[Federal Register Volume 74, Number 191 (Monday, October 5, 2009)]
[Proposed Rules]
[Pages 51094-51098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23778]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 74, No. 191 / Monday, October 5, 2009 / 
Proposed Rules

[[Page 51094]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1205

[Doc. <greek-i> AMS-CN-09-0032; CN-08-003]


Cotton Research and Promotion Program: Designation of Cotton-
Producing States; Secretary's Decision and Referendum Order on Proposed 
Amendments to the Cotton Research and Promotion Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule and referendum order.

-----------------------------------------------------------------------

SUMMARY: This is the Secretary's decision concerning amendments to the 
Cotton Research and Promotion Order (Cotton Order) and provides Upland 
cotton producers and importers with the opportunity to vote in a 
referendum to determine if they favor the changes. The amendments would 
implement section 14202 of the Food, Conservation, and Energy Act of 
2008 (2008 Farm Bill) that amended the Cotton Research and Promotion 
Act (Cotton Act.) The 2008 Farm Bill provided that Kansas, Virginia, 
and Florida be separate states in the definition of ``cotton-producing 
state'' effective beginning with the 2008 crop of cotton. It has been 
determined that amendments need to be expedited and therefore a 
recommended decision is omitted.

DATES: For the purpose of determining producer voter eligibility, the 
representative production period is the period January 1, 2008, through 
December 31, 2008. For the purpose of determining importer voter 
eligibility, the 12-month period during which qualifying imports of 
cotton must have been made is January 1, 2008, through December 31, 
2008.
    The referendum will be held during the period October 13, 2009, 
through November 10, 2009.

FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and 
Promotion Staff, Cotton and Tobacco Programs, AMS, USDA, Stop 0224, 
1400 Independence Ave., SW., Room 2637-S, Washington, DC 20250-0224, 
telephone (202) 720-6603, facsimile (202) 690-1718, or email at 
<a href="/cdn-cgi/l/email-protection#e4b78c81908c8d96cab68d9285a4858997ca91978085ca838b92"><span class="__cf_email__" data-cfemail="3e6d565b4a56574c106c57485f7e5f534d104b4d5a5f10595148">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice 
of Hearing issued on November 24, 2008, and published in the December 
1, 2008, issue of the Federal Register (73 FR 72747).
    This administrative action is governed by the provisions of 
sections 556 and 557 of title 5 of the United States Code and, 
therefore, is excluded from the requirements of Executive Order 12866.

Preliminary Statement

    The proposed amendments were formulated based on the record of the 
public hearing held in Washington, DC, on December 5, 2008. The hearing 
was held to consider and receive evidence from Upland cotton producers, 
importers, and other interested parties on the proposed amendments to 
the Cotton Order (7 CFR part 1205). The hearing was held pursuant to 
the provisions of the Cotton Act (7 U.S.C. 2101-2118), and the 
applicable rules of practice and procedure governing research and 
promotion programs (7 CFR part 1200). The proposed amendments in this 
decision would: (1) Amend the Cotton Order to incorporate the States of 
Kansas, Virginia, and Florida into the definition of ``cotton-producing 
state'' as separate states, (2) amend the definition of ``cotton-
producing region'' to list Kansas, Virginia, and Florida as separate 
states, and (3) make any such changes as may be necessary to the Cotton 
Order if any of the proposed amendments as adopted, so that all of the 
Cotton Order's provisions conform to the effectuated amendments. AMS 
believes that conditions exist that warrant the omission of a 
recommended decision in this rulemaking proceeding under 7 CFR 
1200.13(d) of the Rules of Practice and Procedure with respect to the 
proposed amendments.
    The amendments are proposed by AMS to amend the Cotton Order and to 
implement section 14202 of the 2008 Farm Bill that amended the Cotton 
Act. In addition, AMS proposed to amend the definition of cotton-
producing region for consistency with the changes to the definition of 
cotton-producing state. AMS also proposed to make such changes as may 
be necessary to the Cotton Order to conform to any amendment that may 
result from the hearing. No conforming changes were determined to be 
necessary by AMS.
    Three witnesses testified at the hearing, and all were in favor of 
the amendments. One witness represented AMS, one witness represented 
the Virginia Cotton Growers Association and the National Council, and 
lastly, one witness represented the Cotton Board.
    At the conclusion of the hearing, the Administrative Law Judge set 
January 14, 2009, as the date for interested persons to file proposed 
findings and conclusions or written arguments and briefs based on the 
evidence received at the hearing on the proposed amendments. The 
Hearing Clerk received six briefs during the briefing period. Briefs 
were received from the offices of Congressman Allen Boyd, Jr., Florida; 
Congressman Bob Goodlatte, Virginia; and, Senator Pat Roberts, Kansas. 
Comments also were received from the Kansas Cotton Association, the 
Florida Farm Bureau; and, Southern Cotton Growers, Inc. Each of these 
briefs expressed full support of the prompt implementation of the 
amendments proposed by AMS. All discussions in briefs pertaining to the 
amendments proposed in this decision were considered. Two briefs, one 
from the office of Senator Bill Nelson, Florida; and one from the 
United States Association of Importers of Textiles and Apparel, were 
received after the January 14, date and therefore were untimely. 
Accordingly, they were not considered in this decision.

