Home / Knowledge / News / Textiles / NCC stresses on importance of effective STAX
NCC stresses on importance of effective STAX
11
Apr '13
The U.S. agricultural sector faces the difficult task of developing new policies that will meet the necessary budget constraints. Furthermore, the U.S. cotton industry also must devise policy that will resolve the World Trade Organization (WTO) dispute with Brazil.

To achieve that objective, two years ago, cotton industry leaders proposed a voluntary, shallow loss crop insurance product known as the Stacked Income Protection Plan (STAX).

The product, when considered by the House and Senate agriculture committees during the 2012 debate, was slightly modified.

However, the underlying structure remains: a shallow loss area-wide revenue insurance product that serves as a replacement to upland cotton’s direct and counter-cyclical program (DCP) because the target price provisions of the program were found objectionable by a WTO panel.

The U.S. cotton industry first defended STAX from some U.S. commodity and farm organizations which opposed shallow loss revenue insurance products, in part, arguing that shallow loss plans distorted plantings and encouraged risky behavior. Subsequent analysis has not substantiated either of these concerns.

The National Cotton Council offered STAX as a replacement for current upland cotton policy only. In keeping with longstanding tradition, the Council made no recommendations regarding policies for other crops.

Since 2010, under the provisions of the Framework Agreement, the governments of Brazil and the United States have held consultative meetings on the GSM-102 export credit program and cotton portions of the WTO dispute. These discussions intensified as Congress began to consider multi-year farm legislation.

Brazilian officials have consistently and publicly stated that target price or reference price provisions are the most objectionable of all policy options. In order to provide an equitable option for cotton in the absence of a target price, it is essential that the STAX crop insurance product include an 80 percent premium subsidy, the harvest price option and the protection factor. Each of these options has a successful track record in existing insurance products.

The cotton industry’s proposal was designed to be as consistent as possible with existing products. Further, STAX should be made available to cotton growers independent of any underlying coverage. Given cotton’s unique situation, it should have some policy differentiation if prices were to weaken and other row crops have an option for target price protection.

National Cotton Council

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search