Heavy Insect pressure continues in area cotton and to a lesser extent in grain sorghum. Grasshoppers and cotton fleahoppers remain the insect pests of concern. False chinch bugs can be found in some sorghum field. The Concho Valley continues to wait patiently on much needed rainfall. Cotton is holding up well under these hot dry conditions but the weather is taking its toll on sorghum fields.

Scouts are on a regular schedule now and reports are being left at Area gins. Stop by your gin and look at the reports in your area. You can also call 915-365-2642 and get a daily insect update.

Irrigated cotton looks great and is progressing right on schedule. Most fields have required an insecticide application for fleahoppers and in some situations thrips as well. Cotton ranges in growth from the cotyledon stage to 1/3 grown square stage. There is a wide variation in growth stages this year and this will have an impact on insect scouting and management decisions as the season progresses. Early spring rains, lots of early weed hosts, coupled with hot dry conditions throughout June have caused heavy fleahopper infestations in cotton. Cotton is the only host plant green and fleahoppers are taking advantage of it. Expect problems to continue for the next several weeks.

Fleahopper numbers ranged from 9 to 68 fleahoppers per 100 terminals this week and square rates ranged from 53 to 82 percent. Average square rateswere somewhere around 65 percent. It should be 90 percent the 1st week, 85 percent the 2nd week, and remain above 75 percent the 3rd week of squaring under optimum conditions.

Some dryland cotton fields have reached matchhead square and fleahopper numbers are high and square rates are well below 70%. A two-inch rain would certainly help make a decision on whether to load the cotton plant or wait. If you have sufficient irrigation water to set and maintain a good fruit load, then it's important to save these early squares. If you don't have sufficient moisture, then it's questionable on protecting the early fruit that will shed later due to moisture stresses or other environmental. Pray for Rain.

Insecticides labeled for fleahopper control include Orthene, Address, Bidrin Dimethoate, Provado, Stewart, Lorsban, and several others. Check TAEX publication E-6A for recommended rates or give me a call.

There is a Conservation Tillage Tour scheduled and sponsored by the Southern Rolling Plains Cotton Growers Assoc. on Monday, July 9, 2001. Dr Billy Warrick and Mr. Charles Stichler will be present to discuss the various conservation programs and answer any questions you may have on the practices.

1. Begin the tour at 8:30 a.m. at the Richard Pelzel Farm (South of Hwy. 67 between Miles and Rowena). Depart for Fred Wilde Farm (Bethel) at 9:00 a.m.

2. Arrive at Fred Wilde farm by 9:30 a.m.
Depart for Ken & Billy Halfmann farm (South of Ballinger airport).

3. Arrive at Halfmann farm by 10:30 a.m.
Depart for Dennis Minzenmayer farm (Hatchel) at 11:00 a.m.

4. Arrive at Minzenmayer farm at
11:30 a.m. Final stop for tour. Conclude the program by noon.

Equipment Demonstration:
1. Have hooded sprayer available with water in tank to demonstrate.
2. Have planter on the tractor to demonstrate, if available, planting in residue.

A map is attached for your convenience.

By Dr. Carl G. Anderson
Prof. and Ext. Economics-
Cotton Marketing

The increased interest by more countries where cotton and textiles are produced in globalization and "freer trade" stems mainly from the economics of competition.

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As a result, the U.S. cotton industry is being challenged by imported textiles and substantial foreign cotton and chemical fiber production.

Consequently, U.S. cotton producers, the marketing system, and textile manufacturers are facing a major restructuring development to a much small and more efficient industry. The downsizing means that less acreageis needed to produce cotton. The remaining farms will become mega-sized, and the textile industry will likely continue to consolidate into fewer, larger units that develop alignments with producers.

A greater dependence on sales overseas to maintain a sizable acreage means more cotton price instability. Exports tend to increase when foreign stocks are low and prices move higher. Likewise, when prices decrease, U.S. exports also decline and larger carryovers result, driving the price even lower. With the U.S. mostly a residual supplier, its percent of world exports tend to follow movements in the "A" Index. The industry challenge is to balance supply and demand at a reasonable price.