Proposals in This Decision

    AMS proposed these amendments to the Cotton Order for the purpose 
of implementing changes to the Cotton Act as mandated by section 14202 
of the 2008 Farm Bill. Section 14202 modified the Cotton Act by adding 
States of Kansas, Virginia, and Florida to the definition of ``cotton-
producing state'' as separate states effective beginning with the 2008 
crop of cotton. A crop year is synonymous with marketing year and 7 CFR 
1205.320 of the Cotton Order defines ``marketing year'' as a 
consecutive 12-month period ending July 31.

[[Page 51095]]

    AMS proposed to amend section 1205.314 of the Cotton Order to 
incorporate the States of Kansas, Virginia, and Florida into the 
definition of cotton-producing state and amend section 1205.319 to 
reflect the incorporation of the above three states in the definition 
of cotton-producing region.

Material Issues

    The material issues in this decision presented on the record of the 
hearing are as follows:
    1. Whether to amend section 1205.314 to read as follows: Cotton-
producing State means each of the following States and combination of 
States: Alabama; Arizona; Arkansas; California-Nevada; Florida; 
Georgia; Kansas; Louisiana; Mississippi; Missouri-Illinois; New Mexico; 
North Carolina; Oklahoma; South Carolina; Tennessee-Kentucky; Texas; 
and Virginia.
    2. Whether to amend section 1205.319 to read as follows: ``Cotton-
producing region'' means each of the following groups of cotton-
producing States: (a) Southeast Region: Alabama, Florida, Georgia, 
North Carolina, South Carolina, and Virginia; (b) Midsouth Region: 
Arkansas, Louisiana, Mississippi, Missouri-Illinois, and Tennessee-
Kentucky; (c) Southwest Region: Kansas, Oklahoma and Texas; (d) Western 
Region: Arizona, California-Nevada, and New Mexico.
    3. Whether to expedite the decision on all of the proposals by 
omitting the recommended decision and proceeding directly to the 
Secretary's decision and referendum order.

