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USDA considers rule that could ease onion assessments

1 September 2015

The rule implements a recommendation from the Idaho-Eastern Oregon Onion Committee to decrease the assessment rate from 10 cents to 5 cents per hundredweight of onions handled under the marketing order, according to the marketing service.

The Onion Committee, consisting of producers and handlers, to fund such things as domestic and export promotions and production research expenses, as well as program expenses, the service said, uses assessments upon onion handlers.

Grant Kitamura, general manager of Murakami Produce in Ontario, said the proposed reduction in the assessment should provide individual shippers more opportunities to promote their companies and their own product lines. “I think it will be more effective,” Kitamura said. While the shippers work together, “we’re competitors, too.”

Under the current assessment, the budgeted expenditures for the 2014-15 programme, under the marketing order were about $1.173 million, the marketing service said. Under the reduced assessment, the projected expenditures for 2015-16 are $705,473.

The biggest change was in the reduction of expenditures for domestic and export promotions, according to the marketing service. There are approximately 250 onion producers in the production area, and about 31 handlers subject to the marketing order.

The Agricultural Marketing Service will accept comments until 19 Oct. Comments will be considered prior to issuance of a final rule.

For more information, visit: www.regulations.gov.