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Cotton Farming ONE GROWER PUBLISHING, LLC

PROFITABLE PRODUCTION STRATEGIES

DECEMBER 2016

www.cottonfarming.com

Looking On Down The Row NET PRESENT VALUE ANALYSIS IN CAPITAL BUDGETING DECISIONS

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Vol. 60 No. 12

Cotton Farming PROFITABLE PRODUCTION STRATEGIES

DECEMBER 2016

www.cottonfarming.com

F E AT U R E S

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FOR THE CHILDREN

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SOUTHERN SOUTHEASTERN

19

GINNING MARKETPLACE

Tennessee cotton consultant donates $20,000 Transform My Community grand prize money to the Gibson County Carl Perkins Center.

David Dunlow and Kent Fountain share their thoughts about how the 2017 Southern Southeastern Annual Meeting will particularly interest cotton producers and ginners.

THE OFFICIAL PUBLICATION OF THE GINNING INDUSTRY

Send in your nomination for Texas Cotton Ginners’ Association Ginner of the Year — the highest honor a gin manager can receive.

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Capital Budgeting

Agricultural production often requires significant investment in expensive assets, such as tractors, irrigation systems and land. Though costly, these types of assets are typically expected to produce economic returns for many years into the future. Considering the present value of projected net cash flows relative to an initial investment is a useful capital budgeting application.

DEPARTMENTS & COLUMNS

SUPPLEMENTS S P E C I A L

2016 • 2017

16 Specialists Speaking 21 Industry News 22 My Turn

2017 Planting Tips

CornSouth ONE GROWER PUBLISHING, LLC

Underground spies

Southern Production & Marketing Strategies

December 2016

Sensors monitor and report soil moisture levels, helping growers make better informed irrigation decisions. By Vicky Boyd Editor

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oil moisture sensors help growers get to the root of the problem of under- or over-irrigating by monitoring and reporting underground moisture content. Although not a silver bullet, these sensors should be viewed as one of several tools that can provide data on which to make better informed irrigation management decisions. The actual water savings from sensor use depends on the crop, the soil type and the weather during a particular year. One of the biggest benefits is risk management by helping growers determine when and how much to irrigate and when they can safely stretch or eliminate an application because of adequate soil moisture. “But we do generally see an increase in water-use efficiency by using sensors independent of a wet or dry year,” says Wesley Porter, University of Georgia Extension precision ag and irrigation specialist based in Tifton. He says it’s difficult to estimate how many growers in his state are using soil moisture sensors to gauge irrigation, although a U.S. Department of Agriculture National Agricultural Statistics Service survey 3 years ago showed about a 10 percent adoption rate. “That’s probably low in some areas and high in other areas throughout the state of Georgia,” Porter says. Based on his experience, he says adoption rates are as high as 50 to 70 percent in areas where consultants promote them as part of a suite of services. “If you have a pocket that has a good consultant, then all of a sudden you’ll see a lot of farmers getting their (irrigation) recommendations from them,” Porter says. “The biggest level of adoption in our state is through our consultants, and it’s just because of the time requirements” to read the sensors and determine irrigation recommendations. Farmers frequently find it’s easier to pay the consultant a small additional fee to monitor soil moisture levels than to manage it themselves, he says. From basic to Cadillac models For growers just starting out with soil moisture monitoring, he recommends going with either Watermark sensors or capacitance sen-

4 Editor’s Note 5 Cotton’s Agenda 12 Western Report

S E C T I O N

Ag Technology & Equipment

Watermark Granular Matrix sensor

sors, such as the Decagon EC-5. Each has benefits and drawbacks. Watermark Granular Matrix sensors from Riverside, Calif.-based Irrometer Co. Inc., involve two electrodes imbedded in a thumb-sized sensor covered with a stainless steel mesh sleeve. Two electrodes protruding from the top allow users to hook them to a hand-held meter to read the soil matric potential, which indicates the energy the plants must expend to extract water from the soil. As the soil water content increases, resistance between the electrodes decreases and vice versa. But they may not perform well in very sandy soil because of porosity and a lack of sensor-to-soil contact. A set-up, which includes three sensors and a hand-held meter, costs about $400. Capacitance sensors read the volume of water in the soil. The Decagon EC-5 capacitance sensor runs about $100 apiece, not counting the datalogger to record the readings. On the other end of the spectrum are automated remote weather stations that include a soil sensor component. Depending on the model, these can be accessed via smartphones or desktop computers. Prices start at about $1,500 up to more than $3,000 per unit. In addition, they still require visits to the field to ground truth the data and may carry a subscription fee for data transmission, Porter says. Sensor placement In a field with uniform soil type, Porter recommends placing a sensor set-up in the part of the field most representative of the entire irrigated area of the field. The location shouldn’t be in a low or high spot, nor should it be near a road or parking area just because it is convenient. DECE MBE R 2 016 • AG TECHNOLOGY & EQUIPME NT /

A Supplement to Cotton Farming and The Peanut Grower Magazines

AT1

The Ag Technology special section follows page 12 in the Mid-South and Southeast editions.

Look for Corn South following page 20 in the Mid-South and Southeast editions of Cotton Farming.

WEB EXCLUSIVE ON THE COVER: This field of skip-row PHY 444 WRF is in Blount County, Ala., where Cody Ewing farms with his grandfather, Jerry Marsh. Look for more about their operation in the January issue of Cotton Farming. Cover Photo by Susan Sloan Johnson.

The Texas Cotton Ginners’ Association provides a recap of the 2016 presidential election, with an emphasis on how election night events unfolded and the Texas state elections. Find out why “Texas was a little more interesting than usual this year.” Go to www.cottonfarming.com for this Web Exclusive report.

COTTON FARMING (ISSN 0746-8385) is published monthly January through December by One Grower Publishing LLC, 6515 Goodman Rd., Box 360, Olive Branch, MS 38654. Periodicals postage paid at Memphis, Tenn. POSTMASTER: Send address changes to Omeda Communications, Customer Service Department, P.O. Box 1388, Northbrook, IL 60065-1388 (Phone: 847-559-7578) (Fax: 847-564-9453). Annual subscriptions are $40. International rates are $55 in Canada/Mexico, $90 in all other countries for air-speeded delivery. Surface delivery not available due to problems in reliability.

TWITTER: @COTTONFARMING

COTTON FARMING DECEMBER 2016

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Editor’s Note

Cotton Farming

Carroll Smith

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EDITORIAL/PRODUCTION Editor Carroll Smith csmith@onegrower.com Managing Editor Vicky Boyd vlboyd@onegrower.com

The Winter Season: A Time To Reflect, Prepare

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ccording to the ancient Roman calendar, which recognized only 10 months by name, March denoted the beginning of the year. One theory is that it was given this designation to coincide with the onset of the agricultural cycle. December, the last month of the year, comes from the Latin word decem, meaning 10. Interestingly, the winter months between December and March were not named. Perhaps these months, characterized by short days and long hours of darkness, were a time for farmers to reflect on the past season and prepare for the new one. If we accept this premise, then not much has changed today. For those in the agricultural world, the winter season is still considered a time to reflect and prepare. To help facilitate this process, several compelling meetings are held during this time. The Beltwide Cotton Conferences kick things off early January in Dallas, Texas. Attendees can look forward to the Cotton Consultant Conference and the cotton technical conferences, which will provide research and technology updates. Those interested can go to www.cotton. org/beltwide/ for more information. On Jan. 18-22, the Southern Southeastern Annual Meeting will be held in Charlotte, N.C. Producers and ginners can learn the implications for cotton from the state level all the way through to the international arena. As Kent Fountain, president of Southeastern Cotton Ginners Association Inc., says, “A high percentage of our product is exported so we have to know the needs and concerns of the people who are buying our cotton.” Frank Gasparini, National Council of Agricultural Employers, Washington, D.C., is also on the program to talk about the status of immigration under the Trump administration. Fountain and David Dunlow, president of Southern Cotton Growers Inc., shared a few of their thoughts about how the meetings will particularly interest cotton producers and ginners across the Southern Southeastern region in an exclusive interview with Cotton Farming magazine on pages 14-15. The Mid-South Farm and Gin Show will be held March 3-4, and the Texas Cotton Ginners’ Association Annual Meeting and Trade Show will be held April 6-7. Other regional and state meetings are slated to provide useful information for the upcoming season as well. For now, take advantage of this “fallow” time to reflect on what you learned form the 2016 growing year and start making plans for 2017. Happy holidays!

