Notice of Intent To Terminate Agricultural Marketing Service Master Scale Program
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Issuing agencies
Abstract
The U.S. Department of Agriculture's (USDA) Agricultural Marketing Service (AMS) proposes to terminate the master scale testing program effective September 30, 2025. Significantly reduced customer usage has led to insufficient collection of user fees that are required to cover program costs. AMS seeks public comment on this service termination from affected parties.
Full Text
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<title>Federal Register, Volume 90 Issue 158 (Tuesday, August 19, 2025)</title>
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[Federal Register Volume 90, Number 158 (Tuesday, August 19, 2025)]
[Notices]
[Pages 40318-40319]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15756]
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Notices
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Federal Register / Vol. 90, No. 158 / Tuesday, August 19, 2025 /
Notices
[[Page 40318]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Doc. No. AMS-FGIS-25-0033]
Notice of Intent To Terminate Agricultural Marketing Service
Master Scale Program
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Notice; request for comments.
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SUMMARY: The U.S. Department of Agriculture's (USDA) Agricultural
Marketing Service (AMS) proposes to terminate the master scale testing
program effective September 30, 2025. Significantly reduced customer
usage has led to insufficient collection of user fees that are required
to cover program costs. AMS seeks public comment on this service
termination from affected parties.
DATES: Submit comments on or before September 18, 2025.
ADDRESSES: To submit comments in response to this notice, go to
<a href="http://Regulations.gov">Regulations.gov</a> (<a href="https://www.regulations.gov">https://www.regulations.gov</a>). Instructions for
submitting and reading comments are detailed on the site. All comments
must be submitted through the Federal e-rulemaking portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> and should reference the document number and the
date and page number of this issue of the Federal Register. All
comments submitted in response to this notice will be included in the
record and will be made available to the public. Please be advised that
the identity of the individuals or entities submitting comments will be
made public on the internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Barry Gomoll, Grain Marketing
Specialist, Federal Grain Inspection Service, AMS, USDA; telephone:
(202) 720-8286; email: <a href="/cdn-cgi/l/email-protection#c8aaa9babab1e6a4e6afa7a5a7a4a488bdbbaca9e6afa7be"><span class="__cf_email__" data-cfemail="eb898a999992c587c58c8486848787ab9e988f8ac58c849d">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Authority
Section 16 of the United States Grain Standards Act (USGSA), as
amended (7 U.S.C. 71 et seq.), states that the Secretary of Agriculture
``may provide for the testing of weighing equipment used for purposes
other than weighing grain.'' The USGSA further states that the testing
shall be performed ``for a reasonable fee established by regulation or
contractual agreement and sufficient to cover, as nearly as
practicable, the estimated costs of the testing performed'' and that
testing ``may not conflict with or impede the objectives'' specified in
the Congressional findings and declaration of policy of the USGSA.
Moreover, AMS requires that scales used in the weighing of grain
function in an approved manner (7 CFR 800.217(c)) and section 9 of the
USGSA (7 U.S.C. 79b) requires the Secretary to provide regulations for
the testing of official scales as the needed to ensure accuracy and
integrity of that equipment. AMS uses this discretionary authority to
maintain and operate the Federal Grain Inspection Service (FGIS) master
scale depot.
Background
Since 1980, AMS has maintained and operated the master scale depot
in Chicago, Illinois. AMS uses this depot as a central testing location
to calibrate other master scales throughout the United States. Once AMS
has completed testing and calibration, railroad companies and States
can then calibrate their own railroad track scales and other industry
owned scales with their own test cars to ensure uniform weighing
performance.
From 2010 through 2019, AMS had an agreement with the Association
of American Railroads (Association) that supported costs and
maintenance of the master scale depot, weighing equipment, and salaries
of personnel. The Association elected not to reestablish the agreement
in 2020, thereby removing guaranteed funding that supported operating
expenses. A primary reason the Association subsidized the scale
calibration and testing services was consolidation of scale service
providers, while the Association projected the number test cars sent to
the Chicago-based master scale facility would increase. Today, the
overall business environment and model has changed drastically. When
AMS assumed the master scale calibration service decades ago,
historical records indicate there were eleven master scales in use
throughout the United States. In fiscal year 2024, AMS tested and
calibrated only three of five currently operating master scales, two
owned by railroad companies and one owned by the State of Minnesota.
Due to the cancellation of the Association agreement and changes in
business conditions, AMS has not collected sufficient fees to cover the
cost of this service.
Service Fees
Maintaining the master scale program involves coverage of fixed and
variable expenses that include, but are not limited to, facility
maintenance, repairs, and utilities; weighing equipment technology and
test car repairs, upgrades, or replacements to increase testing
efficiency and reduce wear and tear on equipment; and personnel
salaries and required training costs. AMS made attempts to generate
business by modernizing operations that would ensure the accuracy of
official weight certificates and traceability. AMS conducted long
overdue renovations of the depot building in fiscal years 2020-2021 and
replaced outdated equipment in fiscal year 2022. Due to the decreased
volume of testing, the master scale testing program user fees have not
kept pace with the fixed costs of operating the program.
AMS bills master scale testing customers through a combination of
an hourly rate, travel expenses, and a daily rate for the use of the
test car. AMS decreased scale testing fees each fiscal year from 2018-
2020 and has only modestly increased fees in the years since, while
overall testing volume remains unsustainably low. Since the termination
of the Association agreement in 2020, individual companies assume user
fee-based costs for each master scale test, which totaled approximately
$7,800 per master scale test as of 2024. If AMS were to test all five
master scales annually, the estimated revenue collection of $39,000
would only cover about 20 percent of the total cost of providing and
maintaining the service, which is more than $200,000 each year. The
USGSA requires that scale testing fees be reasonable and sufficient to
cover
[[Page 40319]]
applicable costs. AMS is not collecting sufficient fees to cover the
cost of providing the master scale testing service. To continue
operating the master scale testing program, AMS would require a
significant user fee increase that the agency does not believe
customers would consider reasonable.
Request for Comments
AMS proposes to cease operation of the master scale depot and
transfer the depot to either another government agency or a private
entity. AMS is soliciting feedback including data, recommendations, and
other information from customer stakeholders on plans to terminate the
master scale testing program service effective September 30, 2025.
Faced with significantly less service volume and constrained revenue
collection, AMS made substantial strides to adapt services to no avail.
While scale calibration and testing services remain vital to all
weighed freight moving on the U.S. railroad system, AMS can only
operate the master scale program if it can be fully self-sustained
through user fee funding. The USGSA does not mandate testing of scales
used for commodities other than grain and AMS believes that non-federal
expertise and viable providers through a State-government program or a
private sector entity could preserve service affordability without
compromising the integrity of standards.
AMS is also requesting any historical information pertaining to an
agreement established in 1980 whereas the USDA Federal Grain Inspection
Service (FGIS) and the National Institute of Standards and Technology
(NIST)--formerly the National Bureau of Standards (NBS)--transferred
responsibility to maintain the Chicago-based Master Scale facility to
FGIS.
After reviewing feedback and comments submitted in response to this
notice, AMS will make a final determination concerning the master scale
testing program.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-15756 Filed 8-18-25; 8:45 am]
BILLING CODE P
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