[Federal Register Volume 67, Number 9 (Monday, January 14, 2002)]
[Notices]
[Pages 1714-1715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-910]


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 Notices
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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 delegations of authority, filing of petitions and applications and agency 
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  Federal Register / Vol. 67, No. 9 / Monday, January 14, 2002 / 
Notices  

[[Page 1714]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[CN-01-006]


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 view, 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 
five years, to conduct a review to determine whether to hold a 
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 to request 
a referendum.

FOR FURTHER INFORMATION CONTACT: Whitney Rick, Chief, Cotton Research 
and Promotion Staff, Cotton Program, AMS, USDA, STOP 0224, 1400 
Independence Avenue, SW, Washington, DC 20250-0224, Telephone (202) 
720-2259, Facsimile (202) 690-1718 or e-mail [email protected].

SUPPLEMENTARY INFORMATION: In July 1991, the Agricultural Marketing 
Service (AMS) implemented the 1990 amendments to the Cotton Research 
and Promotion Act (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 
conduct of 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 a refund of assessments.
    Results of the July 1991 referendum showed that of the 46,220 valid 
ballots received; 27,879 or 60 percent of the persons voting, favored 
the amendments to the Cotton Research and Promotion Order (Order), and 
18,341 or 40 percent opposed the amendments. AMS developed implementing 
regulations for the import assessment effective August 1, 1992, the 
elimination of the producer refund effective September 1, 1991, and 
provided for importer representation on the Cotton Board effective 
January 1, 1993. The addition of these new members brought the Cotton 
Board's membership to 25 (21 producer members and 4 importer members).
    On October 8, 1996, USDA issued the results of the first five-year 
review of the Cotton Research and Promotion Program. USDA announced its 
view not to conduct a referendum regarding the 1991 amendments to the 
Order (61 FR 52772). During the period of January 15 through April 14, 
1997, the Department conducted a sign-up period for all eligible 
persons to request a continuance referendum on the 1990 Act amendments. 
The results of the sign-up period did not meet the criteria as 
established by the Act for a continuance and therefore, a referendum 
was not conducted.
    The Department has prepared a second report that describes the 
impact of the Cotton Research and Promotion Program on the cotton 
industry and the views of those receiving its benefits. The report is 
based on a review conducted by AMS to determine whether to hold a 
referendum of producers and importers on the continuation of the 1990 
Act amendments. 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 from persons who pay the assessments as well as from 
organizations representing cotton producers and importers (66 FR 16440; 
March 26, 2001). Economic data was also reviewed in order to report on 
the general climate of the cotton industry. Finally, a number of 
independent sources of information were reviewed to help identify 
perspectives from outside the program including the results of 
independent program evaluations assessing the effects of the Cotton 
Research and Promotion Program activities on demand for Upland cotton, 
return-on-investment to cotton producers, the net value to companies 
who import cotton products and raw cotton, and the overall rate-of-
return and qualitative benefits and returns associated with the Cotton 
Research and Promotion Program.
    The review report cited 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 two independent evaluations support this conclusion. 
Industry comments cited examples of how the additional funding has 
yielded benefits by increasing the demand and consumption for cotton.
    USDA found no compelling reason to conduct a referendum regarding 
the 1990 Act amendments to the Cotton Research and Promotion Order 
although some program participants support a referendum. Therefore, 
USDA will allow all eligible persons to request the conduct of a 
continuance referendum on the 1990 amendments through a 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 (4,622) or more

[[Page 1715]]

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.
    Currently, procedures for the conduct of a sign-up period appear at 
7 CFR 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: January 9, 2002.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 02-910 Filed 1-10-02; 8:54 am]
BILLING CODE 3410-02-P