Proposed Rule2025-10469
Updates to the Popcorn Promotion, Research, and Consumer Information Order
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 10, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposal invites comments on updates to the Popcorn Promotion, Research, and Consumer Information Order (Order). This proposal would increase the mandatory assessment rate from 5 cents per hundredweight of popcorn to 6 cents to reflect the present rate which was administratively increased in 2001 and has been charged of processors since. Additionally, subpart C would be added to the Order prescribing late payment and interest charges on past due assessments.
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 110 (Tuesday, June 10, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 110 (Tuesday, June 10, 2025)]
[Proposed Rules]
[Pages 24353-24355]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-10469]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 90, No. 110 / Tuesday, June 10, 2025 /
Proposed Rules
[[Page 24353]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1215
[Doc. No. AMS-SC-24-0038]
Updates to the Popcorn Promotion, Research, and Consumer
Information Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposal invites comments on updates to the Popcorn
Promotion, Research, and Consumer Information Order (Order). This
proposal would increase the mandatory assessment rate from 5 cents per
hundredweight of popcorn to 6 cents to reflect the present rate which
was administratively increased in 2001 and has been charged of
processors since. Additionally, subpart C would be added to the Order
prescribing late payment and interest charges on past due assessments.
DATES: Comments must be received by July 10, 2025.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments may be mailed to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Fax:
(202) 720-8938; or submitted electronically by Email:
<a href="/cdn-cgi/l/email-protection#491a04671c1a0d0867041b196708041a67040d0d0a2624242c273d093c3a2d28672e263f"><span class="__cf_email__" data-cfemail="e2b1afccb7b1a6a3ccafb0b2cca3afb1ccafa6a6a18d8f8f878c96a297918683cc858d94">[email protected]</span></a>; or via the internet at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments should reference the document number and
the date and page number of this issue of the Federal Register. All
comments will be made available for public inspection in the Office of
the Docket Clerk during regular business hours or can be viewed at
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments submitted in response to this
proposed rule will be included in the rulemaking record and will be
made available to the public. Please be advised that the identity of
the individuals or entities submitting the comments will be made
public.
FOR FURTHER INFORMATION CONTACT: George Webster, Marketing Specialist,
Market Development Division, Specialty Crops Program, Agricultural
Marketing Service (AMS), U.S. Department of Agriculture (USDA), 1400
Independence Avenue SW, Room 1406-S, Stop 0244, Washington, DC 20250-
0244; Telephone: (202) 720-8085; or Email: <a href="/cdn-cgi/l/email-protection#93d4f6fce1f4f6bdc4f6f1e0e7f6e1d3e6e0f7f2bdf4fce5"><span class="__cf_email__" data-cfemail="6027050f1207054e3705021314051220151304014e070f16">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This proposed rule affecting the Order (7
CFR part 1215) is authorized by the Popcorn Promotion, Research, and
Consumer Information Act (Act) (7 U.S.C. 7481-7491).
Executive Orders 12866 and 13563
USDA is issuing this proposed rule in conformance with Executive
Orders 12866 and 13563. Executive Orders 12866 and 13563 direct
agencies to assess all costs and benefits of available regulatory
alternatives and, if regulation is necessary, to select regulatory
approaches that maximize net benefits (including potential economic,
environmental, public health and safety effects, distributive impacts,
and equity). Executive Order 13563 emphasizes the importance of
quantifying both costs and benefits, reducing costs, harmonizing rules,
and promoting flexibility. This proposed action falls within a category
of regulatory actions that the Office of Management and Budget (OMB)
exempted from Executive Order 12866, and therefore, has not been
reviewed.
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. AMS has assessed the impact of this proposed rule
on Indian Tribes and determined that this rule would not have Tribal
implications that require consultation under Executive Order 13175. AMS
hosts a quarterly teleconference with Tribal leaders where matters of
mutual interest regarding the marketing of agricultural products are
discussed. Information about the proposed changes to the regulations
will be shared during an upcoming quarterly call, and Tribal leaders
will be informed about the proposed revisions to the regulation and the
opportunity to submit comments. AMS will work with the USDA Office of
Tribal Relations to ensure meaningful consultation is provided as
needed with regard to these proposed changes to the Order.
