Washington Report presented to National Cotton Council Board of Directors Asheville, NC August, 2004.

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Presentation transcript:

Washington Report presented to National Cotton Council Board of Directors Asheville, NC August, 2004

Presentation Summary Congressional schedule Issues and legislation-108 th Congress 2004 Elections Issues and legislation-109 th Congress Congressional schedule Issues and legislation-108 th Congress 2004 Elections Issues and legislation-109 th Congress

Congressional Schedule September 7: Congress returns September 15-16: Rosh Hashanah September 24: Yom Kippur October 1: Target adjournment date November 2: Election day ????: Lame Duck Session September 7: Congress returns September 15-16: Rosh Hashanah September 24: Yom Kippur October 1: Target adjournment date November 2: Election day ????: Lame Duck Session

Key Issues/Legislation-2004 FY’05 Appropriations FSC/ETI Miscellaneous Tariff Transportation Energy Tax Extenders Immigration Free Trade Agreements Haiti Lame Duck: Appropriations and Trade FY’05 Appropriations FSC/ETI Miscellaneous Tariff Transportation Energy Tax Extenders Immigration Free Trade Agreements Haiti Lame Duck: Appropriations and Trade

Legislation-pending FSC/ETI > benefit distribution > tobacco buyout Transportation Energy Tax extenders Miscellaneous tariff FTA’s > CAFTA and Dominican Republic Haiti FSC/ETI > benefit distribution > tobacco buyout Transportation Energy Tax extenders Miscellaneous tariff FTA’s > CAFTA and Dominican Republic Haiti

FY’05 Appropriations Congress must pass 13 appropriations measures or a Continuing Resolution Agriculture appropriations > Funding allocation below ’04 levels > Cut mandatory conservation programs by $450 million to pay for discretionary programs > No farm bill amendments in House > Senate to begin to consider Sep. 8 > Cotton funding priorities + BWE and PBW + Earmarked research projects Oppose all damaging amendments Congress must pass 13 appropriations measures or a Continuing Resolution Agriculture appropriations > Funding allocation below ’04 levels > Cut mandatory conservation programs by $450 million to pay for discretionary programs > No farm bill amendments in House > Senate to begin to consider Sep. 8 > Cotton funding priorities + BWE and PBW + Earmarked research projects Oppose all damaging amendments

Trade Legislation/Negotiations Legislation approved by 108 th Congress: > AGOA extension > Australian FTA > Moroccan FTA Legislation pending: > CAFTA and Dominican Republic Negotiations final, awaiting signature: > Bahrain Negotiations on-going: > Andean, FTAA, SACU, Panama, Thailand Legislation approved by 108 th Congress: > AGOA extension > Australian FTA > Moroccan FTA Legislation pending: > CAFTA and Dominican Republic Negotiations final, awaiting signature: > Bahrain Negotiations on-going: > Andean, FTAA, SACU, Panama, Thailand

Elections & 109 th Congress

Elections House: Senate: Senate vacancies: NC, SC, GA, FL, LA, OK House: Burns, Boyd, Pearce, Renzi Texas: incumbent vs incumbent Vacancies: NC, OK, LA (3), CA (2), GA (2) Agriculture: Roberts/Chambliss Harkin Approps: Cochran Byrd Budget: Gregg Conrad Finance: Grassley Baucus House: Senate: Senate vacancies: NC, SC, GA, FL, LA, OK House: Burns, Boyd, Pearce, Renzi Texas: incumbent vs incumbent Vacancies: NC, OK, LA (3), CA (2), GA (2) Agriculture: Roberts/Chambliss Harkin Approps: Cochran Byrd Budget: Gregg Conrad Finance: Grassley Baucus

109 th Congress & Cotton Issues > Brazil case-final ruling > Budget reconciliation > WTO on-going negotiations > Reconfirm US membership in WTO > Extend Trade Promotion Authority 2 years (June 05) > Begin new farm bill hearings > Brazil case-final ruling > Budget reconciliation > WTO on-going negotiations > Reconfirm US membership in WTO > Extend Trade Promotion Authority 2 years (June 05) > Begin new farm bill hearings

Budget Reconciliation-2006 Projected deficit: $400 bil FY06 and $4 trillion over 10 years Deficit reduction target and agriculture’s share vs defense, veterans and tax cuts Perception of 2002 farm bill-written during time of budget surplus > Commodities 65%; conservation 23%; nutrition 9%; other 3% Influence of adverse ruling in Brazil case; anticipation of results of on-going WTO negotiations Projected deficit: $400 bil FY06 and $4 trillion over 10 years Deficit reduction target and agriculture’s share vs defense, veterans and tax cuts Perception of 2002 farm bill-written during time of budget surplus > Commodities 65%; conservation 23%; nutrition 9%; other 3% Influence of adverse ruling in Brazil case; anticipation of results of on-going WTO negotiations

Budget Reconciliation Deficit Reduction-Brazil-WTO Cotton ‘targets” > Step 2 > Payment limitations > Certificates GSM export credit Specialty crops > $5 billion in new mandatory programs > Eliminate FAV planting restriction Cotton ‘targets” > Step 2 > Payment limitations > Certificates GSM export credit Specialty crops > $5 billion in new mandatory programs > Eliminate FAV planting restriction

2004/5 Crop Loan entries and redemptions- processing time Beneficial interest-LDP’s on “gin direct” sales LDP’s on modules Centralized Certificate Redemptions (CCR) Loan entries and redemptions- processing time Beneficial interest-LDP’s on “gin direct” sales LDP’s on modules Centralized Certificate Redemptions (CCR)