Carroll If you have comments, please send them to: Cotton Farming Magazine, 7201 Eastern Ave., Germantown, TN, 38138. Contact Carroll Smith via email at csmith@onegrower.com.

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COTTON FARMING DECEMBER 2016

Southeast Editor Amanda Huber ahuber@onegrower.com Art Director Ashley Kumpe ADMINISTRATION Publisher/Vice President Lia Guthrie (901) 497-3689 lguthrie@onegrower.com Associate Publisher Carroll Smith (901) 326-4443 Sales Manager Scott Emerson (386) 462-1532 semerson@onegrower.com Production Manager Kathy Killingsworth (901) 767-4020 kkillingsworth@onegrower.com Circulation Manager Charlie Beek (847) 559-7324 For circulation changes or change of address, call (847) 559-7578 EDITORIAL ADVISORY BOARD David Burns – North Carolina David Lynch – South Carolina Bob McLendon – Georgia Larkin Martin – Alabama Mike Sturdivant Jr. – Mississippi Charles Parker – Missouri Jimmy Hargett – Tennessee Allen Helms – Arkansas Jay Hardwick – Louisiana Ronnie Hopper – Texas Ron Rayner – Arizona John Pucheu – California

ONE GROWER PUBLISHING, LLC Mike Lamensdorf President/Treasurer Lia Guthrie Publisher/Vice President ACKNOWLEDGEMENT OF COOPERATION: Cooperating with  COTTON FARMING are various cotton producer organizations across the Cotton Belt. Many representatives of producer organizations serve on COTTON  FARMING’s editorial advisory board. Opinions expressed and conclusions reached by contributors are not necessarily those of the cooperating organizations or the editors. All statements, including product claims, are those of the person or organization making the statement or claim. The publisher does not adopt any such statement or claims as its own and any such statement or claim does not necessarily reflect the opinion of the publisher. Copyright 2016 © ASSOCIATED PUBLICATIONS – One Grower Publishing, LLC also publishes RICE FARMING, THE PEANUT GROWER, SOYBEAN SOUTH and CORN SOUTH.

One Grower Publishing, LLC 6515 Goodman Rd., Box 360, Olive Branch, MS 38654 Phone: 901-767-4020

COTTONFARMING.COM


Cotton’s Agenda Gary Adams

Making Connections A sold-out audience of the most influential executives in the global cotton fiber and textile business, representing 26 countries, attended the ninth Sourcing USA Summit last month in California.

Who conducts the Summit?

n Cotton Council International (CCI) hosts the biennial Summit in cooperation with Cotton Incorporated and USDA’s Foreign Agricultural Service. The U.S. cotton industry and its allied industries are integral supporters. The 2016 Summit exporter sponsors included: Jess Smith & Sons Cotton Co.; White Gold Cotton Marketing LLC; Allenberg Cotton Co.; Cargill Cotton; Toyoshima; PCCA; Calcot Ltd.; Omnicotton; COFCO Agri; Glencore; Staplcotn; Toyo Cotton; ECOM; J.G. Boswell Co.; Cotton Growers Cooperative; Engelhart CTP (US) LLC; Olam Cotton; S a n J o a q u i n Va l l e y Quality Cotton Growers Association; and Supima. Allied industry sponsors were: Uster Technologies; Wakefield Inspection; Cargo Control Group; Cotton Outlook; Rieter NCC Chairman Shane Stephens remind- Textile Systems; ICE ed Sourcing USA Summit attendees of the Futures U.S.; CoBank; U.S. cotton industry’s commitment to reli- TransGlobal Inspections; Bayer CropScience; ably supply quality fiber. Applied DNA Sciences; Monsanto; Murata Machinery Ltd.; and INTL FCStone Merchant Services.

What is the forum’s primary objective?

n The event provides attendees ample opportunities to network and strengthen connections with industry counterparts from around the globe – with the goal of increasing U.S. cotton exports. This year’s event, which facilitated U.S. cotton networking opportunities for some 415 delegates from 31 countries, had an audience that represented 16 percent of global cotton use. The Summit also consistently features a lineup of stellar speakers and a carefully constructed

agenda that focuses on the major economic, environmental and policy factors affecting the market for cotton and cotton products. Challenges and opportunities facing the general use of cotton in the textile supply chain are explored, and specific topics surrounding U.S. cotton, including innovation and global economic issues, are covered.

Any key themes from the 2016 Summit? n National Cotton Council (NCC) Chairman Shane Stephens welcomed attendees by reiterating the value of strong industry relationships, the consistent quality and reliable supply of cotton grown in the United States, and the commitment of U.S. cotton producers to maintaining their strong relationship with the global cotton supply chain. CCI President Keith Lucas told the audience that, “Cotton has a history of innovation, of reinventing and adapting to aspects of its complex supply chain to keep pace with the needs and expectations of the market and consumers, alike.” Included as part of the agenda’s economics and innovation focus was a cotton economic update by Jody Campiche, the NCC’s vice president, Economics and Policy Analysis; a “Bull and Bear” panel composed of U.S. exporter and textile mill representatives; and updates on agricultural, fiber quality and textile innovations from Cotton Incorporated staffers. At a time when cotton is facing increasing competition, such as man-made fibers that can offer greater length uniformity at a lesser cost, it was not surprising that the themes of change and challenges to business as usual permeated this year’s conference. It’s also why CCI Executive Director Bruce Atherley underscored the importance of unity in his closing remarks by emphasizing, “We must all work together to overcome man-made fibers and other challenges that get in the way of cotton consumption.”

Gary Adams is president/CEO of the National Cotton Council of America. He and other NCC leaders contribute columns on this Cotton Farming page. Twitter: @CottonFarming

COTTON FARMING DECEMBER 2016

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COVER STORY

Net Present Value Analysis In Capital Budgeting Considering the present value of projected net cash flows relative to an initial investment is a useful capital budgeting application BY KELLY LANGE TEXAS TECH UNIVERSITY

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gricultural production often requires significant investment in assets, such as tractors, irrigation systems and land. Though expensive, these types of assets are typically expected to produce economic returns for many years into the future. Before acquiring capital assets, farm managers can use various projection techniques to assist with the decision-making process. While unable to provide a crystalball-type view into the future, projection and budgeting tools allow producers to consider various management strategies under multiple potential scenarios, in hopes of making the best management decisions possible given expectations of the future. Capital budgeting is a projection method that can prove especially useful when considering large capital investment decisions.

Capital Budgeting And The Time Value Of Money Capital budgeting, also referred to as investment analysis, is extremely useful for evaluating the potential profitability of a new business investment, such as the acquisition of a new tractor or the purchase of farmland. The procedure is relatively simple, especially with the help of computer software, and is applicable to many investment scenarios for a farm business. A popular capital budgeting technique is net present value analysis. One of the most powerful aspects of net present value analysis is the incorporation of time value of money into the investment planning process. The concept of time value of money

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COTTON FARMING DECEMBER 2016

If you are considering the purchase of additional farmland, for example, capital budgeting is extremely useful for evaluating the land’s potential profitability. COTTONFARMING.COM


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TYLER KIRKLIN Clay County, Arkansas

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While unable to provide a crystal-ball type view into the future, projection and budgeting tools allow producers to consider various management strategies under multiple potential scenarios, in hopes of making the best management decisions possible given expectations of the future. ­— Kelly Lange

references the reality that the value of a dollar today is not synonymous with the value of a dollar at some point in the future. In fact, the value of a dollar in the future will be less than the value of a dollar today. The reduction in value of that future dollar depends on the length of time into the future you anticipate receiving it. The further into the future, the less the equivalent value of that dollar today. This reality is due to several factors. First, inflation erodes purchasing power. The cost of goods and services in the future will be more expensive than their costs today. Opportunity costs must be considered as well. Farmers have many alternative uses for capital. Investment of capital into one project means that an alternative project must be passed up. Thus, an opportunity cost is incurred anytime one investment is foregone in lieu of another. This means that any potential profit that could have been received from the foregone project will not be realized. Risk also factors into consideration of the time value of money. If you are supposed to receive money in the future, there is always a risk that something occurs and the money is not received. All of these factors combined indicate the need to incorporate the concept of time value of money into financial investment considerations, and net present value analysis is one such way to accomplish this. Net Present Value Analysis Simply defined, net present value is the present value of an investment’s projected cash inflows less the present value of the investment’s projected cash outflows. Net present value works on the premise that we will likely make an initial investment at the onset of the project. In other words, we will have a capital outlay of some amount at the time of project initiation. The initial capital outlay, typically assumed to be made in cash,

