Jan. 3
Crop estimate up 2 percent
USDA has raised its estimate of the size of the 1999 U.S. cotton crop to 16.9 million bales, up 2 percent from the November estimate and up 21 percent from 1998. The additional bales are expected to come from expanded acreage, as the forecast average yield of 604 pounds per harvested acre is down 21 pounds from last year.

The crop estimate has been climbing slowly after dropping a total of 10 percent in September and October. The original forecast in August was 18.3 million bales, 32 percent higher than the 1998 crop, but by the October estimate it had fallen to 16.4 million, as the effects of drought in much of  the Cotton Belt and hurricane damage on the East Coast began to be realized.

In the current estimate, Texas production rose 353,000 bales from the November forecast; California's crop estimate went up 50,000 bales; Tennessee and Louisiana picked up 30,000 each; Arizona gained 28,500 bales, Arkansas and Missouri rose 10,000 bales apiece, and New Mexico gained 8,000. Losers were Georgia, which dropped 50,000 bales; Mississippi and Oklahoma, which lost 20,000 bales each; and South Carolina, down 10,000 bales. Alabama, Florida, North Carolina and Virginia had the same estimates as in November.

• Compare the monthly reports.

 

Merger plans were announced in May 1998, and since that time the Department of Justice has been looking into whether the merger might violate antitrust provisions. In August, it asked for documentation to determine whether conversations between the companies inhibited competition in the cottonseed market.

D&PL officials said they're glad to have the matter settled and pledged to move ahead in the seed business. "Although the failure to obtain approval is certainly disappointing, it offers resolution to a long process," Roger Malkin, D&PL chairman and chief executive officer, said in a news release announcing the cancellation. "We will move forward operating as we have since I came to D&PL, continuing the entrepreneurial spirit which made us the market leader in the cottonseed business. This means Delta and Pine Land will continue operating as a customer-focused independent company, offering farmers the highest quality genetics, technology, information and seed."

Steve M. Hawkins, D&PL president and chief operating officer, said in the same announcement  that new licensing agreements provide the company with more latitude. "Despite the fact that this proposed merger is being called off, Delta and Pine Land Co. will continue to work with Monsanto as a technology provider. As an independent company, D&PL will have greater opportunities to investigate all technologies which may benefit growers, whether developed by Monsanto or other companies. We will continue to develop those products and services which help farmers increase crop value and performance."

Monsanto officials were less positive in announcing the D&PL cancellation. "We worked in good faith for over a year with the DOJ to address their concerns and complete a merger that maintained competition in the sale of cottonseed. Unfortunately, we were unable to come to an understanding that would have let us to go forward with this transaction," Hendrik Verfaillie, president and chief operating officer of Monsanto, said in a news release.

Monsanto said representatives of the two companies will meet soon to discuss final issues concerning the failed merger attempt, including a termination fee the companies had agreed upon if the merger was not complete by Dec. 31. D&PL suggested it may take legal action to ensure the $81 million breakup fee is paid, but Monsanto contends the companies are discussing whether the fee is actually owed.

Industry experts had speculated that Monsanto would drop the D&PL merger bid when it announced Sunday that it was in negotiations with drug manufacturers Pharmacia & Upjohn. Less than a week earlier, Monsanto became the target of a class-action lawsuit claiming it has too much control over the price of seed and seeking to stop its sale of genetically engineered plants. Some analysts predict Monsanto will get rid of its ag interests if the deal goes through.

Jan. 10
Gins approaching 15 million bales
U.S gins have processed almost 2.4 million bales more cotton than they had at this point last season, but they have another 2 million bales to go if the crop meets USDA's last estimate.
Ginning stood at 14.9 million bales as of Dec. 15, according to the Dec. 23 Cotton Ginnings report. The December crop estimate is 16.9 million bales.

Ginning figures are ahead of the previous year in every state except New Mexico, Oklahoma and three Atlantic states -- North Carolina, South Carolina and Virginia.
 

Fruit of the Loom files Chapter 11
Fruit of the Loom Ltd., the Chicago based underwear manufacturer, filed for Chapter 11 bankruptcy protection Dec. 29, it announced in a press release. Chapter 11 keeps creditors at bay while a company reorganizes and attempts to regain its financial footing.

Fruit of the Loom employs 40,000 people in 60 locations worldwide. Some of the company's U.S. subsidiaries are included in the filing, although its foreign subsidiaries are not. The company says it has obtained financing to continue operations without impact for its employees or customers.

As part of the reorganization, the company announced that one of its bank lenders, Bank of America, N.A., has agreed to provide a new $625 million secured debtor-in-possession credit facility. This financing is expected to provide the short-term capital necessary to continue normal, day-to-day operations such as the purchase materials and inventory, and the payment of suppliers and employees.

Company officers say they expect to receive court approval to pay employee salaries, wages and benefits without interruption. The company also expects the debtor-in-possession financing to enable it to pay for post-petition delivery of goods and services and continue to build the inventory necessary to meet the seasonal demand from customers.

The company is vertically integrated, performing most of its own yarn spinning, knitting, cloth finishing, cutting, sewing and packaging, according to its published overview. Spinning, knitting, bleaching and dyeing are done in highly automated plants in the United States, while labor-intensive cutting, sewing and finishing are done overseas.

Fruit of the Loom manufactures products bearing the brand names FRUIT OF THE LOOM® , BVD® , GITANO® , BEST™ AND SCREEN STARS™ . Licensed brands include MUNSINGWEAR® and WILSON® .

El-Lissy to head national BWEP
Osama El-Lissy, program director for the Texas Boll Weevil Eradication Foundation, has been tapped to head the national Boll Weevil Eradication Program, according to a foundation news release.

El-Lissy will become the national boll weevil eradication coordinator for the Animal and Plant Health Inspection Service, the USDA agency charged with supporting the nation's eradication programs.

His new job starts Jan. 1, but he will remain in Texas for several weeks to help prepare for the first full-season phase in the state's five newest BWEP zones, the Western High Plains,  the Northwest Plains, the Permian Basin, the Northern Rolling Plains and the El Paso/Trans Pecos, all of which completed a fall diapause program this year, according to the foundation news release.

El-Lissy assured Texas cotton producers that their BWEP "will continue just as it has."