Findings and Conclusions

    The following findings and conclusions on the material issues are 
based on the record of the hearing.
Material Issue Number 1
    Section 1205.314 should be amended to provide that the States of 
Kansas, Virginia, and Florida be separate states in the definition of 
``Cotton-Producing State.'' Section 1205.314 should read as follows: 
``Cotton-producing State'' means each of the following States and 
combination of States: Alabama; Arizona; Arkansas; California-Nevada; 
Florida; Georgia; Kansas; Louisiana; Mississippi; Missouri-Illinois; 
New Mexico; North Carolina; Oklahoma; South Carolina; Tennessee-
Kentucky; Texas; and Virginia.
    Section 1205.314 of the Cotton Order currently defines Cotton-
Producing State as, ``Cotton-producing State means each of the 
following States and combination of States: Alabama-Florida; Arizona; 
Arkansas; California-Nevada; Georgia; Louisiana; Mississippi; Missouri-
Illinois; New Mexico; North Carolina-Virginia; Oklahoma; South 
Carolina; Tennessee-Kentucky; Texas.'' Currently, Kansas is not 
included in this definition, Virginia is combined as a region with 
North Carolina, and Florida is combined as a region with Alabama. AMS 
is proposing to amend the definition so that Kansas is added and 
Florida and Virginia are separated from their current partner states.
    The witness representing AMS testified that the major effect of 
these changes is that any cotton producer organization, in any cotton-
producing state, including the respective States of Kansas, Virginia, 
and Florida, may request certification from the Secretary pursuant to 
section 1205.341 of the Order to participate in nominating members and 
alternate members to represent such State on the Cotton Board pursuant 
to section 1205.324. The witness also testified that the change would 
also allow the States of Kansas, Virginia, and Florida, pursuant to 
section 1205.322(b)(1), to have at least one member, and one additional 
member for each 1 million bales or major fraction (more than half) 
thereof of cotton produced in the state and marketed above 1 million 
bales during the period specified in the regulations for determining 
board membership. Further, the AMS witness stated that in determining 
whether any cotton-producing state is entitled to be represented by 
more than one member of the Cotton Board, as provided in section 
1205.322, average annual production of Upland cotton in terms of 480-
pound net weight bales for the five most recent marketing years will be 
used as the criteria for determination of such additional members.
    The AMS witness cited the U.S. Department of Agriculture's National 
Agricultural Statistics Service's report entitled Cotton Ginnings 2007 
Summary (Exhibit 6), which published the total bales produced and 
ginned (or marketed) by State. In the 2007 marketing year, according to 
this publication, Florida produced 105,900 Upland cotton 480-pound 
bales and would be entitled to one member and one alternate. Kansas 
produced 53,500 Upland cotton 480-pound bales and would be entitled to 
one member and one alternate. Virginia produced 98,050 480-pound bales 
and would be entitled to one member and one alternate.
    We also note that the Cotton Ginnings 2007 Summary shows the bales 
ginned for: Alabama--409,900 bales and North Carolina--61,600 bales. 
This demonstrates that those states have significant production of 
cotton, and having their own Cotton Board seats would not be 
inappropriate.
    The AMS witness stated that if the proposed changes are adopted, a 
total of three additional members and three alternates would be added 
to the Cotton Board. The witness said the 2008 Cotton Board was 
composed of 37 members and 37 alternate members, which are 22 producer 
and 15 importer members and their respective alternates, and one 
consumer advisor. Excluding the proposed amendment to the Cotton Order, 
the 2009 Cotton Board, already calculated, would be 38 members and 38 
alternates, which would be 23 producers and 15 importer members and 
respective alternates. The AMS witness indicated that if current cotton 
production and cotton imports remain consistent with their 5-year 
averages, and there are no changes, then just three additional producer 
members will be added based on the cotton gin for those three states. 
The total Board membership would be 26 producers and 15 importer 
members and respective alternates, and one consumer advisor.
    The witness appearing on behalf of the Virginia Cotton Growers 
Association and the National Cotton Council (VCGA/NCC witness) strongly 
supported the proposed amendments. The witness testified that the 
amendments to the Cotton Order, which would ultimately provide Kansas, 
Virginia and Florida individual representation on the Cotton Board, 
will enhance the Board's ability to carry out its mission. Further, the 
witness indicated that these states have, and will continue to 
contribute funds to the Cotton Research and Promotion Program. By 
providing the three states with individual representation on the Board, 
the witness stated that it will strengthen their support, enhance 
communication from these production areas, and better enable the Cotton 
Board to represent the interests of all cotton-producing areas in the 
United States. Moreover, the witness said that there is no other 
national research and promotion program for Upland cotton like the one 
carried out under the Cotton Act. The new representation on the Board 
will not overlap or contradict any ongoing promotional activities in 
any region of the Cotton Belt.
    The VCGA/NCC witness stated that the addition of individual 
representation for Kansas, Virginia and Florida reflects the shift in 
Upland cotton production over the years. For example the witness said 
successful completion of the Boll Weevil Eradication Program has led to 
the resurgence and expansion of cotton in the Southeast, including 
Virginia and

[[Page 51096]]

