This is "COTTON NEWS" from Plains Cotton Growers, Inc. 4517 West Loop 289 Lubbock, Texas 79414 806-792-4904

Crop Insurance, Farm Policy Key for Producers in Early 2012

Friday, January 27, 2012
By Mary Jane Buerkle

As the 2012 crop year swiftly approaches, so does the time for scheduling visits with insurance agents and the Farm Service Agency office, and pondering what may lie ahead.

Crop insurance played a major role for producers in 2011 and could do so again in 2012. One of the ways cotton producers could augment their 2011 insurance protection was through the addition of the Cottonseed (Pilot) Endorsement, which was available to cotton producers nationwide last year and allowed cottonseed to be insured for the first time.

More than 54 percent of all cotton lint policies sold in Texas in 2011 incorporated the new Cottonseed Endorsement Program, and it is expected that even more producers will add this option to their risk management strategy in 2012.

Under the endorsement cottonseed is insured against yield losses that might occur during the growing season. There is NO revenue component attached to this program.

The national cottonseed price for 2012 has been set at 11 cents per pound, or $220/ton. This is two cents higher per pound than the 2011 price.

On the Texas High Plains, March 15 is the federal crop insurance sales closing date for initiating or cancelling insurance coverage. The projected price for cotton lint in 2012 will be set in early March, and that price is calculated using the average closing price of the December '12 contract for the month of February. As of today, that is trading at about 94 cents.

"We're hopeful that the market will hold up," PCG's Executive Vice President Steve Verett said. "Although current market prices are a far cry from last year's $1.23, we hope that the increase on the cottonseed side will help offset that difference somewhat."

Signups are under way for the Direct and Counter-Cyclical Program in this last year of the 2008 Farm Bill. The 2012 DCP signup deadline is June 1. Growers should note that for the 2012 DCP, advance direct payments are not authorized. For more information or to sign up, please contact your local Farm Service Agency office.

Looking ahead, the future of the 2012 Farm Bill remains uncertain at this point, and farm policy experts say that odds are about 50/50 for enacting a new farm law this year. Although an election year isn't the prime time for renewing major farm legislation, House Ag Committee Chairman Frank Lucas (R-OK) said in an article from DTN/Progressive Farmer earlier this week, that if the opportunity came up to finish a farm bill this year, he and Senate Ag Committee Chairperson Debbie Stabenow (D-MI) would "move heaven and earth to get it done."

Want the facts about the U.S. agriculture and farm policy? Get what you need at http://www.farmpolicyfacts.org

Commerce: No Solution to LightSquared's Interference

Friday, January 27, 2012
From the National Cotton Council

The Commerce Department's National Telecommunications and Information Administration said there is "no feasible solution to the interference problems posed by LightSquared Inc.'s proposed nationwide mobile broadband network."

LightSquared proposed to offer high-speed wireless internet service on a wholesale basis to as many as 260 million people on airwaves formerly reserved mainly for satellites. However, testing consistently has concluded that the proposed network could interfere with GPS operations.

In January 2010, the Federal Communications Commission gave LightSquared preliminary approval to begin rolling out its network, but said it would withhold final approval until all interference issues are resolved. Since then, the company and the FCC have had intense criticism from Congressional members, GPS device manufacturers, government agencies and corporations that rely on GPS technology. Their primary concern is that LightSquared's network requires the company to deploy significantly more terrestrial base stations, which emit much higher power and create substantial interference with GPS operations.

LightSquared has proposed moving operations to a different set of frequencies and to lower the power levels of its network transmissions, but the latest round of testing has concluded that the interference is not mitigated.

"No additional testing is warranted at this time," the National Executive Committee for Space-Based Positioning, Navigation & Timing, an inter-agency body that advises federal departments and agencies on matters concerning GPS, said in a letter to NTIA, which manages the government's use of radio spectrum.

Testing requested by NTIA has found that LightSquared's transmissions caused harmful interference to the majority of GPS receivers, including those used for aviation. Rick Kaplan, the chief of the FCC's Competition Bureau, said the agency will withhold final approval of LightSquared's network build-out until all testing is completed and the NTIA has reached its conclusions. The FCC manages all commercial and public radio spectrum in the United States, while the NTIA manages the federal government's use of the spectrum.