El-Lissy joined the Texas Boll Weevil Eradication Foundation in 1994 as program director after helping lead the successful eradication program in Arizona from 1986 to 1991 and served as interim director of the foundation in 1997. He was instrumental in developing and organizing the Texas program, the largest and most diverse eradication program in U.S. history.

Tighten up: Smaller world stocks expected
Cotton prices continued to decline during December and the Cotlook A Index  (an indicator of average cotton prices in North Europe) reached 44 cents  per pound, the International Cotton Advisory Committee reports. Higher exports by China and the United States are one reason  for the continued decline. As supplies of 1999/00 cotton are sold, prices will have to increase a few cents in order to average an estimated 50 cents per pound for the season.

With prices at such levels, planting of the 2000/01 crop is not encouraging. Lower production, higher consumption and declining stocks are expected in 2000/01.

World cotton production is expected to increase by 500,000 tons to 19.2 million tons in 1999/00. Economic conditions in East Asia, Russia and Latin America continue to improve and higher rates of economic growth are boosting cotton consumption.

With consumption about 150,000 tons higher than world production, world stocks will tighten this season. Given the current level of international prices, which may imply lower production next season, and the willingness of the Chinese government to reduce its stocks, world stocks are expected to decline to a six-year low of 8.8 million tons in 2000/01.

Tightening of world stocks will boost cotton prices in 2000/01 and the seasonal average of the Cotlook A Index is anticipated at 54 cents per pound.
 

What if ICAC's right?
If U.S. growers accept the ICAC's prediction of a tighter market and higher prices in the coming season,  they would likely plant more cotton, not less, or as Calcot's Mark Bagby said, there's "no cure for low prices like low prices."

U.S. growers would be able to do this without driving down the price for their own cotton, Bagby said, because they can rely on government price supports.

"Low prices tend to aid profitability and mills consume more," Bagby explained. "And large supplies (generally) mean low prices, so growers scale back plantings. Weather problems shorten supplies further, prices rise accordingly. Then growers plant more, once prices rise. Supplies increase, prices go back down. It's feast or famine, in a nutshell.

"The only problem with this scenario is government programs which can alter the picture substantially. By offering support, growers can be encouraged to plant crops regardless of supply ... which is probably what will happen in 2000, at least in the U.S. So, we better hope there's a short world supply, which will put U.S. growers in the driver's seat.

"What better scenario than to have the supply in a period of increasing demand and rising prices?"

From Australia, however, Phil Armytage offers the other side of that picture: "Wouldn't it be wonderful if we had a level playing field?"

Says market analyst Stephen Johnson, "ICAC seems to be making some very general truths about markets. What this is telling me is that marketing is going to be even more important to those who want in the game!

"Also, costs of production and breakeven levels need to be fine tuned. Lean times, but this will not be without some opportunity. Maybe not 80 cents, but still some kind of opportunity. Survival of the fittest indeed, and we better be up to the challenge."

Monsanto and D&PL: It's over
Delta and Pine Land Co. says Monsanto has paid the $81 million termination fee the two companies agreed to when they began merger talks more than a year ago, according to a Reuters report in the New York Times. Monsanto has also lifted a restriction on D&PL's pursuing merger possibilities with other companies, the report says. Neither company has posted a statement regarding the matter on its Web site.

Monsanto and Delta and Pine Land called it quits on their merger in December, citing Monsanto's failure to reach an agreement with government regulators reviewing the deal. The companies disagreed at that time over whether Monsanto actually owed the termination fee. D&PL suggested it might take legal action to ensure the $81 million breakup fee was paid, but Monsanto contended the companies were discussing whether the fee was actually owed.

Industry experts had speculated that Monsanto would drop the D&PL merger bid when it announced that it was in negotiations with drug manufacturers Pharmacia & Upjohn. Less than a week earlier, Monsanto became the target of a class-action lawsuit claiming it has too much control over the price of seed and seeking to stop its sale of genetically engineered plants. Some analysts predict Monsanto will get rid of its ag interests if the Pharmacia deal goes through.

Jan. 21
Higher prices on the way? Be prepared to wait
Memphis cotton merchant Billy Dunavant concurs with the International Cotton Advisory Committee that the 2000 crop could bring improved prices for U.S. growers.

"The textile industry is running strong right now, helping pull down price-depressing supplies. And I look for our global export competitors to reduce their acreage this year, while world consumption and demand rise," Dunavant said in his annual address to the Beltwide Production Conference. "There are also signs that China will reduce its production and boost its domestic consumption and imports to help reduce world carryover even further."

The ICAC's current outlook pegs world consumption about 150,000 tons higher than production, meaning world stocks will tighten. Given the current low international prices -- which imply lower production next season -- and China's willingness to reduce its stocks, ICAC expects world stocks to decline to a six-year low of 8.8 million tons in 2000-01.

"If that scenario pans out and the price of synthetic fiber keeps rising, we could see U.S. export sales of more than 9 million bales in 2001," Dunavant said. "We stand a good chance of improving our export market share as our competitors reduce their production."

Dunavant said he expects producers to plant 14.9 million acres of cotton in 2000 and harvest an 18.6-million bale crop. If stronger exports and domestic consumption total 18.1 million bales, U.S.
carryover could fall below 4.5 million to 5 million bales in the 2000-2001 marketing year and strengthen prices.

Growers should not expect prices to go up much for the current crop, however. Even with the recent increase in consumption, cotton is in ample supply worldwide, keeping prices low.

"I do not see any factors that would push prices 5 to 6 cents higher than current levels. In fact, prices may slump further this spring in anticipation of spring planting," Dunavant said. "I don't see
any reason to hold onto old-crop cotton. If I were a producer, I would continue to market my 1999 crop at the best daily price available."

Jan. 31

D&PL sues Monsanto
Delta and Pine Land has filed a $1 billion lawsuit against Monsanto for breach of contract in their aborted merger attempt.

The lawsuit, filed Jan. 18 in Circuit Court in Bolivar County, Mississippi, alleges, among other things, that Monsanto failed to make "commercially reasonable efforts" to comply with Justice Department inquiries regarding the proposed merger. D&PL is seeking not less than $1 billion in compensatory damages, as well as punitive damages.

Monsanto says the lawsuit is without merit. The company maintains it complied with all of its obligations under the merger agreement and that it will defend the lawsuit vigorously.