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COTTON FARMING DECEMBER 2016

will occur at the present time, or right now. To determine the potential profitability of the project, especially if it is expected to run over multiple years, estimates of expected cash inflows and outflows occurring as a result of the initial investment would be discounted back to the present time using time value of money principles through the use of an assumed discount rate. A discount rate can be thought of as an investor’s cost of capital. It can also be thought of as the investor’s opportunity cost of choosing to invest in one project in lieu of another. Discount rate assumption will vary from individual to individual. The smaller the assumed discount rate, the greater the potential net present value of the investment and vice versa. Both the value and timing of expected cash flows must be estimated. Often, net present value analysis is performed on an annual basis, by estimating the cash inflows and outflows resulting each year from project investment. First, estimates of expected cash inflows occurring as the result of an investment must be determined. These values are generally the expected returns that the producer anticipates receiving each year as a result of making the investment. It is important to ensure that all anticipated revenues are accounted for when

making these estimates. Next, similar estimates for cash outflows need to be projected, taking care to include any additional expenses such as loan or lease payments associated with the investment. Also project potential annual operating and maintenance expenses associated with tractors or other machinery, for example. After these inflows and outflows have been estimated, the present value of each estimated cash flow must be determined. Each inflow and outflow must be discounted back to its present value, using the assumed discount rate. Cash flows occurring at further points in the future will be more heavily discounted compared to cash flows occurring in the near future. Once the present value of both inflows and outflows has been determined, the difference is taken, and the result is the net present value of the investment. Once calculated, net present value can be positive, negative or zero. A positive net present value indicates an investment will return more than the investor’s cost of capital (assumed discount rate) and will increase profits over the life of the investment. A negative net present value indicates an investment is returning less than Continued on page 13

Example Shows Positive Net Present Value Suppose we are considering a project that will require a $50,000 investment at the time of initiation, or present time. Assume that the investor’s cost of capital is 8 percent annually. This investment is expected to result in annual cash inflows of $20,000 and annual cash outflows of $7,000 for five years. Discounting the value of five years’ worth of $20,000 annual cash inflows back to the present time, the present value of this projected income stream would be $79,854. Similarly, the present value of five years’ worth of $7,000 annual cash outflows would be $27,949. Thus, the present value of net cash flows over the five-year time period would be $51,905. The initial investment of $50,000 is subtracted from the present value of net cash flows, yielding a net present value of $1,905. The positive net present value indicates this investment will more than return the investor’s 8 percent cost of capital and will increase profits over the five-year time period. COTTONFARMING.COM


CONGRATULATIONS, LARRY KIMERY COTTON CONSULTANT | TRENTON, TENNESSEE GRAND PRIZEWINNER

Jay Golz (left) Dow AgroSciences district sales manager; Sarah Belcher, Gibson County Carl Perkins Center intern; Rachel Hill, Gibson County Carl Perkins Center therapist; Lawanda Landrum, Gibson County Carl Perkins Center office manager; Tom Witherspoon, Gibson County mayor; Joel Alvey, Dow AgroSciences local sales representative; Abby Little, Gibson County Carl Perkins Center Advisory Board president; Leah Blackburn, Gibson County Carl Perkins Center director; Larry Kimery, cotton consultant and the grand prizewinner of the Transform My Community contest; Judy Kimery, cotton consultant; Elna Blankenship, Humboldt Exchange Club past president.

RUNNERS-UP Bowen Flowers, Cotton Producer Clarksdale, Mississippi

Tim Luckey, Cotton Producer Humboldt, Tennessee

® Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow Transform WG is not registered for sale or use in all states. Contact your state pesticide regulatory agency to determine if a product is registered for sale or use in your state. Always read and follow label directions. ©2016 Dow AgroSciences LLC


For The Children

Cotton consultant Larry Kimery (center), Transform My Community Contest grand prizewinner, presents $20,000 to the Gibson County Carl Perkins Center. Joining Larry are Jay Golz (left), Dow AgroSciences district sales manager; Leah Blackburn, Gibson County Carl Perkins Center director; Judy Kimery, cotton consultant; and Joel Alvey, Dow AgroSciences local sales representative.

Tennessee cotton consultant donates $20,000 Transform My Community grand prize money to the Gibson County Carl Perkins Center. BY CARROLL SMITH EDITOR

“A

hundred years from now, nobody will remember who I was, what I did or how much money I had. But the world may be a little different and a little better because I was important in the life of a child.” These are the words of Doris “Cousin Tuny” Freeman, a popular Tennessee radio broadcaster and childrens’ show host on local radio and television. Although successful in her career, Freeman is remembered by most as a passionate advocate for abused children and children with disabilities. She is also one of the founders of the Carl Perkins Center for the Prevention of Child Abuse. Carl Perkins was a Tennessee entertainer, songwriter and international rockabilly star. In addition, he was a civic-minded gentleman and a father with a soft spot in his heart for all children. In 1979, when the Exchange Club in

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COTTON FARMING DECEMBER 2016

Jackson, Tenn., began its journey to create a center for the prevention of child abuse, Perkins hosted a concert featuring the Statler Brothers that provided seed money to make the center a reality. The first Exchange Club-Carl Perkins Center opened in 1981 and has now grown to 23 locations across Tennessee. Three of the centers are in Gibson County and have provided services to children and families since 1989. These non-profit entities work with child services, juvenile court and law enforcement. Fundraisers, such as pancake breakfasts, bake sales and a yearly telethon, are held to “keep the doors open” for those in need. Last year, the Gibson County Carl Perkins Center provided services to more Continued on page 18 COTTONFARMING.COM


BELTWIDE

COTTON CONFERENCES

Improved Decision-Making Is ‘Beltwide’ Goal

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he 2017 Beltwide Cotton Conferences (BWCC) can help its attendees improve production, processing and marketing efficiency by providing them with insight into the latest available tools and research findings. Those planning to attend the concurrent conferences, set for Jan. 4-6 at the Hyatt Regency Dallas Hotel in Dallas, Texas, are urged to register and make hotel reservations. Information about those arrangements is on the BWCC website at www.cotton.org/beltwide/. The site also includes the preliminary program and general information about the BWCC. Consultants Conference The 2017 BWCC will begin at noon on Jan. 4 with the half-day Cotton Consultants Conference – open to all attendees. The session will focus on topics of interest selected by a panel of consultants. Among presentations scheduled are: 1) updates on the status of and educational efforts for the use of auxin herbicides on transgenic cottons by Dow and Monsanto, 2) “The Smartirrigation Cotton App with a National Footprint,” a unique irrigation scheduling tool originally limited to Georgia and Florida that now is applicable across the entire U.S. Cotton Belt and 3) “Target Spot and Bacterial Blight” which will shed light on cultivar responses to various cotton diseases. The Consultants Conference also will feature the “New Developments from Industry” session that includes reports on new varieties, chemistries, equipment and other emerging technologies. Technical Conferences Schedule The BWCC cotton technical conferences, which will provide updates on research and a look into the technology pipeline, will meet concurrently beginning on the morning of Jan. 5 and conclude by noon, Jan. 6. Among the useful information that can be gleaned from those sessions will be updates on the research on several classes of insecticides and reports on successful weed management strategies. For example, the Weed Science Research Conference will include a presentation on achieving crop safety and weed control using varieties resistant TWITTER: @COTTONFARMING

to auxin herbicides. For 2017, the cotton agronomy, physiology and soil technical conferences will be combined into one overall meeting with multiple sessions. Some topics being considered are a highly comprehensive simulation model of cotton physiology, nitrogen management for subsurface drip-irrigated cotton and quality/yield evaluation trials across the Cotton Belt. The Ginning Conference will have several presentations critical to efficient processing and marketing. Topics include module averaging and lint contamination prevention, specifically the challenge presented by various plastic contaminants in seed cotton. This conference will include a panel discussion on issues associated with ginning cotton varieties with small seed size. Beginning the afternoon of Jan. 4, the National Cotton Ginners’ Association will hold several committee and subcommittee meetings. A schedule of those is at http://www.cotton.org/ ncga/index.cfm. In addition to the multitude of oral presentations, most of the technical conferences and the Consultants Conference will feature poster sessions that include results from studies conducted by world-class researchers. Registration costs before Dec. 16 for the NCC-coordinated forum are: $200 for NCC/Cotton Foundation members, university and USDA researchers, Extension personnel, associations and consultants; $400 for nonNCC/Foundation members; and $80 for students. On-site conference self-registration kiosks will be available 24 hours a day beginning on the evening of Jan. 3. Starting on the morning of Jan. 4, NCC staff will be available for attendees needing assistance with registration and name badge printing. The Beltwide Cotton Conferences annually brings together those with a stake in a healthy U.S. cotton production sector, including university and U.S. Department of Agriculture researchers, Extension personnel/agents, consultants and industry sales/support personnel. The National Cotton Council contributed information for this article. COTTON FARMING DECEMBER 2016

