A Year of Meeting Challenges
March 11, 2009 In his report delegates, out-going Chairman Larry McClendon, a farmer and ginner from Marianna, AR, said that for more than 70 years the National Cotton Council has strengthened the U.S . cotton industry’s ability to compete effectively and profitably in raw cotton, oilseed and U.S.-manufactured product in markets world-wide.
“The Council will continue its outstanding problem-solving activities in 2009 to maintain and improve profitability and competitiveness,” he continued. “Personally, I have reason to be optimistic about the future of our industry.“
McClendon said one of the reasons is that the National Cotton Council put up a united front that resulted in the passage of what the industry considers a very favorable 2007 Farm Bill in the face of two vetoes by former President George Bush.
“Early in the summer of 2007, as the House Ag Committee was comparing the Farm Bill markup, Chairman John Pucheu, last year’s Chairman Woody Anderson and I, as Vice Chairman, were in Washington along with representatives of other commodity groups to meet with Chairman (Collin) Peterson (D-MN),” McClendon said. “Chairman Peterson laid out a package that was supported by the House leadership. That package continued significant reforms in payment limitations and eligibility. He wanted our decision in an hour-and-a-half.”
McClendon said Pucheu made the difficult decision of whether to agree with this payment-limit reform package in return for a pledge from Peterson and House leadership to fully defend the cotton provisions of the Bill and oppose damaging cotton amendments. “It was a tough call with no time for consultation with the Council board or other leaders,” he explained. “But it was the right decision, given the events that followed and promises that were kept.”
McClendon has other reasons for further optimism: “This is founded on the long-standing effectiveness of the Council and its history of overcoming obstacles and the confidence that the Council will continue to prevail.”
Looking ahead, McClendon said it must be a top priority that the 2007 Farm Bill be implemented properly, especially regarding farm-program payment limitations and eligibility.
Another priority, he added, was conveying to Washington the concerns the industry has over the erratic swings in the market that do very little to help growers and very much to hurt them. “It has been relayed to Congress that there must be transparency to the cotton market and a limit on destructive speculation unrelated to market fundamentals,” McClendon explained.
The goal, he said, would be strict accountability legislation.
“The Council will also be working to see that (U.S.) cotton is competitive in the world marketplace. We will work with the Administration to ensure that cotton is not unfairly singled out and that increased market access remains a priority during agricultural negotiations in the WTO’s Doha Round,” said McClendon. “The Council will continue its aggressive communications to the U.S. Trade Representative’s office about reductions in support and increased market access.”
The Council will continue to support the Vision 21 project of the National Cotton Council, the Cotton Foundation, Cotton Incorporated and Cotton Council International (CCI). Examples of Vision 21 would be to accurately access the growing consumer markets for cotton textiles and fund and conduct studies to strengthen U.S. cotton’s sustainability message. Vision 21 will also provide an analysis of cotton handling and transportation logistics with a goal of improving flow and shipping.
“All of Cotton (CCI’s) programs and activities are aimed at building profitable export markets for U.S. cotton and cotton products,” McClendon said. “The Council’s export promotion arm has begun 2009 with initiatives actively involved with customers worldwide to build demand for U.S. cotton.”
McClendon said 2009 will be a year of challenges and opportunities for the U.S cotton industry: “Guided by the Council’s successful leadership and dedicated staff, the industry should emerge from 2009 an even stronger force in the world marketplace.”
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