The Plains Cotton Growers, Inc. (PCG) Board of Director’s quarterly board meeting was held October 13 at the FiberMax Center for Discovery in Lubbock, Texas. The shared sentiment among those present was an eagerness to get the 2021 harvest season started.
Most of the producers in attendance noted that cotton in most areas is being prepped for harvest and that in some cases harvest activity has already started. In fact, according to the weekly office reports from the Lubbock and Lamesa USDA Cotton Classing offices 35 area gins have already started processing cotton.
The Lubbock and Lamesa Classing offices have processed just over 25,000 samples through October 14 and early returns indicate a good-quality crop in the fields and ready to harvest.
During the meeting the PCG Board received reports on activities related to current legislative and regulatory issues from Tas Smith, vice president of producer affairs with the National Cotton Council (NCC), Dr. Bart Fischer, co-director of the Texas A&M Agricultural Food & Policy Center (AFPC) and a market update from Darren Newton, a southwest cotton buyer with Viterra Agriculture USA.
Smith provided an overview of current agriculture and climate policy initiatives working their way through Congress and highlighted the approval and extension of the WHIP+ program to cover 2020 and 2021 crop losses. He also discussed the recently announced 2020 Price Loss Coverage program payment rates for seed cotton.
Additionally, an update was provided on current regulatory issues the agriculture industry is facing such as Waters of the United States (WOTUS). He noted that a draft of a new WOTUS rule from the White House is forthcoming and could be available with an opportunity for public comment by the end of the year.
Smith concluded his presentation with a call for producers to look into participating in the U.S. Cotton Trust Protocol.
Fischer discussed current tax proposals that have been considered as possible spending offsets by House and Senate Democrats to pay for new spending included in the previously proposed $3.5 trillion budget reconciliation plan to further the Biden Administration’s “Build Back Better” agenda.
AFPC’s analysis of the “Sensible Taxation and Equity Act” (STEP Act) and the “For the 99.5
Percent Act” (99.5% Act), concluded that if enacted by Congress through reconciliation or other legislative means, would create additional tax liability for 98% of the representative farms that were analyzed.
Darren Newton rounded out the meeting with a report on the current cotton market situation noting that the recent price surge that has pushed cotton prices above $1 per pound continue to be supported by good demand. He said that producers who still have cotton to market have opportunities to sell into the higher prices we are currently experiencing.
Newton concluded by saying one of the keys for buyers looking to purchase cotton at current price levels is the ability for the crop to be shipped and delivered in a timely fashion. Current ocean freight delays continue to remain a concern.