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Key Issues

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

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Key Issues

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  1. Washington Reportpresented toNational Cotton CouncilBoard of DirectorsMemphis, TNSeptember 12, 2002

  2. Key Issues Farm Bill Defense Farm Bill Implementation Disaster Assistance Appropriations Trade

  3. Key Issues-Continued Crop Insurance Environment Taxes Flammability Homeland Security Agency

  4. Farm 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

  5. 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

  6. 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

  7. 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)

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

  9. 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

  10. Disaster 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

  11. Appropriations • FY02 Supplemental • FY03 Agriculture • FY03 Interior • FY03 VA-HUD • Continuing Resolution • Omnibus Appropriations Bill

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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)

  18. 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

  19. 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 Elections

  20. 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

  21. China • TRQs • allocation • administration • Standards and testing

  22. 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

  23. 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

  24. China • 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

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