Home / Knowledge / News / Textiles / NCC applauds Cotton Program Implementation by Senator Saxby

NCC applauds Cotton Program Implementation by Senator Saxby

01
Nov '08
USDA has announced the release of regulations necessary to implement the cotton program provisions of the new farm law. Starting on October 31, the calculation of the adjusted world price (AWP) will be made in accordance with adjustments included in the new law, which are designed to ensure US cotton is available at competitive prices in domestic and international markets.

Importantly, the USDA announcement makes clear that the new AWP applies to both 2007 and 2008 crop cotton loans. This will ensure that 2007 crop loans maturing at the end of October can be redeemed at a competitive price and will return up to an additional $8.00 per bale to producers. Beginning October 31, any loan deficiency payments, available to producers who choose to forego the loan, will be based on the AWP as calculated in accordance with the new law.

National Cotton Council of America (NCC) Chairman Larry McClendon welcomed USDA's announcement as good news for producers, warehouses, manufacturers and merchandisers who are struggling to compete in a difficult and volatile market. Vienna, Georgia-based grower Chuck Coley, Chairman of the NCC's American Cotton Producers, said special appreciation is due to Senator Saxby Chambliss (R-GA) for his effective leadership in drafting the legislation, shepherding it through the legislative process and working with the Administration to ensure that the cotton program was implemented in accordance with Congressional intent.

The new law mandates that USDA makes storage credits available whenever the AWP is below the loan. However, to reduce program costs, the new law also required that the maximum storage credit be reduced by 10% for the 2008-11 crops and 20% beginning with the 2012 crop.

The USDA announcement clarifies that the reduced storage rate will not apply to redemptions of 2007 crop cotton. Beginning with the 2008 crop, the reductions will apply to the maximum rate established by USDA in August 2006 and not to individual warehouse rates which significantly reduces any adverse financial impact of cotton warehouses.

The adjustments in the calculation of the weekly AWP were made to enhance competitiveness and the modest projected costs were totally offset by changes in other provisions of the cotton program. The new law also includes an economic assistance program for US domestic textile mills. The regulations approved by USDA will establish the rules for participation in that program.

“Thanks to Senator Chambliss' tireless efforts throughout the process, we have a program that provides the industry an opportunity to be competitive and continue to make a major contribution to Georgia's economy,” Coley added. “Senator Chambliss' advocacy for a regulation that treats Georgia's growers, warehouses, manufacturers and merchandisers in a fair and equitable manner is critical to a robust and competitive cotton industry.”

“The efforts of Senator Chambliss were instrumental in the eventual publication of the rules. In addition, the cotton industry recognizes the key role played by USDA Under Secretary Mark Keenum in the development of the regulation,” noted NCC Chairman McClendon.

National Cotton Council of America


Interviews View All

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Mohammad Mamun Ar Rashid, UL VS Bangladesh Ltd

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Top executives, Textile industry

Top executives
Textile industry

The new deal is better than NAFTA for the US textile industry

Ritu Ajbani & Neha Agarwal,

Ritu Ajbani & Neha Agarwal

Petit Royal, co-founded by entrepreneurs <b>Ritu Ajbani and Neha...

Luca Formentini,

Luca Formentini

From the very beginning, Loris Bellini's aim was to produce dyeing...

Milva Morani,

Milva Morani

Brighi Technologies began in 1970 with trading and repairing sewing...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

Germany-based Dieffenbacher Group is a producer of high-quality composites ...

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

Leave your Comments


October 2019

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

news category


Related Categories:

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search