The merger was announced in June 1998, but appeared to be meeting resistance from the Antitrust Division of the U.S. Justice Department. Monsanto withdrew its merger petition on Dec. 20, one day after announcing its intent to merge with drug giant Pharmacia-Upjohn.

"After numerous attempts to reach an acceptable compromise with the Department of Justice, we concluded that the department's demands made no sense from a business point of view," said Monsanto President Hendrik A. Verfaillie. "And that to accept them would place both Monsanto and Delta and Pine Land at an unfair competitive disadvantage in the marketplace."

The two companies have been partners in commercializing genetically modified cottonseed. Monsanto developed the technology to insert genes conferring insecticidal properties and resistance to its glyphosate herbicide into cotton plants. D&PL transferred the technologies to its premium quality breeding lines.

D&PL maintains that neither the failure of the merger nor the lawsuit will affect its access to Monsanto gene technology. Roger D. Malkin, D&PL chairman and chief executive officer, said, "The filing of this lawsuit will not affect our existing contractual relationships with Monsanto with respect to the development of agricultural technologies and the delivery of products to our customers."

Monsanto says its research in cotton will not be adversely affected by the failed merger or the lawsuit. "We remain committed to our cotton business and to providing our biotech traits to cotton farmers in the seed varieties they prefer, through the broad licensing of our technology to various cottonseed companies," Verfaillie said.

Stewart receives genetics prize
Dr. James McD. Stewart, a researcher and professor in the University of Arkansas' Agronomy Department, won the 1999 Cotton Genetics Research Award at the Beltwide Cotton Conferences in San Antonio.

"It is clear that his program has been among the most creative forces in recent cotton genetic research and in converting that research into tangible products that will be of use for generations to come," said Texas A&M University professor Dr. David Stelly, one of the nominators. "In an era where far too few resources are devoted to the long-term types of genetic projects essential to the future of U.S. cotton, the cotton industry will increasingly benefit from Dr. Stewart's unique contributions."

Stewart has held the Altheimer Chair for Cotton Research and Development at the University of Arkansas since 1986. Before that, he was a professor and researcher at the University of Tennessee in Knoxville and served as a research leader for a cotton physiology research unit for USDA's Agricultural Research Services there. He earned his bachelor's degree and Ph.D. in botany from Oklahoma State University.

U.S. commercial cotton breeders have presented the Cotton Genetics Research Award for the past 37 years to a scientist for outstanding basic research in cotton genetics. Representatives from state experiment stations, USDA, private breeders and the National Cotton Council, comprising the Joint Cotton Breeding Policy Committee, establish criteria for the award.

Cothren takes physiology honor
Dr. J. Tom Cothren, a professor in Texas A&M University’s Soil and Crop Sciences Department, received the 2000 Outstanding Research Award in Cotton Physiology at the 2000 Beltwide Cotton Physiology Conference in San Antonio.  The $5,000 award is presented by the Physiology Conference to an individual or team who has significantly improved the knowledge of the physiology of cotton growth and development.

Cothren was recognized for his work on cotton plant growth regulators and harvest aids.  His plant growth regulator program is recognized internationally, and he closely collaborates with U.S. and European-based PGR research labs.

Cothren, who earned graduate degrees at Oklahoma State University, is a member and fellow of the American Society of Agronomy and the Crop Science Society of America. He also belongs to the American Society of Plant Physiologists, the Plant Growth Regulator Society of America and other organizations. He was a charter member and president of the Plant Growth Regulator Working Group and has served as chairman of the Beltwide Cotton Physiology Conference and chairman of its executive committee.

Feb. 4
Bt corn changes impact cotton too
Farmers who plant both cotton and corn will be able to plant no more than half their corn acreage in Bt varieties this season. The same is true for any corn growers in cotton-producing areas. EPA announced changes in requirements for managing Bt corn last Friday. The changes, aimed at reducing the risk of resistance to Bt in insects as well as the possible danger to non-target pests, include:

Growers must plant a minimum structured refuge of at least 20 percent non-Bt corn.

For Bt corn grown in cotton areas, farmers must plant at least 50 percent non-Bt corn.

Registrants will expand monitoring in the field as an early warning system to detect any potential resistance, and will communicate voluntary measures that will protect non-target insects, particularly the Monarch butterfly.

There will be sales and planting restrictions in certain limited geographic areas for some products.

Monsanto, which developed the Bt gene transfer and sells Bt varieties through its Pioneer Seeds subsidiary, has endorsed the changes and said most of the practices are already in place.

EPA last summer hosted a workshop on Bt corn in Chicago and another on Bt cotton in Memphis. Refuge design and deployment were major topics at both workshops, and a proposal to increase the mandatory structured refuge in cotton to 20 percent drew some support. Summaries from both meetings are available online, along with EPA's position paper on Bt crops.
 

EPA letter detailing new regulations	Bt cotton meeting summary
EPA position paper on Bt crops	Bt corn meeting summary

'99 crop comes in at 17 million bales
U.S. cotton production for 1999 is expected to total 17.0 million standard bales in the Agriculture Department's Crop Production Annual Summary. The report, issued Jan. 12, shows an increase of less than 1 percent from December, but a 22 percent increse from 1998.

Yield is expected to average 608 pounds per harvested acre, down 17 pounds from the year before. Harvested area was 13,381,000 acres, about 2.7 million more than in 1998.

As of Jan. 1, nearly 15.9 million running bales had been ginned, according to USDA's Jan. 11 Cotton Ginnings report.

Consumers judge biotech benefits OK
American consumers appear to be open-minded about biotechnology in foods, according to a recent survey. Of 1,002 adults polled last July and August, 73 percent said they would prefer genetically modified fruits and vegetables over those treated with pesticides, according to a report in Supermarket News. The Roper Starch Worldwide study released in January during the American Farm Bureau Federation's 81st annual convention, found that while 37 percent  had "heard more good than bad in regards to biotechnology," favorable ratings increased when biotech was associated with specific benefits:

• 57%  Improves taste of foods
• 65%  Improves nutritional values of foods
• 69%  Increases food production
• 73%  Reduces pesticide use

The study was commissioned by tobacco giant Philip Morris, whose subsidiaries include Kraft dairy products, Miller beer, Oscar Mayer meats and Post cereals.