Executive Order 12988
This proposal has been reviewed under Executive Order 12988--Civil
Justice Reform. It is not intended to have retroactive effect. Section
524 of the Act (7 U.S.C. 7423) provides that it shall not affect or
preempt any other Federal or State law authorizing promotion or
research relating to an agricultural commodity.
Under section 519 of the Act (7 U.S.C. 7418), a person subject to
an order may file a written petition with USDA stating that an order,
any provision of an order, or any obligation imposed in connection with
an order, is not established in accordance with the law, and request a
modification of an order or an exemption from an order. Any petition
filed challenging an order, any provision of an order, or any
obligation imposed in connection with an order, shall be filed within
two years after the effective date of an order, provision, or
obligation subject to challenge in the petition. The petitioner will
have the opportunity for a hearing on the petition. Thereafter, USDA
will issue a ruling on the petition. The Act provides that the district
court of the United States for any district in which the petitioner
resides or conducts business shall have the jurisdiction to review a
final ruling on the petition if the petitioner files a complaint for
that purpose not later than 20 days after the date of the entry of
USDA's final ruling.
Background
Under the Order, the Popcorn Board (Board), with USDA oversight,
administers a nationally coordinated program of research, promotion,
and consumer information designed to maintain and expand markets for
U.S. popcorn. The program is financed by assessments on processors of
more than four million pounds of popcorn annually. The Board, which is
composed of five popcorn processors, unanimously recommended these
proposed changes during a meeting on August 28, 2024.
[[Page 24354]]
Assessment Rate Increase
Currently section 1215.51(c) of the Order states that the rate of
assessment shall be 5 cents per hundredweight of popcorn. This rate was
administratively increased by the Board in 2001 to 6 cents per
hundredweight of popcorn and has been charged of processors since. This
proposal would update the assessment rate stated in the Order to
accurately reflect the change that took place in 2001. This update
would help eliminate any confusion amongst the industry on what the
current mandatory assessment rate is.
Interest Charges on Past Due Assessments
Section 575(j) of the Act (7 U.S.C. 7484(j)) states that ``The
order shall contain such other terms and conditions, consistent with
this subtitle, as are necessary to effectuate this subtitle, including
regulations relating to the assessment of late payment charges.''
Section 1215.51(e) of the Order states that ``Each person
responsible for remitting assessments under paragraphs (a) and (b) of
this section shall remit the amounts due from assessments to the Board
on a quarterly basis no later than the last day of the month following
the last month in the previous quarter in which the popcorn was
marketed, in such manner as prescribed by the Board.''
Section 1215.51(f) states that ``The Board shall impose a late
payment charge on any person who fails to remit to the Board the total
amount for which the person is liable on or before the payment due date
established under this section. The amount of the late payment charge
shall be prescribed in rules and regulations as approved by the
Secretary.''
Section 1215.51(g) states that ``The Board shall impose an
additional charge on any person subject to a late payment charge, in
the form of interest on the outstanding portion of any amount for which
the person is liable. The rate of interest shall be prescribed in rules
and regulations as approved by the Secretary.''
Currently, the Board outlines the late payment and interest fees
charged on past due assessments from processors of popcorn in their
Operational Policies and Procedures document; however, these fees are
not detailed in the Order. This proposal would codify the Board's
ability to collect late payment and interest charges on past due
assessments by creating a new section in the Order outlining these
fees.
Under this proposal, a one-time late payment charge of $250 would
be imposed on any processor who fails to pay any assessments owed
within 30 calendar days of the date they are due. This one-time late
payment charge would increase to $500 after 90 days of delinquency.
These late payment charge amounts were chosen by the Board after
reviewing Order language of other research and promotion programs of
similar size and annual assessment collections.
Additionally, 1.25 percent per month interest on any outstanding
balance, including any late payment and accrued interest would be added
to any accounts for which payment has not been received within 30
calendar days of when the assessments are due. This monthly interest
charge was chosen by the Board to match the current language in their
Operational Policies and Procedures document.