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CCOY Cotton Consultant of the Year established 1981

Virgil King III 2011 CCOY AWARD RECIPIENT

“Cotton acreage in the 1980s was small in some areas, but thankfully it was our main crop near Lexington, Miss. I stepped out there on faith, and my wife, Rossie, and I built this business from the ground up. “I work hard for my clients in a way that would be honorable for them. When other farmers see how well you give recommendations on a particular farm, it helps build trust and grow your business. “In 2011, I was overwhelmed when I was chosen as the Cotton Consultant of the Year. This award brings our profession to the forefront for others to see what we do and reflects our desire to increase productivity while being conscious of the environment.” Cotton Consultant of the Year sponsored by

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WESTERN REPORT

Arid-Land Research Center: Cotton Focus

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otton research at the U.S. Department of Agriculture-Agricultural Research Service AridLand Agricultural Research Center in Maricopa, Ariz., ensures that systems benefitting agriculture in arid and semi-arid Western regions are also important throughout the United States. The Arid-Land Agricultural Research Center is the only remaining federally funded research facility with a cotton focus in the Western growing region, following USDA’s closure of the Cotton Research Station near Shafter, Calif., in 2012.

BY BRENT MURPHREE MARICOPA, ARIZ.

How Projects Are Addressed With attention more centrally concentrated in Maricopa, researchers take a three-pronged approach to projects. “Crop improvement, crop production and crop protection are our focus,” says Steve Naranjo, center director. This approach is reflected in the research units at the facility: The Pest Management and Biocontrol Unit, the Plant Physiology and Genetics Unit, and the Water Management and Conservation Unit. Their goal is to develop sustainable agricultural systems, protect natural resources and support rural communities in arid and semi-arid regions, according to the center’s mission statement. All cropping systems in the cotton-growing regions of the West are arid and in most regions, cotton has been the most organized and research-focused. Naranjo and center staff have adjusted to many concerns due to funding issues as well as evolving technologies, much like the region’s producers. One of the center’s main focuses is high-throughput phenotyping, which is accelerating germplasm improvements, especially for heat and drought tolerance.

new advances to benefit growers. For example, cooperation with the University of Arizona ensures that whitefly and pink bollworm levels are kept low or even eliminated while the center’s research continues efforts to disrupt Lygus damage in cotton. Partnerships extend beyond Western universities. Collaborations with the University of Arkansas and the University of Tennessee are important to the Pest Management Unit. The Plant Physiology Unit works with researchers at the University of Florida and the University of North Texas. Partnerships are also developing as the center explores funding resources and advancing technologies. “We’ve partnered with NASA on remote sensing. We’re part of sending up better satellites that will help with crop management,” Naranjo says. The partnership will help refine and bring greater resolution to GPS mapping in fields. Cotton Incorporated has also been involved in helping fund research covering all three of the center ’s cotton-related units, which cover entomology, physiology and water. Cotton Incorporated helps coordinate research throughout the Cotton Belt to ensure that it is optimized to benefit producers. 

Partnerships Provide Support Strategic assessment and partnerships make sure that past advances are maintained while pursuing

Brent Murphree is the Cotton Board’s Regional Communication Manager for the West. Contact him at bmurphree@ cottonboard.org. COTTONFARMING.COM


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the investor’s cost of capital. In general, net present value analyses yielding negative results indicate that an investment opportunity should be rejected. A net present value calculation of zero indicates the investment will return the equivalent of its cost of capital, and the investor will breakeven over the life of the investment. Additional Considerations Investment analysis can be tedious work if computed by hand, especially if calculating net present value for a multi-year investment. Because of this, software is often used. Programs, such as Microsoft Excel, have builtin functions for investment analysis, including net present value analysis. Other business management specialty software also has the capability of calculating net present value. Net present value analysis is especially useful when considering investment in depreciable assets, which have a limited useful life. Assumptions regarding the expected useful economic life of the asset can be incorporated into the analysis. This often involves an additional cash

inflow inclusion for the expected salvage value, which the asset could be sold for once fully depreciated. In many net present value analyses, cash transactions, including the initial investment, are often assumed. However, the reality is that many capital acquisitions will be financed. If this is the case, it is important to note initial cash down payments, and then also include annual principal and interest payment estimates in your cash outflows, as these payments will affect the overall profitability of the investment. The effect of taxes should not be ignored, as these are also cash outflows, which will affect profitability. It is often helpful to perform a sensitivity analysis, which allows managers to experiment with various “what-if” scenarios, using different assumptions of discount rate, initial investment amounts and net cash flows over the life of an investment, giving consideration to different price and yield combinations. For example, producers may want to run several analyses using low, average, and high price and yield combinations. This allows them to see what might happen over the life of an investment if

unanticipated risks, such as market or weather conditions, do not match those predicted in the initial investment planning stages. Finally, because businesses always have competing uses for capital, multiple potential projects may be considered at the same time. Performing multiple net present value analyses for each project, especially those with very different projected cash flows and time horizons, is often useful for profitability comparison. Investment analysis is a powerful planning tool that allows producers to accurately estimate the potential profitability from an investment. Although there is no way to perfectly simulate projected returns, investment analysis provides a concise way to quickly examine the benefits versus costs of a multitude of capital investment options. Consider incorporating net present value analyses into your next project plan to reap the benefits of this budgeting tool. Kelly Lange is assistant professor, director of Farm Operations, Department of Agricultural and Applied Economics, Texas Tech University. Contact Lange at kelly.lange@ttu.edu or 806-834-8914.

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COTTON FARMING DECEMBER 2016

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Southern Southeastern 2 0 17

A N N U A L

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Editor’s Note: The Southern Southeastern Annual Meeting will be held Jan. 18-22, 2017, at The Westin in Charlotte, N.C. This organization represents cotton growers and ginners throughout Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia. Every year, more than 600 participants come together to gather information and network with major industry suppliers. Cotton Farming magazine recently conducted exclusive interviews with David Dunlow, president of Southern Cotton Growers Inc., and Kent Fountain, president of Southeastern Cotton Ginners Association Inc. Here are a few of their thoughts about how the meetings will particularly interest cotton producers and ginners across the Southern Southeastern region.

&

Cotton Farming: The Board of Directors meetings and the State Growers and State Ginners meetings are open to everyone. Why would these meetings appeal to the region’s farmers and ginners? Dunlow: During the Board of Directors meeting, Dr. Joe Outlaw, director of the Agriculture and Food Policy Center at Texas A&M, will discuss the effects of mega-mergers. Craig Brown, vice president of Producers Affairs, National Cotton Council, will give an issues update. Both of these presentations will help farmers be more aware of matters that may potentially affect their operations in 2017. The State Grower meetings allow cotton producers to get involved and have input in policy developed throughout the region and the nation. Fountain: The State Ginner meetings provide

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M E E T I N G

an opportunity for ginners to come together to discuss issues that may be affecting their respective states. From these discussions, they can formulate ideas about how to address those concerns. Cotton Farming: The General Session moves beyond the regional focus to the national and international arenas. Why is it important for farmers and ginners to understand the implications for cotton beyond the regional outlook? Dunlow: Generally speaking, about 80 percent of our cotton is exported, which means we are part of a worldwide market. We compete not only with other growers in our nation but growers throughout the world. It’s important to know our competition’s cotton policies under other governments. To keep our fingers on the pulse of issues that go beyond our region, we invite speakers to talk about topics, such as the worldwide cotton market, our cotton market and development of the Farm Bill. Fountain: Although we have a regional association, cotton is not just a regional commodity; it is a worldwide commodity. A high percentage of our product is exported so we have to know the needs and concerns of the people who are buying our cotton. For example, I recently served on a panel as a ginner at the Cotton Council International Sourcing USA Summit. Thirty-one countries were represented and more than 400 people attended, which gave me an opportunity to learn about their issues. During the General Session, we will have speakers from Washington D.C., Cotton Council International and the National

