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September 13, 2024

Welcome to the September 13, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.

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

Serious Business — Farmers Sound the Alarm with Congress on Farm Bill, Disaster-Economic Assistance

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

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

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

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

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

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

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

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

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

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

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

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

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

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Chairman Thompson’s Statement on CBO Score of Bipartisan Farm, Food, and National Security Act of 2024

WASHINGTON, DC — Following the release of the Congressional Budget Office’s (CBO) score of the Farm, Food, and National Security Act of 2024, House Committee on Agriculture Chairman Glenn “GT” Thompson (PA-15) issued the following statement:

“Bringing about a five-year farm bill is a long process, one filled with multiple steps and a lot of hard work. Today’s score from CBO is part of that process, but shows me there is still more to be done to make certain the bill—one that has been consistently praised by those across the agriculture value chain—can be brought across the finish line.

“Unfortunately, the score relies on the same methodology that has led CBO to underestimate Commodity Credit Corporation (CCC) outlays by more than $60 billion over the past seven fiscal years. I will continue to work with the Budget Committee and CBO to bring about a clear-eyed, defensible interpretation of restricting Section 5 discretionary authority.

“The Farm, Food, and National Security Act was built by rural America, for rural America. Its historic investments in the farm safety net, biosecurity, trade promotion, agricultural research, conservation, and so much more deliver certainty in times of crisis, when disastrous regulatory and Democratic policies are eroding the American dream. The continuous grandstanding and inaction of Senate Democrats is not working to honor the men and women who feed, fuel, and clothe our great nation. I implore Chairwoman Stabenow to release text so we can begin good faith conversations on producing a bicameral, bipartisan farm bill before years’ end.”

Background:

The Congressional Budget Office’s May 2023 baseline of USDA Farm Programs forecasts outlays of $1 billion per year in ‘Other Administrative CCC Spending,’ totaling $10 billion over ten years. That spending is primarily attributed to authority granted from Section 5 of the CCC Charter Act. The February 2024 baseline update forecasts annual outlays that range from $1 billion to $3 billion and total $17 billion over ten years. The June 2024 baseline mirrors the falling outlays described in the February 2024 baseline update, with a different total amount of $12 billion over ten years. Despite three significant changes across 13 months to CBO’s baseline, projections of spending under Section 5 for the next ten years remain significantly lower than historic outlays would suggest.

From fiscal years 2012 to 2017, Congress restricted the Secretary’s discretionary use of the CCC Charter Act. Since the restriction was dropped in fiscal year 2018, spending under Section 5 has averaged $10.7 billion annually.  The Trump Administration used Section 5 to spend $28 billion on the Market Facilitation Program (MFP) in response to Chinese retaliatory tariffs and $20.5 billion on the Coronavirus Food Assistance Program (CFAP) in response to pandemic-related market disruption. This spending resulted in the need for $14 billion in off-cycle replenishment authorized by the Coronavirus Aid, Relief, and Economist Security (Cares) Act. The Biden Administration has funded at least 15 programs across various mission areas, totaling more than $12 billion.  Despite a modest increase in the February 2024 baseline update, CBO’s forecasts of outlays since 2018 have been off by more than $60 billion.

Even when eliminating the completely unpredictable event that was COVID-19, an average of outlays over the six years since Section 5 authority was restored yields annual average Section 5 outlays of $7.3 billion. Considering a 10-year history, annual average Section 5 outlays are $6.4 billion, including four years of $0 in outlays while Section 5 authority was eliminated.

With outlays under authority granted by Section 5 of the CCC since 2018 averaging anywhere from $6.4 billion to $10.7 billion, and outlays in the June 2024 baseline averaging $1.2 billion, along with clear indications from both political parties of the intent to fully maximize spending under this authority, the forecast of Section 5 outlays does not match reality.

Supreme Court Overturns Chevron Doctrine, Limiting Federal Regulatory Power

This analysis provided by Jim Wiesemeyer, ProFarmer

Impact on EPA and enviro regulations. The Supreme Court on Friday, in a 6-3 ruling along ideological lines, overturned Chevron and handed authority back to Congress and the courts. “Courts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority,” Chief Justice John Roberts wrote. The Supreme Court’s decision to overturn the Chevron doctrine impacts the power of federal agencies like the EPA to issue regulations. The Chevron doctrine previously allowed agencies to interpret vague laws. This change provides opponents a clearer legal path to challenge regulations, potentially forcing agencies to be more cautious in drafting rules.

Environmental regulators, such as the EPA, will face tougher judicial challenges. The decision is expected to slow down the regulatory process, requiring more time to craft, weigh comments, and finalize rules. Many environmental rules stem from old laws with few modern amendments, adding to the uncertainty.

Federal Energy Regulatory Commission (FERC) rule in jeopardy. The FERC’s rule aimed at improving power grid planning is now at risk. Republican Commissioner Mark Christie suggests that the Supreme Court decision makes it more likely for the rule to be struck down, prompting a potential need for amendments.

