[Federal Register Volume 73, Number 20 (Wednesday, January 30, 2008)]
[Notices]
[Pages 5494-5495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1660]


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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. 73, No. 20 / Wednesday, January 30, 2008 / 
Notices  

[[Page 5494]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Docket No. AMS-CN-08-0003; CN-07-009]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice.

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

SUMMARY: This notice announces the U.S. Department of Agriculture's 
(USDA) determination not to conduct a continuance referendum regarding 
the 1991 amendments to the Cotton Research and Promotion Order (Order) 
provided for in the Cotton Research and Promotion Act (Act) amendments 
of 1990. This determination is based on the results of a sign-up period 
conducted September 3 through November 30, 2007, during which eligible 
cotton producers and importers were provided an opportunity to request 
a continuance 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: During the period of September 3 through 
November 30, 2007, pursuant to section 8(c)(1) of the Act, USDA 
provided an opportunity for eligible cotton producers and importers to 
request a continuance referendum regarding the 1991 amendments to the 
Order provided for in the Act. Sign-up period results showed that USDA 
received 107 valid requests from eligible producers and importers. The 
following table depicts the number of requests for a continuance 
referendum.

------------------------------------------------------------------------
                                                                Sign-up
                      FSA State office                          request
------------------------------------------------------------------------
Alabama.....................................................           8
Arizona.....................................................           0
Arkansas....................................................          11
California..................................................           0
Florida.....................................................           1
Georgia.....................................................           0
Illinois....................................................           0
Kansas......................................................           0
Kentucky....................................................           0
Louisiana...................................................           0
Maryland....................................................           0
Mississippi.................................................           2
Missouri....................................................           0
Nevada......................................................           0
New Mexico..................................................           0
North Carolina..............................................           3
Oklahoma....................................................           0
South Carolina..............................................           0
Tennessee...................................................          55
Texas.......................................................           8
Virginia....................................................           0
Importers...................................................          19
                                                             -----------
    Total...................................................         107
------------------------------------------------------------------------

    Section 8(c)(2) of the Act, provides that following a sign-up 
period, USDA shall conduct a referendum upon the request of 10 percent 
or more of the number of cotton producers and importers voting in the 
most recent referendum (1991). This would require 10 percent or 4,622 
(46,220X.10 = 4,622) of the 46,220 valid ballots cast by cotton 
producers and importers in the July 1991 referendum. It is further 
provided that, in counting such request not more than 20 percent or 924 
may be from producers from any one state or importers of cotton.
    USDA finds that the results of the sign-up period did not meet the 
criteria requiring a continuance referendum by the Act. USDA bases this 
determination on the fact that the 107 requests received during the 
sign-up period is less than the 4,622 required.

Background

    The 1991 amendments to the Order (7 CFR part 1205 et seq.) were 
implemented following the July 1991 referendum. The 1990 amendments 
were provided for in the Act (7 U.S.C. 2101-2118). These amendments 
provided for: (1) Importer representation on the Cotton Board by an 
appropriate number of persons, to be determined by USDA, who import 
cotton or cotton products into the U.S. and whom USDA selects from 
nominations submitted by importer organization certified by USDA; (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 USDA can be reimbursed for the conduct of a referendum from 
$200,000 to $300,000; (4) reimbursing government agencies that 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.
    On July 9, 1991, (56 FR 31289) AMS issued a proposal to amend the 
Order to determine if a majority, 50 percent or more, of producers and 
importers favored implementation of the proposed amendments to the 
Order. USDA conducted a referendum (July 1991) among persons who had 
been cotton producers or cotton importers during a representative 
period. 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 Order and 18,341 or 40 percent opposed 
the amendments.
    Following the July 1991 referendum, AMS implemented the amendments. 
In addition to the previously discussed amendments to the Act and 
Order, USDA is required by section 8(c)(1) to: (1) Conduct a review 
once every 5 years after the anniversary date of the referendum 
implementing the 1990 Act amendments to determine whether a referendum 
is necessary and (2) make public the results of such a review within 60 
days after each fifth anniversary date of the 1991 implementing 
referendum. Should the review indicate that a referendum is needed USDA 
is directed to conduct the referendum within 12 months after a public 
announcement of review results.
    Should the review indicate that a referendum is not warranted, 
section 8(c)(2) includes provisions for producers and importers to 
request a continuance referendum through a sign-up period.
    In 1996 and 2001, pursuant to the Act, 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

[[Page 5495]]

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 & 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 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 allowed all eligible persons to request the conduct of a 
continuance referendum on the 1990 amendments through a sign-up period.
    With this announcement of the results of the sign-up period, USDA 
has completed all requirements set forth in section 8(c) (1) and (2) of 
the Act regarding the review of the Cotton Research and Promotion 
Program to determine if a continuance referendum is warranted. A 
referendum will not be conducted, and no further actions are planned in 
connection with this review.

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

     Dated: January 24, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-1660 Filed 1-29-08; 8:45 am]
BILLING CODE 3410-02-P