July 12, 1999

National Cotton Council President Ron Rayner says an important part of any farmer relief program this year should include money for the Step 2 cotton program. It will help stop "the free fall in cotton producer income," he says.

In remarks prepared for delivery to the New Mexico Cotton Ginners Association meeting Saturday, Rayner said restoration of Step 2 funding, and other "needed modifications in cotton's competitiveness program," also are needed to make U.S. cotton and textile operations more competitive and help prevent further job losses.

"Cotton farmers are facing the lowest prices we have seen since the 1980s -- well below the cost of production -- and we have very little to fall back on," Rayner said. The Asian economic crisis and depletion of Step 2 money "killed cotton exports."

Asia's economy will not gather enough momentum to provide a "meaningful turnaround in demand. Without a renewal of Step 2 funds, U.S. cotton will be competing for a smaller market and with a significant price disadvantage."

Funding for the Step 2 program is included in a list of relief measures from the American Farm Bureau Federation as well as included in the relief package being proposed by Sen. Tom Harkin (D-IA) in the Senate agriculture appropriations bill debate.