Washington Report presented to National Cotton Council Board of Directors Memphis, TN September 12, 2002
Key Issues Farm Bill Defense Farm Bill Implementation Disaster Assistance Appropriations Trade
Key Issues-Continued Crop Insurance Environment Taxes Flammability Homeland Security Agency
Farm Bill Defense • Amendments > FY 03 Appropriations bills > Disaster assistance off-set • NCC actions > Special Committee-June Board Meeting > Responses to press attacks > Action alerts • Commodity and Farm Organizations > Roundtable Meeting in Washington +Coordination of Communications Efforts +Web-page +Press Conference/joint hill contacts +Letters Signed by 14 and 24 Organizations respectively
Farm Bill Defense Political • Analyze Votes and Basis for Decisions (Also Applies to Communications Strategy) • Initial Focus on Appropriations Cmtes. • Effectively Utilize House Leaders • Establish Communication With Senate Leaders • Establish Communication With Administration • Identify Related Issues Equally Important to Others • Enhance and Utilize CAC Resources
Farm Bill Defense- House • 3 key votes Smith amend. 187 -238 Oct. 01 > Smith motion to instruct 265 -158 April 02 > Motion to recommit conference report 172 -251 May 02 > • Solidly opposed to pay ltd amendments > AL, AR, LA, MS= 22 • Majority opposed to GD amendment > AZ (1), KS (1), MO (3), NC (3), OK (1), TN (2), TX (6) = 59 • Total votes in 17 cottonbelt states=203/117 > CA=52/12 > MO=9/1 TX=30/20 VA=11/3 FL=23/3
Farm Bill Defense- Senate • G-D Amendment (66 -31 -3) • Cottonbelt (7 -34: pre-CA conversions) > KS--Brownback, > NM--Domenici? > OK--Nickles > TN--Thompson? > TX--Gramm > VA--Warner Roberts • Future ? ’s > Graham (FL), Nelson (FL), Bingaman (NM), Allen (VA)
Farm Bill Implementation • Commodity Programs > FSA Briefings > FSA Funding-OMB Letter and Appropriations > Loan Rate Announcement > NCC Letter re Base Up-date > Key FSA notices > FSA training this week • Conservation Programs > NRCS > NCC reps attendance at ACP meeting leaders meet NRCS Sept. 19
Farm Bill Implementation • • • Base and yield update Power of Attorney Timing of payments ‘ 03 adjusted gross income test CCP advance FSA workload > farm bill > disaster assistance
Disaster Assistance • Politically driven-SD, MT, MN Senate races • Senate amend to FY 03 Interior Approps- 9/10 79 -16 (48 Dems and 31 Reps) > $5. 95 bil. “emergency spending” > • Administration letter -9/9 generous farm bill and crop insurance coverage > don’t add to deficit > • Next conference committee > House action > • Compromise lower $’s than Senate > partial off-sets >
Appropriations • FY 02 Supplemental • FY 03 Agriculture • FY 03 Interior • FY 03 VA-HUD • Continuing Resolution • Omnibus Appropriations Bill
Trade • Trade Promotion Authority (TPA) >Textile negotiating objectives >Ag negotiating objectives • Andean Trade Promotion Act • Caribbean and African Trade Act • China TRQ’s and new standards • FTAs • Sound $ Coalition
Crop Insurance • Ross Davidson, new RMA Administrator • Frank Jones, FCIC Board member • House Agriculture subcommittee oversight hearing--September 18 • Issues > improved coverage at better rates > cost of production insurance > prevented planting coverage > double insurance > quality loss adjustment
Environment • FQPA Implementation-partnerships • Endangered Species Act > Crop protection products +EPA and Fish & Wildlife Service • Drift Regulation • TMDL Regulation and Legal Action • Biotech > registrations > international trade
Tax Issues • Extraterritorial Income Exclusion Act of 2000 (Replaced Foreign Sales Corp. ) > WTO ruling (1/14/02) +EU retaliation--$4. 0 bil/yr. > Repeal and Replace with+20 tax provisions to compensate for loss +Boeing, Microsoft, Disney vs. Agriculture • Investor Tax Credits. House/Administration • Small Business Tax cuts - Senate
Flammability • New CPSC Chairman Hal Stratton • Upholstered Furniture > cotton has 50% share of upholstery fabric market • Mattresses > cotton has 42% share of ticking market • Apparel > review products with raised surfaces • Children’s Sleepwear > repeal ‘ 96 rule modification
Homeland Security Agency • Dodson testimony • APHIS > Border Functions Shift to HSA > Plum Island Shifted to HSA • Other APHIS functions remain at USDA • Chemical facilities security (S. 1602)
CONGRESSIONAL SCHEDULE • • • Sept. 3 and 4 -returned from Aug. recess Sept. 6 special joint session NY Sept. 11 no votes Sept. 16 Yom Kippur 11 legislative days to new fiscal year-13 appropriations bills Oct. 1 FY 03 begins ? ? adjourn/recess Nov. 5 general elections day ? ? Lame Duck Session begins
Elections • House > 223 Republicans > 209 Democrats > 1 Independent > 2 Vacancies • Senate > 49 Republicans > 50 Democrats > 1 Independent • cottonbelt races • new districts > NC, GA, TX, AZ, CA > NC, SC, GA, TN, AR, TX, MO, LA • “agriculture” > SD, MT, IA, MN
Golden Rule #1 “You can get more with a smile, a kind word and a gun, than with a smile and a kind word. ” — Al Capone
China • TRQs >allocation >administration • Standards and testing
China • July 9 -10 NCC-ACSA-AMCOT > USDA-Commerce-State-USTR-Hill > other organizations • Aug 14 Dunavant-Smith-Booker > USDA and USTR • Aug. 30 NCC staff > House Ag cmte staff re Geneva • Week of Sep. 2 > USTR Geneva consultations
China • Week of Sep. 16 NCC-ACSA-AMCOT > USTR • Week of Sep. 23 > USTR Ambs. Huntsman and Johnson to China • Sep. 25 > comments on standards and testing due • Oct. > Pres. Jiang Zemin to Crawford Ranch
China • Sep. 5 Hood-ACSA-AMCOTNCC-CI > USDA- AMS and FAS • Sep. 9 NCC-ACSA > USDA Sec. Hawks and AMS Admin. • Sep. 10 NCC-ACSA > USTR • Sep. 25 > standards and testing comments due
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