Feb. 10
CCC to offer Step 2 certificates
The Commodity Credit Corporation announced Tuesday that it soon will begin issuing commodity certificates in lieu of cash in the the Step 2 program for upland cotton. CCC did not say exactly when the certificates would begin to be  issued.

The certificates are designed to "facilitate the repayment of CCC marketing-assistance loans, thus avoiding forfeiture to the government of commodities pledged as collateral for those loans," according to the CCC news release.

DuPont ready for Roundup clone
DuPont plans to start selling its own brand of glyphosate herbicide in the United States this year, the company announced. A global multi-year supply agreement with Monsanto allows DuPont to purchase glyphosate herbicide from Monsanto for use in DuPont herbicide mixtures and in its own brands in the United States, the company said in a statement.
The agreement also allows for certain DuPont-branded glyphosate products to be sold, once registered, for use over the top of Roundup Ready cotton and soybeans. Monsanto's Roundup and Roundup Ultra herbicides, which include the active ingredient glyphosate, and DuPont's glyphosate products will compete with each other in the agricultural marketplace.

James C. Borel, president of DuPont Crop Protection, said in a statement on DuPont's Web site, "Our mission is to help farmers be more successful through technology and service. Adding glyphosate to our already strong product portfolio will help us to continue achieving that goal, which is particularly critical in the very difficult farm economy in which we are currently operating."

"This agreement is consistent with our vision of providing wide access to our traits and technology, while at the same time focusing on best business practices in our manufacturing and marketing areas," Hugh Grant, president, Monsanto's Agricultural Group, said in the same statement.

McClendon elected NCC president
Robert E. McLendon, a producer from Leary, Ga., was elected president of the National Cotton Council of America Monday on the final day of the NCC annual meeting in Washington, D.C.

McLendon, who served as council treasurer in 1999, succeeds Ron Rayner, a Goodyear, Ariz., producer, who becomes council board chairman.

McLendon served as a council director from 1992 to 1994 and has been a delegate since 1986. He served as the American Cotton Producers' Southeast vice chairman from 1996 to 1998, as a Cotton Incorporated director in 1991-1992 and has held numerous leadership positions with Southern Cotton Growers, including serving as president in 1990-91.

He has been farming since 1974 and currently grows more than 2,000 acres of cotton. He also grows 883 acres of peanuts and is involved in poultry and timber production.

Kenneth B. Hood, a producer from Gunnison, Miss., was elected treasurer. Re-elected vice presidents were:  James Echols, merchant, Memphis; Robert Greene, ginner, Courtland, Ala.; Van May, cooperative official, Lubbock, Texas; Willis Willey III, warehouser, Memphis; Duke Kimbrell, manufacturer, Gastonia, N.C.; and Tim Taylor, crusher, Memphis.

Also re-elected were Phillip C. Burnett, executive vice president and secretary, Gaylon B. Booker, senior vice president, and Craig Brown, vice president for producer affairs; all of Memphis; A. John Maguire, vice president for Washington operations; and Allen Terhaar, vice president for international affairs, Washington, D.C.

Isbell leads ACP in 2000
Hollis O. Isbell, a cotton producer from Muscle Shoals, Ala., was elected chairman of the American Cotton Producers of the National Cotton Council for 2000 during the Council’s annual  meeting in Washington, D.C.

Mike Sturdivant, Glendora, Miss., was elected a vice chairman. John H. Pucheu, Jr., Tranquillity, Calif., and Woody Anderson, Colorado City, Texas, were re-elected vice chairmen.

Two new regional directors were elected. Louie Perry, Jr., Moultrie, Ga., was elected from the Southeast, and Chuck Younger, Buckeye, Ariz., represents the West. Re-elected as regional directors were Boyd Holley, Bastrop, La., representing the Midsouth; and Mark Williams, Farwell, Texas, was elected to represent the Southwest.

State producer chairmen for 2000 are:

• Alabama, Sam Spruell, Mount Hope;
• Arizona, Larry W. Jarnigan, Phoenix;
• Arkansas, H.L. Lewis, Doddridge;
• California, Don Cameron; Helm;
• Florida, B.E. "Sonny" Davis, Cottondale;
• Louisiana, Jay Hardwick, Newellton;
• Mississippi, Bowen Flowers, Tunica;
• Missouri-Illinois, Charles H. Parker, Senath, Mo.;
• New Mexico, Dwight Menefee, Lake Arthur;
• North Carolina, David Grant, Garysburg;
• Oklahoma-Kansas, Daniel M. Davis, Elk City, Okla.;
• South Carolina, Frank Rogers, Bennettsville.
• Tennessee-Kentucky, Ross G. Via, Bells, Tenn.;
• Texas, Jim Ed Miller, Fort Hancock;
• Virginia, Larry M. Fowler, Newsoms.

• Producers – Louie Perry, Jr., Moultrie, Ga.; Boyd Holley, Bastrop, La.; Mark D. Williams, Farwell, Texas; Charles K. Youngker, Buckeye, Ariz.; and Hollis O. Isbell, Muscle Shoals, Ala.
• Ginners – David K. Lynch, Bennettsville, S.C.; Murray G. McClintock, Tunica, Miss.; Sid Brough, Edroy, Texas; Charles C. Owen, Pima, Ariz.; and Myrl D. Mitchell, Lenorah, Texas.
• Warehousemen – Carl W. Nelson Jr., Selma, Ala.; Neill M. Sloan, Portland, Ark.; Ron Harkey, Lubbock, Texas; Gary J. Nichols, Memphis; and E. Bragg Smith III, Dallas.
• Merchants – Robert S. Weil II, Montgomery, Ala.; Gerald C. Marshall, Cordova, Tenn.; William C. Covington, Richardson, Texas; Rodger C. Glaspey, Fresno, Calif.; and Joseph Walker II, Columbia, S.C.
• Crushers – Michael L. Johnson, Decatur, Ill.; George H. Dunklin, Pine Bluff, Ark.; Hollis G. Sullivan, Harlingen, Texas; Ryoichi Kondo, Chandler, Ariz.; and Scott Middleton, Jonestown, Miss.
• Cooperatives – John J. Cooper, Raleigh, N.C.; Woods E. Eastland, Greenwood, Miss.; Lonnie D. Winters, Lubbock, Texas; Robert W. Norris, Bakersfield, Calif.; and David L. Hand, El Paso, Texas.
• Manufacturers – Roger W. Chastain, Greenville, S.C.; Charles F. Hamrick II, Gaffney, S.C.; George R. Herron, Danville, Va.; G. Stephen Felker, Monroe, Ga.; and D. Harding Stowe, Belmont, N.C.