Initial Regulatory Flexibility Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601 et seq.), AMS has considered the economic
impact of this proposed action on small entities that would be affected
by this rule, if finalized. Accordingly, AMS has prepared this initial
regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory action to scale on
businesses subject to such action so that small businesses will not be
disproportionately burdened.
The Small Business Administration (SBA) defines, in 13 CFR part
121, small agricultural producers of popcorn as those having annual
receipts equal to or less than $2.5 million (NAICS code: 111150--Corn
Farming) and small agricultural service firms (processors and
importers) as those having annual receipts equal to or less than $34
million (NAICS code: 115114--Postharvest Crop Activities).
For the purpose of fitting regulatory actions to the scale of
businesses for this RFA data used is from the National Agricultural
Statistics Service (NASS) \1\ and Popcorn Board (Board). The 2022 top
five popcorn producing states according to the 2022 Census of
Agriculture are Indiana, Nebraska, Illinois, Ohio, and Missouri. In
2022, Nebraska, Ohio, and Missouri had decreases in harvested acres
while Indiana and Illinois saw increases compared to the 2017 Census of
Agriculture. Overall, the 2022 United States total harvested acreage
decreased by roughly 7.6 percent compared to 2017.
---------------------------------------------------------------------------
\1\ The only NASS data available for this proposed rule is the
Agricultural Survey data on parity pricing (prices farmers receive)
reported annual in January and the 2022 Agricultural Census.
---------------------------------------------------------------------------
According to the 2022 Census of Agriculture published by NASS,
there are roughly 860 total farms that produced a total of 10,141,686
hundredweight (a little over 1 billion pounds) of popcorn in 2022. NASS
has reported on average the 2022 parity price received for popcorn was
roughly $60.80 per hundredweight ($0.61 per pound) of popcorn.
Taking the total hundredweight of popcorn produced in 2022, which
was 10,141,686, multiplied by the parity price of $60.80 per
hundredweight, gives a total parity price revenue of roughly
$616,614,509 for the industry in 2022. Using the total parity price
revenue the industry received in 2022 of roughly $616.6 million dollars
divided by the total 860 popcorn farms in 2022, assuming normal
distribution, gives an average of roughly $716,994 in revenue per farm
from parity prices. Even with the potential of additional pricing being
added into the parity price of popcorn per hundredweight from each
producer, the average price per producer (inclusive of parity pricing)
would not exceed the established revenue thresholds set by the SBA.
Thus, most producers and processors of popcorn would be considered
small entities and would not be disproportionately burdened.
Under the Order, the Board administers a nationally coordinated
program of promotion, research, consumer information and industry
information designed to strengthen the position of popcorn in the
marketplace, and to maintain and expand domestic and foreign markets
and uses for popcorn. The program is financed by assessments on
domestic processors only who process and distribute 4 million pounds or
more of popcorn annually. The current rate of assessment, established
in 2001, is 6 cents per hundredweight of popcorn. The Order specifies
that processors are responsible for submitting the assessment to the
Board in a timely manner and maintaining records necessary to verify
their reporting(s). Based on information from the Board, there are
currently a total 18 processors who pay mandatory assessments into the
program and 15 exempt processors (under the 4-million-pound threshold)
for a total of 33.
Processors who process and distribute less than 4 million pounds of
popcorn annually are exempt from this assessment. Processors that
operate under an approved National Organic Program (NOP) (7 CFR part
206) system plan, process only products that are
[[Page 24355]]
eligible to be labeled as 100 percent organic under the NOP and are not
split operations shall also be exempt from the payment of assessments.
After auditing the 2022 total mandatory assessments collected as
reported by the 2018 to 2022 Evaluation of the Popcorn Board report
(page 5) located on the Board's website, the total assessments
collected was $686,339. Using the total 2022 mandatory assessment
collected of $686,339 divided by the Board's 6 cents per hundredweight
mandatory assessment gives roughly the total popcorn hundredweight of
11,438,983 (roughly 1.14 billion pounds) assessed from domestic
processors who processed and distributed over 4 million of popcorn
annually. Some NASS data is not published to protect small producers
and processors of the small domestic popcorn industry. This can account
for the variance in why the total estimated 2022 hundredweight as
reported by the 2018 to 2022 Evaluation of the Popcorn Board is larger
than as reported by the NASS 2022 Census of Agriculture.
