Cotton and Tobacco Rules and Regulations

Cotton Standards and Classification Regulatory Authorities

United States Cotton Futures Act (7 U.S.C. 15b) requires that cotton tendered under a U.S.-listed cotton futures contracts be graded by the USDA.  The Act authorizes USDA to establish physical standards by which the quality and, therefore, value of cotton offered as tender can be determined.  Furthermore, the Act authorizes USDA to establish bona fide spot markets and to collect and publish market price information for these bona fide spot markets.

United States Cotton Standards Act (7 U.S.C. 51–65) and United States Cotton Statistics and Estimates Act (7 U.S.C. 471–476) authorize USDA to develop cotton grade standards and offer cotton classification services.  Furthermore, USDA is authorized to publish quality information provided by these services, allowing for price differences between markets to be eliminated, providing a means of settling disputes and making producers more cognizant of the value of their product.  These provisions continue to generate competitive advantage for the U.S. cotton industry.

Tobacco Inspection Act

Tobacco Inspection Act (7 U.S.C. 511, 511s) provides for tobacco inspection and grading services to be offered to tobacco producers and manufacturers on a voluntary basis.  Services provided by the Program under the authority of this act enhance the marketability of U.S. tobacco and add value to the tobacco industry.