Pucheu stressed that it is critically important that farm policy is balanced between commodities because a significant number of California cotton producers also produce specialty crops. “Even slight acreage shifts from row crops to specialty crops will cause market disruption,” he said. The state's cotton producers do not oppose programs that benefit specialty crops but adequate resources are needed to ensure that there are no significant shifts in funding between program and specialty crops.
Pucheu pointed out that if the Doha round negotiations do not progress to the point that the impact on future U.S. farm policy is clear, California cotton producers would support continuation of the current farm bill for at least one additional crop year.
“The US cotton industry has supported the Doha round negotiations, but we can not support an agreement that requires cotton to accept deeper and quicker reductions in domestic support; that does not provide meaningful increases in market access or that allows Brazil, China, Pakistan and India to declare themselves less developed for the purpose of evading compliance,” he said.
Pucheu, who also expressed to the Committee the need for science-based regulations and an effective immigration policy, said conservation programs continue to be an important component of farm policy but are not a substitute for the safety net provided by commodity programs.
He also testified that because California exportsvirtually 100 percent of its cotton production, producers strongly support continuation of the successful public-private partnership fostered by the Market Access Program and urge continued funding for the Foreign Market Development program as well as a WTO-compliant export credit guarantee program.
Pucheu added that research and crop insurance also are important to U.S. cotton's future but noted that “we are disappointed that the Risk Management Agency has been unsuccessful in responding to our need for affordable, higher levels of crop insurance coverage. We need to insure levels of 90 or even 95 percent of our yields in order to have effective risk management. I hope RMA will re-evaluate the products available to us.”
“An effective farm program is a necessity for young farmers entering agriculture and not a deterrent,” Tracy said. “USDA's current program that provides loans for beginning farmers and ranchers should also be used to the maximum extent possible to provide financing opportunities.”
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