Organic Cotton--Benefits Other Than Yield?

 Here's an assessment of the impact of growing organic cotton in India. It seems the  result is not higher yields (no surprise) but the benefits which are less tangible. I note the support from a number of NGO's and the psychic rewards of being involved in something of a crusade, or at least a good cause, rather than just grubbing for the added dollar.  

A cynic would believe that those who chase the monetary rewards will, in the long run, win out. 

 

The Complexities of Cotton

 Virginia Postrel has a substack article, touching on changes in cotton production from 1920s (her grandfather was in the trade) to now. 

I commented on a couple aspects. 

ELS Cotton in Egypt

New Yorker had an article on ELS cotton grown in Egytpt.  The industry is in decline. 

I'd question some things in the article: the statement that the Egyptian cotton was superior to the American Pima, that it was discovered by a French scientist before the Civil War, that "Egypt's production  quickly eclipsed that of the U.S., and, by the end of the nineteenth century..." and the description of the history of cotton, etc.  All of them may be true, at least given their appearance in a magazine article where you can't expect scientific exactitude.  I wonder how the New Yorker checked the facts.

First American Cotton Mill and Eli Whitney

On Dec. 20 there was mention of the anniversary of the first American cotton mill. What struck me at the time, though I'm just getting around to commenting, is the date: 1790. 

Why is the date significant?  Well, we all know there was no cotton industry before Eli Whitney invented the cotton gin, which was in 1794. So what was Samuel Slater's factory spinning in 1790 and after, if no cotton was available?

The answer, of course, was cotton, and the point I'm trying to make is our mental picture of history is wrong.  In fact cotton was grown and de-seeded for centuries, in all continents except Antarctica.  The thing about cotton, as you can see if your aspirin bottle has a wad of cotton to suppress rattles, is it's light so a little goes a long way.  Try weighing the cotton clothes you're wearing now--they're light.  So if the elementary ginning tools in use before Whitney's invention could process a pound of cotton a day that would be sufficient for a lot of yarn and then weaving a fair amount of cloth.

Cottonseed Makes It In

Cottonseed will be a program crop in the farm bill according to Keith Good.

I've lost any expertise I once had in this area, but this might be a way for the cotton people to get more federal money, without raising what we used to call the target price for cotton.  They might be trying to get around Brazil and the WTO, but that's only speculation.

Cottonseed Again

Illinois extension has a piece on the cottonseed provisions of the 2018 Senate Ag appropriations bill. To my jaundiced eye, it looks as if the cotton growers are trying to get a goodie added through the backdoor--using appropriations to change policy.  If they do, we'll see what Brazil and the WTO think of it.  If they do, the professors will have another example to add to their picture of how government really works.

Cotton Wants

Am I getting old and forgetful--I don't remember blogging about this program.  Remember the pressure on Vilsack to do something for cotton, but not this.  Anyway, from DTN:

"The cotton industry and contingent of 135 members of Congress are calling on the Trump administration to continue operating the $300 million Cotton Ginning Cost Share Program created by the Obama administration as a way to help cotton producers."

More on Cotton

IL extension has a comparison of cotton support versus other commodities

Cottonseed Again

Illinois extension has a post on the cottonseed issue.  As it says, in greater detail than I have the brain cells to waste on, it's complicated, involving both the base acreage/"generic base" issue and WTO.  From the conclusion:

Much depends on the final details of any Congressional response but cotton farmers are currently receiving significant assistance from the 2014 Farm Bill and adding cottonseed may provide a windfall to them, including one recoupled to cotton planting decisions. Congress, if considering adding cottonseed, may also have to consider further revisions to the 2014 Farm Bill such as precluding payments on generic base acres for any covered commodities planted on them.

Farm Bill--Cotton Issues

Cotton producers are pushing for changes in the program when the 2018 farm bill is written.  Oilseed coverage for cottonseed production, which was denied by Sec. Vilsack as being beyond his authority, is an issue, as is converting "generic" base acreages to cotton acreages to provide a basis for a new program.All this according to Keith Good's post here.

Farm Bill Stirrings

The first Congressional work on the next farm bill is starting.  This piece focuses on what the cotton growers want.  Here's the Economic Research Service's backgrounder (seems to me when I started work there were maybe 100,000 cotton farms, in 2007 it was down to 18,000, no doubt fewer now.

A quote: "Trade is particularly important for cotton. About 30 percent of the world's consumption of cotton fiber crosses international borders before processing, a larger share than for wheat, corn, soybeans, or rice. Through trade in yarn, fabric, and clothing, much of the world's cotton again crosses international borders at least once more before reaching the final consumer."

Trade Is NOT Simple: Vietnam Spinning for China

Lyman Stone tweets, but has a day job, which includes this piece on cotton exports to Vietnam, which are part of a complex web of relationships among cotton-producing country, yarn spinning countries, yarn consuming countries (i.e. China) and multilateral trade agreements. 

Some curious facts:

• spinning yarn and weaving cloth don't necessarily occur in the same country--I wonder why--the one is simpler than the other and easier to outsource? 
• US cotton shipped in bales across the wide Pacific is competitive with cotton grown in India. Our growers are currently more efficient than Indian, so able to handle transport costs?
• China used to have reserves of cotton but are now reducing or eliminating them. Wonder why--moving to less government intervention, if so, why?

