The New Farm Bill Will Be Good for Cotton – Beginning in 2015

Capitol HillAfter three years of working on farm bill policy analysis with Congress, Joe Outlaw admits to a bit of farm bill fatigue. But he’s also optimistic that passage of the long-overdue legislation is near.

Outlaw, professor and Extension economist and co-director of the Agricultural and Food Policy Center at Texas A&M University, shared his thoughts on the farm bill at the Cotton Grower SoundOFF Luncheon, held during the 2014 Beltwide Cotton Conferences in New Orleans.

“The bill is basically done,” he said. “I truly believe it will be completed and be in place for the 2014 crop for basically every crop except cotton. Because of the transition to the STAX program, which is an insurance-based program, the cotton program will be delayed for one year, and there will be a partial direct payment for 2014.”

Even after three years in development, there is still a sense of urgency attached to the legislation. Outlaw explained that the Congressional Budget Office traditionally does a January baseline, which is released in February.

“There’s going to be intense pressure to get this legislation done quickly before that new round of budget estimates comes out,” he stated.

Because cotton will be moving to an insurance program, growers will no longer receive Title I benefits for anything other than the loan program under the new legislation.

“The cotton industry uses the loan program more than any other commodity for marketing purposes,” said Outlaw. “A safety net will be in place when this bill is finished, but it will be less than what growers have had in the past. Congress is spending less money. There’s no way to provide more support with less money.”

Outlaw fully believes the STAX program will work for the cotton industry. But he also reminds growers that there are no floors in an insurance program. When the price goes down, so does the level of protection.

“Growers will have to protect their prices in a different mechanism,” he pointed out. “It’s going to be a new world for cotton, and I believe it will work and provide some support. But there’s not going to be the price protection that has been there in the past.”

Topics:

Leave a Reply

News Stories

Product News

Deltapine Focused on Raising the Yield Bar in 2015

November 17, 2014

No brand of cotton seed was planted on more acres in 2014 than Deltapine. So it stands to reason that the company’s variety researchers are preparing to introduce monumental changes to their seed lineup in 2015.

Product News

CROPLAN a Brand to Watch for 2015

November 21, 2014

Growers familiar with CROPLAN corn and soybean varieties in the South may want to keep an eye on the company’s cotton program, too.

News

Taylors Receive TALL South Plains Ag Leadership Award

November 13, 2014

Dan and Linda Taylor of Ropesville, TX have been honored with the TALL South Plains Agricultural Leadership Award.

Product News

Growth Continues for Dyna-Gro and All-Tex

November 13, 2014

Crop Production Services has put a two brand approach in place for its Dyna-Gro and All-Tex brands of cotton. And their varieties are getting stronger each year.

Product News

PhytoGen Gaining Foothold in West Texas Market

November 12, 2014

In a year that saw PhytoGen introduce several new varieties to the Cotton Belt, an old standard once again stole the headlines as the company looks to gain more of the Southwest market.

Product News

Monsanto, Sumitomo and Valent Extend Crop Protection Partnership

November 10, 2014

Monsanto, Sumitomo Chemical and Valent U.S.A. have agreed to extend their strategic partnership in Monsanto’s Roundup Ready PLUS Crop Management Solutions platform for U.S. cotton and soybeans.

News

USDA Seeks Comments on New Conservation Stewardship Program Rule

November 5, 2014

USDA is seeking public comment on proposed changes to the Conservation Stewardship Program that are designed to deliver a higher level of conservation benefits.

Around The Gin

Product News

CROPLAN a Brand to Watch for 2015

November 21, 2014

Growers familiar with CROPLAN corn and soybean varieties in the South may want to keep an eye on the company’s cotton program, too.

Product News

Deltapine Focused on Raising the Yield Bar in 2015

November 17, 2014

No brand of cotton seed was planted on more acres in 2014 than Deltapine. So it stands to reason that the company’s variety researchers are preparing to introduce monumental changes to their seed lineup in 2015.

Product News

Growth Continues for Dyna-Gro and All-Tex

November 13, 2014

Crop Production Services has put a two brand approach in place for its Dyna-Gro and All-Tex brands of cotton. And their varieties are getting stronger each year.

Product News

PhytoGen Gaining Foothold in West Texas Market

November 12, 2014

In a year that saw PhytoGen introduce several new varieties to the Cotton Belt, an old standard once again stole the headlines as the company looks to gain more of the Southwest market.

