USDA proposes expansion of organic assessment exemption

The U.S. Department of Agriculture (USDA) is proposing to expand exemptions for certified organic products from assessment fees on imports under various commodity promotion programs administered by the Agricultural Marketing Service (AMS). The changes are directed by the Agricultural Act of 2014 (the Farm Bill).

Under the proposal, the exemption would apply to importers, producers, handlers, or marketers of “organic” and “100 percent organic” products certified under the National Organic Program (NOP). It would apply regardless of whether or not the person requesting the exemption also deals with non-organic products. (Currently the exemption only applies to entities that solely import, produce, handle, or market products that are certified 100 percent organic.)

This would increase the number of organic industry entities eligible for assessment exemptions.

There are currently 22 national research (i.e. beef, cotton, dairy, potato) and promotion programs and 23 marketing order programs (i.e. fruits, vegetables, nuts and milk) in place. Under these programs importers and producers of a particular agricultural product pay assessments to fund marketing campaigns and research initiatives that benefit their industry.

Under the proposed announcement, eligible importers, producers, and marketers would be exempt from paying assessments for these promotion programs on products certified as “organic” or “100 percent organic.”

Under federal marketing order programs, eligible handlers would be exempt from the portion of the total assessment that is designated for market promotion activities.

There are 23 marketing order programs that have market promotion authority.

Comments on this proposed rule were originally due by January 15, 2015, but the comment period has been extended through February 17, 2014.

For further information, please contact
Barry Broadbent, Senior Marketing Specialist, or
Michelle Sharrow, Branch Chief,
Marketing Order and Agreement Division,
Fruit and Vegetable Program, AMS, USDA,
1400 Independence Avenue SW., STOP 0237,
Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938

Questions about this regulatory update may be directed to Livingston’s U.S. Regulatory Affairs group.