"We will do nothing to harm GPS in any way whatsoever," Kaplan said. "It's obviously an essential service to our national defense and our economy."

The National Cotton Council is an active participant in a coalition composed of commodity and general farm organizations working with farm equipment and GPS manufacturers to ensure GPS services and precision agriculture are not adversely affected by LightSquared.

Area Ag Conferences Scheduled

The following area ag conferences have been scheduled for February:

February 6 – Grain Sorghum Conference, Claude
– Contact Whitney White, County Extension Agent-AG, 806-226-3021.

February 6 – Seed Variety Selection and Economics, Farwell Community Center
– Contact Benji Henderson, County Extension Agent-AG, 806-481-3619.

February 7 – Cotton Conference, Hereford
– Contact Rick Auckerman, County Extension Agent-AG, 806-364-3573.

February 8 – SW Farm & Ranch Classic, Lubbock Memorial Civic Center
- Contact Mark Brown, County Extension Agent-AG, 806-775-1680.

February 9 – South Plains Ag Conference, Brownfield
– Contact Chris Bishop, County Extension Agent-AG, 806-637-4060.

February 9 – Crop Producers Conference, Dalhart Consumers Coop
– Contact Michael Bragg, County Extension Agent-AG, 806-244-4434.

February 10 – Swisher/Hale County Ag Day, Plainview
– Contact David Graf, County Extension Agent-AG, 806-995-3726.

February 13 – Irrigation Meeting, Panhandle
– Contact Jody Bradford, County Extension Agent-AG, 806-537-3882.

February 23 – Range Workshop, Lipscomb County
– Contact J.R. Sprague, County Extension Agent-AG, 806-862-4601.

February 27 – Irrigation Strategies, Moore County
– Contact Marcel Fischbacher, County Extension Agent-AG, 06-935-2594.

February 28 – Sandyland Ag Conference, Seminole
– Contact Terry Millican, County Extension Agent-AG, 432-758-4006.

February 29 – Gray County Ag Conference, Pampa
– Contact Brandon McGinty, County Extension Agent-AG, 806-669-8033.

February 29 – Ag Production Meeting, Turkey
– Contact Josh Brooks, County Extension Agent-AG, 806-259-3015.

If you have another conference to add to this list, please call PCG at (806) 792-4904 and ask for Mary Jane Buerkle or email maryjane@plainscotton.org. A complete conference list is at http://www.plainscotton.org/agconferences.html.

CCI Promotes U.S. Cotton and COTTON USA at Heimtextil 2012

Cotton Council International's COTTON USA pavilion at Heimtextil 2012 attracted international visitors from all stages of the cotton supply chain. The U.S. cotton pavilion featured products from 15 COTTON USA licensees and provided meeting space for other U.S. cotton supply chain representatives to conduct business.

Heimtextil – the largest international trade fair for home and contract textiles, with 2,634 exhibitors from 61 countries – offered prime opportunities for the U.S. cotton industry to promote U.S. cotton and to connect with top-level executives in the global cotton supply chain. With CCI, Supima and Cotton Incorporated represented at the COTTON USA pavilion, it functioned as a meeting and information point for all segments of the cotton industry. Visitors found a comprehensive range of information on U.S. cotton at the stand. Additionally, the "Trend Colors to Go" forecast by Cotton Incorporated gave visitors the opportunity to collect trend color samples for spring/summer 2013.

COTTON USA staff helped identify new business contacts for manufacturers seeking cotton and cotton yarn suppliers. Meetings were conducted with cotton merchants, mills, manufacturers, brands, retailers, cotton and textile organizations and the press. The number of decision-makers and quality of the contacts available reinforced and generated new business contacts for all three U.S. cotton organizations and COTTON USA licensees.

The organizer of Heimtextil, reported approximately 70,000 visitors from 136 countries. The largest percentage of visitors came from Germany, Italy, Turkey, China, Great Britain, the United States, France, Spain, the Russian Federation, The Netherlands and Poland. More than 64.2 percent of visitors came from outside Germany.

