Cotton Statistics and Estimate Act of 1927

COTTON STATISTICS AND ESTIMATES ACT OF 1927'
( 7 U.S.C.

471-476)

AN ACT A u t h o r i z i n g t h e S e c r e t a r y cjf A g r i c u l t u r e t o c o l l e c t a n d

p u b l i s h s t a t i s t i c s o f t h e g r a d e and s t a p l e l e n g t h o f c o t t o n

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Be i t e n a c t e d by t h e S e n a t e a n d House o f R e p r e s e n t a t i v e s o f
t h e U n i t e d S t a t e s o f America i n C o n g r e s s a s s e m b l e d , T h a t t h e
S e c r e t a r y o f A g r i c u l t u r e b e , and h e i s h e r e b y , a u t h o r i z e d a n d
d i r e c t e d t o c o l l e c t and p u b l i s h a n n u a l l y , o n d a t e s t o b e
announced by him, s t a t i s t i c s o r e s t i m a t e s c o n c e r n i n g t h e
g r a d e s and s t a p l e l e n g t h o f s t o c k s o f c o t t o n , known a s t h e
c a r r y - o v e r , o n hand o n t h e 1st o f August o f e a c h y e a r i n
w a r e h o u s e s and o t h e r e s t a b l i s h m e n t s o f e v e r y c h a r a c t e r i n t h e
c o n t i n e n t a l U n i t e d S t a t e s ; and f o l l o w i n g s u c h p u b l i c a t i o n e a c h
year, t o publish, a t intervals i n h i s discretion, h i s estimate
o f t h e g r a d e s and s t a p l e l e n g t h o f c o t t o n o f t h e t h e n c u r r e n t
c r o p : P r o v i d e d , T h a t n o t less t h a n t h r e e s u c h e s t i m a t e s s h a l l
b e published w i t h r e s p e c t t o each crop. I n any such s t a t i s t i c s
o r e s t i m a t e s p u b l i s h e d , t h e c o t t o n w h i c h on t h e d a t e f o r w h i c h
s u c h s t a t i s t i c s a r e p u b l i s h e d may b e r e c o g n i z e d a s t e n d e r a b l e
on c o n t r a c t s of s a l e of c o t t o n f o r f u t u r e d e l i v e r y under t h e
U n i t e d S t a t e s C o t t o n F u t u r e s A c t o f A u g u s t 11, 1 9 1 6 , a s
amended, s h a l l b e s t a t e d s e p a r a t e l y from t h a t w h i c h may b e
u n t e n d e r a b l e u n d e r s a i d Act a s amended. ( 7 U.S.C. 4 7 1 . )

'

Act of March 3, 1927, 44 Stat. 1372. Section 156(d) of Pub. L. 97-35, 95 Stat. 374, Aug.
13, 1981, states: "The Secretary of Agriculture shall hold annual meetings with representatives
of the conon industry to review (1) activities and operations under the Cotton Standards Act, and
the Conon Statistics and Estimates Act, (2) activities and operations relating to cotton under the
United States Warehouse Act, and (3) the effect of such activities and operations on prices received
by producers and sales to domestic and foreign usen, for the purpose of improving procedures for
fmancing and administering such activities and operations for the benefit of the industry and the
Government. Nowithstanding any other provision of law, the Secretary shall take such action as
may be necessary to insure that the universal cotton standards system and the Licensing and
inspection procedures for cotton warehouses arc preserved and that the Govemment cotton
classification system continues to operate so that the United States cotton crop is provided an
official quality description."