The Hayden award is presented to the ginner providing outstanding leadership to the U.S. cotton industry, superior customer service and civic contributions. The Distinguished Service Award is given on behalf of the U.S. cotton ginning industry to the individual making outstanding contributions to the industry and to NCGA.

Earnest, a graduate of Florida State University, has been managing production of various row crops and his ginning operation since 1976. He is past president of the NCGA, the Ark-Mo Cotton Ginners Association and the Southern Cotton Ginners Association. He has served as a National Cotton Council director, on the NCC’s Executive Committee and is a long-time and valued member of the NCC’s Trade Policy Committee. He also serves on the Missouri Governor’s Advisory Council on Agriculture and the Advisory Board for the University of Missouri Delta Center.

In presenting the award, outgoing NCGA President Bobby Greene said Earnest "has always kept a policy of maintaining modern gin equipment to provide the best of service and quality turn-out for his producer customers. He is always available to assist anyone in need of advice and always takes the time to listen. He possesses the interest and devotion to seek, study and understand the many-times complicated details of agreements, regulations and requirements -- great assets to his business and the cotton industry."

Van Doorn, who joined Lummus in 1947 following graduation from the University of Michigan, owns some 50 gin machinery patents, including his first, in 1949, the Super-Jet lint cleaner. He is the 1987 recipient of the Mayfield Cotton Engineering Award from the American Society of Agricultural Engineers. He is recognized for his productivity, innovative thinking and strong desire to continually improve the industry’s end product by finding ways of processing cotton in order to protect the true fiber value and spinning properties.

Elected 2000-01 NCGA officers are: president, Myrl Mitchell, Lenorah, Texas; first vice president; Richard Bransford, Lonoke, Ark.; second vice president, Michael Hooper, Buttonwillow, Calif.; and third vice president, Richard Holder, Kinston, N.C. Bobby Greene, Courtland, Ala., now serves as board chairman and Fred Johnson, Memphis, Tenn., is executive vice president.

Texas ginner elected CCI president
Larry Nelson, a ginner from Edmonson, Texas, will lead  was Cotton Council International this year. He succeeds Paul A. Ruh, a merchant with Paul Reinhart, Inc., in Richardson, Texas. Ruh becomes CCI board chairman, succeeding Bruce K. Groefsema, a cooperative official from CALCOT, in Bakersfield, Calif.

CCI is the National Cotton Council’s export promotions arm.

Other CCI officers elected for 2000 are first vice president Hans G. Kretschmer, cooperative official, El Paso, Texas; second vice president, William B. Dunavant, III, merchant, Memphis; and treasurer, Robert A. Carson, Jr., producer, Marks, Miss. Phillip C. Burnett of Memphis was re-elected as CCI Board secretary and Allen A. Terhaar, Washington, D.C., was elected assistant secretary.

William L. Carter, Jr., a producer from Scotland Neck, N.C., was elected as a director. Re-elected directors include: James B. Hansen, producer, Corcoran, Calif.; Cliett A. Lowman III, producer, Kingsville, Texas; John E. Pucheu Jr., producer, Tranquillity, Calif.; Chuck Youngker, producer, Buckeye, Ariz.; Robert Glassman, ginner, Fresno, Calif.; Robert W. Greene, ginner, Courtland, Ala.; Vance C. Shoaf, warehouseman, Milan, Tenn.; Joseph Walker II, merchant, Columbia, S.C.; Willis H. Willey III, warehouseman, Memphis; Wayne Martin, crusher, Lubbock;  Timothy L. Taylor, crusher, Memphis; Peter Egli, merchant, Phoenix; William C. Tharp, merchant, Las Cruces, N.M.; Gary Taylor, merchant, Memphis; Adolph Weil III, merchant, Montgomery; Michael M. Adams, cooperative official, Greenwood, Miss.; Van A. May, cooperative official, Lubbock; David Stanford, cooperative official, Lubbock; G. Stephen Felker, manufacturer, Monroe, Ga.; and Jerry D. Rowland, manufacturer, Winston-Salem, N.C.

Deltapine names breeders for new stations
Delta and Pine Land's new research stations in Georgia and Texas will be opened by cotton breeders Dr. Jeff Klingenberg and Dr. Gary Rea. The new programs will place primary importance on breeding new varieties for the regions in which they will be housed, according to Dr. Bill Hugie, D&PL vice president for research.

Klingenberg, who has been with D&PL’s transgenic integration program for three years, will relocate from Maricopa, Ariz., to southern Georgia to concentrate primarily on full-season varieties adapted to the Southeast.  His efforts will complement those of Dr. Cindy Green in Hartsville, S.C.

Klingenberg helped open the transgenic facility in Maricopa.  He has worked with numerous Deltapine, Paymaster and Sure-Grow varieties and has been heavily involved in the Pima transgenic conversion program.  Before joining D&PL, Klingenberg worked as a breeder with Seeds West Inc. and at the University of Arizona’s Maricopa Farm Center.

Klingenberg grew up on a family farm in Yuma County and later received his undergraduate degree from the University of Arizona at Tucson. He received his master's in plant breeding and genetics from New Mexico State University in Las Cruces, and his Ph.D. in that discipline from the University of Nebraska at Lincoln.

Rea will focus on development of both stripper and picker varieties adapted for Texas’ Rolling Plains as he opens the region’s new facility. Yield, drought tolerance and storm resistance are some of the characteristics which will be high priorities.

During his tenure with D&PL, Rea has conducted breeding research and testing in the Rolling Plains while working from the Hale Center station headed by Dr. Richard Sheetz. Rea’s previous breeding experience has been with High Plains varieties at D&PL as well as other companies.

His crop science education focused on plant breeding and genetics as he completed his master's degree at West Texas A&M University in Canyon, Texas, and his doctorate at Oklahoma State University in Stillwater, Okla.

Disaster aid signup
Farmers who have suffered severe crop losses from national disasters can sign up for cash grants through midnight Feb. 25. To be eligible,  farmers must have lost at least 35 percent of their 1999 crops because of natural disasters.

