton Reports on India, Pakistan, Turkey and Vietnam

The U.S. Department of Agriculture (USDA) Foreign Agricultural Service (FAS) released reports on India, Pakistan, Turkey and Vietnam through the Global Agricultural Information Network (GAIN) March 31 and April 4. 

India

FAS Mumbai estimates marketing year (MY) 2023/24 India cotton production at 25.5 million 480 lb. bales on 12.4 million hectares area planted, a decrease from the previous year due to the expectation that farmers will shift cotton acreage to higher return crops such as oilseeds and pulses. However, yields are expected to recover as farmers will plant shorter duration early maturation varieties. Mill consumption is estimated at 23.5 million 480 lb. bales, as yarn and textile demand weakens in major international markets. Higher exportable supplies, at 2.8 million 480 lb. bales, indicates that export prospects are better than last year, while imports will reduce significantly due to tighter global supplies. The Government of India continues to explore various approaches to enhance yield of extra-long staple (ELS) cotton and reduce import dependence.

Pakistan

Cotton production is forecast to rebound 36% to 5.3 million bales in 2023/24. After the flood damaged 2022/23 crop, yields should return to trend, while better returns from competing crops will limit area expansion. Following the sharp decline in cotton use and textile exports in 2022/23, a modest rebound in both is forecast for 2023/24. However, the increased domestic crop will limit expansion in cotton imports. Despite the many economic challenges facing the textile sector, cotton imports through the first seven months of 2023/24 were up about 7% compared to the previous year. As a result, the 2022/23 import and use estimates are increased. Lack of foreign exchange to import raw material and machinery, currency fluctuation, and rising energy prices will continue to constrain the textile sector’s growth through 2024.

Turkey

The February 6, 2023 earthquakes greatly affected Kahramanmaras, the center of Turkey’s cotton yarn and textile production, but the industry is already on the road to recovery. Turkey’s cotton production in marketing year (MY) 2023/24 is forecast to decrease to 735,000 metric tons (MT; 3.4 million bales) based on the assumption that farmers will choose to plant less cotton in response to decreasing cotton prices. Cotton farmers were unable to make adequate profits in MY 2022/23 to cover rising input costs. In MY 2023/24, Turkish cotton consumption is expected to decrease to 1.7 million MT (7.8 million bales) due to lower demand from end consumers of ready-to-wear-garments in western markets. Cotton imports in MY 2023/24 are forecast to be 900,000 MT (4.13 million bales) for the same period with the U.S. maintaining its market share as the leading supplier with strong competition from Brazil.

Vietnam

Post estimates that Vietnam cotton imports in marketing year 2022/23 (MY 22/23) will decrease at least 5% year on year to nearly 6.3 million bales due to ongoing global low demand for textile and apparel products. U.S. cotton exports to Vietnam significantly dropped in the first half of MY 22/23 and are forecast to plunge to their lowest levels since 2015 due to available and competitively-priced supplies from Australia and Brazil. Australia cotton exports to Vietnam gained a larger market share in the first half of MY 22/23 and continue to grow due to availability, good quality, competitive prices and proximity to Vietnam. Post forecasts Vietnam cotton imports for MY 23/24 will rebound at 5% year on year to 6.6 million bales or over 1.4 million metric tons based on the expectation that demand for cotton yarn will recover by the final months of 2023.

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John Rosman to Join April’s Plains Cotton Advisory Group Meeting

John Rosman, senior divisional director of JCPenney Purchasing LLC Sourcing Operations is a 24-year retail veteran. He has extensive experience in merchandising, private brand sourcing and international operations.

Rosman started his career with Foley’s Department store, a division of May Company, based in Houston, Texas.

He has served 22 years with JCPenney in various roles. His current key responsibilities include responsible sourcing, sustainability, product integrity, trade compliance, analytics and international operations.

April’s Plains Cotton Advisory Group meeting is scheduled for April 14, 2023, at the Plains Cotton Growers office starting at 7:30 a.m. If you’d like to attend virtually, please contact Kara Bishop.

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Deadlines and Reminders

Conservation Reserve Program Sign-up Dates

General sign up for the Conservation Reserve Program (CRP) began February 27 and ends April 7.

