NCC calls proposed budget reconciliation package "painful but equitable"
10 Oct '05
3 min read
National Cotton Council Chairman Woods Eastland reacted to the proposed budget reconciliation package developed by the U.S. Senate Agriculture Committee, calling it “painful, but equitable. This proposal calls on the U.S. cotton industry to make significant contributions to deficit reduction through cuts aimed at all commodities generally and cuts aimed at cotton specifically. Cotton is clearly doing its part to contribute to deficit reduction in this package. These proposed cuts will be painful to the U.S. cotton industry.”
Eastland also expressed disappointment at the decision to delay markup in the Senate Agriculture committee, adding, “The delay only adds uncertainty to the process. The Senate Agriculture Committee has a difficult task before it. Cutting farm programs is never easy. The Committee has managed to craft a balanced package of cuts that is relatively equitable across all commodities and all programs overseen by the Committee.”
The Committee's budget proposal would reduce all payments and marketing loan gains that producers receive for all program commodities, including cotton, by 2.5 percent for the 2006 through 2010 crops. The proposal also would bring an early termination to the upland cotton Step 2 provision, ending the program at the conclusion of the current marketing year.
“Even though the U.S. cotton industry remains convinced that the WTO dispute panel's findings were flawed, the decision to terminate the Step 2 program prior to the conclusion of the current farm bill is an acknowledgement of U.S international obligations,” Eastland noted.
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