The National Cotton Council has put together a summary of the provisions of the One Big Beautiful Bill Act that will have an effect on cotton production going forward. Several of these provisions will help farmers beginning with the crop in the ground so this is GREAT NEWS.

Southern Cotton Growers and Southeastern Cotton Ginners will be holding their Boards of Directors meetings next week. As we get more information we will pass it along to our membership.

Click on the image below to for the NCC Summary.

Please see below, information on an important webinar that USDA AMS Cotton and Tobacco Program’s Market News Division will be holding regarding the upcoming changes to the format of the Daily Spot Quote report. These adjustments reflect shifts in the quality of cotton produced in the U.S. At the Beltwide this year, AMS staff introduced some of these changes. Additionally, AMS previewed enhancements to the My Market News platform, which will soon provide cotton industry stakeholders with streamlined access to price reports and data.

Following the links in the notice below for additional information. AMS has dedicated a page in the “Notice to Trade” link and we encourage you to attend the webinar if you’re able.

See Information Below

To share details on these developments and offer guidance on using the new tools, we’ve scheduled a webinar titled “Cotton Price Reporting and Data Access” on July 15th at 2 PM CST. 

A link to the Notice To Trade (https://www.ams.usda.gov/content/usda-revising-daily-spot-cotton-quotations-report)

The registration link for the webinar (https://events.gcc.teams.microsoft.com/event/79f694d5-b210-4c30-914c-13ef94695198@ed5b36e7-01ee-4ebc-867e-e03cfa0d4697)

We’ll also be offering several forms of transitional support after the July 15th webinar, including:

• Weekly help sessions for industry, starting July 17, held every Tuesday and Thursday at 2 PM CT
• Continued file distribution via email during a transition period ending October 1
• Access to user guides, FAQs, and other resources (coming soon) on the My Market News General Resources, located here: https://mymarketnews.ams.usda.gov/general-resources.

• A recording of the July 15 webinar
• Templates for integration in both API and DSQ formats

As always, our Market News Reporters are available to answer any questions industry participants might have.

Those of you that use the H-2A program are used to the Adverse Effect Wage Rate or AEWR. A couple of years ago, the DoL locked in the most common jobs on a farm, commonly known as the ‘big six’ job classifications as having the AEWR tied to the NASS Farm Labor Survey. Most jobs in H-2A fall into that category. There are some jobs, such as heavy truck drivers, that do not. For those jobs, the DoL has determined that the AEWR will be determined by the Bureau of Labor Statistics Occupational Employment Wage Survey (OEWS).

Tomorrow, the DoL will publish that the new OEWS wages will be effective. These data are published in April or May but become effective on the DoL’s publication of their notice. This will happen tomorrow for 33 states. The new wages will become effective on July 25 for the 17 states (including SC, GA and FL) that had sued the DoL in 2024 over the Worker Protection Rule.

For example a truck driver in Georgia would have an AEWR of $26.80 last year but will be $27.20 after the effective Date.

Employers can access the new rates for their state on the BLS website. 

The DoL Page on AEWR is found here.

As most are filing H-2A contracts soon we didn’t want you to get caught off guard that these new rates were coming into effect.

DSF

One of the issues we’ve seen over the years with gins using the H-2A program is the exposure using an FLC brings to an already complicated situation. Gins, as the only private processor to be able to use the H-2A Program, are different from farmers in many ways such as the divers jobs we have, being subject to overtime and a partial overtime exemption.

The easiest way to take advantage of the H-2A program is by using a third-party Farm Labor Contractor or FLC. FLC’s can put crews in many locations and often provide as much labor as necessary. The service the provide is great. The problem is that they are often not familiar with the peculiarities that go along with cotton gins. Using FLC’s can also expose the fixed site employer (the gin) to any of the mistakes the FLC makes such as not paying overtime properly, or other issues.

We understand the issues facing our industry in finding labor. If you’re using an FLC either with or without the H-2A program we encourage you to educate yourself on the issues associated in using them the exposure you can have.

Our friends at Fisher and Phillips will be hosting a webinar on the use of FLCs and their relationship with farmers. This is not targeted at gins but will highlight how things can go wrong and how to make sure you know your exposure and how to have the best relationship with your FLC. The webinar will be on Tuesday July 8 at 3 PM eastern time. The site is in Pacific Time because the attorney presenting is in California.

To Register… Please go to : https://www.fisherphillips.com/en/news-insights/agricultural-webinar-series-or-grower-flc-relationship-101-compliance-challenges-and-risk-mitigation.html

DSF

I’ve heard several of you have gotten this directly from the DoL but wanted to remind everyone about this webinar. The DoL will be hosting a webinar from 10:30 AM to 5:30PM Eastern Daylight Time tomorrow June 25, 2025. (Check Registration for times)

You can register online by following the link https://www.eventbrite.com/e/virtual-agricultural-seminar-2025-hosted-by-us-department-of-labors-whd-tickets-1382053251479?aff=oddtdtcreator

DSF

During the last administration, as we’ve reported, there were a number of significant changes to the H-2A rules that had the potential to make it even more difficult and complicated to use the program. Late last week the Trump Administration has eliminated one of those rules, known as the Farmworker Protection Rule.

The FPR was made final in early 2024. It was seen as very pro-union like in that it regulated a lot of employer activities that are normally handled by the National Labor Relations Act and collective bargaining agreements. Farms are exempt from the NLRA. Activities such as allowing workers to engage in “concerted activities”, require farmers to allow organizers access to H-2A housing on the farm, requires progressive discipline, requires seatbelts on all vehicles used to transport workers even school busses not designed for belts and more.

The Farmworker Protection Rule was challenged in court in multiple jurisdictions. Those suits were able to get preliminary injunctions. The one that affects our members is one in the US District Court for the Eastern District of Kentucky. In that injunction, the members of the National Council of Agricultural Employers and its Member organization members (Southeastern Ginners is a member organization) were spared the enforcement of that rule.

Given that at least four other courts were also leaning against the rule, the Department of Labor has suspended the enforcement nationwide of the rule as of June 20, 2025

There are several other rule changes to the H-2A program that are being challenged but this is the one that had the most legal activity piled against it. The main driver in many of these suits is the National Council of Ag Employers. Your associations, both the Southeastern Cotton Ginners and the National Cotton Ginners are members of NCAE as organizations. Please consider joining NCAE as an individual company as well. www.ncaeonline.org.

The Southeastern Cotton Ginners Association applauds the Department of Labor in halting the enforcement of this rule. We hope to see it withdrawn completely soon.

DSF