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[Federal Register Volume 78, Number 103 (Wednesday, May 29, 2013)]
[Notices]
[Pages 32228-32229]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-12655]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[AMS-CN-12-0029]

Cotton Research and Promotion Program: Determination of Whether 
To Conduct a Referendum Regarding 1990 Amendments to the Cotton 
Research and Promotion Act

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the Department's determination, based on 
a review by the Agricultural Marketing Service (AMS), that it is not 
necessary to conduct a referendum among producers and importers on 
continuation of the 1990 amendments to the Cotton Research and 
Promotion Act (Act). The 1990 amendments require the Secretary of 
Agriculture, once every 5 years, to conduct a review to determine 
whether to hold a continuance referendum. The two major changes to the 
Cotton Research and Promotion Program made by the 1990 amendments were 
the elimination of assessment refunds to producers and a new assessment 
levied on imported cotton and the cotton content of imported products. 
Although USDA is of the view that a referendum is not needed, it will 
initiate a sign-up period as required by the Act, to allow cotton 
producers and importers the opportunity to request a continuance 
referendum.

FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and 
Promotion Division, Cotton and Tobacco Programs, AMS, USDA, 100 
Riverside Parkway, Suite 101, Fredericksburg, Virginia, 22406, 
telephone (540) 361-2726, facsimile (540) 361-1199, or email at 
Shethir.Riva@ams.usda.gov.

SUPPLEMENTARY INFORMATION: In July 1991, the Agricultural Marketing 
Service (AMS) implemented the 1990 amendments to the Cotton Research 
and Promotion Act (7 U.S.C. 2101-2118) (Act). These amendments provided 
for: (1) Importer representation on the Cotton Board by an appropriate 
number of persons--to be determined by the Secretary--who import cotton 
or cotton products into the United States (U.S.) and are selected by 
the Secretary from nominations submitted by importer organizations 
certified by the Secretary of Agriculture; (2) assessments levied on 
imported cotton and cotton products at a rate determined in the same 
manner as for U.S. cotton; (3) increasing the amount the Secretary can 
be reimbursed for conducting a referendum from $200,000 to $300,000; 
(4) reimbursing government agencies who assist in administering the 
collection of assessments on imported cotton and cotton products; and 
(5) terminating the right of producers to demand an assessment refund.
    Results of the initial July 1991 referendum showed that of the 
46,220 valid ballots received with 27,879 or 60 percent of the persons 
voted in favor of the amendments to the Cotton Research and Promotion 
Order (7 CFR part 1205) (Order) and 18,341 or 40 percent opposed the 
amendments. AMS developed implementing regulations for the import 
assessment effective July 31, 1992 (57 FR 29181); the elimination of 
the producer refund effective July 31, 1992 (57 FR 29181); and provided 
for importer representation on the Cotton Board effective December 21, 
1991 (56 FR 65979).
    USDA conducted 5-year reviews of the Cotton Research and Promotion 
Program in 1996, 2001 and 2006. For each review, the Department 
prepared reports that described the impact of the Cotton Research and 
Promotion Program on the cotton industry and the views of those 
receiving its benefits. Following each review, USDA announced its 
decision not to conduct a referendum regarding the 1991 amendments to 
the Order (61 FR 52772, 67 FR 1714, and 72 FR 9918, respectively) and 
subsequently held sign-up periods, affording all eligible persons to 
request a continuance referendum on the 1990 Act amendments. The 
results of each sign-up period did not meet the criteria as established 
by the Act for a continuance referendum and, therefore, referenda were 
not conducted.
    In 2011-2012, the Department again prepared a 5-year report that 
described the impact of the Cotton Research and Promotion Program on 
the cotton industry. The review report is available upon written 
request to the Chief of the Cotton Research and Promotion Staff at the 
address provided above. Comments were solicited from all interested 
parties, including persons who pay the assessments as well as from 
organizations representing cotton producers and importers (76 FR 
31573). Five comments, including comments from four certified producer 
organizations that nominate producers to the Cotton Board, claimed 
strong support for the continuance of the program, noting that the 
administration of the Act has been proper, carries out the intent and 
purpose in a timely and superior manner, and requires no changes or 
adjustment.

[[Page 32229]]

    USDA reviewed the Cotton Research and Promotion Program major 
program activities and accomplishments, including third-party 
evaluations of advertising and marketing activities and other 
functional areas; the results of producer and importer awareness and 
satisfaction surveys; and data from the Foreign Agricultural Service. 
USDA also reviewed the results of the Cotton Board's 2011 independent 
program evaluation, which assessed the effectiveness of the Cotton 
Research and Promotion Program; the strength of cotton's competitive 
position; the ability to maintain and expand domestic and foreign 
markets; increases in the number of uses for cotton; and estimates of a 
return on investment for stakeholders and qualitative benefits and 
returns associated with the Cotton Research and Promotion Program. The 
review report concluded that the 1990 amendments to the Act were 
successfully implemented and are operating as intended. The report also 
noted that there is a general consensus within the cotton industry that 
the Cotton Research and Promotion Program and the 1990 amendments to 
the Act are operating as intended. Written comments, economic data, and 
results from independent evaluations support this conclusion.
    Although USDA found no compelling reason to conduct a referendum 
regarding the 1990 Act amendments to the Cotton Research and Promotion 
Order, some program participants support a referendum. Therefore, USDA 
will initiate a sign-up period in accordance with the Act. During this 
sign-up period, eligible producers and importers may sign-up to request 
such a referendum at the county office of the Farm Service Agency 
(FSA), or by mailing such a request to FSA. The Secretary will conduct 
a referendum if requested by 10 percent or more of the number of cotton 
producers and importers voting in the most recent referendum (July 
1991), with not more than 20 percent of such request from producers in 
one state or importers of cotton.
    Current procedures for the conduct of a sign-up period appear at 7 
CFR sections 1205.10-1205.30. These procedures will be updated as 
appropriate prior to the beginning of the sign-up period.

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

    Dated: May 21, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-12655 Filed 5-28-13; 8:45 am]
BILLING CODE 3410-02-P
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