COTTONFARMING.COM


Cotton Ginners who will talk about some of these same issues for the benefit of farmers and ginners who attend the Southern Southeastern meeting. Cotton Farming: The Cotton Production and Ginning Seminar features breakout sessions specific to producers and ginners. What are some of the pertinent topics? Dunlow: Proposed crop insurance changes on the horizon, new production technology, seed varieties and longrange weather forecasts for the upcoming growing season are some of the featured subjects. Fountain: Of particular interest to ginners will be a presentation on contamination, which is a huge issue. We are the most contaminant-free cotton in the world and want to keep it that way. We also will have a panel discussion about the John Deere module wrap technology, including best practices to deal with it at the gin. Frank Gasparini, National Council of Agricultural Employers (NCAE), Washington, D.C., is on the program to talk about the status of immigration under the Trump administration. This is an important topic that affects our labor pool. Cotton Farming: Why would you encourage farmers to sit in on Crop Insurance Options for 2017? Dunlow: We currently are working on crop insurance changes with the Risk Management Agency (RMA) and will discuss them during this meeting. Although these changes won’t be in place for 2017, there are many options in place now that need to be considered. This session provides a forum where growers can learn what these options are. Roughly 90 percent of all cotton acres in the Southeast are covered by crop insurance. Since many of the banking institutions and other lenders require farmers to insure their crop, we should have a clear understanding of how different insurance levels work. The more information farmers have, the better able they will be to choose the right level for their operations. This meeting takes place at a good time because the deadline for purchasing 2017 crop insurance is the end of February. Cotton Farming: What can ginners learn from the Safety/Insurance Committee meeting? Fountain: In our industry, insurance is a huge cost and safety is an important issue. This session allows us to talk about what happened last year in our industry regarding safety. We invited insurance representatives to give reports on their industry and tell us what we need to work on to keep rates down and make sure everyone stays safe. Hearing from people who write the insurance gives us ideas for improving safety at the gin and also saving money. Cotton Farming: What are some of the highlights of the Annual Meeting held on Saturday morning? Dunlow: One of the topics is a report on council activ-

TWITTER: @COTTONFARMING

ities from Dr. Gary Adams, president and CEO of the National Cotton Council. I have been involved in cotton organizations for 18 years. Behind-the-scenes work carried out by the NCC, Southern Cotton Growers and even the state organizations is critical to the cotton industry. It’s important to understand what they do. In addition, we will have updates from Berrye Worsham, president and CEO of Cotton Incorporated, on its activities and Andy Warlick, president and CEO of Parkdale Mills, on the health of the U.S. textile industry. Various achievement awards will be presented during this meeting as well. Fountain: A special presentation we all look forward to takes place during this session — the Cotton Ginner of the Year Award. One of the criteria is that the recipient must be a progressive ginner who endeavors to keep cotton strong in his community. Last year we recognized Joey Scarborough of Tallassee, Ala. He is the second manager for the Milstead Farm Group gin. Southen Southeastern Annual Meeting To pre-register for the 2017 Southern Southeastern Annual Meeting and make hotel reservations, go to www.southern-southeastern.org/ meetings/annualmeeting.html. To take advantage of the group rate, book your hotel room by Dec. 28. Cotton Farming: In addition to business sessions, how do the trade show and social gatherings enhance the attendees’ experience? Dunlow: It’s important to note that the majority of the costs associated with holding the Southern Southeastern Annual Meeting are offset by contributions from our corporate sponsors. To me, the trade show, which features their products and services, is something I always look forward to. Everyone goes from booth to booth to talk to a variety of vendors and learn what’s new for the upcoming year. On Friday night, we have the Presidential Gala where members, guests and families come together to enjoy a banquet, mingle with one another and have fellowship. This event is also the biggest fundraiser for our political action committee – the Committee for the Advancement of Southeast Cotton. During the gala, a reverse raffle event is held to raise money for our PAC. We sell raffle tickets all year long and a winner is awarded that evening. It’s a lot of fun and all for a good cause. Fountain: The trade show provides a good opportunity for vendors to showcase their offerings and for attendees to learn more about the various products and services. I also believe farmers and ginners pick up a lot of information from their peers during what I call “hallway seminars.” Sitting in on meetings triggers thoughts about issues we face in our industry. At break time, everyone gathers in the hallway to socialize and exchange ideas about the subjects that have been discussed. The Southern Southeastern Annual Meeting takes place in a setting that allows this type of social interaction and learning experience.

COTTON FARMING DECEMBER 2016

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Specialists Speaking Learn From 2016’s Challenges FLORIDA David Wright

MISSISSIPPI Darrin Dodds

Farmers had a long window to finish harvest this fall as dry weather persisted late into the season with little to no rain. The climate forecast is for a La Niña weather phase during the winter, which usually means warm, dry conditions. This does not bode well for those who planted cover crops for next year’s crop. However, growers can focus on soil sampling, yield maps and management zones in their fields to figure out how to manage crops as they go into next season. This information will make it easier to decide whether certain inputs are needed. Likewise, rotations are critical to achieving consistent high yields and should be part of any management decisions for the coming year as farmers reflect on this year’s crop. wright@ufl.edu

Dry weather facilitated a very timely cotton harvest in 2016 and has persisted in many areas from the first part of August until mid- to late November. Fieldwork is all but complete; however, in some areas beds will likely have to be re-touched at some point as dry conditions prevented optimum bed formation. Dry conditions have also prevented germination of winter cover crops. Early indications for 2017 are that cotton acres will increase in Mississippi once again. Early predictions range from 600,000 to 700,000 planted acres next year. As everyone knows, a lot can happen between now and next May; however, cotton appears to be on the upswing. Furthermore, if early estimates hold, 2016 will mark the fourth consecutive year Mississippi growers have averaged more than 1,000 pounds per acre. Prior to 2013, the only year in which our growers as a whole eclipsed 1,000 pounds per acre was 2004. Regardless, the past four years have been very good for cotton growers, and many are hoping that will continue in 2017. darrind@ext.msstate.edu

NORTH CAROLINA Guy Collins As I write this on Oct. 31, North Carolina cotton producers are right in the middle of harvesting the 2016 crop. Yields vary depending on many factors, primarily fall weather. There have been several reports of decent yields, while many reports were not as positive. By the time this is read, harvest will be winding down or most likely completed. The 2016 season brought many frustrations for our producers. The large majority of fields had good to excellent yield potential in early September depending on summer rainfall, planting date, variety and insect pressure. Disappointingly, much of this potential was lost due to Hurricane Hermine followed shortly by Hurricane Matthew. This resulted in total crop losses in areas that were flooded and significant weathering losses (30 to 80 percent) in other areas that weren’t flooded. During December, as we reflect on the challenges of 2016 and look to a new year, I think it is important to 1.) Remember that the frustrations we experienced in 2016 aren’t necessarily the “new norm”; 2.) Focus on our inputs….what worked in 2016 and what didn’t….and what is the true value of our various inputs and 3.) Re-evaluate and realign our strategies to be more competitive in cotton for 2017. We look optimistically to a successful new year in 2017 and wish everyone a very Merry Christmas! guy_collins@ncsu.edu

LOUISIANA Dan Fromme Louisiana cotton producers have been vigilant in preventing the spread of herbicide-resistant weeds throughout the state. Now is a good time to review some key strategies going into the new season. To manage herbicide-resistant weeds and prevent development of resistance, weed scientists at the LSU AgCenter recommend the following practices. Use tillage, cultivation or other cultural practices, such as crop rotation, when possible. A residual herbicide should always be included in a weed resistance management program. It is important to rotate herbicides using different modes of action and apply tankmixtures at effective rates with different modes of action. Avoid using sequential applications of the same single herbicide over and over again. Weed control on fallow ground is important to prevent spreading of documented or suspected resistant weeds. Clean equipment thoroughly before and after each use to prevent resistant weeds from spreading to other fields. dfromme@agcenter.lsu.edu

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TENNESSEE Tyson Raper Before delving into variety selection, we should take some time to look back through our yield monitor data to determine the causes for any inconsistencies and whether they should be addressed. There are two contrasting lines of thought in addressing spatial variability. The first attempts to increase the uniformity of the field by increasing inputs within marginal areas to push yield to match optimal areas. The second attempts to increase the efficiency of each individual area within the field while disregarding field uniformity. Generally, this approach will result in a reduction of inputs within marginal areas while increasing inputs in optimal areas. Where should we be? Somewhere in the “gray area.” Arguably, the second approach is the most efficient but can be quite troublesome in cotton due to the difficulty associated with managing field variability. The best approach efficiently addresses marginal areas where returns on investment are likely without overspending on areas that will not provide a return. traper@utk.edu

