USDA Drops Hops Marketing Order Effort

WASHINGTON - Jun 20/05 - SNS -- The USDA is terminating the proceeding to establish a marketing agreement and order for hops grown in Washington, Oregon, Idaho and California.

USDA’s Agricultural Marketing Service (AMS) held a public hearing in October 2003 to receive evidence on a program proposed by the Hop Marketing Order Proponent Committee, a group of industry members in support of an order. The proposed program would have authorized volume control measures in the form of producer allotments to regulate the marketing of alpha acid in hops in the production area.

In addition, the proposed order would have allowed for reserve pooling of excess production of alpha acid and would have provided for production research, marketing research and development projects to promote the marketing, distribution and consumption or efficient production of hops.

After the hearing sessions, USDA received numerous comments, briefs and additional arguments expressing widely divergent views on the promulgation of a marketing order for hops.

After considering the entire rulemaking record, including the testimony and evidence presented at the hearing, the briefs filed following the hearing, and additional post hearing arguments, AMS has determined that the record fails to demonstrate: (1) that there is a need for a hop marketing order, (2) that such a marketing order would have a positive economic impact on the industry, and that (3) the benefits and costs associated with this marketing order could be allocated equitably.

Because it cannot be concluded that the current proposal would meet the objectives of the Agricultural Marketing Agreement Act of 1937, AMS has decided to terminate the proceeding effective June 23. Notice of this action will appear in the June 22 Federal Register.