Acreage Set-Aside Shows Little Impact on Exports
History show that while exports are important to this country, short-term and long-term acreage set-aside provisions in government programs have had limited changes in the U.S. share of the world export market. The percent of U.S. cotton exports of total world exports for the past 25 years has changed little, despite farm programs with or without supply management provisions. The fear that supply management programs lead to large shifts in market shares to foreign countries is not supported by past data.

For example, the export share has declined slightly since the 1996 farm legislation which removed supply management provisions.

The price decrease, since 1996, that followed from more cotton production and increased supply relative to demand, has not been successful in offsetting the non-price competition from foreign countries. Further evidence shows that limitations on acreage and increases in market shares occurred at the same time during the 1991 to 1995 seasons.

Despite sharply lower prices since 1997, and no acreage reduction program (ARP), mill use has declined from 11.35 to about 8.6 million bales in recent months. But, even more significant, exports decreased from 9.4 million bales in the 1994 season to 4.3 in 1998.

International Non-Price Forces Partly Offset Influence of Decreased Prices

Thus, political and non-price forces in the international cotton market appear to be overpowering the influence of price movements. A strong U.S. dollar is only one of the factors partly offsetting decreased cotton prices. Foreign government influence on production, textile manufacturing and export and import policies are major factors too. Clearly, export markets are far more unstable than the domestic market year-in, year-out.

The "roller coaster" price movements now occurring are the expected results from an export-dependent market. And, with the steady closing of U.S. textile mills, domestic use is headed back toward 5 to 6 million bales consumed for five seasons in the early 1980's. During those years, 15 to 30 percent acreage set-asides were used to manage supply, support farm price, and to control government program spending.

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Also, the "pick" program in 1983 was designed to cut planted acreage to 7.9 million, down from 14.5 million three years earlier.

The farm program leaned heavily from 1982 to 1994 on the ARP provisions to reduce planted acreage in order to manage supply. Yet, following the drastic acreage cut back, mill use rallied sharply from 5.5 million bales in 1982 to more than 11.0 million in 1996 following the 1985 marketing loan provision. Cotton was a star performer for a decade after the introduction of the marketing loan concept. However, there was an acreage set-aside and target price in place until the 1995 crop to maintain farm income. Furthermore, even in most years when cotton acreage was idling, the farm price averaged below production costs–thereby benefitting textile mills and consumers.

The drop in U.S. cotton prices from the high 60's to the low 40's since January signals the shift to a more volatile export-directed market. Too, the severe price drop is counter to the usual seasonal price rise around planting time.

The sudden 25-cent per pound decline indicates how fragile the export market is in terms of expectations and bales exported. China's late in the season announcement of a 20-million bale crop, 2 million more than expected, closed down the opportunity of large exports this season to Asian markets. In addition, consumer demand decreased because of weakening economies and high energy costs.

AT A BIRTHDAY PARTY, it came time to serve the cake. A little boy name Brian blurted out, "I want the biggest piece!"

His mother quickly scolded him. "Brian, it's not polite to ask for the biggest piece."

The little guy looked at her in confusion, and asked, "Well then, how do you get it?"

Olive Freedman
in Humor for Preaching and Teaching
Baker Books

We will have two on Tuesday and two on
Wednesday unless otherwise notified in the newsletter. The schedule for next week's turnrow meetings is:

Tuesday, July 3rd
Westside Gin 8:30 a.m.
Mereta Co-Op 1:00 p.m.

Wednesday, July 4th
There will be no meetings on this day
due to the holiday.
HAVE A SAFE AND HAPPY
FOURTH OF JULY!!!!!!

Educational programs conducted by the Texas Agricultural Extension Service serve people of all ages regardless of socioeconomic level, race, color, sex, religion, handicap or national origin. The information given herein is for educational purposes only. References to commercial products or trade names is made with the understanding that no discrimination is intended and no endorsement by the Cooperative Extension Service is implied.