The Fiscal Year 2000 Agriculture Appropriations Act provided $1.2 billion for the Crop Disaster Program. Eligible farmers will receive an advance payment equal to 35 percent of their projected total payment as soon as their applications are approved. Participants will receive their final payments after all applications have been received and approved.

An $80,000 per person payment limitation will be applicable to all qualified participants. No one with an annual gross income of $2.5 million or more will be eligible for the program.

Quality losses will be covered in the program, but quality losses will be converted to pounds and applied against any actual yields produced. The main effect of the quality-loss adjustment will be to decrease actual production and possibly increase the number of pounds eligible for a payment or to reduce production below the 65 percent eligibility threshold.

Feb. 22
Council lauds certificate program decision
The authorization of a marketing certificate program for cotton will allow some half-million bales to come out of the government loan at a competitive price and prevent their being forfeited, the National Cotton Council's new president said.

The program will include both Step 2 certificates and generic certificates. It will be administered so that cotton can be redeemed from the loan at the adjusted world price, and marketing loan gains will not count against payment limits.

"This program ... will provide an invaluable marketing assist for U.S. cotton," said NCC President Robert E. McLendon. "Without it, we estimate that more than a million bales of cotton would languish under loan, eventually being forfeited and sold at auction by the Commodity Credit Corporation just as new crop cotton is coming to market."

McLendon said a USDA spokesman told the council that the department would "move as quickly as possible" to implement the program and is already making key personnel assignments to expedite the process.

McLendon, other industry leaders and Council executive staff discussed the benefits of certificate issuance with Secretary Glickman last week and urged him to implement the program for cotton so that producers could redeem and market their bales in an orderly fashion.

The marketing certificate authority was included in the 2000 Agricultural Appropriations Bill, which was signed into law last October.

National Cotton Council news release
CCC news release

Going up: Prices ...
World cotton prices are moving higher. The International Cotton Advisory Committee reports that after five years of almost continuous decline, during which daily values of the Cotlook A Index fell from more than $1.10 per pound in 1994 to 44 cents at the end of 1999, the index increased to 51 cents in January.

Despite this upturn, 1999-2000 will be the fifth consecutive season in which average prices have fallen. Until the current downtrend, the Cotlook A Index, an indicator of international prices, had not fallen for more than two consecutive seasons since the 1950s.

As is often the case when trends change, the rise in prices is proceeding faster than many expected, and further gains during the second half of 1999-2000 and into 2000-2001 are likely, according to the ICAC.

World cotton production is forecast to drop from an estimated 19.3 million tons this season to less than 19 million tons in 2000-2001, and consumption is expected to climb to a record 19.5 million tons next season.

Reflecting improved health in the cotton economy, world exports are rising from 5.3 million tons last season to nearly 6 million tons this season and a forecast of 6.3 million tons in 2000-2001.

World cotton ending stocks are changing little this season, but a decline to less than 9 million tons is forecast next season. Exports by China are estimated at 300,000 tons this season, double last season's level, and China's exports may remain significant through next season. Imports by China, essentially zero this season, may rise in 2000-2001.

... And acres
You knew it would happen: With cotton prices making a turnaround, U.S. growers are gearing up to take advantage of them. The 2000 U.S. crop will be planted on some 15.35 million acres, the National Cotton Council said Friday. That's an increase of 3.3 percent, or nearly a half-million acres. Production is estimated at 18.39 million bales.

Upland cotton will account for 15.12 million acres, an increase of 3.8 percent from 1999 plantings of 14.57 million acres. Extra long staple cotton will be planted on 232,000 acres -- 20.2 percent less than in 1999.

Western states are expected to see the greatest increase with 6.6 percent. Midsouth acreage is expected to increase 6.6 percent; the Southwest 3.1 percent; and the Southeast 0.6 percent.

Cottonseed production is projected to increase 9 percent to 7 million tons.

The results of the NCC's  annual Planting Intentions Survey were announced at the council's Annual Meeting in Washington, D.C. The survey was mailed in late December to approximately one-third of U.S. cotton growers, and recipients randomly selected. Surveys had to be returned to the NCC by mid-January in order to be considered.

NCC economists list reasons for optimism
Amid increasing evidence of an economic turnaround, National Cotton Council economists speaking at the organization's annual meeting in Washington, D.C., cited several factors to account for growing optimism:

• A rebound of world mill use of cotton faster than anticipated and driven by a more vigorous than expected recovery of the Asian economies,
• Strengthening polyester prices that have reduced the competitive disadvantage faced by cotton in many markets
• Chinese cotton policies that appear to be having the desired effect of reducing that country’s cotton surplus.

March 13
Outlook for 2000: 'Very weak farm income'
An improved export market for cotton is one of the few bright points in the farm economic outlook, according to the USDA's chief economist, Keith Collins in a speech to the agency's annual Outlook Forum in Arlington, Va. Commodity prices are still in the tank, he said, with cotton at a 25-year low. "Soybean prices are expected to be the lowest since 1972-73," he said; "corn and wheat are expected to be the lowest since 1986-87; ... and rice, the lowest since 1992-93."

Collins listed a half-dozen positive factors, including the strong U.S. economy and the resulting increase in domestic consumption, improving global economies, a general trend toward solvency among farmers and ag banks, improving on-farm efficiency and technology, and manageable surplus levels. However, even with these positives, the overall outlook for U.S. agriculture this year is not so good, he said.

"Despite this report of some of the good things going on, the picture of the farm economy for 2000 remains dominated by the prospect for very weak farm income," Collins said. "USDA forecasts that farm cash receipts will fall to $190 billion in 2000, $2 billion below last year and $18 billion below the record of $208 billion set in 1997. Lower receipts and lower government payments under current legislation are forecast to reduce net cash farm income for 2000 to $49.7 billion, down nearly 20 percent from 1999 and the lowest level since 1986."
 

More on Ag policy field hearings
The House Ag Committee has added information about the upcoming farm policy meetings to be held in 10 cities across the country. The full committee is to attend each meeting, and all 10 meetings have the same purpose: Review of federal farm policy.

The complete schedule, along with addresses of the venues has been announced by House Agriculture Committee Chairman Larry Combest, R-Texas, and ranking minority member Charles Stenholm, D-Texas.

