What is in this article?:
- Risk management tools critical in future farm policy
- STAX proposal
- The cotton industry believes a revenue insurance program that supplements existing insurance products would provide an important and affordable tool.
- STAX has been estimated to significantly reduce outlays compared to previous years and is at least a 30 percent spending reduction compared to extending the existing cotton program.
Coley advocated for the industry’s STAX proposal which he said makes a significant change in the cotton program structure – but one that is in line with the NCC’s commitment to continue working with Congress and the Administration to find a permanent resolution to the longstanding US-Brazil World Trade Organization case. He said the insurance product has been estimated to significantly reduce outlays compared to previous years and is at least a 30 percent spending reduction compared to extending the existing cotton program.
Ranking Member Roberts (R-KS) complimented the industry’s proposal during the hearing noting that the cotton industry was “leading the way.”
Coley said the US cotton industry recognizes that future farm policy must fit into ever-shrinking budget parameters, even though the commodity, conservation and crop insurance programs currently account for less than one-tenth of one percent of the total federal budget.
Coley also noted that the farm bill is important to the nation’s textile manufacturers who purchase nearly 100 percent of the cotton they process from US farmers and provide top paying manufacturing jobs in the Southeast, as well as in Louisiana and Texas. He emphasized the importance of the Economic Adjustment Assistance Program to the US textile industry.
Coley said that while farm programs must be easily explained and justified to Americans who enjoy the benefits of US agriculture’s ability to produce affordable, high quality food and fiber – he joined with the other commodity and farm groups in respectfully urging the Committee members and their Senate colleagues “to act as expeditiously as possible” on farm bill reauthorization.
Meanwhile, NCC Vice Presidents John Maguire and Gary Adams were panelists in two farm bill forums hosted by Sen. Chambliss (R-GA) in Jesup and Tifton, GA. Other participants included the Southern Peanut Farmers Federation and various Georgia agricultural organizations.