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Sec. 2. That the information furnished by any individual
establishment under the provisions of this Act mhall be
considered as strictly con£idential and shall be used only for
the statistical purpose for which it is supplied. Any employee
of the Department of Agriculture who, without the written
authority of the Secretary of Agriculture, shall publish or
communicate any information given into his possession by
reason of his employment under the provisions of this Act
shall be guilty of a misdemeanor and shall, upon conviction
thereof, be fined not less than $300 or more than $1,000, or
imprisoned for a period of not exceeding one year, or both so
fined and imprisoned, at the discretion of the court. ( 7
U.S.C. 4 7 2 . )
Sec. 3. That it shall be the duty of every owner, president,
treasurer, secretary, director, or other officer or agent of
any cotton warehouse, cotton ginnery, cotton mill, or other
place or establishment where cotton is stored, whether
conducted as a corporation, firm, limited partnership, or
individual, and of any owner or holder of any cotton and of
the agents and representatives of any such owner or holder,
when requested by the Secretary of Agriculture or by any
special agent or other employee of the Department of
Agriculture acting under the instructions of said Secretary to
furnish completely and correctly, to the best of his
knowledge, all of the information concerning the grades and
staple length of cotton on hand, and when requested to permit
such agent or employee of the Department of Agriculture to
examine and classify samples of all such cotton on hand. The
request of the Secretary of Agriculture for such information
may be made in writing or by a visiting representative, and if
made in writing shall be forwarded by registered mail or by
certified mail,' and the registry receipt or receipt for
certified mail of the Post Office Department shall be accepted
as evidence of such demand. Any owner, president, treasurer,
secretary, directory, or other officer or agent of any cotton
warehouse, cotton ginnery, cotton mill, or other place or
establishment where cotton is stored, or any owner or holder
of any cotton or the agent or representative of any such owner
or holder, who, under the conditions hereinbefore stated,

Act of June 11, 1960, 74 Stat. 200, added "or by certified mail," and "or receipt for
certified mail".

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shall refuse or willfully neglect to furnish any information
herein provided for or shall willfully give answers that are
false or shall refuse to allow agents or employees of the
Department of Agriculture to examine classify any cotton in
store in any such establishment, or in the hands of any owner
or holder or of the agent or representative of any such owner
or holder, shall be guilty of a misdemeanor and, upon
conviction thereof, shall be fined not less than $300 or more
than $1,000. (7 U.S.C. 4 7 3 . )
SMITH-DOXEY AMENDMENT'
Sec.3a. Effective for each of fiscal years 1992 through
1996, the Secretary of Agriculture shall make cotton
classification services available to producers of cotton and
shall provide for the collection of classification fees from
participating producers, or agents who voluntarily agree to
collect and remit the fees on behalf of producers. Such fees,
together with the proceeds from the sales of samples submitted
under this section, shall cover as nearly as practicable the

'

Sections 3a, 3b, and 3c added by Act of April 13, 1937,SO Stat. 62. Sections are also known
as the "Cotton Classification Act." Section 3a was amended by Pub. L. 97-35, 95 Stat. 373-374,
Aug. 13, 1981, to require the Secretary, effective for fiscal years 1982-1984, to collcct fees
directly from participating cotton producers for cotton classing services, and to invest such funds
in an interest bearing account. Pub. L. 98403, 98 Stat.1479, Aug. 28, 1984, extendcd the
authority to charge for classing services through fiscal year 1988. Pub. L. 100-108, 101 Stat. 728.
Aug. 20, 1987, extended the authority thmrrgh fiscal year 1992 and amcndcd the first proviso. Pub.
L. 102-237, 105 Stat. 1842, Dec. 13, 1991, extended the authority through fiscal year 1996. and
amended clauses (I), (2), and (7) in the first proviso and the third sentence in Section 3a. Sec.
3 of Pub. L. 100-108 states:
"See. 3. Study on Processing Certain Cotton Grades.
(a) STUDY.-The Secretary of Agriculture shall conduct a study, and perform such testing as
necessary, of the difference between processing efficiency and product quality for Light Spotted
and White grade cottons. The Secretary shall also conduct a survey and research to determine why
an increasing proportion of the cotton crop is being classified as Light Spotted.
(b) REPORT.--Not later than October 1, 1988, the Secretary shall submit an initial report
describing the results of the studies required under subsection (a) to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the
Senate. A final report shall be submitted to such committees as soon as practicable after submission
of the initial report." (7 U.S.C. 473a note) Section 120(d) of Pub. L. 102-237. 105 Stat. 1843,
Dec. 13, 1991, repealed Sec. 3 of Pub. L. 100-108.

