Proposed Rule2026-02589
Onions Grown in Certain Designated Counties in Idaho and Malheur County, Oregon; Decreased Assessment Rate
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
February 10, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the Idaho-Eastern Oregon Onion Committee (Committee) to decrease the assessment rate established for the 2025-2026 and subsequent fiscal periods from $.07 to $.05 per hundredweight for onions grown in certain designated counties in Idaho and Malheur County, Oregon. The proposed assessment rate would remain in effect indefinitely until modified, suspended, or terminated.
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 27 (Tuesday, February 10, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 27 (Tuesday, February 10, 2026)]
[Proposed Rules]
[Pages 5877-5880]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02589]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 958
[Doc. No. AMS-SC-25-0041]
Onions Grown in Certain Designated Counties in Idaho and Malheur
County, Oregon; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Idaho-Eastern Oregon Onion Committee (Committee) to decrease the
assessment rate established for the 2025-2026 and subsequent fiscal
periods from $.07 to $.05 per hundredweight for onions grown in certain
designated counties in Idaho and Malheur County, Oregon. The proposed
assessment rate would remain in effect indefinitely until modified,
suspended, or terminated.
DATES: Comments must be received by March 12, 2026.
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 submitted to the Docket Clerk electronically by
Email: <a href="/cdn-cgi/l/email-protection#400d21322b2534292e270f32242532032f2d2d252e3400353324216e272f36"><span class="__cf_email__" data-cfemail="eba68a99808e9f82858ca4998f8e99a88486868e859fab9e988f8ac58c849d">[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, will be made available to the public, and may 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: 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#dd9fbcafafa4f39fafb2bcb9bfb8b3a99da8aeb9bcf3bab2ab"><span class="__cf_email__" data-cfemail="a1e3c0d3d3d88fe3d3cec0c5c3c4cfd5e1d4d2c5c08fc6ced7">[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
Order No. 958, as amended (7 CFR part 958), regulating the handling of
onions grown in certain counties in Idaho, and Malheur County, Oregon.
Part 958 (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 Order and is comprised of producers and handlers of
onions operating within the area of production, as well as a public
member.
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 rule 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, Idaho-Eastern
Oregon 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 Idaho-Eastern
Oregon onions for the 2025-2026 fiscal period, and continue until
amended, suspended, or terminated.
[[Page 5878]]
This proposed rule would decrease the assessment rate for Idaho-
Eastern Oregon onions handled under the Order from $0.07 per
hundredweight, the rate that was established for the 2023-2024 and
subsequent fiscal periods, to $0.05 per hundredweight for the 2025-2026
and subsequent fiscal periods.
Sections 958.41 and 958.42 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 2023-2024 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.07 per
hundredweight of Idaho-Eastern Oregon onions handled within the
production area. 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 April 17, 2025, and unanimously recommended,
with a vote of 11 in favor and none opposed, 2025-2026 fiscal period
expenditures of $702,788 and an assessment rate of $0.05 per
hundredweight of Idaho-Eastern Oregon onions handled for the 2025-2026
and subsequent fiscal periods. In comparison, last fiscal period's
budgeted expenditures were $861,089. The proposed assessment rate of
$0.05 per hundredweight is $0.02 lower than the rate currently in
effect. The Committee recommended decreasing the assessment rate to
better align assessment revenue with budgeted expenditures and to
reduce its reserve funds to within a level consistent with the Order.
The Committee projects 10,000,000 hundredweight of assessable Idaho-
Eastern Oregon onions for the 2025-2026 fiscal period, which is
equivalent to the 10,000,000 hundredweight that was projected for the
2023-2024 fiscal period.
The major expenditures recommended by the Committee for the 2025-
2026 fiscal period include $275,000 for promotions, $175,345 for
research, $128,173 for salary expenses, $88,270 for travel and office
expenses, $21,000 for export initiatives, and $15,000 for
contingencies. For comparison, budgeted expenditures for the 2024-2025
fiscal period for promotions, research, salary, travel and office
expenses, export initiatives, and contingencies were $429,959,
$185,041, $123,419, $86,670, $21,000, and $15,000, respectively.