Florida. In addition, improved transportation, storage and handling, 
some as a direct result of research conducted under the Cotton Act, has 
led to Upland cotton production in Kansas. According to the witness, in 
Virginia and Florida, the total economic activity generated by cotton 
production and processing exceeds $100 million annually in each state. 
In Kansas, acreage expanded rapidly, until recently, when prices from 
competing crops reversed the trend. The witness stated that the three 
states continue to plant more than 300,000 acres of cotton, employ over 
3,000 people, and produce annual cotton crops valued at $100 million 
annually in each state at the farm gate.
    The witness commented that the Cotton Research and Promotion 
Program funded through producer and importer contributions has been 
highly successful. Broader representation will facilitate even stronger 
support and enhance participation by producers. In addition, the 
witness urged the Secretary to take the necessary action to amend the 
Cotton Order, as this action will assure that nearly a thousand 
producers, who account for nearly 5 percent of annual production, will, 
for the first time, have direct representation and input into the 
program which they are helping finance. The witness concluded by saying 
that allowing these states direct representation, the Cotton Board will 
be better able to carry out its mission and the purpose of the statute, 
to increase the demand for cotton and cotton products, will be 
fulfilled.
    The witness representing the Cotton Board testified in support of 
the proposed amendments. The witness indicated that the Cotton Board is 
ready to comply with the 2008 Farm Bill and any changes to the Cotton 
Act and Cotton Order that governs the Cotton Research and Promotion 
Program. In addition, the witness indicated that the Board is prepared 
to include the states and their representatives into the Cotton Board's 
system of governance. The witness emphasized that the Cotton Board is 
organized to administratively support and finance USDA's efforts to 
amend the Cotton Order and implement the proposed amendments. The 
witness testified that the Cotton Board believes that providing Kansas, 
Virginia, and Florida individual representation on the Board would 
enhance the Board's ability to carry out its mission and fiduciary 
responsibility, namely, to provide financing for and oversight of the 
Program. The witness added that producers in these States have and will 
continue to contribute funds to the Program. By providing them 
individual representation on the Cotton Board, the witness believes it 
will strengthen their support, enhance communication from these 
production areas, and better enable the Cotton Board to represent the 
interests of all cotton-producing areas in the United States. The 
Cotton Board witness reiterated the statements made by the VCGA/NCC 
that the Research and Promotion Program has been highly successful, and 
that broader representation will facilitate even stronger support and 
enhanced participation by producers. Moreover, the Cotton Board witness 
affirmed the VCGA/NCC witness' statement that nearly 1,000 producers, 
who account for nearly 5 percent of annual production, will, for the 
first time have direct representation and input into the program which 
they are helping to finance if the amendments were implemented.
    Record evidence supports amending section 1205.314 of the Order to 
incorporate the States of Kansas, Virginia, and Florida into the 
definition of ``cotton-producing State'' as separate States as provided 
in the 2008 Farm Bill.
Material Issue Number 2
    Section 1205.319 should be amended to read as follows:
    ``Cotton-production region'' means each of the following groups of 
cotton-producing States: (a) Southeast Region: Alabama, Florida, 
Georgia, North Carolina, South Carolina, and Virginia; (b) Midsouth 
Region: Arkansas, Louisiana, Mississippi, Missouri-Illinois, and 
Tennessee-Kentucky; (c) Southwest Region: Kansas, Oklahoma and Texas; 
(d) Western Region: Arizona, California-Nevada, and New Mexico.
    The AMS witness testified that AMS is proposing to amend the 
definition of cotton-producing region in section 1205.319 of the Cotton 
Order to make it consistent with the change to the definition of 
cotton-producing state.
    ``Cotton-producing region'' is currently defined as each of the 
following groups of cotton-producing states: (a) Southeast Region: 
Alabama-Florida, Georgia, North Carolina-Virginia, and South Carolina; 
(b) Midsouth Region: Arkansas, Louisiana, Mississippi, Missouri-
Illinois, and Tennessee-Kentucky; (c) Southwest Region: Oklahoma and 
Texas; (d) Western Region: Arizona, California-Nevada, and New 
Mexico.''
    Accordingly, record evidence supports amending section 1205.319 of 
the Order to amend the definition of ``cotton-producing region'' to 
list Kansas, Virginia, and Florida as separate states. This change 
should make the section consistent with changes made to the definition 
of ``cotton-producing state'' in section 1205.314 of the Order.
Material Issue Number 3
    The AMS witness testified that conditions exist that warrant the 
omission of a recommended decision in this rulemaking proceeding under 
7 CFR 1200.13(d) of the Rules of Practice and Procedure with respect to 
the proposed amendments. The 2008 Farm Bill provides that this change 
be made during the 2008 crop of cotton. Omission of the recommended 
decision would allow the rulemaking to conform to this timeline as 
closely as possible. Accordingly, in accordance with section 1200.13(d) 
of the rules of practice and procedure, it is hereby found and 
determined on the basis of the record that due and timely execution of 
the Secretary's functions imperatively and unavoidably requires 
omission of the recommended decision.

