USDA Announces No Marketing Quota for the 2013 Upland Cotton CropFri, 03 Aug 2012 14:39:19 CDT
The U.S. Department of Agriculture (USDA) announced that no marketing quota will be in effect for the 2013 upland cotton crop.
The Food, Conservation, and Energy Act of 2008 authorizes a commodity program for only the 2008 through 2012 crops of upland cotton. Unless new farm legislation is enacted (or the current farm bill extended), any actions taken pertaining to the 2013 upland cotton crop must be done in accordance with "permanent law" provisions of the Agricultural Adjustment Act of 1938, as amended (the 1938 Act), and the Agricultural Act of 1949, as amended, which are suspended through the 2012 crops. These permanent law provisions would authorize the imposition of marketing quotas, acreage allotments and parity price support programs for upland cotton. Since the 2008 Farm Bill only covers through the 2012 crop, the Secretary is required by the 1938 Act to announce whether or not a marketing quota will be in effect for the 2013 upland cotton crop not later than Oct. 15, 2012.
The 1938 Act would require a marketing quota for the 2013 upland cotton crop if the Secretary were to determine for the preceding crop year that the total supply of cotton will exceed the normal supply of such crop. Normal supply is defined as the sum of total domestic and export use plus carryout stocks equal to 30 percent of such use. Based on projected supply and demand, no quota is required.
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