U.S. Cotton Trust Protocol 

March 31, 2023 (today!), is the deadline for U.S. cotton producers to enroll their 2023 crop in the U.S. Cotton Trust Protocol.

PCG Annual Meeting Feedback Survey

We value your feedback! Please let us know your thoughts on our 66th annual meeting by taking the survey.

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Texas High Plains Featured on U.S. Farm Report

While U.S. Farm Report Host Tyne Morgan was in Lubbock for the Plains Cotton Growers Inc. Annual Meeting, she visited with local producers about the ongoing weather challenges and how this might impact their personal planting intentions. And, of course, the 14-hour dirt storm on February 26 was part of the conversation.

“I’ve lived here my entire life,” said Travis Mires, PCG vice president and producer in Lynn County. “And that storm was one of the worst I’ve seen.” 

PCG President Martin Stoerner added that we did have wheat on the ground, which did help some. “We were fortunate to benefit from cover crops in the area; however, the chances of harvesting a dryland wheat crop is now fading by the day.” 

With less than half an inch of rain received on parts of the High Plains all winter, producers face some uncertainty going into the 2023 crop year.

“This is as late in the year as I’ve ever been undecided on what I’m going to plant,” Stoerner added. Watch the story here. (High Plains section begins at the 20:30 mark.)

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March 31, 2023

Welcome to the March 31, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

PCG Annual Meeting Recap: ‘There is Nothing Better Than This Way of Life’

Plains Cotton Growers Inc. held its 66th annual meeting at the Overton Hotel and Conference Center on March 28, 2023.

While adversity has had the cotton industry in a chokehold over the past 15 months, the industry’s people continue to prove their grit and resiliency. 

As PCG President Martin Stoerner, producer in Floyd County, mentioned in his speech, “We pivot as farmers, pardon the pun. When something doesn’t work or if something happens outside our control, we pivot and keep going.”

Close to 300 people comprised of producers, extension agents, national cotton organizations, industry representatives and Congressional staff members gathered to hear stories and data from Tyne Morgan, Mark Messura and John Kriesel. 

“West Texas is special,” Tyne began in her agriculture industry outlook. “And not just because my husband is from Plainview.” 

Morgan, host of the U.S. Farm Report, covered commodity planting intentions, weather, markets, policy and more, as she summed up the state of the ag industry on a national and regional scale. However, she ended on a surprising note. 

“That notion we have that farmers aren’t appreciated is not true. While attending a John Deere trade show event, I noticed that the farmers were treated as celebrities. Everyone wanted to talk to them and get their insight. It was incredible.” 

And in terms of all-electric tractors? Morgan visited with John Deere Chief Technology Officer Jahmy Hindman while at this event who stated, “I talked about the 8R tractors. When I ran the numbers on it, if you power that with a lithium-ion battery today, it’s twice the volume, twice the weight, twice the mass, and four times the cost. That just doesn’t pencil.”

Mark Messura, senior vice president of the Global Marketing Supply Division of Cotton Incorporated, discussed the efforts to market cotton worldwide. “Cotton is the natural fiber, but not a natural choice when it comes to purchasing decisions,” he added. He emphasized the need to shift consumer perception when it comes to cotton as it is the most sustainable choice in the marketplace today. 

John Kriesel a retired Army staff sergeant, who fought in Kosovo and Iraq brought us a powerful message on the choices we make when faced with adversity. Kriesel lost both of his legs and two of his closest friends when his Humvee triggered an improvised explosive device (IED). 

“I know that you guys have faced many challenges this past year with the drought and face a lot of uncertainty in this coming crop year,” he said. “But you can still make a choice to have a positive attitude. I tell my story and I look out among you and see a lot of serious faces. Don’t pity me. I am so much happier with my life now after the IED incident than I was before — because I got a second chance at life. I appreciate you and what you do for our nation. Make the choice to see the bright side as you continue to do what you do.”

The farm partnership panel featuring Mark and Bryce Howard from Dallam County and Travis and Landon Mires from Lynn County focused on several issues and ended with a discussion of the future. 

“People are the most critical component of the operation to me,” said Bryce Howard. “They are also the biggest issue I see in the future. I’m focused on fostering a healthy culture for the people in our organization.” 

