USDA Proposes Commodity Assessment Change

WASHINGTON - Jun 8/05 - SNS -- The USDA is seeking comments on proposed changes to the way commodity assessments are collected. Farmers and other interested parties have until July 7, 2005, to comment.

Many states have statutes authorizing assessments on marketed agricultural commodities. State and federal assessments are used to increase domestic and international demand of the commodity through a variety of activities including product promotion, consumer information and research related to product improvement, safety, health and production technology.

If adopted, the proposal would allow USDA’s Commodity Credit Corporation (CCC) to deduct assessments from marketing assistance loan proceeds as authorized by state or federal laws. Such collections are specifically permitted by the provisions of Public Law 108-470.

For the collection of state commodity assessments, the major provisions of the proposed rule are:

- A request for CCC to engage in the collection activity must initially be submitted by the governor of the state;

- Such request must identify the entity that the Governor has designated to enter into the collection agreement with CCC;

- A statement from the state’s attorney general, at any time prior to final execution of the agreement, that the agreement is in compliance with applicable state laws and the provisions of section 1(a) of Public Law 108-470;

- Collection of the assessment, as requested by the governor, may be at either the time the marketing assistance loan is disbursed to the producer or at the time of forfeiture of the commodity to CCC; and

- The state agrees to indemnify CCC for any costs incurred in collecting the assessment, including costs relating to resolution of disputes arising from the requested collection of the assessment.

For the collection of state or federal assessments, the proposed rule provides that collections will be made by CCC and the person to whom the secretary has delegated responsibility for collection activities,upon the approval of the agreement by the secretary or a representative of the secretary. Deductions of assessments and payment of such fees to applicable entities shall be made in a manner and time as determined by CCC.