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cost of the services provided under this section, including
administrative and supervisory costs: Provided, That (1) the
uniform per bale classification fee to be collected from
producers, or their agents, for the classification service in
any year shall be the fee established in the previous year for
the prevailing method of classification service, exclusive of
adjustments to the fee made in the previous year under clauses
(2), ( 3 ) , and (4), and as may be adjusted by the percentage
change in the implicit price deflator for the gross national
product as indexed during the most recent 12-month period for
which statistics are available; (2) the fee calculated in
accordance with clause (1) for a crop year may be increased by
an amount not to exceed 1 percent for every 100,000 running
bales, or portion thereof, that the Secretary estimates will
be classed by the United States Department of Agriculture in
the crop year below the level of 12,500,000 running bales, or
decreased by a quantity not to exceed 1 percent for every
100,000 running bales, or portion thereof, that the Secretary
estimates will be classed by the United States Department of
Agriculture in the crop year above the level of 12,500,000
running bales; ( 3 ) adjustments made under clause (2) shall not
exceed 15 per centum, except when the Secretary estimates that
income generated by fees, surcharges, and other sources of
income will not provide an ending accumulated operating
reserve for a fiscal year of at least 10 per centum of the
estimated cost of operating the program; (4) if the Secretary
projects an accumulated operating reserve at the end of fiscal
year of less than 25 per centum of the estimated cost of
operating the program, the Secretary may add a special
surcharge, not to exceed 5 cents per bale, applicable; (5)
notwithstanding the previous clauses, the Secretary, to the
extent practicable, shall not establish a fee which, when
combined with all other sources of revenue and adjusted for
expenses, would result in a projected operating reserve of
more than 25 per centum; (6) the Secretary should continue to
recognize that central billing and collection can reduce
administrative costs, and offer appropriate discounts where
practicable; and (7) the Secretary shall announce the uniform
classification fee and any surcharge for the crop not later
than June 1 of the year in which the fee applies.
Classification services, other than the prevailing method,
provided at the request of the producer shall not be subject
to the restrictions specified in clauses (I), (2), and (3) of

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the preceding sentence. All samples of cottcn submitted for
classification under this section shall become the property of
the United States, and shall be sold: Provided, That such
cotton samples shall not be subject to the provisions of the
Federal Property and Administrative Services Act of 1949 (40
U.S.C. 471 et seq.) Any fees collected under this section and
under section 3d of this Act, late payment penalties, the
proceeds from the sales of samples, and interest earned from
the investment of such funds shall be credited to the current
appropriation account that incurs the cost of services
provided under this section and section 3d and shall remain
available without fiscal year limitation to pay the expenses
of the Secretary incident to providing such services. Such
funds may be invested by the Secretary in insured or fully
collateralized, interest-bearing accounts or, a t the
discretion of the Secretary, by the Secretary of the Treasury
in United States Government debt instruments. There are
authorized to be appropriated such sums as may be necessary to
carry out the provisions of this section to the extent that
financing is not available from fees and the proceeds from the
sales of samples. (7 U.S.C. 473a.)
Sec. 3b. The Secretary of Agriculture is also authorized and
directedto collect, authenticate, publish, and distribute, by
telegraph, radio, mail, or otherwise, timely information on
the market supply, demand, location, condition, and market
prices for cotton, and to cause to be prepared regularly and
distributed for posting at gins, in post offices, or in other
public or conspicuous places in cotton-growing communities,
information on prices for the various grades and staple
lengths of cotton. (7 U.S.C. 473b.)
Sec. 3c. The Secretary of Agriculture is further authorized
to make such rules and regulations as he may deem necessary to
effectuate the purposes of this Act. (7 U.S.C. 473c.)
Sec. 3c-1.' It shall be unlawful-(a) for any person sampling cotton for classification
under this Act knowingly to sample cotton improperly, or
to identify cotton samples improperly, or to accept money
or other consideration, directly or indirectly, for any
neglect or improper performance of duty as a sampler;

