CCOY Cotton Consultant of the Year established 1981
California Cotton Farmers Look For Market Stability
Danny Moore 2007 CCOY AWARD RECIPIENT
“I want my farmers to be able to trust me with anything. This does not happen overnight. It takes time. I want a farmer to think I am looking at his crop as if it were my own. That’s the way you earn trust and respect. “My advice to young people who want to become consultants is you can’t be scared of work — mentally or physically. You need good values as well as confidence in yourself and the decisions you make. The farmer definitely needs to believe in you. “Being named the Cotton Consultant of the Year was special to me. A great honor. It was very humbling to be mentioned in the same breath with the other past winners of this award.” Cotton Consultant of the Year sponsored by
Cotton Farming 24
COTTON FARMING | DECEMBER 2020
BY CHRISTINE SOUZA
A
bout halfway through their harvest, California cotton farmers said the market may be stabilizing amid trade challenges, water shortages and market conditions unsettled by the COVID-19 pandemic. Kern County farmer Jake Cauzza, who grew about 500 acres of mostly Pima cotton and some Acala, said things are starting to turn around. “In the past few months, the mills and spinners are coming back,” Cauzza said. “We’ve had some more purchases and, talking to my cotton broker, we’re looking at like more of a 15- to 30-cent positive gain in price, so we’re looking to get back to normal. We have a lot more Acala planted around here this year compared to the last five or 10 years just because that price has stayed somewhat stable, whereas the Pima price has pretty much crashed.” Early Season Conditions
Farmers report good crop quality, average to better-than-average yields and very little pest pressure. When growers made planting decisions early this year, trade challenges, reduced water availability and an oversupply of cotton inventory from 2019 led to about a 30% reduction in total acres planted. The U.S. Department of Agriculture said it expected California farmers to grow about 186,000 acres—146,000 of Pima and 40,000 of Acala or upland cotton — down 53,000 acres from 2019. “A lack of water played a big role, oversupply from 2019 played a role, and the fact that cotton wasn’t moving even before COVID happened due to the Chinese tariffs,” said Roger Isom, president and CEO of the California Cotton Ginners and Growers Association. Isom said he estimates this year’s California cotton production will reach about 280.5 million pounds. Rick Borges, who farms near Tulare, said he was happy with his decision to plant only Acala cotton in 2020. “The COVID pandemic led to closures
back in March, and I didn’t get the cotton planted until April,” Borges said, adding that the pandemic didn’t affect his planting decisions. “Once we got to the end of March-first of April and it was still raining, that’s when I made the decision to not plant Pima.” Had springtime weather been dry, he said he probably would still have planted Pima. “The way it turned out and the price for Pima cotton right now, I am much better off,” Borges said. Pleased with the quality of the Acala crop this year, he added, “I’m not happy with the price, but at least it is moving in the right direction right now.” Premium Pima
Mark Bagby, communications director for the Bakersfield-based cotton cooperative Calcot Ltd., said American Pima — a premium cotton that goes into products such as sheets, pillows, towels and dress shirts — commands a higher price than Upland cotton, but “at the moment is coming down off of its highs.” He said the price for Pima around Nov. 1 was $1.10-$1.15 a pound, whereas Upland or Acala was about 75 cents. “One of the things that Pima has struggled with is we have ample supplies and no market,” Bagby said. Retail Outlets
People in the cotton business said textile and retail sales have been hit hard by the pandemic. In the spring and summer, retail outlets were closed or closing, textile mills were closed and it was difficult to ship product overseas. Isom said retail reports from the summer show that “the single biggest drop was clothing.” He described permanent store closures and bankruptcies of retailers that feature California Pima cotton as “devastating.” “The most important thing is that we get those back open,” Isom said. “Prices have just recently started to rebound, so it’s going to be tough for a while.” Bagby said the challenge of not havCOTTONFARMING.COM
