[Federal Register Volume 72, Number 43 (Tuesday, March 6, 2007)]
[Notices]
[Pages 9918-9919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-3828]


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 Notices
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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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  Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / 
Notices  

[[Page 9918]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Doc. No. AMS-CN-07-0020; CN-07-004]


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 5 
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: Shethir Riva, 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 
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 a refund of assessments.
    Results of the initial 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.
    In 1996 and 2001, USDA issued the results of its 5-year reviews of 
the Cotton Research and Promotion Program. In both reviews, 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, and in both instances, USDA announced its 
view not to conduct a referendum regarding the 1991 amendments to the 
Order (61 FR 52772 and 67 FR 1714) and subsequently held sign-up 
periods for all eligible persons to request a continuance referendum on 
the 1990 Act amendments. The results of both respective sign-up periods 
did not meet the criteria as established by the Act for a continuance 
referendum and, therefore, referenda were not conducted.
    In 2006, 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 from persons who pay the assessments as well as from 
organizations representing cotton producers and importers (71 FR 13808; 
March 17, 2006). 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 benefit-cost ratio 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 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. Of the 15 
comments received, only one commenter, who represents cotton importers, 
argued for a referendum on the 1990 Act amendments.
    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

[[Page 9919]]

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.
    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.

    Signed: February 28, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-3828 Filed 3-5-07; 8:45 am]
BILLING CODE 3410-02-P