What is in this article?:
- No referendum for Cotton Research and Promotion Program
- Program clearly an asset
- USDA determined that it is not necessary to conduct a referendum among producers and importers on continuation of the amendments.
Program clearly an asset
“The Program is clearly an asset to organizations importing finished cotton goods into the U.S. as confirmed by the economic analysis indicating that profits of U.S. importers increased by an average of $900 million a year thanks to Program activities,” stated Gary Ross, Vice President Fashion and Home Supply Chain for Avon Products and Vice Chairman of the Cotton Board. “In fact, between 1992 and 2010, the Program generated nearly an $11 return (after taxes) for each dollar invested by U.S. importers of cotton products.”
The Forecasting and Business Analytics, LLC economic analysis is available at http://www.cottonboard.org/Economic Effectiveness Study April 2011.pdf.
Even though the USDA found no compelling reason to conduct a referendum, the Act requires the Secretary to conduct a sign-up among eligible cotton producers and importers. If the USDA receives requests from 4,622 producers or importers during the sign-up, (which represents 10 percent of the number of cotton producers and importers voting in the most recent referendum in July, 1991) with not more than 20 percent of such requests from producers in one state or importers of cotton, then the Secretary is required to conduct a referendum. Additional information will be publicized prior to the beginning of the sign-up period. In the three previous sign-ups, the statutory minimum 10 percent has not been reached.
More from Western Farm Press