Regulatory Flexibility Act and Paperwork Reduction Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) [5 U.S.C. 601-612], AMS has considered the economic effect of 
this action on small entities and has determined that its 
implementation will not have a significant economic impact on a 
substantial number of small entities. There are currently approximately 
18,000 producers, and approximately 16,000 importers that are subject 
to the Cotton Order. In 13 CFR part 121, the Small Business 
Administration (SBA) defines small agricultural producers as those 
having annual receipts of no more than $750,000 and small agricultural 
service firms (importers) as those having annual receipts of no more 
than $7.0 million. The majority of these producers and importers are 
small businesses under the criteria established by the SBA.
    The Cotton Research and Promotion Act of 1966 provides authority to 
establish the Cotton Board to administer the Cotton Research and 
Promotion Program. In 2009, the Board is composed of 38 members and 38 
alternate members (23 producer and 15 importer members and alternate 
members) and one consumer advisor. The Board is responsible for 
carrying out an effective and continuous program of research and 
promotion in order to strengthen the competitive position of Upland 
cotton by expanding domestic and foreign markets for cotton, improving 
fiber quality, and lowering the costs of production. The Program, 
including U.S. Department of Agriculture administrative costs, is

[[Page 51097]]

financed through producer and importer assessments levied on each bale 
or bale equivalent of cotton at a rate of $1 per bale with a 
supplemental (currently 5/10ths of one percent) assessment not to 
exceed 1 percent of the value of lint of each bale. There are 
approximately 18,000 producers, and approximately 16,000 importers that 
are subject to the Order. In 2008, the Board collected $64.2 million in 
assessments ($36.2 million from producers and $28 million from 
importers).
    Interested persons were invited to present evidence at the hearing 
on the possible regulatory and informational impacts of the proposals 
on small businesses. The amendments proposed herein would not result in 
any additional regulatory requirements being imposed on cotton 
producers and importers. The proposed amendments to the Cotton Order 
merely reflect the statutory changes needed to implement the 2008 Farm 
Bill provisions that provided that Kansas, Virginia, and Florida be 
separate states in the definition of ``cotton-producing state.''
    There are no new information collection reports as a result of the 
proposed amendments. Information collection requirements and 
recordkeeping provisions contained in 7 CFR part 1205 have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB Control Number 0581-0093 under the Paperwork Reduction Act 
of 1995 (44 U.S.C. Chapter 35).

Civil Justice Reform

    The amendments herein have been reviewed under Executive Order 
12988, Civil Justice Reform. They are not intended to have retroactive 
effect. If adopted, the proposed amendments would not preempt any State 
or local laws, regulations, or policies, unless they present an 
irreconcilable conflict with this rule.
    The Cotton Act provides that administrative proceedings must be 
exhausted before parties may file suit in court. Under section 12 of 
the Cotton Act, any person subject to an order may file with the 
Secretary of Agriculture a petition stating that the order, any 
provision of the plan, or any obligation imposed in connection with the 
order is not in accordance with law and requesting a modification of 
the order or to be exempted therefrom. Such person is afforded the 
opportunity for a hearing on the petition. After the hearing, the 
Secretary would rule on the petition. The Cotton Act provides that the 
District Court of the United States in any district in which the person 
is an inhabitant, or has his principal place of business, has 
jurisdiction to review the Secretary's ruling, provided a complaint is 
filed within 20 days from the date of the entry of ruling.

Rulings on Briefs of Interested Persons

    Briefs, and the evidence in the record were considered in making 
the findings and conclusions set forth in this decision. To the extent 
that the suggested findings and conclusions filed by interested persons 
are inconsistent with the findings and conclusions of this decision, 
the requests to make such findings or to reach such conclusions are 
denied.
    Annexed hereto and made a part hereof is the document entitled 
``Order Amending the Cotton Research and Promotion Order.'' This 
document has been decided upon the detailed and appropriate means of 
effectuating the foregoing findings and conclusions.
    It is hereby ordered, that this entire decision be published in the 
Federal Register.

