[Federal Register Volume 85, Number 244 (Friday, December 18, 2020)]
[Notices]
[Pages 82426-82427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27877]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
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  Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / 
Notices  

[[Page 82426]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Doc. No. AMS-CN-20-0091]


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, 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. The 1990 amendments require the Secretary of Agriculture 
to conduct a review to determine whether to hold a continuance 
referendum. 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, Director, Research 
and Promotion Division, Cotton and Tobacco Program, AMS, USDA, 100 
Riverside Parkway, Suite 101, Fredericksburg, Virginia, 22406, 
telephone (540) 361-2726, or email at [email protected].

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, 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 previous reviews of the 1990 amendments, and 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 
amendments to the Order (61 FR 52772, 67 FR 1714, 72 FR 9918, and 78 FR 
32228, 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 2017, USDA solicited comments from all interested parties, 
including persons who pay the assessments, as well as from 
organizations representing cotton producers and importers regarding 
whether they favor the continuation of the amendments to the Cotton 
Research and Promotion Order (82 FR 11892). Three comments, which 
included comments from two certified producer organizations that 
nominate producers to the Board, voiced strong support for the 
continuance of the program and noted that the programs and 
administration of the Cotton Research and Promotion Act have been 
beneficial, carries out the intent and purpose, and that there should 
be no referendum.
    USDA has reviewed the Cotton Research and Promotion Program major 
program activities and accomplishments, including 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 2016 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.
    In 2020, 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 
Research and Promotion Staff at the address and email provided above. 
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 through USDA, or by

[[Page 82427]]

mailing such a request. 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 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.

Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2020-27877 Filed 12-17-20; 8:45 am]
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