During Heimtextil, CCI also participated in the international Discover Natural Fibers Initiative and the International Textile Manufacturers Federation Home Textiles Committee meetings held at the show. The DNFI is a coalition between CCI and other international natural fiber organizations to increase awareness of natural fibers, including cotton.

Ag Secretary Vilsack Announces Blueprint for Stronger Service to Increase Efficiency in USDA Operations

Streamlined, Modernized Department Central to 21st Century

USDA
January 11, 2010

Washington - The U.S. Department of Agriculture (USDA) must be built to meet the evolving needs of a 21st century agricultural economy, Agriculture Secretary Tom Vilsack said Monday in presenting USDA's Blueprint for Stronger Service, a plan that helps producers continue to drive America's economy by streamlining operations and cutting costs.

"The USDA, like families and businesses across the country, cannot continue to operate like we did 50 years ago," said Vilsack. "We must innovate, modernize, and be better stewards of the taxpayers' dollars. We must build on the record accomplishments of farm communities in 2011 with a stronger, more effective USDA in 2012 and beyond."

The Blueprint for Stronger Service is based on a Department-wide review of operations conducted as part of the Administration's Campaign to Cut Waste, launched by President Obama and Vice President Biden to make government work better and more efficiently for the American people. The agency took a hard look at all USDA operations, from headquarters to field offices. The end result is a plan that will create optimal use of USDA's employees, better results for USDA customers, and greater efficiencies for American taxpayers.

"As part of the Campaign to Cut Waste, the President and I asked all Cabinet Secretaries to make tough choices within their departments to save taxpayer money, eliminate government waste, and allow us to invest in the programs and services the American people need. This announcement by Secretary Vilsack is another example of how this can be done," said Vice President Biden. "By undertaking a thorough and thoughtful review of his Department, Secretary Vilsack has saved taxpayers millions in travel and printing costs and is consolidating more than 700 different cell phone contracts into about 10. What's more, the Department is finding significant savings by consolidating more than 200 offices across the country while ensuring that the vital services they provide are not cut."

"In the past few decades, U.S. agriculture has become the second most productive sector of the American economy, thanks to farmers adopting technology, reducing debt, and effectively managing risk," said Vilsack. "These are lessons from which we can all learn. As we continue to invest in rural communities across the country, USDA has heard from producers about reducing red tape and the need to modernize its services. Today, we are answering the challenge by announcing a series of efforts to help us continue to streamline operations, make the best use of taxpayer resources, and provide the best possible service to the American people."

The USDA will close 259 domestic offices, facilities and labs across the country, as well as seven foreign offices. In some cases, offices are no longer staffed or have a very small staff of one or two people; many are within 20 miles of other USDA offices. In other cases, technology improvements, advanced service centers, and broadband service have reduced some need for brick and mortar facilities.

When fully implemented, these actions along with other recommended changes will provide efficiencies valued at about $150 million annually-and eventually more based on future realignment of the workforce-and will ensure that USDA continues to provide optimal service to the American people within available funding levels. These actions and plans to close or consolidate facility, office and lab operations will impact USDA headquarters in Washington and in 46 states and 1 U.S. territory.

• Farm Service Agency (FSA): Consolidate 131 county offices in 32 states; more than 2,100 FSA offices remain throughout the United States
• Foreign Agricultural Service (FAS): Close 2 country offices; more than 95 FAS offices remain throughout the world
• Animal and Plant Health Inspection Service (APHIS): Close 15 APHIS offices in 11 states and 5 APHIS offices in 5 foreign countries; more than 560 APHIS offices remain throughout the United States and 55 remain throughout the world
• Rural Development (RD): Close 43 area and sub offices in 17 states and U.S. territories; approximately 450 RD offices remain throughout the United States
• Natural Resources Conservation Service (NRCS): Close 24 soil survey offices in 21 states; more than 2,800 NRCS offices remain throughout the United States
• Food Safety and Inspection Service (FSIS): Close 5 district offices in 5 states; 10 district offices remain throughout the United States
• Agricultural Research Service (ARS): Close 12 programs at 10 locations; more than 240 programs remain throughout the United States
• Food, Nutrition and Consumer Services (FNCS): Close 31 field offices in 28 states; 32 FNCS offices will remain throughout the United States

