Washington%20Report%20%20presented%20to%20%20American%20Cotton%20Producers%20Atlanta,%20GA%20July%2024,%202002

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Washington Reportpresented toNational Cotton
CouncilBoard of DirectorsAsheville, NCAugust,
2004
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Presentation Summary

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

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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

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Key Issues/Legislation-2004

• FY05 Appropriations
• FSC/ETI
• Miscellaneous Tariff
• Transportation
• Energy
• Tax Extenders
• Immigration
• Free Trade Agreements
• Haiti
• Lame Duck Appropriations and Trade

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Legislation-pending

• FSC/ETI
• benefit distribution
• tobacco buyout
• Transportation
• Energy
• Tax extenders
• Miscellaneous tariff
• FTAs
• CAFTA and Dominican Republic
• Haiti

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FY05 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

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Trade Legislation/Negotiations

• Legislation approved by 108th 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

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Elections 109th Congress
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Elections

• House 229-205-1 Senate 51-48-1
• 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

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109th 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

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Budget Reconciliation-2006

• Projected deficit 400 bil FY06 and 4 trillion
  over 10 years
• Deficit reduction target and agricultures 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

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Budget ReconciliationDeficit 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

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2004/5 Crop

• Loan entries and redemptions-processing time
• Beneficial interest-LDPs on gin direct sales
• LDPs on modules
• Centralized Certificate Redemptions (CCR)

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