In the January 18, 2017, Federal Register, USDA's Agricultural Marketing Service ("AMS") proposed establishing an industry-funded promotion, research, and information program for certified organic products to strengthen their position in the marketplace, support research to benefit the organic industry, and improve access to information and data across the organic sector. The proposed program, which was submitted by the Organic Trade Association ("OTA"), would require certified producers and certified handlers with gross sales in excess of $250,000 to pay an assessment of one-tenth of one percent of net organic sales. Importers importing greater than $250,000 in transaction value of organic products for the previous marketing year would pay an assessment of one-tenth of one percent of the transaction value of certified organic products reported to the U.S. Customs and Border Protection. Producers, handlers, and importers that fall below these thresholds could choose to pay assessments into the program as a "voluntarily assessed" entity.
An initial referendum would be held among mandatorily and voluntarily assessed entities to determine whether they favor implementation of the program prior to its going into effect. Comments are due March 10, 2017.
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