This larger 2022 popcorn hundredweight as reported by the 2018 to
2022 Evaluation of the Popcorn Board report (page 5) can be used to
determine if small businesses are adversely affected by this rule.
Taking this estimated total 11,438,983 hundredweight of popcorn
produced in 2022 multiplied by the parity price of $60.80 per
hundredweight gives a total parity price revenue of roughly
$695,490,187 for the industry. Using the estimated total parity price
revenue the industry received in 2022 of roughly $695.5 million dollars
divided by the total 860 popcorn farms in 2022 (assuming normal
distribution), gives roughly an average of $808,710 in revenue per farm
from parity prices. Thus, even with this higher estimate most producers
and processors of popcorn would be considered small entities and would
not be disproportionately burdened by this rule. Most of the processors
are classified as small businesses under the criteria established by
the Small Business Administration.
Paperwork Reduction Act
In accordance with the Office of Management and Budget (OMB)
regulation (5 CFR part 1320) which implements the Paperwork Reduction
Act of 1995 (44 U.S.C. Chapter 35), the information collection and
recordkeeping requirements that are imposed by the Order have been
approved previously under OMB control number 0581-0093. This rule does
not result in a change to the information collection and recordkeeping
requirements previously approved.
As with all Federal research and promotion programs, reports and
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. USDA has not
identified any relevant Federal rules that duplicate, overlap, or
conflict with this proposed rule.
AMS is committed to complying with the E-Government Act to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to government information
and services, and for other purposes.
Regarding alternatives, the Board considered not making the
proposed changes to the Order and leaving it as-is. If the Order was
left unchanged, the stated assessment rate would remain incorrect and
would continue to cause confusion amongst the industry. By leaving the
Order unchanged and not adding in language prescribing late fees and
interest charges on unpaid assessments, the Board would also have
trouble collecting assessments on a timely basis. After considering
these potential issues, the Board decided against leaving the Order
unchanged.
The Board discussed this proposal throughout 2023 and 2024, and
unanimously recommended the proposed changes during their in-person
meeting on August 28, 2024. The Board is made up of five processors of
over four million pounds of popcorn annually.
AMS has determined that this proposed rule, if finalized, is
consistent with, and would effectuate the purposes of the Act. A 30-day
comment period is provided to allow interested persons to respond to
this proposal. All written comments received in response to this
proposed rule by the date specified will be considered prior to
finalizing this action.
List of Subjects in 7 CFR Part 1215
Administrative practice and procedure, Advertising, Agricultural
research, Popcorn, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 1215 as follows:
PART 1215--POPCORN PROMOTION, RESEARCH, AND CONSUMER INFORMATION
0
1. The authority citation for 7 CFR part 1215 continues to read as
follows:
Authority: 7 U.S.C. 7481-7491; 7 U.S.C. 7401.
Sec. 1215.51 [Amended]
0
2. Amend Sec. 1215.51 in paragraph (c) by removing the number ``5''
and adding in its place the number ``6''.
0
3. Add subpart C--Past Due Assessments to read as follows:
Subpart C--Past Due Assessments
Sec.
Sec. 1215.520 Late payment and interest charges for past due
assessments.
Subpart C--Past Due Assessments
Sec. 1215.520 Late payment and interest charges for past due
assessments.
(a) A late payment charge shall be imposed on any processor who
fails to make timely remittance to the Board of the total assessments
for which such processor is liable. The late payment charge will be
imposed on any assessments not received within 30 calendar days of the
date they are due. This one-time late payment charge shall be $250 and
will be increased to $500 after 90 days of delinquency.
(b) In addition to the late payment charge, 1.25 percent per month
interest on the outstanding balance, including any late payment and
accrued interest, will be added to any accounts for which payment has
not been received within 30 calendar days of the date when assessments
are due. Interest will continue to accrue monthly until the outstanding
balance is paid to the Board.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-10469 Filed 6-9-25; 8:45 am]
BILLING CODE P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on June 10, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.