0581-AD37 201410 The Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions 0581 Agricultural Marketing Service AMS 0500 Department of Agriculture USDA Exemption of Producers and Handlers of Organic Products From Assessment Under a Commodity Promotion Law

As a result of this action, certified "organic" commodities (those comprising at least 95 percent organic components) would no longer be subject to assessment for promotion activities conducted under marketing order or research and promotion programs. In addition, certified organic commodities that are produced, handled, marketed, or imported by operations that also deal in conventional products would be eligible for exemptions. Currently, only products that are certified "100 percent organic" and that are produced and handled by entities that deal exclusively with organic products are exempt from assessments. This action is expected to reduce the assessment obligation for organic industry operators by as much as $13.7 million. Conversely, the impact on the marketing programs will be a loss of approximately $13.7 million in funds for generic commodity promotions.

]]> Other Significant First Time Published in The Unified Agenda Proposed Rule Stage No Undetermined 7 CFR 900 7 USC 7401 PL 113-79 Statutory NPRM 11/30/2014 This action would amend the general regulations that apply to the 29 marketing orders for fruits, vegetables, and specialty crops and the orders and/or rules and regulations of the 22 research and promotion programs under AMS oversight. Yes

Section 501 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401) (FAIR Act), as amended, currently exempts entities that produce and market solely 100 percent organic products from payment of assessments under commodity promotion laws. Section 10004 of the Agricultural Act of 2014 (Pub. L. No. 113-79) (Farm Bill) further amended the FAIR Act to provide exemptions for all certified organic products, including those produced and handled by operators that also deal in conventional products. This action is needed to bring existing Federal regulations governing commodity promotion activities into compliance with the FAIR Act, as amended by the Farm Bill.

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Section 10004 of the Agricultural Act of 2014 (Pub. L. No. 113-79) (Farm Bill) further amended the FAIR Act to provide exemptions for all certified organic products, including those produced and handled by operators that also deal in conventional products. This action is needed to bring existing Federal regulations governing commodity promotion activities into compliance with the FAIR Act, as amended by the Farm Bill.

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Currently, only products that are certified "100 percent organic" and that are produced and handled by entities that deal exclusively with organic products are exempt from assessments. So the alternative, would be to continue in this manner.

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This action is expected to reduce the assessment obligation for organic industry operators by as much as $13.7 million.

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Conversely, the impact on the marketing programs will be a loss of approximately $13.7 million in funds for generic commodity promotions.

]]> NPRM 11/00/2014 Final Action 07/00/2015 Yes Governmental Jurisdictions Undetermined No No Yes No Michael Durando V. Deputy Administrator, Fair Trade Practices Program 0581 Agricultural Marketing Service AMS 202 720-0219 1400 Independence Avenue SW, Washington DC 20250-0237