Proposed Rule2025-19151
Sweet Onions Grown in the Walla Walla Valley of Southeast Washington and Northeast Oregon; Decreased Assessment Rate
Primary source
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Published
October 1, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the Walla Walla Sweet Onion Marketing Committee (Committee) to decrease the assessment rate established for the 2025 and subsequent fiscal periods from $0.20 to $0.17 per 50-pound bag or equivalent for sweet onions grown in the Walla Walla Valley of Southeast Washington and Northeast Oregon. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 90 Issue 188 (Wednesday, October 1, 2025)</title>
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[Federal Register Volume 90, Number 188 (Wednesday, October 1, 2025)]
[Proposed Rules]
[Pages 47245-47248]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19151]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 956
[Doc. No. AMS-SC-24-0080]
Sweet Onions Grown in the Walla Walla Valley of Southeast
Washington and Northeast Oregon; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
Walla Walla Sweet Onion Marketing Committee (Committee) to decrease the
assessment rate established for the 2025 and subsequent fiscal periods
from $0.20 to $0.17 per 50-pound bag or equivalent for sweet onions
grown in the Walla Walla Valley of Southeast Washington and Northeast
Oregon. The proposed assessment rate would remain in effect
indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by October 31, 2025.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments can be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237.
Comments can also be sent to the Docket Clerk electronically by email:
<a href="/cdn-cgi/l/email-protection#83cee2f1e8e6f7eaede4ccf1e7e6f1c0eceeeee6edf7c3f6f0e7e2ade4ecf5"><span class="__cf_email__" data-cfemail="6825091a030d1c01060f271a0c0d1a2b0705050d061c281d1b0c09460f071e">[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.
Comments submitted in response to this proposed rule will be included
in the record and will be made available to the public and can be
viewed at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Please be advised that the
identity of the individuals or entities submitting the comments will be
made public on the internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Virginia Tjemsland, Marketing
Specialist, or Barry Broadbent, Chief, Northwest Region Branch, Market
Development Division, Specialty Crops Program, AMS, USDA; telephone:
(503) 326-2724; or email: <a href="/cdn-cgi/l/email-protection#d482bda6b3bdbabdb5fa98fa80beb1b9a7b8b5bab094a1a7b0b5fab3bba2"><span class="__cf_email__" data-cfemail="1b4d72697c7275727a3557354f717e7668777a757f5b6e687f7a357c746d">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#ecae8d9e9e95c2ae9e838d888e898298ac999f888dc28b839a"><span class="__cf_email__" data-cfemail="fbb99a898982d5b989949a9f999e958fbb8e889f9ad59c948d">[email protected]</span></a>.
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, Market Development
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-8085; or
email: <a href="/cdn-cgi/l/email-protection#6a2b041e0503040f1e1e0f44290b181e0f182a1f190e0b440d051c"><span class="__cf_email__" data-cfemail="acedc2d8c3c5c2c9d8d8c982efcdded8c9deecd9dfc8cd82cbc3da">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing
Agreement and Order No. 956, both as amended (7 CFR part 956),
regulating the handling of sweet onions grown in the Walla Walla Valley
of Southeast Washington and Northeast Oregon. Part 956 (referred to as
the ``Order'') is effective under the Agricultural Marketing Agreement
Act of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as
the ``Act.'' The Committee locally administers the
[[Page 47246]]
Order and is comprised of producers and handlers of Walla Walla sweet
onions operating within the area of production, as well as a public
member.
The Agricultural Marketing Service (AMS) is issuing this proposed
rule in conformance with Executive Order 12866, as amended by Executive
Order 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 action falls within a category of regulatory actions that the
Office of Management and Budget (OMB) exempted from Executive Order
12866 review.
This proposed rule has been reviewed under Executive Order 13175,
``Consultation and Coordination with Indian Tribal Governments,'' which
requires Federal agencies to consider whether their rulemaking actions
would have Tribal implications. AMS has determined that this rulemaking
is unlikely to have substantial direct effects on one or more Indian
Tribes, on the relationship between the Federal Government and Indian
Tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian Tribes.