Vulnerability of auto and power plant emission limits. Auto pollution standards and recent rules limiting greenhouse gas emissions from power plants may be vulnerable following the Supreme Court ruling.

SEC climate disclosure rules: The SEC might face limitations in extending its regulatory reach. Companies challenging the SEC’s climate disclosure rules argue that Congress did not provide clear authority for such regulations.

Shift of responsibility to congress and courts. Overturning the Chevron doctrine shifts more responsibility to Congress to directly address policy issues with new laws. It also gives judges broader authority to rein in regulators when they exceed their authority.

Impact for agriculture regulations and the farm bill. USDA and EPA will no longer have the broad authority to interpret ambiguous statutes. This change is expected to limit their ability to create and enforce regulations without explicit congressional authorization. For instance, regulations related to farm subsidies, crop insurance, and environmental practices, including the Waters of the United States (WOTUS) rule, will now face closer judicial scrutiny.

Farm subsidies and crop insurance: Agencies will need clear statutory authority to implement or modify programs related to farm subsidies and crop insurance… could lead to fewer regulatory changes… unless explicitly directed by Congress.

Environmental practices: Regulations under the Clean Water Act and other environmental laws will be more challenging to enforce if they rely on ambiguous statutory language. This could affect rules aimed at protecting wetlands and managing agricultural runoff.

Animal welfare standards: The ruling could impact regulations like those via the Packers & Stockyards Act, which aim to ensure fair competition and treatment in livestock markets.

Support from agricultural groups. They argue that it restores a balance of power by ensuring that unelected bureaucrats cannot impose regulations beyond what Congress has explicitly authorized.

Impact on the farm bill. The ruling puts pressure on Congress to draft more precise and detailed legislation. This is particularly relevant for the new farm bill, as lawmakers will need to ensure that the statutory language is clear to avoid judicial challenges and ensure effective implementation by federal agencies.

The decision is expected to increase accountability within the legislative and executive branches. Congress will need to be more explicit in its directives, and federal agencies will be limited to implementing laws as written, without broad interpretative leeway.

Potential for legal challenges. With the Chevron deference overturned, there may be an increase in legal challenges to existing and new regulations. Courts will now play a more significant role in interpreting agricultural laws, which could lead to a more stable regulatory environment but also more litigation as stakeholders seek judicial clarification on ambiguous statutes.

Opportunity to review prior cases? The conservative Republican Study Committee (RSC) said House committees “have an opportunity to review any regulatory action that was justified by Chevron deference toward agency interpretation.” The RSC views the overturning of Chevron as a way to “reclaim congressional authority” and roll back what they see as executive overreach. The committee’s memo encouraged its members to “scour Biden-era regulatory actions and highlight any that should be considered for judicial review post-Chevron.” This indicates a specific focus on reviewing and potentially challenging regulations implemented during the Biden administration.

But the Supreme court ruling said decisions made previously that relied on Chevron would not be subject to review.

June 28, 2024

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

Is the Muleshoe National Wildlife Refuge Stealing Cotton Acres?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Cotton Incorporated Launches “The Fabric of Now” Campaign

Cotton Incorporated has taken their consumer marketing to a new level with “The Fabric of Now” campaign. Society’s culture has shifted toward relaxing and enjoying the moment as well as sustainability and caring for the environment.

Cotton Incorporated is meeting the stakeholders where they are with this new initiative.

Launched April 24, 2024, the platform focuses on the art of slowing down. The younger generation’s exhausting inundation with news, information and screens has this audience craving a moment of pause and intentionality in their lives and shopping choices. Cotton, as a natural, breathable, and sustainable fabric is the choice for this audience’s moment.

TV Efforts

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

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

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

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

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

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

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

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

Social Media Efforts

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

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

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

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

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

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

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

Click on images to enlarge.

Chairman Thompson Delivers Opening Statement at Markup of the Farm, Food, and National Security Act of 2024

WASHINGTON, DC — Today, Chairman of the House Agriculture Committee, Glenn “GT” Thompson (PA-15), delivered the following opening remarks at today’s full committee markup of H.R. 8467, the Farm, Food, and National Security Act of 2024:

Remarks as prepared for delivery:

Good morning, and welcome to the Committee’s consideration of the Farm, Food, and National Security Act of 2024.

When I became Chairman of the House Committee on Agriculture, I took seriously my mandate to protect our food supply and enhance the impact of our nation’s agricultural value chain. Across each title of this bill are new and better tools and resources for our farmers and rural communities. From production and processing, to delivery and consumption, this bill strengthens the rural economy across every region, state, and district.

While a few armchair critics have gotten louder these last few weeks, aiming to divide the Committee and fracture the process that brings about a bipartisan, bicameral Farm Bill, I believe it is important to focus on the substance of the legislation before us today.

Over the past few decades, the farm safety net has lost its ability to protect those who are the backbone of our great nation. American farmers face natural disasters, take huge personal risk, and are at the whims of regulatory overreach. It is a privilege to deliver a farm bill that strengthens the risk mitigation measures available to producers, providing certainty in a time of volatility.

