Welcome to the August 16, 2024 issue of Cotton News, a service provided by Plains Cotton Growers Inc. for the cotton industry in the Texas High Plains and beyond.
Congress Goes ‘Back to School’ in September
Will we get a Farm Bill when they come back?
By Kody Bessent
There’s something about summer break that prepares students to go back to school. It’s the recharge and reset everyone needs from nine and a half months of rigorous learning. I think the same can be true for the August recess that Congress experiences every year. They come back from their one month out of session reinvigorated for the work that needs to be done to wrap up legislation for both the fiscal and calendar year.
While they’re back in their hometowns and off Capitol Hill, Americans are inundated with headlines and video clips of how inept Congress is at its job.
So many of these narratives have made people question the possibility of a Farm Bill.
First off, I believe we will get a Farm Bill done. Will it be before the current bill expires at the end of September? Honestly, that’s unlikely. Can it be done before the end of the calendar year? I believe so and it should be.
The basic function of Congress is to enact laws that influence the daily lives of Americans and is intended to serve as the voice of their constituency. Their sole responsibility is to approve funding for government functions and programs, including the Farm Bill, and oversee the implementation of such programs.
Media outlets and “keyboard warriors,” most of whom have been “Negative Nancies” lately, simply need to pipe down on Farm Bill commentary. Keep in mind the aforementioned thrive on readership and the engagement that “drama” provides. The sensationalized coverage can distract Members of Congress from doing their jobs as elected officials. And let’s face it: there’s no better drama than down playing Congress’ ability to enact a new and enhanced Farm Bill — especially in an election year.
It can be easy to join the negativity when you’re immersed in it. While we can’t control some of these circumstances, we can control our reaction.
Here are some action items I’m suggesting for all of us.
1) Take a breath and remove yourself from the theatrics you see in the news/social media or on television. Congress can function. It’s not always easy or pretty, but they can enact policy for the betterment of the agriculture industry and people in general.
2) Cll your Member of Congress. Times are extremely tough in farm country across the U.S. We know this because we are in it, but those outside of our livelihoods and industry don’t.
PCG Area Representatives:
Rep. Jodey Arrington: (202) 225-4005
Rep. Ronny Jackson: (202) 225-3706
Rep. August Pfluger: (202) 225-3605
PCG Area Senators:
Sen. John Cornyn: (202) 224-2934
Sen. Ted Cruz: (202) 224-5922
Don’t get me wrong, we have great champions in Congress like House Ag Committee Chair Glenn “GT” Thompson (R-PA) and Sen. John Boozman (R-AR) as well as other allies and their staff trying to address challenges in the farming community on a daily basis. However, they, and members in our service area like Rep. Jodey Arrington (R-TX), need to hear from you regularly. The only way for them to keep an accurate pulse on the economy and communities they represent is to hear from you. Your feedback makes them more effective Congressional Members and educates their staff on important agricultural issues. Serve as a resource for yourself and your industry by sharing your story, frustrations, concerns and successes.
As a reminder, here are the base priorities that PCG is advocating for in the Farm Bill:
- Increase the statutory seed cotton reference price to better reflect costs of production — the House Agriculture Committee bill does this.
- Remove the prohibition of PLC enrollment and the purchase of Stacked Income Protection (STAX) or at a minimum enhance the Supplemental Coverage Option (SCO) so it is on parity with STAX — the House Agriculture Committee bill does this.
- Enhance the upland cotton marketing loan program by raising the level of the loan rate and modernizing the loan repayment provision — the House Agriculture Committee bill does this.
- Provide a mechanism for assistance to cotton’s infrastructure — the House Agriculture Committee bill does this.
Economic Stimulus Opportunity
While Congress can — and, again, I say will — enact a Farm Bill before the end of the calendar year, it will take time for producers to see the benefits. The agriculture industry cannot wait much longer for assistance, which is why it is so important that Congress also focus on developing a bridge of support that addresses the current financial crisis that producers and industry are facing today. The rise in inputs compared to current marketing conditions must be addressed to keep producers in business. If not, we will most likely see negative impacts on the industry such as bankruptcy and mental health decline.
All of you are ambassadors of our industry, so call your Member of Congress. Attend town hall meetings. Utilize email, text and social media to create awareness of your situation. These actions will further elevate the overall cotton industry’s initiatives and advance the development of strong farm policy. Not only to help you in your time of need as producers and industry, but also to help the general consumer. If we concentrate on engaging with Congress during their “summer break,” then they may reconvene in September equipped, energized and passionate about enacting strong farm policy.
Initial 2024 Acreage and Crop Estimates Released August 12
By Shawn Wade
USDA’s National Agricultural Statistics Service has issued its first estimate of Upland cotton production for the 2024 growing season projecting an Upland crop of 14.55 million bales – some 1.5 million bales below market expectations.
This first production estimate, combined with the release of USDA Farm Service Agency’s August 12 certified acreage report have provided much-needed insight into this year’s crop prospects.
The biggest surprise was probably the sub-15 million bale projection for Upland cotton production, which was fueled by a U.S. planted acreage number that is more than 500,000 acres less than USDA’s June 30 Planted Acreage estimate and 2.5 million acres of abandonment.
USDA FSA certified acreage data shows 10.785 million acres planted to Upland cotton in 2024. That number is likely to climb slightly higher as late acreage certifications are processed, but aligns well with NASS’s planted acreage number of 10.974 million.
Most of the difference in U.S. acreage can be attributed to fewer planted acres in Texas. Initially estimated at 6.44 million on June 30, the August FSA acreage report shows Texas producers planted approximately 5.83 million acres of Upland cotton – a difference of 450,000 acres.
Cotton producers on the Texas High Plains have reported 3.843 million acres planted in 2024. That’s an increase of 400,000 acres from the region’s 2023 planting total and accounts for 80% of the additional acres planted in Texas this year.
Failed acres will play a huge role in the ultimate size of the crop at the national, state and regional levels. It is no surprise that most eyes will focus on the Texas High Plains to see how much of the area’s non-irrigated acreage ultimately makes it to harvest.
As reported in the August certified acreage report, failed acreage nationwide is relatively small, totaling only 488,599 acres through August 1 — 87% of those failed acres (423,542 acres) have been reported in the Texas High Plains region.
While that number is a large portion of total U.S. failed acres to date, those 423,542 acres equate to a current abandonment rate of only 11% across the 42 counties that comprise the Texas High Plains region. Unfortunately, there is a strong indication that a significant number of the High Plains’ non-irrigated acres will end up failed due to hot and dry conditions that have persisted throughout the months of July and August this far.
In 2023 non-irrigated abandonment across the High Plains region climbed from 12% to 75% between August and the end of the season. High Plains crop conditions are somewhat better in many areas this year, so there is some hope that non-irrigated abandonment will be smaller than what was experienced in 2023. Only time will tell where things ultimately end up.
USDA NASS has forecast Texas harvested acreage at 3.65 million indicating abandonment will eventually reach 2.3 million acres statewide.
