In the News

By: Matt Dotray Cotton growers say it’s been needed since the last Farm Bill in 2014, and this week it finally got done. Added into the Bipartisan Budget Act approved by Congress and President Trump early Friday morning was a provision that makes cotton-seed eligible for farm programs under the commodity title of the Farm Bill, restoring the safety net for cotton growers effective with the 2018 crop year. Members of the Plains Cotton Growers, who have been working with legislatures to get it passed, issued a news release shortly after it passed saying they commend Congress for getting it done. “We have worked toward a long-term solution for growers for many years now, and we appreciate our friends in Congress who have been steadfast in their support and understanding of our needs,” PCG President Johnie Reed said. “This is significant for cotton growers who for years have operated without a viable safety net, and this will allow many growers to stay in business.” PCG specifically thanked members of the House Agriculture Committee, which includes U.S. Reps. Mike Conaway of Midland and Jodey Arrington of Lubbock, and Texas’ members of the Senate. Reed also praised other aspects of the Bipartisan Budget Act, which includes disaster relief and extra defense funding. Arrington told the A-J on Wednesday this budget deal is a big win for West Texas, both because of the cotton safety net and boosts in defense spending. “Going on four years of low prices without a safety net, we’ve got find the quickest way to patch that safety net,” Arrington said. “This is the vehicle... we’re losing farmers right now and we’ll never get them back when we lose them. There’s a real crisis in the cotton belt.” Steve Verett, executive vice president of the Plains Cotton Growers, said this fix is significant. He said no farm program is put in place to guarantee a profit, and this is no exception — there’s still a risk. But with low cotton prices and other costs continuing to rise, Verett said this safety net will help. “It’s almost like cotton producers have been on a tight-wire for the first four years of this Farm Bill,” said Verett. ”(Cotton growers) knew the only way they could survive without a (Agriculture Risk Coverage and Price Loss Coverage) program being available for cotton like it was for others crops, was they had to make excellent crops and hope prices just didn’t fall completely out of bed. “For the most part in these years, that’s been the case. But what this does now is give that long-term assurance that — if we have extended periods of low prices, there’s going to be a safety net that can step in the gap, is what it amounts to. That gives assurance to now only the producer, but to the bankers as well.” The cotton designation makes cotton eligible for Agriculture Risk Coverage and Price Loss Coverage already available for other crops. It means cotton growers are eligible for payments if prices drop below a certain level or for damage, starting this crop year. Verett said they’ve lost growers in the past four years, and this ideally will start to lessen these losses. According to PCG, the reference price will be 36.7 cents per pound. PCG wrote: “According to the new law, generic base will be allocated to seed cotton base acres in a quantity equal to the greater of 80 percent of the generic base acres on the farm, or the average number of seed cotton acres planted or prevented from being planted on the farm during the 2009-2012 crop years (not to exceed total generic base acres on the farm), or to base acres for covered commodities including seed cotton on a proportional basis based on the average planted or prevented from being planted acres on the farm during the 2009-2012 crop years. There will be a one-time, optional yield update at 90 percent of a grower’s 2008-2012 yield. It is important to note that at this point, the program will remain the same for any base acres already signed into ARC/PLC for other commodities.” http://www.lubbockonline.com/news/2018-02-09/plains-cotton-growers-commend-congress-cotton-fix