Product News

Monsanto, Sumitomo and Valent Extend Crop Protection Partnership

November 10, 2014

Monsanto, Sumitomo Chemical and Valent U.S.A. have agreed to extend their strategic partnership in Monsanto’s Roundup Ready PLUS Crop Management Solutions platform for U.S. cotton and soybeans.

Product News

Grow Ag Leaders Scholarship Program Includes Cotton Belt States

October 28, 2014

Grow Ag Leaders is offering more than $500,000 in college scholarships to students interested in agricultural careers. The program is available in 40 states, including many throughout the Cotton Belt.

Product News

Platform Specialty Products to Acquire Arysta LifeScience as Component for New Company

October 21, 2014

Platform Specialty Products has reached a definitive agreement to acquire Arysta LifeScience for approximately $3.51 billion.

Product News

PhytoGen Partners with Farmers to Aid Local Charities

October 17, 2014

Since becoming a partner in the Swisher Sweets/Sunbelt Expo Southeastern Farmer of the Year program three years ago, PhytoGen has made donations to 25 charities on behalf of state farmers of the year.

Latest News

News

Taylors Receive TALL South Plains Ag Leadership Award

November 13, 2014

Dan and Linda Taylor of Ropesville, TX have been honored with the TALL South Plains Agricultural Leadership Award.

News

USDA Seeks Comments on New Conservation Stewardship Program Rule

November 5, 2014

USDA is seeking public comment on proposed changes to the Conservation Stewardship Program that are designed to deliver a higher level of conservation benefits.

News

Make Sure Conservation Compliance Up to Date with FSA

November 4, 2014

Based on changes mandated through the 2014 Farm Bill, producers are now required to have a completed and signed Highly Erodible Land Conservation and Wetland Conservation Certification on file with the Farm Service Agency.

News

USDA Updates ARC, PLC Timelines and Details

November 4, 2014

USDA’s Farm Service Agency has updated the timelines for the Price Loss Coverage and Agriculture Risk Coverage programs specified as part of the 2014 Farm Bill.

News

Texas Tech Program Wins Cotton Inc. Grant

November 3, 2014

Students in Texas Tech’s Retail Management program will get an in-depth look at cotton in their curriculum, thanks to an educational grant from Cotton Incorporated.

Marketing

Don’t Hate the Futures. Hate the Fundamentals.

November 1, 2014

Cotton producers could learn a lot from – of all things – the onion market.

Market Analysis

With WTO Brazil Settled, Cotton Casts a Wary Eye on Chinese Policy

October 31, 2014

With the conclusion of the WTO Brazil case, the U.S. cotton industry can bring a renewed focus to the challenges ahead, coming from a familiar source.

Disease Control / Nematodes

Nematode Research on the Rise

October 30, 2014

Take a peek at the seed company pipelines, and you’ll notice a common theme – nematode control.

Market Analysis

Plexus: Market “Boxed In” Between Support and Resistance

October 24, 2014

Volatility dropped this week, as the market is discounting a scenario in which prices are not expected to change significantly over the coming months. Once all harvest is complete and sorted out, we may see renewed pressure on cash prices.

News

USDA Offers Funding for Rural Broadband and Telecommunications

October 23, 2014

USDA is offering $190.5 million in grants and loans to make broadband and other advanced communications infrastructure improvements in rural areas.

News

Cotton’s 24 Hour Runway Show Returns for Third Year

October 23, 2014

Cotton Incorporated will again host Cotton’s 24 Hour Runway Show – a fashion marathon featuring a different cotton look every minute – in early November.

News

EPA Launches Voluntary Star-Rating Program to Reduce Pesticide Drift

October 22, 2014

The EPA has announced a new voluntary Drift Reduction Technology program to encourage the use of verified, safer pesticide spray products to reduce exposure and pesticide movement and help farmers save money.

News

Cotton Industry Applauds USDA Production History Changes

October 21, 2014

The cotton industry commended USDA’s Risk Management Agency for implementing a farm law provision important to cotton production areas that have been hit with drought and other adverse weather in recent years.

News

New Farm Bill Program Provides Production History Relief

October 21, 2014

USDA has implemented a new Farm Bill initiative that will provide production history relief to farmers affected by severe weather, including drought.

News

Registration Open for Cotton Incorporated Crop Management Seminar

October 21, 2014

Cotton Incorporated will conduct its 2014 Crop Management Seminar on November 12-13 at the University of Georgia Tifton Campus Conference Center. And attendees can expect an economic and environmental focus on keeping cotton sustainable.