In addition, USDA is implementing a series of other changes that will save taxpayers' money while eliminating redundancies and inefficiencies. The Blueprint for Stronger Service details 133 recommendations that affirm processes already in place, as well as 27 initial improvements, and other, longer-term improvements. The initial improvements include the following:

• Consolidate more than 700 cell phone plans into about 10;
• Standardize civil rights training and purchases of cyber security products; and
• Ensure more efficient and effective service to our employees by moving toward more centralized civil rights, human resource, procurement, and property management functions, creating millions of dollars in efficiencies without sacrificing the quality of our work.

The Secretary detailed the changes in a speech today at the American Farm Bureau Federation's 93rd Annual Meeting, where he also highlighted the impressive achievements of American agriculture over the past three years. Currently, U.S. agriculture is experiencing its most productive period in history thanks to the resiliency, resourcefulness, and efficiency of American producers. The Blueprint for Stronger Service will allow USDA to continue the investments that help to make this possible.

Detailed fact sheets on the Blueprint for Stronger Service can be found here, by USDA Mission Area: Farm and Foreign Agricultural Services (FFAS); Food, Nutrition, and Consumer Services (FNCS); Food Safety; Marketing and Regulatory Programs (MRP); Natural Resources and the Environment (NRE); Research, Education and Economics (REE); and Rural Development. For more, please visit www.usda.gov/strongerservice .

Map and complete list of impacted offices.

USDA-NRCS: EQIP Ranking Period Ends Soon

USDA-NRCS Press Release
January 11, 2012

Lubbock -  USDA Natural Resources Conservation Service (NRCS) Assistant State Conservationist Mickey Black reminds agriculture producers that the first ranking period cut-off date for the Environmental Quality Incentives Program (EQIP) is February 3, 2012.  Producers interested in EQIP should submit applications to their local county NRCS offices so their applications can be considered during the first ranking period of 2012.

EQIP — one of the largest programs in the Farm Bill — is a voluntary conservation program that promotes environmental quality and assists producers to meet local, state and federal regulations.

"EQIP is a valuable tool to help agricultural producers implement conservation practices that provide environmental benefits to help sustain agricultural operations," said Black.

EQIP is a continuous sign-up program that allows landowners or operators to apply for financial and technical assistance for the application of specific conservation practices; but the deadline for the first 2012 funding is February 3, 2012. Contracts are offered periodically depending on budgetary allocations. Applications made after the deadline will be considered in the next funding cycle. Higher priority will be given to those applications that address national, state and local priorities and provide higher cost efficiency.

For more information, including eligibility requirements, producers should call their local USDA Service Center office today.  Service center locations and program information can be found on the Texas NRCS Web site at www.tx.nrcs.usda.gov.

Texas Agricultural Lifetime Leadership Program Applications Due March 15

Contact: Lauren Bergin, 979-845-1554, lmbergin@ag.tamu.edu

College Station - The Texas Agricultural Lifetime Leadership Program (TALL) is seeking applicants for its new class which will begin in July.

TALL is a two-year leadership development program managed by the Texas AgriLife Extension Service. Applications for the newest class, Class XIII, are due March 15. Application forms are online at http://tall.tamu.edu.

“Texas agriculture has a need for individuals who can lead our industry as it faces new and unique challenges. These individuals will provide the leadership, insight and direction to ensure agricultural viability for the future,” said Dr. Jim Mazurkiewicz, AgriLife Extension leadership program director.

The program invests 455 hours of intensive training per person in seminars, speakers and domestic and international study trips over two years, Mazurkiewicz added. Class XIII will travel to Brazil.

The program is equivalent to the time spent obtaining a master’s degree in agriculture. The typical class size is about 25, and tuition is $2,500.

“The goal of the program is to create a strong network within Texas agriculture by having representation from all agricultural industries and geographic regions,” Mazurkiewicz said.

Participants include traditional crop producers, ranchers, bankers and attorneys, as well as those who work in lumber, food processing, agricultural corporations and horticultural industries.