As a brisk fall wind kicks up outside, Tri Watkins, outgoing SCGA president, stands in his family’s beautifully refurbished office building in downtown Lepanto, Ark.
“I think that this building was built in the early 1920s, maybe even before that,” says Watkins, who runs the Rabbit Ridge Gin just outside town. “The business began in 1911 and, within 10 years of that, this building went up. My family’s been here ever since.”
How did the 2016 growing season treat this area of northeast Arkansas?
“We were very pleased with the uptick in cotton acres. The gin was 2,000 bales ahead of last year – up to over 9,100 bales for the season.
“We had a really good crop until that week of rain in August. That set us back. Nonetheless, we had a two-bale-plus crop, which is good for us. All in all, considering how hot it was in June and how wet it was in August, I have no complaints. A good, dry harvest helped, as well.”
Watkins says the gin didn’t pick up a bunch of cotton from growers whose area gins have been shuttered. “There are gins north of here – Monette, Leachville – that provide stiff competition for this region, especially now that round modules have come to the fore. There’s overcapacity in ginning as it now stands, at least in northeast Arkansas.”
Another cotton acreage bump is expected in 2017. “That isn’t because cotton prices are so strong but because none of the other crops look good. Soybean prices are up a bit but you can only plant so many acres of beans. And if too many go in, it’ll probably knock the market back even more.
“Guys around here are on again, off again with corn. Yields are too inconsistent for it to be a reliable crop.
“We had a good rice yield but the price just doesn’t support a lot of acres.”
What about the cottonseed side of the gin business?
“The price has fallen off quite a bit and that doesn’t help given the dearth of cotton. Milk plays a role, of course, and the dairy market isn’t really strong currently. The demand for cottonseed oil is also off.
“But we’re north of I-40, which the dairies like. We send some cottonseed north but aren’t seeing the demand experienced in the past. That’s reflected in the lower price.”
Asked to reflect on experiences as SCGA president, Watkins says “Honestly, everyone is just trying to survive. We’ve kept our heads down. The gins south of here seem to have had a stronger string of better yields and they seem to be in a little better shape.
“During tough times, ginners have to hang together. That is critical and the SCGA provides a vehicle for maintaining a united front.”
Questions about how the coming Trump administration will approach agriculture is also a concern.
“A lot of farmers voted for Trump. I’m not sure what kind of farm policy or farm bill his administration might produce. That’s a concern because reports are that the Heritage Foundation is being consulted and it’s well known that the Foundation doesn’t care for farm programs.
“The uncertainty is another reason for us to stick together and meet these issues in a united manner. If the farm bill starts taking knocks, we’re going to have to become more politically active.”
Also of concern: how trade deals will be negotiated in the future.