This proposed rule has been reviewed under Executive Order 12988,
``Civil Justice Reform.'' Under the Order now in effect, Walla Walla
sweet onion handlers are subject to assessments. Funds to administer
the Order are derived from such assessments. It is intended that the
assessment rate would be applicable to all assessable Walla Walla sweet
onions for the 2025 fiscal period, and continue until amended,
suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608(c)(15)(A) of
the Act, any handler subject to an order may file with U.S. Department
of Agriculture (USDA) a petition stating that the order, any provision
of the order, or any obligation imposed in connection with the order is
not in accordance with law and request a modification of the order or
to be exempted therefrom. Such handler is afforded the opportunity for
a hearing on the petition. After the hearing, USDA would rule on the
petition. The Act provides that the district court of the United States
in any district in which the handler is an inhabitant, or has his or
her principal place of business, has jurisdiction to review USDA's
ruling on the petition, provided an action is filed not later than 20
days after the date of the entry of the ruling.
This proposed rule would decrease the assessment rate for Walla
Walla sweet onions handled under the Order from $0.20 per 50-pound bag
or equivalent, the rate that was established for the 2023 and
subsequent fiscal periods, to $0.17 per 50-pound bag or equivalent for
the 2025 and subsequent fiscal periods.
Sections 956.41 and 956.42 of the Order authorize the Committee,
with the approval of AMS, to formulate an annual budget of expenses and
collect assessments from handlers to administer the program. The
members of the Committee are familiar with the Committee's needs and
with the costs of goods and services in their local area and are able
to formulate an appropriate budget and assessment rate. The assessment
rate is formulated and discussed in a public meeting, and all directly
affected persons have an opportunity to participate and provide input.
For the 2023 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.20 per 50-pound
bag or equivalent of Walla Walla sweet onions. That rate continues in
effect from fiscal period to fiscal period until modified, suspended,
or terminated by AMS upon recommendation and information submitted by
the Committee or other information available to AMS.
The Committee met on December 4, 2024, and unanimously recommended
with a vote of six in favor and none opposed, 2025 fiscal period
expenditures of $58,374 and an assessment rate of $0.17 per 50-pound
bag or equivalent of Walla Walla sweet onions handled for the 2025 and
subsequent fiscal periods. In comparison, last year's budgeted
expenditures were $56,330. The proposed assessment rate of $0.17 per
50-pound bag or equivalent is $0.03 lower than the rate currently in
effect. The Committee recommended decreasing the assessment rate to
reduce its reserve funds to within a level authorized under the Order.
The Committee projects 222,950 50-pound bags or equivalent of
assessable Walla Walla sweet onions for the 2025 fiscal period, which
is 20,800 50-pound bags or equivalent less than was projected for the
2024 fiscal period.
The major expenditures recommended by the Committee for the 2025
fiscal period include administrative, promotion, research, and travel
expenses as well as a contingency emergency fund. This is consistent
with budgeted expenditures for the 2024 fiscal period except there was
no budgeted contingency fund.
The Committee derived the recommended assessment rate by
considering anticipated crop year expenses, expected volume of
assessable Walla Walla sweet onions, and the amount of funds available
in the authorized reserve. The expected 222,950 50-pound bags or
equivalent of Walla Walla sweet onions from the 2025 crop is expected
to generate $37,902 in assessment revenue at the proposed assessment
rate (222,950 50-pound bags or equivalent multiplied by the $0.17
assessment rate). The income generated from handler assessments, along
with $20,472 in reserve funds, would be sufficient to meet the
Committee's estimated program expenditures of $58,374 for the 2025
fiscal period. Funds available in the financial reserve (projected to
be about $91,694 at the start of the 2025 fiscal period) would be kept
within the maximum permitted by the Order (not to exceed two fiscal
period's budgeted expenses, as authorized in Sec. 956.44).
