What is in this article?:
- Cotton producers, other farmers may see steeper budget cuts in new farm bill
- Continuing Resolution
- The House and Senate Agriculture Committees may have to start writing a new farm bill later rather than sooner while Congress tries to sort out not one, not two but three possible fiscal cliffs in the next six to eight weeks.
- Congress' failure to pass a new farm bill at the eleventh hour of 2012 means the two committees will have to start over on farm bill language and possibly implement steeper cuts in farm programs.
- Brazil, which is monitoring U.S. cotton program legislation, seems to be OK with the Senate STAX farm bill approach, according to NCC officials.
BILL GILLON, left, president of the Cotton Board, Bill Norman, vice president, technical services at the National Cotton Council; and Kenneth Hood, cotton producer and chairman of the Beltwide Cotton Conferences Steering Committee, visit at the close of the BWC Production Conference in San Antonio. Hood told conference participants he was excited about the new Beltwide format which will be launched in New Orleans next January.
Third, right before it recessed for the Nov. 6 elections, Congress passed a continuing resolution that funded the continued operation of the government through March 27. Unless Congress takes further action, every agency in the government will shut down on March 28.
“They’re not going to let that happen,” said Lange “But there will be a significant fight about the extension of the operation of the government.”
And the new farm bill? House Agriculture Committee Chairman Frank Lucas had said he planned to start marking up a new version of the farm bill by March 1. On Jan. 4, Lucas backed away from those plans, saying it would be difficult to do while Congress is debating how to resolve the government’s fiscal situation.
Given those realities, Lange says he thinks an August recess timeframe for completing writing of a new farm bill may be a more realistic scenario.
The continued delays are creating uncertainty for farmers elsewhere. U.S. cotton is unique in that the industry’s every move is monitored by the Brazilian government, which challenged the target price and export credit features of the cotton program in a WTO case filed more than 10 years ago.
“The ultimate thing for us right now is we need a negotiated settlement that should be part of a legislative package that should be part of the cotton program as well as the GSM Export credit,” said Lange.
“Signals from Brazil are that a package that looks something like the Senate STAX package could work, but they are adamant that there not be a reference price or a target price in any cotton legislation. So the big thing they have is they don’t want to see any reversion to target prices or reference prices in the safety net for U.S. cotton”.