Washington Trade Daily: Farm bill addresses cotton, credit export guarantees, creates undersecretary
January 28, 2014 | 01:17 PM
The farm bill conference report makes changes to the cotton program and the export guarantee program to address the Brazilian cotton case, Washington Trade Daily noted in an analysis published late Monday.
The bill combines Senate and House provisions on a special “stacked income protection plan” for producers of upland cotton in an effort to finally settle the case that Brazil brought against the U.S. cotton program and also extends the authority for the Agriculture Department to continue the $147 million payment that USDA has been making to Brazil while waiting for a new farm bill.
Nonrecourse loan rates to upland cotton producers also continue under a lower rate and a suite of commodity policies made available to cotton producers under the 2002 and 2008 farm laws are repealed, WTD noted.
The bill reauthorizes funding for the Export Credit Guarantee Program through 2018, with a clarification that the Agriculture Secretary has the authority to adjust the program relating to the Brazil case. It also reduces the maximum tenor for loan guarantees to 24 months and allows Agriculture to adjust program fees.
The bill also creates the position of undersecretary of Agriculture for trade and foreign agricultural affairs and directs the Agriculture secretary to propose a plan for reorganization of the trade functions of the departments. Under present law there is one Agriculture undersecretary for farm and foreign agricultural services.
The bill combines Senate and House provisions on a special “stacked income protection plan” for producers of upland cotton in an effort to finally settle the case that Brazil brought against the U.S. cotton program and also extends the authority for the Agriculture Department to continue the $147 million payment that USDA has been making to Brazil while waiting for a new farm bill.
Nonrecourse loan rates to upland cotton producers also continue under a lower rate and a suite of commodity policies made available to cotton producers under the 2002 and 2008 farm laws are repealed, WTD noted.
The bill reauthorizes funding for the Export Credit Guarantee Program through 2018, with a clarification that the Agriculture Secretary has the authority to adjust the program relating to the Brazil case. It also reduces the maximum tenor for loan guarantees to 24 months and allows Agriculture to adjust program fees.
The bill also creates the position of undersecretary of Agriculture for trade and foreign agricultural affairs and directs the Agriculture secretary to propose a plan for reorganization of the trade functions of the departments. Under present law there is one Agriculture undersecretary for farm and foreign agricultural services.
