[Federal Register Volume 78, Number 103 (Wednesday, May 29, 2013)]
[Notices]
[Pages 32228-32229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12655]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[AMS-CN-12-0029]
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 (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 continuance 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 the opportunity to request a continuance
referendum.
FOR FURTHER INFORMATION CONTACT: Shethir M. Riva, Chief, Research and
Promotion Division, Cotton and Tobacco Programs, AMS, USDA, 100
Riverside Parkway, Suite 101, Fredericksburg, Virginia, 22406,
telephone (540) 361-2726, facsimile (540) 361-1199, 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 with 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 5-year reviews of the Cotton Research and Promotion
Program in 1996, 2001 and 2006. 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 1991 amendments to
the Order (61 FR 52772, 67 FR 1714, and 72 FR 9918, 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 2011-2012, 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 persons who pay the assessments as well as from
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.
[[Page 32229]]
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.
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 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 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 sections 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: May 21, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-12655 Filed 5-28-13; 8:45 am]
BILLING CODE 3410-02-P