ARKANSAS Bill Robertson The 2016 season presented several unique opportunities and challenges. Some still have us scratching our heads. Regardless of the challenges, as a season comes to an end, plans for next year should be falling in place. Variety and technology evaluation to begin the process for next year should be a priority. Best management practices (BMPs) have been developed for these new technologies to maximize performance and minimize drift, volatility, and/or contamination. Users of new technology must be fully committed to following these BMPs. There are many sources of information for new varieties, technologies and products. The University of Arkansas Division of Agriculture Cooperative Extension Service offers an excellent source of unbiased recommendations for crop production. Do your homework wisely and make decisions that best fit your needs or situation to improve your bottom line. Contact your local county Extension agent for updates on this season’s testing programs and to get the date and location of upcoming county production meetings. brobertson@uaex.edu COTTONFARMING.COM


MISSOURI Mike Milam Remarkable conditions allowed harvest to be completed much earlier than last year and the five-year average. From all accounts, yields are in the above-average range. We were fortunate the weather cooperated during both planting and harvest. Only the heavy rainfall in August marred this growing season. Producers should take advantage of both Missouri Soil and Water Conservation Districts and NRCS cost-share to put conservation practices on the ground. Production meetings, soil sampling, equipment maintenance and other practices will be beneficial to producers during the off-season. milammr@missouri.edu

OKLAHOMA Randy Boman Cotton harvest is in full swing at the time of this writing in early November. Both yield and quality in the 2016 crop have been outstanding. We are looking for a state record per-acre yield for the second consecutive year, and what is likely the greatest state-level bale production since the late 1940s. I fully expect to see records set for some fiber properties again this year, too. The season ended with another outstanding fall with above-normal temperatures, and thus cotton heat-unit accumulation, in September and October for the third time in a row. Sometime in the future we will swing back the other way and encounter below-average temperatures, as that is how averages work. Producers should be thinking about how to manage fertility and get ahead of the game with soil sampling and analysis. As we move into post-harvest, farmers need to do their homework and ponder responses to challenges encountered in 2016. randy.boman@okstate.edu

TEXAS Seth Byrd

TEXAS Gaylon Morgan The weathered cotton from the UGC (Upper Gulf Coast) has been feeding into the Corpus Christi Classing office with lower quality across the board on color, leaf grade, length and strength. From the Abilene Classing Office, the overall cotton quality has been decent, but with higher levels of bark than usual. In the entire Rolling Plains, defoliation has been more successful and consistent than in years past with warm weather and fewer stressed plants. The Permian Basin harvest is estimated at 75 percent completed and rolling strong with average to slightly above-average yields. Harvest of non-irrigated cotton in the Southern Rolling Plains was less than 50 percent completed when the early November rains delayed operations. Irrigated cotton harvest is just moving into full swing but with yields higher than expected. Fortunately, little yield or quality loss is expected. The Northern Rolling Plains is estimated at less than 10 percent harvested due to a late-maturing cotton crop and rain delays. gmorgan@tamu.edu

ARIZONA Randy Norton With the 2016 season behind us, it is a good idea to conduct a “post-mortem,” so to speak, on the season to evaluate what went right and what went wrong. Obviously, some things are out of our control, such as weather, but many others can be evaluated and changes made to increase your operation’s efficiency in the coming season. The key to conducting a successful post-mortem is to have plenty of data and records to review. Having good in-season records of what happened will help tie a response in the crop (such as yield) to in-season crop management techniques. Start by examining fertility, irrigation, plant growth regulators, pest control and harvest prep records. Look for relationships between these management practices and crop response, specifically yield and fiber quality. Yield monitor data from your harvester provides a unique overview of the season and crop response to management. Initiating improvements based upon this review will make your operation more efficient in the future. rnorton@cals.arizona.edu

SUSAN SLOAN JOHNSON

By the time this issue of Cotton Farming reaches you, the majority of West Texas cotton will be out of the field. As of early November, about 20-25 percent of High Plains acres had been harvested. However, a period of rain halted field activities for a week, likely leaving a small but significant amount of acres to be harvested in December. The vast majority of the more than 500,000 bales classed as of Nov. 3, has had excellent leaf and color grades, and micronaire. Ideally, this trend will continue throughout harvest. While the 2016 season generally was favorable for cotton production, reflecting on issues after harvest provides an opportunity to ad-

dress problems moving forward. Weeds continue to be a challenge, and bacterial blight and Verticillium wilt were present to a significant degree in certain places. Accounting for these factors in the decision-making process for 2017 could be key if some farmers believe they left pounds in the field. seth.byrd@ag.tamu.edu

T OTTONF FARMING ARMING TWITTER WITTER:: @C @COTTON

DECEMBER 2016 2016 COTTON COTTON FARMING FARMING DECEMBER

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than 988 individuals. Trenton, Tenn., cotton consultants Larry Kimery and his wife, Judy, are long-time supporters of the Carl Perkins Center. One of their favorite ways to contribute is by participating in the Rusty Mac Adopt-a-Teen Program that provides Christmas gifts for teenagers served by the center. A local radio broadcaster, Rusty Mac started the program to honor his son, Seth Adam, who died from complications shortly after he was born. Transform My Community Contest This past September, Larry learned about another opportunity that — if he won the grand prize — would allow him to provide significant funding to the Carl Perkins Center. Joel Alvey, his Dow AgroSciences sales rep, encouraged Kimery to enter the Transform My Community Contest, sponsored by Dow AgroSciences and Cotton Farming magazine. To enter the contest, cotton growers and consultants were required to submit a short essay about how their community organization could be “transformed” with a donation of $20,000. Entries were judged on compelling need, creativity and tie-in to the Transform insecticide theme. “I went home, talked it over with Judy and decided to enter the contest,” Kimery says. “I was shocked and thrilled when Joel called to tell me I had been selected as the grand prizewinner. I am proud to have been a supporter of the Carl Perkins Center for all these years, and I thank everyone there for what they do. I also thank Dow AgroSciences for this generous donation that will go a long way to help all the children in need of the center’s services.” Today, the Carl Perkins Center offers a multitude of programs that require funding to sustain them. Among these services are a 24-hour hot line, victim advocacy, community education, forensic interview, therapeutic visitation and a relative caregiver program. “The center promotes education and awareness through participation in local community events and by providing free educational and child abuse awareness trainings to professionals and community members alike,” says Leah Blackburn, director, Gibson County Carl Perkins Center. “It’s hard to put into words what receiving the $20,000 Dow AgroSciences TMC grand prize money means to the Gibson County Carl Perkins Center. We are so very thankful that Mr. Kimery continues to support our center, and believes in what we do. This prize will allow the center to continue to provide quality services and advocate for more children and their families in Gibson County, just when they need it the most. Mr. Kimery is truly making a difference in the lives of children in Gibson County.” Passionate About Cotton In addition to contributing to their community, the Kimerys also work hard for their farmer clients. “Larry and his wife, Judy, are very passionate about the cotton industry in West Tennessee,” Alvey says. “They work hard to help their cotton growers incorporate good pest management practices into their production programs to help maximize yield potential. One thing that stands out to me about Larry and Judy is how fulfilling it is for them to scout cotton. Although it’s hard work, they recognize the important role the cotton industry plays in

