Home / Knowledge / News / Textiles / Stable farm policy is essential for cotton industry
Stable farm policy is essential for cotton industry
Jun '10
The National Cotton Council told a House Agriculture Committee subcommittee that stable farm policy is essential for the U.S. cotton industry.

In testimony before the Subcommittee on General Farm Commodities and Risk Management, NCC Chairman Eddie Smith stressed that sound farm policy should provide an effective financial safety net for producers while abiding by our trade policy commitments.

In summarizing 2008 farm law key aspects, the Floydada, Texas producer said that the NCC continues to support that law's cotton program components: the marketing loan, and direct and counter-cyclical payments. Each component, he stated, serves a distinct purpose that is beneficial to U.S. farmers and the industry, as a whole.

Smith said the 2008 farm bill also made historic changes to payment limitations and program eligibility. Limitations were made more restrictive by eliminating the three-entity rule, applying direct attributions, and the adjusted gross income test was substantially tightened.

“Unfortunately, USDA went beyond the statute by modifying actively engaged rules, complicating spousal eligibility and requiring producers to authorize IRS to release information to USDA in implementing key payment eligibility provisions,” Smith testified. “For cotton growers, good farm policy is of little value if commercial-size farming operations are ineligible for benefits. Frankly, the statutory changes combined with overzealous regulations have pushed us to the brink and we will strongly oppose any further restrictions.”

Looking ahead to future policy, Smith acknowledged that the 2012 farm bill debate will take place with several new and increased points of pressure, including the record budget deficits.

“The WTO Brazil case puts cotton's marketing loan and counter-cyclical programs under special scrutiny,” he noted. “While we are relieved that U.S. negotiators have been able to put together an interim agreement that has convinced Brazil to suspend retaliation against nearly $1 billion in U.S. exports, we know there are expectations about modifications to the cotton program as part of the 2012 farm bill.”

Smith stated that the U.S. cotton industry has initiated internal policy deliberations with the appointment of a farm policy task force and is prepared to work with Congress to address the challenges faced in the writing of the 2012 farm bill.

He also noted that development of the 2012 farm bill must consider the competitive balance between commodities due to both farm and energy policies.

National Cotton Council of America

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search