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NCC concerns with Peterson-Goodlatte bill proposal
14 Feb '08
2 min read
The National Cotton Council (NCC) has serious reservations regarding the Peterson-(Bob) Goodlatte (R-VA) farm bill package announced by House Agricultural Committee Chairman Collin Peterson (D-MN).
It appears extra money is being taken from cotton's baseline and nothing is being provided in return. Additionally, the changes in payment eligibility and tightening of the Adjusted Gross Income (AGI) means test fall disproportionately on cotton producers.
Last spring, the National Cotton Council provided Congress with a 14-point package that better aligned the marketing loan with market signals, improved cotton's price competitiveness, increased the efficiency of cotton flow and permitted accelerated movement of cotton into the marketplace.
The NCC demonstrated how these provisions could be accomplished at no net cost and the components of the package were generally included in the both the House and Senate versions of the farm bill.
The proposed farm bill recently described by Chairman Peterson no longer contains several key provisions sought by the NCC, including assistance to the domestic cotton textile industry. In fact, the proposal reduces cotton loan values by introducing changes to the calculation of Commodity Credit Corporation loan premium and discounts but fails to address associated competitiveness provisions also linked to the loan.
The NCC is urging House and Senate agricultural leadership to work within the parameters of their respective bills, which will result in sound cotton policy.
It appears extra money is being taken from cotton's baseline and nothing is being provided in return. Additionally, the changes in payment eligibility and tightening of the Adjusted Gross Income (AGI) means test fall disproportionately on cotton producers.
Last spring, the National Cotton Council provided Congress with a 14-point package that better aligned the marketing loan with market signals, improved cotton's price competitiveness, increased the efficiency of cotton flow and permitted accelerated movement of cotton into the marketplace.
The NCC demonstrated how these provisions could be accomplished at no net cost and the components of the package were generally included in the both the House and Senate versions of the farm bill.
The proposed farm bill recently described by Chairman Peterson no longer contains several key provisions sought by the NCC, including assistance to the domestic cotton textile industry. In fact, the proposal reduces cotton loan values by introducing changes to the calculation of Commodity Credit Corporation loan premium and discounts but fails to address associated competitiveness provisions also linked to the loan.
The NCC is urging House and Senate agricultural leadership to work within the parameters of their respective bills, which will result in sound cotton policy.
National Cotton Council
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