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Transform My Community Runners-Up In addition to Larry Kimery being chosen the grand prizewinner of the Transform My Community Contest, two runners-up were recognized for their outstanding entries. Each one received a $500 donation to his cause. n Clarksdale, Miss., cotton farmer BOWEN FLOWERS submitted his entry on behalf of the Clarksdale Animal Rescue Effort and Shelter. This facility strives to offer endless possibilities for the animal/human bond and transform the negative realities of living in a rural, poverty-stricken town into positives. To learn more, go to http://www.caresclarksdale.com/ and visit Facebook at CARES Clarksdale Animal Rescue Effort and Shelter. n TIM LUCKEY, who also was named a runner-up, is a cotton farmer in Humboldt, Tenn. Luckey works with an organization called Hunters Sharing the Harvest. Participants distribute deer meat to the shelters and food banks in Gibson, Carroll and Crockett counties to help feed people who are in need. To view the latest news and events, visit Facebook at Hunter’s Sharing The Harvest, Inc. the community in which they live. “Dow AgroSciences also is committed to helping cotton growers transform their fields for maximum production. That’s why Transform insecticide, which offers superior plant bug control, is proud to sponsor this contest and support Larry and the Carl Perkins Center who work so hard to help others.” Lindsey LaBerge, product manager for Isoclast, Dow AgroSciences, agrees. “The Mid-South cotton farming region means so much to the Transform brand. Rural agricultural communities aren’t often given the attention they deserve, but they are the core of our customer base,” she says. “We want to help transform these cities and towns by supporting those organizations actively working to make their communities better. “We are always blown away by the quality of the entries we receive. It’s great to see how committed and passionate our growers are about serving their communities. It’s also great to hear stories about the positive impact Transform is having on producers’ cotton farms. Larry’s entry really hit home with a lot of us, especially during the holiday season. The Carl Perkins Center is providing a valuable service to its community, and we are thrilled to have the opportunity to substantially impact the center’s work with this award.” On a day-to-day basis, everyone associated with the Carl Perkins Center deals with the tragic, heart-rending circumstances of child abuse. But thanks to the compassionate, hard-working staff, success stories often emerge, which makes it all worthwhile. As one lady wrote in a letter to the center where she had been taken as a 12-yearold little girl, “I stand before the world today as a testament to what perseverance and drive and hope can do in your life. The center stepped in and gave mine and my siblings’ lives hope and options for a better life. We could at last break the cycle, and we have chosen to.” Please visit carlperkinscenter.org to learn more about this organization whose goal is to give hope and support to one of the most vulnerable groups in our society — the children.  Contact Carroll Smith at csmith@onegrower.com or 901326-4443. COTTONFARMING.COM


COTTON

Ginners Marketplace COTTON FARMING IS THE OFFICIAL PUBLICATION OF THE GINNING INDUSTRY.

Nominations Open For TCGA Cotton Ginner Of The Year Now is the time to send in your nomination for the Texas Cotton Ginners’ Association Ginner of the Year. This is the highest honor a gin manager can receive by peers in the industry. Guidelines for the selection of Ginner of the Year include service to customers through: ■ Quality ginning, ■ Ethical business standards and ■ Other constructive activities. TCGA also considers: ■ Service to all branches of the cotton industry through support and leadership of constructive activities and programs. ■ Other contributions to the people of the community, county and state, such as civic leadership and philanthropic work. If you know of someone who deserves this prestigious honor, send TCGA a letter describing his or her attributes. Supporting letters from other industry individuals and organizations are encouraged. Please send nomination letters by Dec. 31, 2016. Address the information to Texas Cotton Ginners’ Association, Ginner of the Year, 408 W. 14th St., Austin, TX 78701.

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COTTON FARMING DECEMBER 2016

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Cotton Ginners Marketplace

2 – Lummus Model 66 Lint Cleaners with Condensers

1 - Complete 2/141 Gin Plant consisting of: Unloading System with 15” diameter single-lane Powered Telescope, Rock Trap with Trash Vacuum, 72” Unloading Separator/Feed Control with Vacuum Wheel and Flight-Saver, and No. 50 Unloading Fan; First-Stage Drying/Precleaning System with Continental 3 MBTU Burner and No. 40 Push Fan, 54” Tower Dryer, 96” Continental Inclined Cleaner with Vacuum Wheel over 96” Horn 3-Saw Stick Machine (with double 96” x 24” Vacuum Wheels), Second-Stage Drying/Precleaning System with Continental 3 MBTU Burner and No. 40 Push Fan, 54” Tower Dryer, 96” Continental Inclined Cleaner with Vacuum Wheel over 96” Continental 2-Saw Stick Machine; Distribution/Overflow System with Continental 2-Stand Conveyor Distributor and 72” Automatic Overflow Hopper with Breaker Cylinder; Feeding/Ginning System with two (2) Continental 141-Saw Gins (converted) and 96” Comet Supreme Feeders; Lint Cleaning System with four (4) 66” wide Continental 16-D Lint Cleaners (two tandem arrangements); Condensing/Pressing System with 50” Moss Battery Condenser, 20” x 54” Continental Bespress, and Bale Handling System with Bale Push Cart (manual) and Bagger (powered); five (5) Smith 35/40 Centrifugal Fans (only one season of operation)


Advertise in Cotton Ginner’s Marketplace

LEC-200 Electronic Seed Scale

• Place classified ads for equipment, sales and help wanted • Generate leads, drive sales and INCREASE PROFITS CONTACT SALES MANAGER SCOTT EMERSON 386-462-1532 • SEMERSON@ONEGROWER.COM

Want the best prices AND products? The Early Bird Sale is going on now!

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Save $$$ on new products. Ends January 18. samjackson.com

806-795-5218



Oil Free Air Cylinders & Valves  Double Cylinders –– Upper & Lower  100+ Bale per Hour Capacity

Lu b b o c k Ele c t r i c C o . 800-692-4474

www.lubbockelectric.com

WWW.NORTHERNLUCUS.COM 1116 Slaton Hwy. Lubbock, TX

FOR SALE: 2 – 158 GIN STANDS WITH CONTROLS MANUFACTURER OF HI-CAPACITY LINT CLEANING SYSTEMS IN 86” to 110” WIDTHS NEW 60” & 72” OVERSHOT BATTERY CONDENSERS

Cotton Ginners Marketplace

96” TO 144” INCLINE CLEANERS, STICK MACHINES & AIRLINE SEPARATORS HIGH CAPACITY VACUUMS USED & FACTORY REBUILT GIN MACHINERY BALE HANDLING SYSTEMS COMPLETE LINE OF REPAIR PARTS FOR MURRAY, MITCHELL, H.E., CONSOLIDATED, CONTINENTAL, MOSS, LUMMUS, HORN & CMI 806-745-8156 1-800-776-8182 FAX 806-745-0564 E-MAIL: NORTHERNLUCUS@YAHOO.COM WWW.NORTHERNLUCUS.COM

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COTTON FARMING DECEMBER 2016

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Industry News EPA Approves XtendiMax Herbicide With VaporGrip Technology For In-Crop Use The Environmental Protection Agency has approved XtendiMax herbicide with VaporGrip Technology, a low-volatility dicamba formulation, for in-crop use with Roundup Ready 2 Xtend soybeans and Bollgard II XtendFlex cotton. Farmers will now have another tool for use within the Roundup Ready Xtend Crop System in the United States in 2017, pending state approvals. Monsanto is in a strong position to supply dicamba demand to support the Roundup Ready Xtend Crop System in soybeans and cotton. The Roundup Ready Xtend Crop System is intended to provide more consistent, flexible control of toughto-manage and glyphosate-resistant weeds and help maximize crop yield potential. It provides tolerance to three herbicides — dicamba, glyphosate and glufosinate — in Bollgard II XtendFlex cotton. “ X t e n d i M a x w i t h Va p o r G r i p Technology introduces a significant

reduction in volatility potential compared to dicamba formulations currently on the market today,” says Ryan Rubischko, North America dicamba portfolio lead.

Trait Stewardship Responsibilities Notice to Farmers for “Strong Cotton” Advertisement for Deltapine

High Plains Ag Conference Set For Dec. 9 In Lubbock The Texas A&M AgriLife Extension Service will conduct the annual High Plains Ag Conference from 8:30 a.m.3 p.m., Dec. 9, at the Texas A&M AgriLife Research and Extension Center, 1102 E. Farm-to-Market Road 1294, Lubbock. T h e Te x a s D e p a r t m e n t o f Agriculture continuing education units offered for those with a valid private pesticide applicators license will be two integrated pest management — one laws and regulations — and two general. Individual pre-registration, which includes lunch, is $35 by Dec. 7 and $45 thereafter with no lunch guarantee. For more information, contact Robert Scott, AgriLife Extension agent in Lubbock County at rj-scott@ tamu.edu or 806-775-1740.

Come Join Us In St. Louis!