He’s not alone in that. The people are unmatched in every facet of the cotton industry. The fellowship and gathering of likeminded men and women was good for the soul as we prepare for crop year 2023.

And while we focused on weed control, sustainability, markets and hedging, farm bill policy, future concerns, etc., we also visited, laughed, and caught up with friends we hadn’t seen in a while.

The day we had together is best summed up by Steve Olson, producer in Hale County, who stated during the farm practices panel at the end of the day, “There is nothing better than this way of life we lead.” 

Thank you to all who came and celebrated the Texas High Plains cotton industry with us and to our sponsors who made the entire event possible. 

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El Nino Seen Boosting U.S. Cotton Output After Worst Drought in Years

The El Nino weather pattern could boost yields in the second half of the year for U.S. cotton farmers, who were forced to abandon a big chunk of their cropland in 2022 after one of the worst droughts in years.

While El Nino typically brings dry weather to Asia, with impacts already being felt in AustraliaIndonesia and India, it is known for wet weather in parts of North and South America.

The National Weather Service has forecast a more than 50% chance of El Nino forming during the northern summer of 2023.

“If we move into an El Nino pattern, we would see more rainfall in the U.S. and this would mean higher production, higher yields and less abandonment this year,” said Bailey Thomen, cotton risk management associate at StoneX Group.

Last year, more than three-quarters of Texas, which accounts for about 40% of U.S. cotton output, suffered from one of the worst droughts in years.

As a result, U.S. farmers were forced to abandon a record amount of their land, with the resultant supply shortfall driving prices to an 11-year peak in May.

“Last year, Texas had almost 70% abandonment due to drought,” the Texas Farm Bureau said.

However, too much rainfall may prove to be a spoilsport, leading to yield losses and quality downgrades.

“The most crucial part will be when the rains arrive. It will be great if they arrive by April-May,” Kansas-based commodity analyst Sid Love said.

Expectations of higher U.S. cotton output come at a time of weakening global demand for the fiber.

Demand concerns have prompted about 6% decline in U.S. cotton futures CTc1CTc2 this year, and prices hit a 20-week low this week amid the ongoing banking sector crisis. COT/N

The USDA lowered its 2022/23 world cotton consumption estimates to 110.11 million bales in March, from 110.66 million bales forecast a month ago.

The market will be highly dependent on what happens with the global economy, said Matthew Looney, data scientist at International Cotton Advisory Committee, predicting consumption would remain low into the 2023/24 season.

“China’s recovery is a positive sign while the ongoing banking crisis poses economic risks which could weigh on demand,” said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.

U.S. Cotton Production Affected by Drought https://tmsnrt.rs/3JEqMcW

(Reporting by Ashitha Shivaprasad and Rahul Paswan in Bengaluru; Editing by Naveen Thukral)

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Prospective Plantings Report

This report from the USDA National Agricultural Statistics Service contains the results from the March Agricultural Survey which was conducted during the first two weeks of March 2023. The estimates provided in this report are intended to reflect grower intentions as of the survey period. New acreage estimates will be made based on surveys conducted in June when crop acreages have been established or planting intentions are firm.

Texas Upland cotton is expected to total 6.20 million acres, down 21 percent from last year. Planting of Pima cotton is expected to total 35 thousand acres, 6 percent above 2022. Growers intend to plant 2.05 million acres of corn, down 5 percent from last year. Producers intend to plant 1.45 million acres of sorghum this year, unchanged from last year.

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Deadlines and Reminders

Conservation Reserve Program Sign-up Dates

General sign up for the Conservation Reserve Program (CRP) began February 27 and ends April 7.

U.S. Cotton Trust Protocol 

March 31, 2023 (today!), is the deadline for U.S. cotton producers to enroll their 2023 crop in the U.S. Cotton Trust Protocol.

PCG Annual Meeting Feedback Survey

We value your feedback! Please let us know your thoughts on our 66th annual meeting by taking the survey.

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March 24, 2023

Welcome to the March 24, 2023 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

Efforts to Provide Disaster Assistance to Cotton Infrastructure Continue

“In 2011 when the drought was so bad, the gin I am with now produced 48,000 bales. In 2022, we ginned 16,000.” – Todd Straley, Quarterway Cotton Growers

As referenced in previous issues of this newsletter, the 2022-crop is one for the record books — and not one that will soon be forgotten.

