Cotton Losses Due to Drought Will Literally Hit Your Pockets

We are receiving some much needed rain this week, but the dramatic impact of this drought is beginning to materialize and the outlook is grim.

According to Plains Cotton Growers, Inc. this may be the first year there is a 100-percent abandonment of the 2 million-acre dryland cotton crop in their service area around Lubbock. That area, by the way, accounts for about 80 percent of the state’s cotton production.

When you consider Texas produced 43 percent of the nation’s cotton crop last year, or 7.9 million bales of the U.S. total of 18.1 million bales, the potential loss spells big trouble.

A huge reduction in cotton is not only bad news for the $1.4 billion cotton industry and its 38,100 employees, but also for parents buying blue jeans and socks for their kids. Less cotton will likely mean higher prices for the cotton-based products you and I buy off the shelves or the rack.

Agriculture is a tremendously fulfilling enterprise. If you have ever grown even a single plant in your home, you understand the amazing and delicate process of nurturing a single seed. Magnify that scenario by the massive amounts of food we eat, clothes we wear and all the other agricultural products that enrich our daily lives, and you get an idea of the devastating impact of entire crop loss.

Let’s keep our cotton farmers, and the communities that depend on them, in our prayers during these severe drought conditions and extremely challenging times.

More Cotton to Cuba

In March, a shipment of Texas cotton valued at more than $550,000 was exported to Cuba. This contract, negotiated by TriDimension Strategies in Dallas, is great news for our cotton farmers and a hopeful indicator of possibility.

I don’t agree with Cuba’s political philosophy and realize there are very real points of contention between our countries. I do believe that cracking the door to communication can lead to new degrees of understanding. If quality Texas cotton is what opens the door to dialogue, then all the better.

In 2008, I led a delegation of Texas agriculture leaders on the first official state sponsored trade mission from Texas to Cuba in more than 45 years. This shipment of Texas cotton illustrates how we can participate in the Cuban market, creating opportunities for Texas farmers and exporting the principles of our republic, and help secure more Texas jobs.

King Cotton Shares the Wealth

Cotton has always been king in Texas, but the industry reached a crowning new achievement in January as growers earned record-high prices for their crops.

Thanks to a combination of hard work, favorable weather and growing global demand, U.S. cotton growers have enjoyed record-high prices since November, and in late-January prices, the March 2011 futures contract closed at nearly $1.70 per pound! This milestone marks a 140-year high and comes as welcome news to Texas farmers and the Lone Star economy.

Fortunately, consumers also have reason to cheer. Despite a strengthened demand for quality Texas cotton, retail prices on jeans, T-shirts and other goods are projected to remain steady. Why? The reality is cotton farmers only receive a small slice of the value of the finished product, which ultimately is priced to cover the costs of such other variables as advertising and shipping. It takes about one-and-a-half pounds of cotton to make a pair of jeans and at the current prices paid to farmers, there is only about $1.30 worth of cotton in that pair of jeans.

This double dose of good news for cotton and consumers is a win-win for all of Texas.

Spoken Like a True Texan

Guest Blogger: Drew DeBerry, Texas Deputy Agriculture Commissioner

Cotton farmers in West Texas are proud to call Roger Haldenby a friend. And it's no mystery as to why based on this article he released yesterday. Although Roger's accent is anything but West Texan, the Englishman's heart is clearly at home in the cotton fields of the South Plains. Rather than adding my own words to Roger's eloquently presented perspective, please take time to read it yourself. I hope it inspires some Texas pride under your cotton shirt like it did in me. GO TEXAN!

Forecast Looks Bright for Texas Cotton

It’s good to be able to travel and say, “If Texas were its own country, we would be the fifth-largest, cotton-producing nation in the world!” So, you can just imagine in a state where cotton is king, hearing some good news forecasts for cotton prices over the next 10 years is extremely welcome.

According to the Lubbock Avalanche-Journal, agricultural economists are indicating an increased world demand for cotton and overall lower production that will likely drive up prices, adding dollars to our economy. Considering agriculture comprises about 9.5 percent of our entire state economy, a healthy cotton industry will bring more jobs and investment to Texas - something that will benefit all Texas consumers. At a time when our economy is filled with uncertainty, we need all the positive news we can get.

Is cotton’s kingdom getting bigger?

If Texas were its own country (most Texans think this is a pretty good idea), it would be the sixth largest cotton-producing nation in the world. In fact, 39 percent of the cotton grown in the United States is grown in the Lone Star State. To both rural and urban Texans alike, this means jobs, capital investment and opportunity.

So, finding even more uses for the fluffy fiber and its seed is always good news. I remember feeding cottonseed meal to our cattle during the winter in East Texas, and our cows would fight vigorously to be the first in line. Researchers now say cottonseed is even closer to being used as a human food source. Instead of cattle pushing one another around, there may soon be a few elbows at the table. Click on this link to find out more. And, keep your fork handy.