The nation’s second-largest farm group, the National Farmers Union, adopted a policy statement that opposes the STAX program for cotton. STAX, a combination of a floor price and revenue insurance, was created in the 2014 farm law to resolve a World Trade Organization ruling against U.S. cotton subsidies. “While this program is subsidized at 80 percent, this is a shallow-loss program that, according to many economists, is unaffordable,” says NFU. It said cotton should be returned to the groups that traditionally are covered by crop subsidies.
Creation of the new STAX support “is a huge concern for our cotton farmers, their bankers and the rural communities,” says NFU. “We strongly oppose the STAX program.” The language about cotton was one of six special orders adopted by delegates during the NFU convention in Wichita. The National Cotton Council, which represents the cotton industry, was a leading proponent of STAX.