How will the Biden administration affect the cotton industry?

Jan. 20 marked a new transition of power as Joe Biden was sworn in as the new president of the United States, leaving most wondering how his administration’s policies will affect us over the next four years.

Jody Campiche, director of economics and policy analysis at the National Cotton Council in Memphis, Tennessee, weighed in on how the cotton industry is expected be impacted by Biden’s picks and policies during his term.

With the Senate being composed of 50% Republicans and 50% Democrats, and with Vice President Kamala Harris serving as head of the Senate, this effectively gives the Democrats the majority of the Senate. The House of Representatives is made up of 220 Democrats and 211 Republicans since the GOP picked up several seats in the last election. However, Campiche said there is still one race that is uncalled in New York.

Additionally, there will be four vacant seats in the House of Representatives that will need to be filled—two of which are in Louisiana. In the second district, which is in the New Orleans area, Rep. Cedric Richmond, D-LA—is leaving to join the Biden administration. He has been appointed to the Office of Public Engagement, which is the gateway for industry, businesses and trade associations like the NCC to engage directly with the White House.

“He has been doing a lot of outreach to the business community and has been viewed as someone who tries to work in a bipartisan way in Congress,” Campiche said. “We think that will bode well for trying to work with the White House.”

Another opening in Louisiana is in the fifth district, which encompasses the rural northeastern part of the state, where a lot of cotton is grown. Rep. Ralph Abraham, R-LA, had held that seat for several terms, but recently retired. His chief of staff Luke Letlow was elected the seat in 2020, but tragically died from COVID-19 complications in December. Both of these seats will be decided in special elections on March 20.

Rep. Deb Haaland, D-NM, has been nominated for secretary of the interior, and Rep. Marsha Fudge, D-OH, has been nominated for the housing and urban development secretary position, so special elections will need to be held to fill both seats.

With change comes compromise

With the changes coming to Congress, several committees will undergo changes that will impact the cotton industry. Because of the change in majority in the Senate, Sen. Debbie Stabenow, D-MI, will become the chairman of the Senate Agriculture Committee and Sen. John Boozman, R-AR, will be the ranking member of the committee. On the Senate Appropriations Committee there will be no changes other than a reversal of roles with former chairman Sen. Richard Shelby, R-AR, becoming ranking member and Sen. Patrick Leahy, D-VT, moving to chairman. Sen. Lindsey Graham, R-SC, will be replaced by Sen. Bernie Sanders, D-VT as chairman of the Senate Budget Committee,. On the Senate Environment and Public Works Committee, Sen. Shelley Capito, R-WV, will be the top Republican. On the Senate Finance Committee, Sen. Mike Crapo, R-ID, will be the top Republican.

There will be new leadership on both sides of the House of Representatives. On the majority side, Rep. David Scott, D-GA, has been named the new chairman of the House Agriculture Committee and Rep. Glenn Thompson, R-PA is the top Republican.

“Chairman Scott has been a strong advocate and has been very supportive of the cotton industry and our issues even though his district is more urban,” Campiche said. “He doesn’t have an agriculture background, but none the less he recognizes the importance of the industry and we are very optimistic about working with him and his team.”

Campiche said even though Thompson is from Pennsylvania, he has been receptive and open to learning about the cotton industry and issues. In the fall of 2019 he toured a cotton gin, warehouse and witnessed cotton being harvested.

For the House Budget Committee, Rep. Jason Smith, R-MO, from the bootheel of Missouri will be the new ranking member. Campiche said most of the cotton in Missouri is grown in his district and he is a strong friend of the industry. On the House Natural Resources Committee, Rep. Bruce Westerman, R-AR, will be the new ranking member. Campiche said he is another an advocate of the cotton industry.

Katherine Tai has been nominated for U.S. Trade Representative and she has been serving as the lead advisor to the chairman and Democratic members of the Committee of Ways and Means on matters of international trade.

“She is well respected by members on both sides of the aisle and was very involved in the renegotiation of NAFTA,” Campiche added.

Michael Regan of North Carolina has been nominated as the Environmental Protection Agency chief. Campiche said the NCC has not gathered much information on him so far, but they have reached out to agricultural groups in North Carolina, specifically the pork industry, who have worked closely with him. She said they have positive things to say about him and the working relationships he has cultivated.

“He has been doing some outreach to the agriculture community since he has been put forward in this position and we look forward to developing a good relationship there,” Campiche said.

President Biden has nominated Neera Tanden for director of the Office of Management and Budget. Tanden had strong ties to the Clinton and Obama administrations and Campiche said it is yet to be seen what kind of working relationship the cotton industry will have with her.

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News broke several weeks ago that Tom Vilsack, D-IA, a long-time friend of Biden’s was being nominated for secretary of agriculture.

“For us as an industry, this is probably the best outcome we could hope for in that position because we have had the opportunity to work with him for the eight years that he was there previously,” Campiche said.

Campiche said towards the end of his tenure as secretary of agriculture under the Obama administration, Secretary Vilsack and his team came up with the idea of The Cotton Cost Share Ginning program as a way to provide assistance until cotton was added back into the farm bill.

“Even though that was in response to a lot of political pressure from the Hill, they were the ones who figured out how to make that happen, so we give him a lot of credit for creativity and being willing to reach out and work with the industry,” Campiche explained.

Lacey Newlin can be reached at 620-227-1871 or [email protected].