' Section 3c-1 added by Act of July 5,

1960,74 Stat. 328.
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(b) for any person to influence improperly or to attempt
to influence improperly or to forcibly assault, resist,
impede, or interfere with any sampler in the taking of
samples for classification under this Act;
(c) for any person knowingly to alter or cause to be
altered a sample taken for classification under this Act
by any means such as trimming, peeling, or dressing the
sample, or by removing any leaf, trash, dust, or other
material
from
the
sample
for
the
purpose
of
misrepresenting the actual quality of the bale from which
the sample was taken;
(d) for any person knowingly to cause, or attempt to
cause, the issuance of a false or misleading certificate
or memorandum of classification under this Act by
deceptive baling, handling, or sampling of cotton, or by
any other means, or by submitting samples of such cotton
for classification knowing that the cotton has been so
baled, handled, or sampled;
(e) for any person knowingly to submit more than one
sample from the same bale of cotton for classification
under this Act, except a second sample submitted for
review classification;
(f) for any person knowingly to operate or adjust a
mechanical cotton sampler in such a manner that a
representative sample is not drawn from each bale; and
(g) for any person knowingly to violate any regulation of
the Secretary of Agriculture relating to the sampling of
cotton made pursuant to section 3c of this Act. (7 U.S.C.
473~-1.)
Sec. 3 ~ - 2 .Any
~ person violating any provision of section
3c-1 of this Act shall be guilty of a misdemeanor and upon
conviction thereof shall be fined not more than $1,000, or
imprisoned not more than one year, or both. (7 U.S.C. 473c-2. )
Sec. 3 ~ - 3 .In
~ construing and enforcing the provisions of
this Act, the act, omission, or failure of any agent, officer,
or other person acting for or employed by an individual,
association, partnership, corporation, or firm, within the
scope of his employment or office, shall be deemed to be the
act, omission, or failure of the individual, association,

' Sec!ion 3c-2 added by Act of July 5,1960,74 Stat. 328.
Section 3c-3 added by Act of July 5,1960,74 Stat. 328.

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partnership, corporation, or firm, as well as that of the
person. ( 7 U.S.C. 473c-3.)
Sec. 3d.' The Secretary of Agriculture is authorized to make
analyses of fiber properties, spinning tests, and other tests
of the quality of cotton samples submitted to him by cotton
breeders and other persons, subject to such terms and
conditions and to the payment by such cotton breeders and
other persons of such fees as he may prescribe by regulations
under this Act. The fees to be assessed hereunder shall be
reasonable, and, a e nearly as may be, to cover the cost of the
service rendered. (7 U.S.C. 473d.)
Sec. 4. The Secretary of Agriculture may cooperate with any
department or agency of the Government, any State, Territory,
District, or posseseion, or department, agency, or political
subdivision thereof, or any person; and shall have the power
to appoint, remove, and fix the compensation of such officers
and employees, not in conflict with existing law, and make
such expenditures for the purchase of samples of cotton, for
rent outside the District of Columbia, printing, telegrams,
telephones, books of reference, periodicals, furniture,
stationery, office equipment, travel, and other supplies and
expenses as shall be necessary to the administration of this
Act in the District of Columbia and elsewhere, and there are
hereby authorized to be appropriated, out of any moneye in the
Treasury not otherwise appropriated, such sums as may be
necessary for such purposes. (7 U.S.C. 474.)
Sec. ~.+OTTON CROP REPORTS.--The Secretary of Agriculture
shall cause to be issued as of the first of each month during
the cotton growing and harvesting season from August to
January inclusive, reports describing the condition and
progress of the crop and stating the probable number of balee
which will be ginned, these reports to be
issued
simultaneously with the cotton ginning reports of the Bureau
of the Census relating to the same dates, the two reports to
be issued from the same place at 3 o'clock postmeridian on or
before the 12th day of the month to which the reepective