Committee members will be traveling to 10 states during March, April and May, "encouraging producers to submit detailed proposals for agricultural policy," according to a press release from the committee. "The regional hearings are convened exclusively for producers to describe specific policy issues and to respond to Ag Committee members' questions about how producers want those problems addressed."

Maps and driving directions to each site are available through the Ag Committee's Web site, http://agriculture.house.gov. Audio of the field hearings will be carried on the site.

Here are the locations, dates and times:

Memphis cotton processor cited for pollution
A Memphis cotton-processing plant faces a quarder-million dollar air-pollution fine, the largest in the city's history, according to a report in the Commercial Appeal. The company has a history of violating its environmental permits, according to the newspaper report.

"The Health Department has assessed a $250,000 fine against Planters Gin Co., 171 W. Mallory. The department, however, notified the company the penalty could be halved to $125,000 if there is no appeal," according to the front page story by Tom Charlier in the Feb. 24 edition. The company can appeal the fine to the Memphis and Shelby County Air Pollution Board, according to the report.

Planters Gin reprocesses waste cotton. Neighbors have complained about the amount of dust coming from the plant. Company president E.W. Atkinson Jr. told the newspaper that the plant, founded in 1947, is in the midst of extensive improvements in an effort to meet air-quality standards.

Certificate sales begin
Commodity Credit Corp. today begins selling commodity certificates and exchanging them for loan collateral. The certificates are intended to encourage producers to repay their loans rather than forfeit the loan collateral to CCC at maturity.

"Only producers or their agents may purchase the commodity certificates, and they may be utilized only in connection with the repayment of marketing assistance loans when producers cannot exercise their full opportunity to repay their loans and may have to forfeit some or all of the collateral to CCC at loan maturity," said CCC’s Executive Vice President Keith Kelly. "The primary purpose in making the commodity certificates available is to avoid government takeover of commodity stocks."

Commodity certificates are also required to be made available to participants in CCC’s Step 2 cotton program. Certificates issued under that program also may only be used by producers or their agents to acquire commodities pledged as collateral for these same loans.

The exchange rate will be the effective adjusted world price. Commodity certificate exchanges will not be available when the exchange rate exceeds the applicable loan rate. Commodity certificate exchanges may only be processed by the FSA office that originated the loan.

Demand rises for U.S. cotton
Demand for U.S. cotton this season is expected to be slightly under production, but 12.5 percent higher than last season, according to USDA's February Cotton and Wool Outlook.

Based on the current production estimate of 16.95 million bales for the 1999-2000 crop, the U.S. supply of cotton this season is expected to total 21 million bales. That's 15 percent above 1998-99, and includes less than 100,000 bales of  imported cotton, compared with last season's 443,000 bales.

Demand for U.S. cotton is projected to rebound as a sharp turnaround in U.S. exports offsets a slight downturn in mill use. Total demand is expected to reach 16.6 million bales this season, a 12.5 increase over last season. As a result, 1999-2000 stocks are forecast to total 4.4 million bales by season's end, nearly 500,000 above beginning levels.

Gins verify crop estimate
U.S. gins had processed 16.4 million bales by the end of January, barely a half-million bales short of the 16.95 million bale crop estimate for 1999-2000, according to the Feb. 11 Cotton Ginnings report. Texas accounted for nearly 5 million bales, California over 2 million, and Mississippi almost 1.7 million. Georgia contributed 1.5 million bales and Arkansas almost 1.4 million. Louisiana had over 900,000 bales.

Despite its constant weather problems, North Carolina ginned more than 800,000 bales. That amount was some 200,000 bales short of its total at the same time last year, making North Carolina one of only three states behind last year's totals. South Carolina with 264,650 is 69,100 short. New Mexico's 59,200 is about 10,000 bales short.

March 21
ICAC: Demand is driving prices up
That cotton prices jumped since January and are expected to continue to rise, but at a slower rate, according to The International Cotton Advisory Committee. The reason for the timely upturn in prices is anticipation of an overseas shortfall in production in the next two seasons. Consumption is expected to outstrip production by some 600,000 tons this season and 1.3 million tons in 2000-01.

The Cotlook A Index was about 56 cents per pound at the end of February, still lower than a year ago but 12 cents above the low point in January 2000. The average Cotlook A Index is projected at 52 cents per pound in 1999-00, but is anticipated to exceed 60 cents in 2000-01, according to the ICAC's March newsletter.

March 24

Professional help for GMO PR
This item is from The Bowditch Group Electronic AgBiotech Newsletter for March 1:
A new initiative, CropGen, (has been) launched ... to help achieve a more balanced debate about genetically modified crops in the UK. A CropGen release said it "... will make the case for crop biotechnology, not the biotechnology industry.''  The initiative comprises a panel of scientists and specialists on agriculture, plant science, microbiology, ecology and consumer affairs to provide information for the public, interest groups and the media.  The panel will be able to give a perspective on key issues in the GM crop debate -- human health, environmental impact and the benefits versus the risks.  The panel's chairman is Vivian Moses, Visiting Professor of Biotechnology, King's College, London. "CropGen's challenge is to explain the current and future benefits of GM crops and to set any possible risks they might present in context,'' he said. CropGen will be funded initially by a consortium of biotechnology companies but the panel will be independent. The sponsors include Aventis Crop Science, Dow AgroSciences, Monsanto and Novartis Seeds, but the companies have signed an undertaking that they cannot veto any of the scientific positions taken by the panel.

Subsidy would offset ginning costs
USDA has proposed to pay cotton farmers and ginners about $74 million to help offset losses from low 1999-crop cottonseed prices.

"Because of those low prices, many gins were unable to meet operating expenses normally covered by cottonseed revenues, and some cotton farmers had to pay higher ginning costs," Ag Secretary Dan Glickman said in announcing the proposal. "This discretionary program will help farmers make up this lost income."

The proposed payments would be made to gins based on seed tonnage produced from the 1999 crop. USDA plans to propose that gins share cottonseed program payments with farmers commensurate with any increased 1999-crop ginning charges as a condition of accepting program payments.

Glickman said if USDA's current estimate of  6.5 million tons of cottonseed is correct, the payment rate could be expected to be about $11.40 per ton of cottonseed.

"This rate estimate is very preliminary," said Glickman. "The actual rate would be based on the total
number of applications, the total payment tonnage of seed, and a final determination of available program funds."