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by AMS upon recommendation
and information submitted by the Committee or other available
information. Although this assessment rate would be in effect for an
indefinite period, the Committee would continue to meet prior to or
during each fiscal period to recommend a budget of expenses and
consider recommendations for modification of the assessment rate. The
dates and times of Committee meetings are available from the Committee
or AMS. Committee meetings are open to the public and interested
persons may express their views at these meetings. AMS would evaluate
Committee recommendations and other available information to determine
whether modification of the assessment rate is needed. Further
rulemaking would be undertaken as necessary. The Committee's 2025
fiscal period budget, and those for subsequent fiscal periods, will be
reviewed and, as appropriate, approved by AMS.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this proposed
[[Page 47247]]
rule on small entities. Accordingly, AMS has prepared this initial
regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 12 producers of Walla Walla sweet onions in
the production area and 8 handlers subject to regulation under the
Order. Small agricultural producers of Walla Walla sweet onions are
defined by the Small Business Administration (SBA) as those having
annual receipts of less than $3,750,000 (North American Industry
Classification System (NAICS) code 111219, Other Vegetable (except
Potato) and Melon Farming) and small agricultural service firms are
defined as those whose annual receipts are less than $34,000,000 (NAICS
code 115114, Postharvest Crop Activities) (13 CFR 121.201).
According to the USDA National Agricultural Statistics Service
(NASS), the average annual producer price received for dry onions sold
in Washington between 2020 and 2023 ranged from $9.13 to $26.20 per
hundredweight. The average over those years was approximately $17.98
per hundredweight, or $8.99 per 50-pound bag or equivalent. Total
production of Walla Walla sweet onions for the 2024 season was reported
by the Committee to be 283,136 50-pound bags or equivalent. Using the
average price from 2020-2023, the most recent years for which there is
NASS data, the total 2024 crop value of Walla Walla sweet onions could
therefore be estimated to be $2,545,393 (283,136 50-pound bags or
equivalent multiplied by $8.99 per 50-pound equivalent). Dividing the
estimated crop value by the estimated number of producers (12) yields
an estimated average receipt per producer of $212,116 ($2,545,393
divided by 12), which is well below the SBA small agricultural producer
threshold of $3,750,000 in annual receipts.
According to USDA Market News data, the terminal market price for
Walla Walla sweet onions in the most recent season for which data is
available (2021) was $34.96 per 40-pound carton. Multiplying this
figure by 1.25 to adjust for a 50-pound bag or equivalent yields an
average 2021 terminal market price of $43.70 per 50-pound bag or
equivalent. Multiplying the 2024 Walla Walla sweet onion production of
283,136 50-pound bags or equivalent by the estimated average price per
50-pound bag or equivalent of $43.70 equals $12,373,043 ($34.96 times
1.25 times 283,136). Dividing this figure by the 8 regulated handlers
yields estimated average annual handler receipts of $1,546,630
($12,373,043 divided by 8 handlers), which is below the SBA threshold
for small agricultural service firms of $34,000,000 in annual receipts.
Therefore, using the above data, all of the producers and handlers of
Walla Walla sweet onions would likely be classified as small entities
according to the SBA definition.
This proposal would decrease the assessment rate collected from
handlers for the 2025 and subsequent fiscal periods from $0.20 to $0.17
per 50-pound bag or equivalent of Walla Walla sweet onions. The
Committee unanimously recommended 2025 fiscal period expenditures of
$58,374 and an assessment rate of $0.17 per 50-pound bag or equivalent
of Walla Walla sweet onions. The proposed assessment rate of $0.17 is
$.03 lower than the current rate. The Committee expects the industry to
handle 222,950 50-pound bags or equivalent of Walla Walla sweet onions
during the 2025 fiscal period. Thus, the $0.17 per 50-pound bag or
equivalent rate should provide $37,902 in assessment income (222,950
50-pound bags or equivalent multiplied by $0.17). The Committee also
expects to use $20,472 from its financial reserve to cover remaining
expenses. Income derived from handler assessments, along with reserve
funds, should be adequate to meet budgeted expenditures for the 2025
fiscal period.