Referendum Order

    Pursuant to the applicable provisions of the Cotton Research and 
Promotion Act (7 U.S.C. 2101-2118) it is hereby directed that a 
referendum be conducted among the cotton producers and importers who 
have been engaged in the production of Upland cotton in the United 
States or who were engaged in the importation of Upland cotton or 
cotton-containing products to determine whether such producers or 
importers favor the amendments of the said annexed Cotton Research and 
Promotion Order.
    The procedure applicable to the referendum shall be the procedure 
for the conduct of referenda in connection with the Cotton Research and 
Promotion order (7 CFR part 1205.200) as published in this issue of the 
Federal Register. The referendum period shall be from October 13, 2009, 
through November 10, 2009, provided that ballots cast prior to October 
13, 2009, shall not be invalidated for that reason. For the purpose of 
determining producer voter eligibility, the representative period is 
the period January 1, 2008 through December 31, 2008. Producers engaged 
in the production of the 2008 crop during that period are eligible to 
vote in the referendum. For the purpose of determining importer voter 
eligibility, the 12-month period during which qualifying imports of 
cotton must have been made is January 1, 2008, through December 31, 
2008, and imported such products having a value of cotton in excess of 
the de minimis value per line item entry would also be eligible to 
vote.
    The agent of the Secretary to conduct such referendum is hereby 
designated to be Shethir M. Riva, Chief, Research and Promotion Staff, 
Cotton and Tobacco Programs, AMS, USDA, Stop 0224, 1400 Independence 
Ave., SW., Room 2637-S, Washington, DC 20250-0224, telephone (202) 720-
6603, facsimile (202) 690-1718, or e-mail at <a href="/cdn-cgi/l/email-protection#10437875647879623e4279667150717d633e656374713e777f66"><span class="__cf_email__" data-cfemail="beedd6dbcad6d7cc90ecd7c8dffedfd3cd90cbcddadf90d9d1c8">[email protected]</span></a>.
    Single copies of the complete text of the proposed amendments to 
the Cotton Research and Promotion Order may be obtained from any Farm 
Service Agency county office in cotton-producing counties or from the 
Agricultural Marketing Service, Cotton and Tobacco Programs, 
Washington, DC 20250.
    It is hereby ordered, That all of this decision, referendum order, 
and annexed and Cotton Research and Promotion Order be published in the 
Federal Register.

List of Subjects in 7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Marketing agreements, 
Reporting and recordkeeping requirements.

    Dated: September 28, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.

Order Amending the Order Regulating the Cotton Research and Promotion 
Program

Findings and Determinations

    The findings and determinations hereinafter set forth are 
supplementary and in addition to the findings and determinations 
previously made in connection with the issuance of the Order; and all 
of said previous findings and determinations are hereby ratified and 
affirmed.
    Pursuant to the provisions of the Cotton Research and Promotion Act 
(Cotton Act) (7 U.S.C. 2101-2118), and the applicable rules of practice 
and procedure effective thereunder (7 CFR part 1200), a public hearing 
was held in Washington, DC on December 5, 2008, on the proposed 
amendments to the Cotton Research and Promotion Order (7 CFR part 
1205). Upon the basis of the evidence introduced at such hearing and 
the record thereof, it is found that:
    (1) The Cotton Order, as amended, as hereby proposed to be further 
amended, and all of the terms and conditions thereof, will tend to 
effectuate the declared policy of the Act;
    (2) All cotton produced and handled in the United States is in the 
current of interstate or foreign commerce or

[[Page 51098]]

directly burdens, obstructs, or affects interstate or foreign commerce 
in cotton and cotton products.
    The provisions of the amended Order are set forth in full herein.

List of Subjects in 7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Marketing agreements, 
Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR Part 1205 is 
proposed to be amended as follows:

PART 1205--COTTON RESEARCH AND PROMOTION

    1. The authority citation 7 CFR part 1205 continues to read as 
follows:

    Authority:  7 U.S.C. 2101-2118 and 7 U.S.C. 7401.

    2. Revise Sec.  1205.314 to read as follows:


Sec.  1205.314  Cotton-producing State.

    Cotton-producing State means each of the following States and 
combination of States: Alabama; Arizona; Arkansas; California-Nevada; 
Florida; Georgia; Kansas; Louisiana; Mississippi; Missouri-Illinois; 
New Mexico; North Carolina; Oklahoma; South Carolina; Tennessee-
Kentucky; Texas; Virginia.
    3. Revise Sec.  1205.319 to read as follows:


Sec.  1205.319  Cotton-producing region.

    Cotton-producing region means each of the following groups of 
cotton-producing States:
    (a) Southeast Region: Alabama, Florida, Georgia, North Carolina, 
South Carolina, and Virginia;
    (b) Midsouth Region: Arkansas, Louisiana, Mississippi, Missouri-
Illinois, and Tennessee-Kentucky;
    (c) Southwest Region: Kansas, Oklahoma and Texas;
    (d) Western Region: Arizona, California-Nevada, and New Mexico.

[FR Doc. E9-23778 Filed 10-2-09; 8:45 am]
BILLING CODE 3410-02-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>