“Cotton production has been decimated by drought and extreme heat this year, costing Texas High Plains farmers and other agricultural industries at least $2 billion, according to one estimate,” Jayme Lozano wrote for the Texas Tribune in August of last year. 

Producers in the High Plains region abandoned more than 72% of planted acres due to the persistent drought and utter lack of subsoil moisture. While that’s not something anyone wants to go through, the weather is one of those facets outside a grower’s control. Thankfully, risk management tools through the Farm Bill, in addition to recently administered disaster assistance through “ad hoc” programming, have kept producers afloat especially in a year like 2022 where Mother Nature simply didn’t want to cooperate during the growing season. 

Unfortunately, other segments of the cotton industry don’t have the same risk management tools in place to weather the kind of loss that was experienced in the 2022 cropping season.

According to an August 2022 study from the Texas Tech University International Center for Agricultural Competitiveness, and source of the estimate given above, cotton gins in the PCG service region were projected to lose more than $230 million in working capital. 

In an effort to relieve some of the financial strain and distress of 2022 on the cotton industry, more specifically cotton infrastructure, Plains Cotton Growers made an initial attempt to secure federal disaster assistance for cotton infrastructure in the FY2022-2023 spending package. 

“In a year like 2022, when cotton production volume is extraordinarily low, it negatively impacts every segment of the cotton industry,” said Kody Bessent PCG CEO. “In order to maintain our supply chain resiliency across all cotton segments, we’d like to see our infrastructure colleagues provided with some funding assistance to keep their doors open in 2023, assuming they suffered a loss in 2022.” 

Unfortunately, the federal attempt was thwarted last minute, so PCG pivoted with our best foot forward and brought it to the state Capitol’s attention at the beginning of the 88th Texas Legislature.

The severity of the drought of 2022 on the Texas cotton industry —  specifically cotton infrastructure — due to a lack of production or throughput, has had and will have a long-term effect on not only producers but infrastructure as a whole. 

According to recent analysis by the American Farm Bureau, Texas suffered the most significant weather-related damage to crops of all U.S. states with over $6.4 billion in incurred losses. These losses were primarily made up of $2.9 billion in damages to cotton in 2022 mainly attributed to widespread exceptional drought conditions. 

Furthermore, according to USDA 2022 crop acreage certification data (578 data), Texas planted 7,722,964 acres of cotton in 2022, and failed or did not take to harvest 3,775,591 of those acres — creating an abandonment rate of 49.7%. Compare that to the High Plains region (where on average 60% of all cotton is grown in Texas) experiencing a 72.3% acreage abandonment rate in 2022 — surpassing 2011 failed acreage, the former benchmark for historic drought. 

A budget rider is currently being advocated for in the Texas Senate and House that would establish a one-time block grant program for cotton infrastructure to help ease some of the strain from financial losses credited to the 2022 crop year. 

Assuming this initiative comes to fruition, an entity in the cotton infrastructure segment — located in a county identified by the U.S. Drought Monitor as having a D2 (Extreme Drought) for eight consecutive weeks or D3 (Exceptional Drought) during calendar year 2022 — that experienced a 30% loss or greater in revenue from 2021 to 2022, could receive up to $500,000 in agriculture disaster relief to put toward fixed costs. 

We all need each other in this industry and the 2022-crop year definitely highlights that. PCG will continue to strive to make headway through Congress and our state Legislature to support cotton producers as well as our infrastructure segments during these challenging times. If you have any questions or would like to know how you can support this effort, please call the office: 806-792-4904.

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Plains Cotton Improvement Committee Meets to Discuss 2022 Research Results, Plans for 2023

The Plains Cotton Improvement Committee (PCIP) met Thursday, March 23, 2023, to discuss research results in 2022 and plans for 2023. Researchers presented on pest management, plant diseases, variety trials, and more, as they discussed plans for research in the future. 