The major expenditures recommended by the Committee for the 2025
fiscal period include administrative, promotion, research, and travel
expenses, as well as a contingency emergency fund. This is consistent
with expenditures for the 2024 fiscal period except there was no
budgeted contingency fund.
In recent years, the Committee has added to its reserve funds by
collecting assessment revenue in excess of budgeted expenditures. The
Committee recommended decreasing the assessment rate to refrain from
holding excessive funds in its reserve. The Committee will still
adequately fund 2025 budgeted expenses from assessment revenue and
utilizing funds from its reserve. This action is expected to lower and
maintain the Committee's reserve balance at a level that the Committee
believes is appropriate and is compliant with the provisions of the
Order.
Prior to arriving at this budget and the assessment rate
recommendation, the Committee discussed various alternatives, including
maintaining the current assessment rate of $0.20 per 50-pound bag or
equivalent as well as decreasing the assessment rate by different
amounts. However, the Committee determined that the recommended
assessment rate would be able to fund most of its budgeted expenses,
with the balance coming from its financial reserve, and avoid
increasing reserves to an inappropriate level. The assessment rate of
$0.17 per 50-pound bag or equivalent of Walla Walla sweet onions was
derived by considering anticipated expenses, the projected volume of
assessable Walla Walla sweet onions, the projected monetary balance
held in reserve, and additional pertinent factors.
A review of NASS information indicates that the average producer
price for the 2020-2023 crop years was $8.99 per 50-pound bag or
equivalent. Further, the Committee reported the quantity of assessable
Walla Walla sweet onions harvested in the 2024 fiscal period was
283,136 50-pound bags or equivalent, which yields estimated total
producer revenue for 2024 of approximately $2,545,392 ($8.99 per 50-
pound bag or equivalent multiplied by 283,136). Therefore, utilizing
the assessment rate of $0.17 per 50-pound bag or equivalent, assessment
revenue for the 2024 fiscal period, as a percentage of total producer
revenue, would be approximately 1.89 percent ($0.17 multiplied by
283,136 per 50-pound bags or equivalent divided by $2,545,392 and
multiplied by 100).
This proposed action would decrease the assessment obligation
imposed on handlers. Assessments are applied uniformly on all handlers,
and some of the costs may be passed on to producers. However, these
costs would be offset by the benefits derived by the operation of the
Order.
The Committee's meetings are widely publicized throughout the
production area. The Walla Walla sweet onion industry and all
interested persons are invited to attend the meetings and participate
in Committee deliberations on all issues. Like all Committee meetings,
the December 4, 2024, meeting was a public meeting and all entities,
both large and small, were able to express views on this issue.
Finally, interested persons are invited to submit comments on this
proposed rule, including the regulatory and information collection
impacts of this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
[[Page 47248]]
chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0178, Vegetable
and Specialty Crops. No changes in those requirements would be
necessary as a result of this proposed rule. Should any changes become
necessary, they would be submitted to OMB for approval.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large Walla Walla sweet
onion handlers. As with all Federal marketing order programs, reports
and forms are periodically reviewed to reduce information requirements
and duplication by industry and public sector agencies.
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.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this proposed rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
<a href="https://www.ams.usda.gov/rules-regulations/moa/small-businesses">https://www.ams.usda.gov/rules-regulations/moa/small-businesses</a>. Any
questions about the compliance guide should be sent to Antoinette
Carter at the previously mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, AMS has determined that this proposed rule
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 proposed rule. All written comments timely received
will be considered before a final determination is made on this
rulemaking.
List of Subjects in 7 CFR Part 956
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, AMS proposed to amend 7
CFR part 956 as follows:
PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST
WASHINGTON AND NORTHEAST OREGON.
0
1. The authority citation for part 956 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 956.202 is revised to read as follows:
Sec. 956.202 Assessment rate.
On and after January 1, 2025, an assessment rate of $0.17 per 50-
pound bag or equivalent is established for Walla Walla sweet onions.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-19151 Filed 9-30-25; 8:45 am]
BILLING CODE 3410-02-P
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