'Section 3d added by Act of April 7,1941,55Stat. 131.Section is also known as the "Cotton
Service Testing Amendment".
Act of May 3, 1924,43 Stat. 115;as amended by Act of March 3,1927,44 Stat. 1373;Act
of August 8, 1946,60Stat. 940;Act of May 29,1958,72 Stat. 149;and Act of June 30, 1972,
86 Stat. 400.Section was not enacted as part of the Cotton Statistics and Estimates Act.

39

r e p o r t s r e l a t e . No s u c h r e p o r t s h a l l b e approved and r e l e a s e d
by t h e S e c r e t a r y o f A g r i c u l t u r e u n t i l it s h a l l have b e e n
p a s s e d upon by a c o t t o n c r o p r e p o r t i n g b o a r d c o n s i s t i n g o f
f i v e members o r more t o b e d e s i g n a t e d by him. Not less t h a n
t h r e e members of t h e board s h a l l b e s u p e r v i s o r y f i e l d
s t a t i s t i c i a n s o f t h e Department o f A g r i c u l t u r e who a r e l o c a t e d
i n d i f f e r e n t s e c t i o n s of t h e cotton-growing S t a t e s , a r e
experienced i n estimating cotton production,
and h a v e
f i r s t - h a n d knowledge of t h e c o n d i t i o n o f t h e c o t t o n c r o p b a s e d
upon r e c e n t f i e l d o b s e r v a t i o n s . A m a j o r i t y o f t h e members o f
t h e b o a r d s h a l l b e f a m i l i a r w i t h t h e methods and p r a c t i c e s o f
p r o d u c i n g c o t t o n . ( 7 U.S.C. 4 7 5 . )
Sec. 6 . 9 The S e c r e t a r y of A g r i c u l t u r e s h a l l c a u s e t o b e
i s s u e d a r e p o r t on o r b e f o r e t h e 1 2 t h day of J u l y o f e a c h y e a r
showing by S t a t e s and i n t o t o t h e e s t i m a t e d a c r e a g e o f c o t t o n
p l a n t e d , t o b e f o l l o w e d on o r b e f o r e t h e 1 2 t h day o f August
w i t h a n e s t i m a t e of t h e a c r e a g e f o r h a r v e s t and on o r b e f o r e
t h e 1 2 t h day o f December w i t h a n e s t i m a t e o f t h e h a r v e s t e d
a c r e a g e . ( 7 U.S.C. 4 7 6 . )

Act of May 27, 1912,37 Stat. 118; as amended by Act of March 3, 1927,44 stat. 1374; Act
of May 29, 1958,72 Stat. 149; and Act of June 30, 1972, 86 Stat. 400. Section was not enacted
as pan of the Cotton Statistics and Estimates Act. Sec. 3 of Pub. L. 92-331, June 30, 1972,
amended Sec. 45 of title 13, U.S.C., to read as follows: "The r e p o d of cotton ginned to the dates
as of which the Department of Agriculture is also required to issue cotton crop reports shall be
issued simultaneously with the cotton crop reports of that department, the two reports to be issued
from the same place at 3 o'clock postmeridian on or before the 12th day of the month to which
the respective reports relate." Further Sec. 4 of Pub. L. 92-331 amended Scc. 42, paragraph (a)
of title 13, U.S.C. to read as follows:
"(a) The statistics of the quantity of cotton ginned shall show the quantity ginned from each crop
prior to August 1, September 1. September 15, October 1. October 15, November 1, November
15, December 1. December 15, January 1, January 15, February 1, and March 1; but thesecretary
may limit. the canvasses of August 1 and September 1 to those sections of the cotton growing States
in which cotton has been ginned."

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