The committee heard the following presentations:

  • Dr. Megha Parajulee, Texas AgriLife Research – “Insect Pest Management in Texas High Plains Cotton.”
    • “I’m excited about this program’s commitment to the research,” said Megha Parajulee, Ph.D. “Every year, more people attend this meeting and it’s great to see everyone eager to participate in this work.” 
  • Dr. Jane Dever, Texas AgriLife Extension – “High Plains Replicated Agronomic Cotton Evaluation (RACE) Trials.”
    • Dever presented the Southern High Plains RACE Trials results for the High Plains cotton specialist position, which is currently in the process of being filled following the recent departure of Dr. Murilo Maeda.
  • Dr. Jourdan Bell, Texas AgriLife Extension – “Northern High Plains Replicated Agronomic Cotton Evaluation (RACE) Trials.”
    • As extension agronomist Jourdan Bell, Ph.D., discussed research in the northern Panhandle, PCIP Chair Barry Evans stated, “The area north of Interstate 40 has become very important. I’m not sure people realize how much cotton is up there. There is more cotton in that region than in the entire state of Tennessee.” 
  • Dr. John Wanjura, U.S. Department of Agriculture, Agriculture Research Service – “Enhancement of Post-Harvest Research on High Plains Cotton Varieties.”
  • Dr. Brendan Kelly, Texas Tech University Fiber and Biopolymer Research Institute – “Textile Performance Evaluation of Selected High Plains Cotton Varieties.”
  • Dr. Jane Dever and Dr. Carol Kelly, Texas Agriculture Extension Service – “Development of Improved Cotton Germplasm for the High Plains Production Area of Texas.”
  • Dr. Terry Wheeler, Texas AgriLife Research – “A Field Screening Program for Resistance to Bacterial Blight.”
  • Dr. Terry Wheeler, Texas AgriLife Research – “Reassessing Cotton Variety Resistance to Fusarium Wilt Disease.”
    • Dr. Wheeler presented this research for the position in process of being filled following the recent departure of Dr. Cecilia Monclova Santana.

 

For more information, visit the Texas A&M AgriLife Research and Extension Center – Lubbock website.

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Tyne Morgan to Address Plains Cotton Growers at Annual Meeting

Tyne Morgan, host of the U.S. Farm report will be presenting an agriculture industry outlook at the Plains Cotton Growers Inc. 66th annual meeting.

Morgan is doing what she calls her “dream job.” She’s a Missouri girl who has generations of agriculture rooted in her blood. Through public speaking and various contest teams, she actually plunged into broadcast at the young age of 16, working for the local radio station KMZU in Carrollton, Missouri.

Tyne attended the University of Missouri-Columbia where she majored in Agricultural Journalism, with an emphasis in broadcast, graduating in 2008.

After spending numerous hours on the road as AgDay and U.S. Farm Report National Reporter, in 2014, Tyne was named the first female Host of U.S. Farm Report. She’s only the fourth host of the show, following Orion Samuelson, Max Armstrong and John Phipps. Today, Tyne continues to take a deep dive into the news and issues farmers are facing today, while also sharing stories from across rural America. She’s an award-winning agricultural journalist, receiving NAFB’s prestigious Doan Award twice, most recently in 2022.

More important than any title she holds today, is her title of “Mom.”  Tyne and her husband James (from Plainview, Texas) are raising their two daughters in Orrick, Missouri, where they’re reminded daily the power and grit of a rural community as they volunteer with several organizations and work to give back.

“I admire so much about farmers and ranchers in the Texas High Plans, but what I admire most is the grit and tenacity they show each and every year,” Morgan said. “This past year that was on full display, and it’s an honor to join PCG for the annual meeting. We’ll dig into the news and issues that matter most to cotton farmers in the area, but I’ll also share stories from across the country that showcase the best of agriculture and rural America.”

The annual meeting is March 28, at the Overton Hotel and Conference Center in Lubbock, Texas. Registration for this free event and a buffet breakfast begin at 7:30 a.m. The program starts at 9 a.m. See you next week in Lubbock!

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Deadlines and Reminders

Conservation Reserve Program Sign-up Dates

General sign up for the Conservation Reserve Program (CRP) began February 27 and ends April 7.

U.S. Cotton Trust Protocol 

March 31, 2023, is the deadline for U.S. cotton producers to enroll their 2023 crop in the U.S. Cotton Trust Protocol.

PCG Annual Meeting

PCG’s 66th annual meeting is next week, March 28 at the Overton Hotel and Conference Center. Register online today! 

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