The restoration of the farm safety net does come at a cost, and I have spent a lot of time with the Congressional Budget Office and the Budget Committee to correct erroneous assumptions. The Budget Committee has been a terrific partner, and that work will continue to ensure that not only do we correct those erroneous assessments, but do so in a transparent, judicious manner that restores the farm safety net and integrity to current and future agricultural estimates.

The Farm, Food, and National Security Act also provides historic, long-term investments in conservation programming through a practical reinvestment of Inflation Reduction Act conservation dollars. Reorganizing these dollars allows substantial investment in the voluntary, locally-led, and incentive-based conservation programs that are popular, flexible, and beneficial.  As many of you know, the conservation portion of the IRA was not considered by this Committee in 2021, instead $20 billion appeared once the bill moved to the Rules Committee. So today, the bill before us uses those dollars for conservation programming in Title II, something so important to this Committee.

Over the past few weeks, many have voiced concerns about a policy shift that both restores regular order and allows transformational investment in our low-income communities.

For more than 40 years, updates to the Thrifty Food Plan were cost neutral. In 2021, President Biden unilaterally, intentionally—and according to GAO—unlawfully, updated the market basket to no longer be cost neutral, resulting in a $256 billion addition to the farm bill baseline.

The Administration and my Democratic colleagues purport the update was science-based and transparent, and have even gone so far to say that no one can arbitrarily increase SNAP. However, Secretary Vilsack stood by his team as they did just that, through a rushed process devoid of thoroughness and filled with politics.

The TFP update before us does not cater to any one side; it is a balanced approach, forward-looking, underscored by the need for Congress to reassert its authority.

If the benefit must be increased beyond inflation, Congress must consider and execute.

Importantly, and as CBO recognizes, annual cost of living adjustments remain, so SNAP benefits will continue to rise and respond to inflation. Unfortunately, I have learned my Democratic colleagues were led to believe otherwise.

So what does the bill before us do with CBO’s assumption—an assumption that allows significant, historic investment in the title, of which has been intentionally ignored?

Republicans are providing additional financial resources across multiple programs that have successfully benefited tribal communities, seniors, and households pursuing healthier options.

Republicans are championing efforts for individuals to remain on their current career pathways without choosing between SNAP and employment or education.

Republicans are correcting a draconian, outdated policy option to now allow all individuals with past drug offenses to receive SNAP, aligning federal policy with the will of dozens of states across the nation.

Republicans are increasing resources available to the Nutrition Assistance Program block grant for Puerto Rico and encouraging both USDA and Puerto Rico to continue to formulate a financially and operationally viable pathway toward a transition from the block grant to SNAP.

And Republicans are holding USDA and the States who administer SNAP accountable to the American taxpayer.

In further efforts to disrupt the process, there has been talk about the movement of money across titles or the longstanding coalition of food and farm advocates. I assume it needs reminding of contemporary farm bills where farmers were stripped of billions in exchange for additional funds in nutrition, or where nutrition saw a 1 percent decrease in the deficit reduction exercise of 2014, yet farmers had to face an astonishing 25 percent cut. So, I have no shame transitioning available resources to the nearly unanimous, bipartisan priorities shared by each of you and incorporated in this bill, including trade promotion, research, and various specialty crop programs.

Each of the titles within this bill are supremely important to our rural communities. Providing access to credit, streamlining policies to provide connectivity to the many, improving precision agriculture, encouraging active forest management and enhancing forest health, creating access to energy system and efficiency updates, protecting plant health and specialty crop competitiveness, and protecting the livestock and poultry industry from catastrophic disease and the inside-the-beltway animal welfare activists,  are each worthy topics and policies that demand strong consideration as this markup unfolds.

I firmly believe the legislation before us today restores a robust rural economy, invests in America’s farmers, ranchers, and foresters, and bolsters every facet of American agriculture. And having seen the widespread support from stakeholders across this country, I believe we have achieved that goal.

As I said last week, a farm bill has long been an example of consensus, where both sides must take a step off the soapbox and have tough conversations. I do not draw redlines; I do not close the door to conversation. I could not have been clearer throughout this process that I was willing to work with each one of you to find a pathway forward on this bill. I have been here, I have been transparent, and I have been fighting for American agriculture.

Before I close, my appreciation to the staff on both sides of the aisle who have, for the most part, produced the bill text before you. Working in Washington is not easy, and you all have done a tremendous job of ignoring the noise and bringing to life the priorities of the Members you serve. Thank you.

With that, I yield to the distinguished Ranking Member, the gentleman from Georgia.

2023 Seed Cost Calculator Now Available

The 2023 version of the Plains Cotton Growers Inc. Seed Cost Calculator is available for download on the PCG website at the bottom of the “Resources” page. 

The PCG seed cost calculator is an interactive Microsoft Excel spreadsheet that allows producers to calculate an estimated cost per acre, for both seed and technology, based on published suggested retail prices.

Questions about the tool can be directed to Shawn Wade. 

Download the report here.