Bollgard II ® XtendFlex® cotton contains genes that confer tolerance to glyphosate, the active ingredient in Roundup® brand agricultural herbicides, dicamba, the active ingredient in M1691, and glufosinate, the active ingredient in Liberty ® brand herbicides. Roundup ® brand agricultural herbicides will kill crops that are not tolerant to glyphosate. Dicamba will kill crops that are not tolerant to dicamba. Glufosinate will kill crops that are not tolerant to glufosinate. Contact your Monsanto dealer or refer to Monsanto’s Technology Use Guide for recommended Roundup Ready ® Xtend Crop System weed control programs. DO NOT APPLY DICAMBA HERBICIDE IN-CROP TO BOLLGARD II ® XTENDFLEX® or XTENDFLEX® COTTON IN 2016 unless you use a dicamba herbicide product that is specifically labeled for that use in the location where you intend to make the application. While no in-crop use of dicamba is currently approved, some dicamba products may be labeled for weed control prior to planting a crop and subject to minimum plant-back restrictions. IT IS A VIOLATION OF FEDERAL AND STATE LAW TO MAKE A N I N - C R O P A PPL I CAT I O N O F A N Y D I CA M B A HERBICIDE PRODUCT ON BOLLGARD II ® XTENDFLEX® or XTENDFLEX® COTTON, OR ANY OTHER PESTICIDE APPLICATION, UNLES S THE PRODUCT L ABEL SPECIFICALLY AUTHORIZES THE USE. Contact the U.S. EPA or your state pesticide regulatory agency with any questions about the approval status of dicamba herbicide products for IN-CROP USE WITH Bollgard II® XtendFlex® or XtendFlex® cotton and follow all pesticide product labeling. Monsanto Company is a member of Excellence Through Stewardship® (ETS). Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto’s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. Only commercialized products have been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from this product can only be exported to, or used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Growers should talk to their grain handler or product purchaser to confirm their buying position for this product. B.t. products may not yet be registered in all states. Check with your Monsanto representative for the registration status in your state.

NAICC ANNUAL MEETING AND AG PRO EXPO January 17-21, 2017 Hyatt Regency at the Arch St. Louis, Missouri For information call: (901) 861-0511 TWITTER: @COTTONFARMING

www.naicc.org

Individual results may vary, and performance may vary from location to location and from year to year. This result may not be an indicator of results you may obtain as local growing, soil and weather conditions may vary. Growers should evaluate data from multiple locations and years whenever possible. ALWAYS RE AD AND FOLLOW PESTICIDE L ABEL DIRECTIONS. Roundup Ready ® crops contain genes that confer tolerance to glyphosate, the active ingredient in Roundup® brand agricultural herbicides. Roundup® brand agricultural herbicides will kill crops that are not tolerant to glyphosate. Bollgard II®, Respect the Refuge and Cotton Design ®, Roundup Ready ®, Roundup Technology ®, Roundup ® and XtendFlex ® are registered trademarks of Monsanto Technology LLC. Dedicated to Cotton, Committed to you ® and Deltapine ® are registered trademarks of Monsanto Company. LibertyLink® and the Water Droplet Design® is a registered trademark of Bayer. All other trademarks are the property of their respective owners. ©2016 Monsanto Company. DP-17010-CF-LC DEC

COTTON FARMING DECEMBER 2016

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My Turn A Proud Player On ‘Team Cotton’

S

i x t e e n y e a r s a g o , but I once told Roger, “You know, working at Plains I w a s a c o l l e g e Cotton Growers is pretty much the only job I’d s t u d e n t a t Te x a s consider leaving the chamber for.” Again, little Tech University in did I know that only a year or so later, that would Lubbock, two hours away become reality. After five years at Plains Cotton Growers, I still from my family’s cotton and peanut farm on the Texas am a relative newcomer to the cotton industry, Rolling Plains, searching although I’ve been part of the cotton family since for long-term significance – the day I was born, as evidenced by numerous photos my mom snapped of me sitting in the middle of and a part-time job. As I was perusing the a cotton field during my early years. My dad, both Mary Jane classifieds in the Lubbock grandfathers, and generations before that all made Av a l a n c h e - J o u r n a l , m y farming and ranching their way of life, instilling in Buerkle eyes settled on an ad for a me a love for agriculture that only has grown over newsroom clerk. I had the the years. The best part of my job is working alongside and experience, I suppose – at the age of 12, I was “publishing” my own newspaper from a typewriter, for others who share that love and spirit. I continue making copies, and distributing it on the streets to be immeasurably blessed by and thankful for so many who have helped of Rochester, Texas. me learn and grow, I wrote about a local “For our team at Plains Cotton especially my families grower’s hot pink peanut trailers, tales from Growers, it is a passion to serve.” both at work and at home. For our team at the cotton gin, and PCG, it is more than a other stories of interest from our tiny town – some 100 percent factual, job – it is a calling, a passion, a fire that we all have some perhaps embellished a little by the source but to serve this incredible industry and its people. However, it takes even more than that to experientertaining nonetheless. Little did I know that my love for newspapers ence the kind of success that positively contributes and writing would be the beginning of my trajecto- to a farming operation’s bottom line. We must ry into one of the most significant opportunities of have dedicated growers who are willing to serve my life. That job at the Lubbock A-J, I learned at on behalf of their fellow producers, whether it’s on the interview, would include writing obituaries. I a gin board, with a regional grower organization, came to realize that there are few greater respon- or becoming involved with the National Cotton sibilities in writing and paying attention to detail Council, Cotton Incorporated or The Cotton Board. than in a final memoir of someone’s time on this So, if you’re a grower reading this, and you’ve been earth. The clerk job grew into an internship where of service in any capacity, thank you for stepping I covered agriculture, and that’s when it became up to the task. I could say that this job has become a part of apparent that this industry was where I belonged. Even as I moved on to the Lubbock Chamber of who I am, but upon reflecting, I realize that it Commerce, agriculture was part of my program of always was. Although times have been tough lately work, because in Lubbock, agriculture and busi- for growers across the Cotton Belt – including my family – it is exciting to think about what’s to come ness go hand in hand. All of these highlights built upon each other. because of so many great leaders advocating for For example, I first met Steve Verett and Roger Team Cotton, and I am grateful to be a part of that. Haldenby while I was reporting for the Lubbock – Mary Jane Buerkle, Lubbock, Texas A-J. Steve later was chairman of the Lubbock Director of Communications and Public Affairs, Chamber of Commerce during my time there, and Plains Cotton Growers Inc. Roger led the agriculture committee and numerous maryjane@plainscotton.org other initiatives. I loved working at the chamber,

Cotton Farming’s back page is devoted to telling unusual “farm tales” or timely stories from across the Cotton Belt. Now it’s your turn. If you’ve got an interesting story to tell, send a short summary to csmith@onegrower.com. We look forward to hearing from you.

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What you put in the ground determines what you put in the tank. Plant glufosinate tolerant seeds. Harvest the benefits of new Interline herbicide. It’s one of your earliest decisions…’What seed variety will I plant in the spring? What tool will I use to combat weed resistance?’ In past seasons you may have wanted to plant glufosinate-tolerant or LibertyLink® cotton or soybeans, but were uncertain if the chemistry would be affordable for you to use during herbicide application timing. Worry no more! As the second largest global manufacturer of glufosinate, UPI is pleased to reliably supply the market with Interline® herbicide. Manufactured in our new state-of-the-art facility, Interline provides an HRAC Group10 herbicide that controls the toughest resistant pigweed, waterhemp, marestail, and ragweed. So choose and plant your glufosinate tolerant seeds with confidence, and Interline herbicide will be ready and waiting in the spring. To learn more, contact your local UPI distributor, UPI sales representative or visit www.upi-usa.com.

Always read and follow label directions and precautions. LibertyLink is a trademark of Bayer CropScience. Interline® and UPI logo are trademarks of United Phosphorus, Inc. ©September, 2016. UPI, 630 Freedom Business Center, King of Prussia, PA 19406. www.upi-usa.com.


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T Tough ough c challenges hallenges d demand emand s strong trong s solutions. olutions. D Deltapine eltapine B ollgard IIII X XtendFlex tendFlex Bollgard                      the the HIGHEST YIELD POTENTIALPREMIUM FIBER QUALITY and the     MOST EFFECTIVE WEED CONTROL SOLUTIONS      ®

®

®

PROVEN VARIETIES. STRONG PERFORMANCE.

DICAMBA IS NOT YET APPROVED FOR IN-CROP USE. Always read and follow IRM, where applicable, grain marketing and all other stewardship practices and pesticide label directions.

Details of these practices can be found in the Trait Stewardship Responsibilities Notice to Farmers for the ‘Strong Cotton’ advertisement for Deltapine printed in this publication. ©2016 Monsanto Company. DP-17010-CF-BC-DL-1646, 1614, 1639 DEC


Cotton farming december 2016