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By Learn Laws®
Published 06/23/2026 Updated 06/23/2026

USDA Proposes Decrease in Cotton Import Assessment: Analyzing the Impact of the Cotton Research and Promotion Program Amendments


The U.S. Department of Agriculture's Agricultural Marketing Service (AMS) has issued a proposed rule to amend the Cotton Board Rules and Regulations. This action, published in the Federal Register on June 23, 2026, seeks to decrease the value assigned to imported cotton for calculating supplemental assessments, which fund the Cotton Research and Promotion Program. This annual adjustment is crucial to maintain parity between assessments on imported and domestically produced cotton. The proposal also updates the Import Assessment Table to incorporate recent changes.

Background of the Cotton Research and Promotion Program

The Cotton Research and Promotion Program operates under amendments to the Cotton Research and Promotion Act (7 U.S.C. 2101-2118), enacted by Congress in 1990. These amendments, part of the Food, Agriculture, Conservation, and Trade Act of 1990, significantly altered the program's funding mechanisms. Key changes included authorizing assessments on imported cotton and cotton products and ending assessment refunds for cotton producers. Following a referendum in 1991, the amended Cotton Research and Promotion Order (7 CFR part 1205) was approved, leading to the implementation of new rules in 1992.

Structure of Cotton Import Assessments

Assessments on cotton imports consist of two components. The first is a fixed rate of $1 per bale of cotton, converted to a per-kilogram rate for U.S. Customs Service administration. For this purpose, a bale is considered 500 pounds or 226.8 kilograms. The second component, known as the supplemental assessment, is levied at five-tenths of one percent of the historical value of domestically produced cotton. This value is determined by the 12-month average of monthly weighted average prices received by U.S. farmers for Upland cotton. The National Agricultural Statistics Service (NASS) of the USDA provides this price statistic, typically from its September Agricultural Prices publication.

Calculation of the Proposed Assessment Decrease

For the 2024 marketing year (August 1, 2024, to July 31, 2025), NASS reported a weighted average price of $0.632 per pound for Upland cotton received by U.S. producers. After converting this to a 500-pound bale equivalent and then to a per-kilogram value, the supplemental assessment is derived. The current proposed rule reflects a decrease in this NASS price. Previously, the total assessment rate was 1.3247 cents per kilogram. The proposed revision would lower this to 1.1662 cents per kilogram, representing a decrease of 0.1585 cents per kilogram. This adjustment directly reflects the lower average prices of Upland cotton during the specified marketing year.

Updating the Import Assessment Table

Beyond adjusting the assessment rate, AMS proposes to amend the Import Assessment Table found in 7 CFR 1205.510(b)(3). This table details the total assessment rate in cents per kilogram for each Harmonized Tariff Schedule of the United States (HTS) number subject to assessment. The U.S. International Trade Commission regularly modifies the HTS. The table must be updated annually to incorporate changes to the supplemental assessment rate and any modifications to HTS numbers and their corresponding conversion factors. The Economic Research Service (ERS) provides these conversion factors, which estimate the raw-fiber content of various cotton products by HTS number. These factors help determine the raw fiber equivalent quantity, accounting for manufacturing losses.

Regulatory Considerations

This proposed rule is considered exempt from review under Executive Order 12866, as it amends an existing research and promotion program and is necessary for its continued operation. It is also exempt from Executive Order 14192, "Unleashing Prosperity Through Deregulation," and is deemed unlikely to have substantial direct effects on Indian Tribes under Executive Order 13175. Furthermore, the rule adheres to Executive Order 12988, "Civil Justice Reform," ensuring no retroactive effect and outlining administrative and judicial review processes for affected parties. An Initial Regulatory Flexibility Analysis indicates that while a majority of cotton producers may be considered small entities, the amendment aims to ensure fair assessment practices consistent across the industry.

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