Monsanto merger just in time to address patent suit
The merger of Monsanto and Pharmacia could close by April 1 if shareholders in the two companies approve the plan in votes Thursday, according to a Monsanto press release.

The new company will be named Pharmacia Corporation and will have an annual pharmaceutical research and development budget of more than $2 billion. Corporate and pharmaceutical business headquarters will be in Peapack, N.J. The agricultural business headquarters will be in St. Louis and will retain the Monsanto name.

The announcement came just two days after word came that Monsanto is being sued yet again over its genetically modified cotton. Aventis CropScience said it has filed a lawsuit with researcher Norma Trolinder alleging that Monsanto "has exploited the patents to exclude competition in
transgenic cotton, which now represents about 65 percent of the cotton seed sold in the U.S."

The lawsuit alleges the named inventor of the patents obtained the techniques for regenerating transgenic cotton from Dr. Trolinder during a period of their collaboration, but then failed to include her as a co-inventor. Dr. Trolinder was then a graduate student at Texas Tech University. As a co-inventor of the patents, Dr. Trolinder has the right under patent law to license the patents. She and Texas Tech have assigned their patent rights to Aventis.

March 31
Ag Committee wraps up Southern tour in Raleigh
Farmers from North and South Carolina, Virginia and Tennessee told members of the House
Committee on Agriculture in Raleigh, N.C., today they need relief from the increased cost of regulations, unfair foreign trade practices and low prices if they are to survive and prosper.

The Raleigh meeting was the fourth in a series of 10 field hearings designed to give farmers a direct voice in the formulation of federal farm policies. Producers at the meeting grow cotton, tobacco, peanuts, soybeans and wheat.

"The producers we've heard from at these field hearings have consistently confirmed what we have known all along -- that we have a lot of work to do to strengthen the farm safety net," said Chairman Larry Combest, a Texas Republican. "While every grower and every commodity has special circumstances, it's clear that family farms across America are struggling just to stay afloat."

"Our committee hearings continue to reveal that there are large holes in the farm safety net," said committee ranking member Charlie Stenholm,  also from Texas, but a Democrat. "Producers in Raleigh impressed us with their particular needs, and the special problems facing tobacco farmers will be a challenge to address."

The remaining meetings are in West Chester, Ohio, on Saturday, April 1; Kutztown, Pa., on Monday, April 3; Sacramento, Ca., on Monday, May 1; Sioux Falls, S.D., on Tuesday, May 2; Boise, Idaho, on Friday, May 12; and Peoria, Ill., on Saturday, May 13.

The committee carries audio of the regional hearings on a page of its Web site. Informal comments are accepted by email at farmpolicy@mail.house.gov but written testimony and requests to testify cannot be accepted by e-mail.

Stockholders give go-ahead for Monsanto merger
Stockholders of Monsanto Co. and Pharmacia & Upjohn on Thursday approved the planned merger of the two companies. The merger, expected to be complete within the next week, will make Pharmacia a subsidiary of Monsanto, although the corporation will be called Pharmacia and will be headquartered in Peapack, N.J. The agricultural business will retain the Monsanto name and St. Louis headquarters.

Both companies are large pharmaceuticals manufacturers. They expect combined sales of $11 billion in drugs and $5 billion in ag products.

In an interview with Reuters, Pharmacia CEO Fred Hassan was noncommittal about the future of the ag side, saying increases in R&D spending would depend on sales growth of existing products. In an earlier press release, Hassan projected an annual pharmaceuticals R&D budget of more than $2 billion.

BASF to buy Cyanamid ag products
BASF and American Home Products announced Tuesday that BASF will buy the AHP's Cyanamid crop protection business for about $3.8 billion plus the assumption of "certain debt." The purchase is scheduled to be completed by July 1, given necessary government approval. In a separate transaction, AHP is selling certain undisclosed other products to an unrelated party for $28 million.

With this acquisition, BASF will more than double its annual crop protection sales, which were about $1.9 billion in 1999. The addition of the Cyanamid line also will give BASF a development pipeline containing 15 active ingredients expected to be launched by 2006.

"We plan to take a leading role in the new agromarket through this acquisition and through our planned R&D investments of about $700 million in plant biotechnology during the next 10 years," said Eggert Voscherau, the member of BASF's Board of Executive Directors who is responsible for the company's Health & Nutrition segment.

AHP, one of the world's largest research-based pharmaceutical and health care products companies, acquired the Cyanamid line some six years ago. Current Cyanamid products include insecticides Counter and Thimet, fungicide Acrobat, and a list of herbicides including Assert, Avenge, Backdraft, Cadre, Extreme, Lightning, Prowl, Pursuit, Raptor, Scepter, Squadron and Steel. American Cyanamid earlier this month withdrew its application for registration for the insecticide Pirate.

"Since the 1994 acquisition of Cyanamid, the Agricultural Products division has made significant contributions to AHP,'' said John R. Stafford, chairman, president and chief executive officer. "However,'' he added, "the sale of Cyanamid reflects AHP's strategy to focus on our pharmaceutical, biopharmaceutical, consumer health care and animal health products businesses."

BASF's product range includes chemicals, plastics, dyestuffs, dispersions, automobile and industrial coatings, crop protection products, pharmaceuticals, fine chemicals, crude oil and natural gas. The company had sales in 1999 of about $29.5 billion and employs 105,000 worldwide.

 

JAN-MAR 1998	APR-JUN 1998	JUL-SEP 1998	OCT-DEC 1998
JAN-MAR 1999	APR-JUN 1999	JUL-SEP 1999	OCT-DEC 1999
JAN-MAR 2000	APR-JUN 2000	JUL-SEP 2000	OCT-DEC 2000
JAN-MAR 2001	APR-JUN 2001	JUL-SEP 2001	OCT-DEC 2001
JAN-MAR 2002

Home

|

Today's news

|

Archives

|

About LoC

|

Links

|

Contact us

Copyright © 1997-2002 Land of Cotton
Can't find it? Search The Web with AltaVista

Find this:  any language  English Chinese Czech Danish Dutch Estonian Finnish French German Greek Hebrew Hungarian Icelandic Italian Japanese Korean Latvian Lithuanian Norwegian Polish Portuguese Romanian Russian Spanish Swedish