Stone's summary paragraph: "If duty-free access for yarn is driving increased spinning in Vietnam, then the China-ASEAN Free Trade Agreement could be pushing U.S. cotton exports higher.  Yarn spinning being shifted from producer-countries like India, Pakistan, Uzbekistan, and to some extent China, into duty-preferred importer countries like Vietnam bodes well for U.S. exports.  Because the China-ASEAN Free Trade Agreement does not require that raw cotton inputs be sourced within the area, U.S. exporters are able to derive an indirect benefit from China’s duty-free ASEAN access."

No Cottonseed Loans But Another Cotton Program

AEI has a post criticizing the new cotton program, taking a cynical view of the motivations, as one might expect of them. It reminds me I never posted on the program.

What's the new cotton program?  It's a "one-time" cost-share program to assist in ginning cotton.

You ask: is ginning cotton a new requirement?  I thought cotton had been ginned for a few years.  I even read about Eli Whitney inventing the saw gin in 1797 and how that impacted history. If cotton ginning isn't new, why do cotton producers suddenly need cost-share assistance?

I suggest googling "cottonseed" in this blog--you'll find 3 posts back at the beginning of the year on the issue of adding cottonseed as an oilseed.  The issue then was whether Secretary Vilsack had the authority to do as the cotton producers asked.  He was saying no back in February.  I cynically said lawyers would find a way.  Apparently they didn't find a way to add it as an oilseed; perhaps the years and decades of history was too much. 

But they did find a way to authorize a $300 million program, which was announced mid June.  How?  Damned if I know.  I did a quick check for a Federal Register document, and found a notice, not a rulemaking.  The notice says: "The Commodity Credit Corporation Charter Act (15 U.S.C. 714c(e)) includes authority for CCC to use its general powers to increase the domestic consumption of agricultural commodities (other than tobacco) by expanding or aiding in the expansion of domestic markets or by developing or aiding in the development of new and additional markets, marketing facilities, and uses for such commodities."  It goes on to argue the need for the program.

So, I rest my case, my cynical case: put enough pressure on the lawyers and they'll come up with something which sounds halfway reasonable.  As a retired bureaucrat, I can only applaud their chutzpah.  It's not PIK, but it's on that scale.  (Have I written about PIK--someday I must.)

Now if there were anyone really opposed to the program, they might find a favorable Texas district judge to slap an injunction on USDA for not following the Administrative Procedure Act, like the conservatives did on Obama's immigration (actually Jeh Johnson's) measure.  But there's no one opposed to doling out money, not like there is on immigration.  So no court case, only the Brazilians, whose victory over our cotton subsidies is probably ultimately responsible for the new program, might have problems with it.  And since it's one-time, they may not challenge it under WTO.

Given the decimation of Southern Democrats, I'm wondering the political motive for this action.  In the past you could account for favoring cotton because there were people like Sen. Lincoln, or Pryor still in Congress, but now not.  Was there a backroom deal, maybe to get Sen. Cotton to lay off on an appointee?  (I'm sure Sen. Cotton will be happy about this program. :-)

Cottonseed Yet Again

I've blogged on the issue of making cottonseed an oilseed before.  Here's a good backgrounder by Keith Good on the issue. 

Short summary: bowing to Brazil's victory on cotton programs at the WTO, Congress took cotton out of the other farm programs in the 2014 farm bill.  Didn't touch authority on oilseed designation.

Cottonseed Revisited

Chris Clayton reports on the cottonseed/oilseed question--Vilsack says OGC says he doesn't have authority to decide that cottonseed is an oilseed eligible for farm programs.  Chris quotes some of the law which he reads as supporting the cotton position.  In my experience, whenever politicians exert enough pressure, the lawyers find a way to justify what they want done; that's what they learn in law school.

Cottonseed Equals Oilseed?

Illinois extension has a discussion on the possibility of cottonseed being added to the list of oilseeds covered by farm programs.  Up to now, even though cottonseed is more than 50 percent by weight of the product of the cotton plant, the fiber has been considered the crop, with cottonseed a useful by-product, like milk is the product of the dairy cow, with the meat being a by-product.  Apparently there's a push on to implement a provision of the farm bill to add it as an oilseed, but there's budgetary implications (maybe one billion dollars, almost real money) and trade-offs in terms of program provisions and encouraging/discouraging crops. 

Cotton Humor from Chris Clayton

You have to know the background but this is from Chris Clayton's (tongue in cheek) 2016 Policy Outlook:

Cotton planting increases from 8.5 million acres to 16 million acres thanks to commodity certificates and USDA designating cottonseed as an oilseed eligible for PLC payments. The U.S. also files its annual report assuring the World Trade Organization that none of its commodity programs are market-distorting.

Cotton Farming Today

NPR has a five chapter feature tracing the history of a cotton t-shirt.  The first chapter is focused on a Mississippi cotton farm.  Surprisingly, though he bought 5 $600,000 cotton pickers last year, his total USDA subsidy on the EWG database is $467,000 for 2000-2012.

Round Bales (of Cotton, Not Hay)

The cotton growers have discovered the virtues of round bales, according to this.  The piece mentions the changes ginners have to make, but nothing about the rest of the trade.  Back in the days of "King Cotton", we used to export bales on steamships.  I wonder whether we still export raw cotton today, and if so in what form?