USDA continues cotton promotion program unchanged
The U.S. Department of Agriculture’s Agricultural Marketing Service has determined that its cotton research and promotion program should continue unchanged.
The 1966 Cotton Research and Promotion Act authorized a national program for cotton research and promotion to be industry operated and funded, with USDA oversight. The program’s main objective is to allow cotton growers and importers to establish, finance and carry out a coordinated program of research and promotion to improve the competitive position of the business and expand markets.
The current assessment is $1 per bale plus 0.5 percent of the value of the bales and is collected on every bale of cotton harvested and ginned in the United States and on imported raw cotton and on the non-U.S. cotton content of imported textile and apparel products.
The USDA began its review of the program in August. It wanted to determine whether to change, amend or rescind the program to minimize the impacts on small operators.
“Based upon the review, AMS (Agricultural Marketing Service) has determined that the order should be continued without change,” the agency said. “AMS plans to continue working with the cotton industry in maintaining an effective program.”
There are about 21,000 cotton producers, 300 first handlers, and 12,000 importers covered under the program.