[Federal Register Volume 80, Number 237 (Thursday, December 10, 2015)]
[Notices]
[Pages 76654-76655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31133]


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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. 80, No. 237 / Thursday, December 10, 2015 / 
Notices  

[[Page 76654]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Docket No. AMS-CN-15-0061]


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 August 3 through August 14, 2015, during which eligible 
cotton producers and importers were provided an opportunity to request 
a continuance referendum.

FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and 
Promotion Staff, Cotton and Tobacco Program, Agricultural Marketing 
Service, USDA, 100 Riverside Parkway, Suite 101, Fredericksburg, 
Virginia 22406, telephone (540) 361-2726, facsimile (540) 361-1199, or 
email at [email protected].

SUPPLEMENTARY INFORMATION: During the period of August 3 through August 
14, 2015, 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 46 valid requests from eligible producers and importers. The 
following table depicts the number of requests for a continuance 
referendum.

------------------------------------------------------------------------
                                                         Total sign-up
           Farm service agency state office                 requests
------------------------------------------------------------------------
Alabama..............................................                  0
Arizona..............................................                  0
Arkansas.............................................                 16
California...........................................                  0
Florida..............................................                  1
Georgia..............................................                  0
Illinois.............................................                  0
Kansas...............................................                  3
Kentucky.............................................                  0
Louisiana............................................                  0
Mississippi..........................................                  1
Missouri.............................................                  1
Nevada...............................................                  0
New Mexico...........................................                  0
North Carolina.......................................                  8
Oklahoma.............................................                  7
South Carolina.......................................                  0
Tennessee............................................                  0
Texas................................................                  9
Virginia.............................................                  0
                                                      ------------------
    Total............................................                 46
------------------------------------------------------------------------

    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 
(46,220 x .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 46 requests received during the 
sign-up period is less than the 4,622 required.
    The 1991 amendments to the Order (7 CFR 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 2011-2012, the Department 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

[[Page 76655]]

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.
    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.
    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. In 2013, USDA 
announced its view not to conduct a referendum regarding the 1991 
amendments to the Order (78 FR 32228). Therefore, USDA allowed all 
eligible persons to request the conduct of a continuance referendum on 
the 1990 amendments through a sign-up period. The results of this sign-
up period did not meet the criteria as established by the Act for a 
continuance referendum and, therefore, referenda were not conducted.
    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: December 7, 2015.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2015-31133 Filed 12-9-15; 8:45 am]
 BILLING CODE 3410-02-P