Washington Report

presented to

National Cotton CouncilBoard of Directors

Memphis, TNSeptember 12, 2002

Washington Report

presented to

National Cotton CouncilBoard of Directors

Memphis, TNSeptember 12, 2002

Key IssuesKey Issues

Farm Bill Defense

Farm Bill Implementation

Disaster Assistance

Appropriations

Trade

Farm Bill Defense

Farm Bill Implementation

Disaster Assistance

Appropriations

Trade

Key Issues-ContinuedKey Issues-Continued

Crop Insurance

Environment

Taxes

Flammability

Homeland Security Agency

Crop Insurance

Environment

Taxes

Flammability

Homeland Security Agency

Farm Bill DefenseFarm Bill Defense• Amendments

FY03 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

• Amendments FY03 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

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

• 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 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 TX=30/20 FL=23/3 MO=9/1 VA=11/3

• 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 TX=30/20 FL=23/3 MO=9/1 VA=11/3

Farm Bill Defense- Senate Farm Bill Defense- Senate • G-D Amendment (66-31-3)

• Cottonbelt (7-34:pre-CA conversions) KS--Brownback, Roberts NM--Domenici? OK--Nickles TN--Thompson? TX--Gramm VA--Warner

• Future ?’s Graham (FL), Nelson (FL),

Bingaman (NM), Allen (VA)

• G-D Amendment (66-31-3)

• Cottonbelt (7-34:pre-CA conversions) KS--Brownback, Roberts NM--Domenici? OK--Nickles TN--Thompson? TX--Gramm VA--Warner

• Future ?’s Graham (FL), Nelson (FL),

Bingaman (NM), Allen (VA)

Farm Bill ImplementationFarm 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 reps attendance at ACP meeting NCC leaders meet NRCS Sept. 19

• 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 reps attendance at ACP meeting NCC leaders meet NRCS Sept. 19

Farm Bill ImplementationFarm 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

• Base and yield update• Power of Attorney• Timing of payments• ‘03 adjusted gross income test• CCP advance• FSA workload

farm bill disaster assistance

Disaster AssistanceDisaster Assistance• Politically driven-SD, MT, MN Senate races

• Senate amend to FY03 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

• Politically driven-SD, MT, MN Senate races

• Senate amend to FY03 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

AppropriationsAppropriations

• FY02 Supplemental

• FY03 Agriculture

• FY03 Interior

• FY03 VA-HUD

• Continuing Resolution

• Omnibus Appropriations Bill

• FY02 Supplemental

• FY03 Agriculture

• FY03 Interior

• FY03 VA-HUD

• Continuing Resolution

• Omnibus Appropriations Bill

TradeTrade

• 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

• 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 InsuranceCrop 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

• 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

EnvironmentEnvironment

• 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

• 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 IssuesTax 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

• 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

FlammabilityFlammability

• 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

• 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 AgencyHomeland 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)

• Dodson testimony • APHIS

Border Functions Shift to HSA Plum Island Shifted to HSA

• Other APHIS functions remain at USDA

• Chemical facilities security (S.1602)

CONGRESSIONALSCHEDULE

CONGRESSIONALSCHEDULE

• 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 FY03 begins• ???? adjourn/recess• Nov. 5 general elections day• ???? Lame Duck Session begins

• 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 FY03 begins• ???? adjourn/recess• Nov. 5 general elections day• ???? Lame Duck Session begins

ElectionsElections• House

223 Republicans 209 Democrats 1 Independent 2 Vacancies

• new districts NC, GA, TX, AZ, CA

• House 223 Republicans 209 Democrats 1 Independent 2 Vacancies

• new districts NC, GA, TX, AZ, CA

• Senate 49 Republicans 50 Democrats 1 Independent

• cottonbelt races NC, SC, GA, TN,

AR, TX, MO, LA

• “agriculture” SD, MT, IA, MN

• Senate 49 Republicans 50 Democrats 1 Independent

• cottonbelt races NC, SC, GA, TN,

AR, TX, MO, LA

• “agriculture” SD, MT, IA, MN

Golden Rule #1Golden 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

“You can get more with a smile, a kind word and a gun, than with a smile and a kind word.”

— Al Capone

ChinaChina

• TRQs allocation administration

• Standards and testing

• TRQs allocation administration

• Standards and testing

ChinaChina• 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

• 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

ChinaChina• 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

• 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

ChinaChina• Sep. 5 Hood-ACSA-AMCOT-

NCC-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

• Sep. 5 Hood-ACSA-AMCOT- NCC-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