The Committee derived the recommended assessment rate by
considering anticipated fiscal period expenses, the expected volume of
assessable Idaho-Eastern Oregon onions, and the amount of funds
available in the authorized reserve. The expected 10,000,000
hundredweight of Idaho-Eastern Oregon onions from the 2025-2026 crop
would generate $500,000 in assessment revenue at the proposed
assessment rate (10,000,000 hundredweight multiplied by the $0.05
assessment rate). The income generated from handler assessments, along
with $80,288 from reserve funds, $100,000 awarded through the Specialty
Crop Block Grant Program, and $22,500 in other income, would be
sufficient to meet the Committee's estimated program expenditures
$702,788 for the 2025-2026 fiscal period. Funds available in the
operating reserve (projected to be about $612,522 at the end of the
2025-2026 fiscal period) would be kept within the maximum permitted by
the Order (not to exceed one fiscal period's operational expenses, as
authorized in Sec. 958.44).
The proposed assessment rate would continue in effect indefinitely
until 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 2025-2026 fiscal period
budget, and those for subsequent fiscal periods, will be reviewed and
approved by AMS.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the AMS has considered the economic
impact of this proposed 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 108 producers of Idaho-Eastern Oregon
onions in the production area and 29 handlers subject to regulation
under the Order. Small agricultural producers of onions are defined by
the Small Business Administration (SBA) as those having annual receipts
of less than $3,750,000, and small agricultural service firms are
defined as those whose annual receipts are less than $34,000,000 (13
CFR 121.201).
According to the National Agricultural Statistics Service (NASS),
the average producer price received for dry fresh market onions in
Idaho and Malheur County, Oregon, for the 2023 crop year (the most
recent year for which there is NASS data) was $21.50 per hundredweight.
Total shipments of Idaho-Eastern Oregon onions for the 2023-2024 fiscal
period were reported by the Committee to be 9,980,829 hundredweight.
Using the NASS average producer price from the 2023 crop and the
Committee's reported volume, the total 2023 crop value of Idaho-Eastern
Oregon onions could therefore be estimated to be $214,587,824
(9,980,829 hundredweight times $21.50 per hundredweight). Dividing the
crop value by the estimated number of producers (108) yields estimated
average onion receipts per producer of $1,986,924, which is well below
the SBA threshold for small producers.
In addition, according to AMS Market News data, the reported
average free on board (FOB) price for onions from the Idaho-Eastern
Oregon region over the 2023-2024 fiscal period was between $8.00 and
$24.00 per 50-pound container depending upon variety, size and grade,
and shipping date. Assuming an average of $16.00 per 50-pound container
and multiplying this figure by 2 (to adjust to hundredweight) yields a
calculated average FOB price of $32.00 per hundredweight for the 2023-
2024 fiscal period. Multiplying 2023-2024 Idaho-Eastern Oregon onion
volume of 9,980,829 hundredweight by the
[[Page 5879]]
estimated average price per hundredweight of $32.00 equals estimated
total handler revenue of $319,386,528. Dividing this figure by the 29
regulated handlers yields estimated average annual handler receipts of
$11,013,329 ($319,386,528 divided by 29 handlers), which is below the
SBA threshold for small agricultural service firms. Therefore, using
the above data and assuming a normal distribution, most of the
producers and handlers of Idaho-Eastern Oregon onions may be classified
as small entities.
This proposal would decrease the assessment rate collected from
handlers for the 2025-2026 and subsequent fiscal periods from $0.07 to
$0.05 per hundredweight of Idaho-Eastern Oregon onions. The Committee
unanimously recommended, in a vote of 11 in favor and none opposed,
2025-2026 fiscal period expenditures of $702,788 and an assessment rate
of $0.05 per hundredweight. The proposed assessment rate of $0.05 is
$0.02 lower than the current rate. The Committee expects the industry
to handle 10,000,000 hundredweight of Idaho-Eastern Oregon onions
during the 2025-2026 fiscal period. Thus, the proposed $0.05 per
hundredweight assessment rate is expected to provide $500,000 in
assessment income (10,000,000 multiplied by $0.05). In addition, the
Committee expects to use $22,500 of income from other miscellaneous
sources, a $100,000 award from the Specialty Crop Block Grant Program,
and $80,288 from its operating reserve to cover the portion of budgeted
expenses not funded by assessment revenue ($500,000 plus $22,500 plus
$100,000 plus $80,288 equals $702,788).
In the most recent two fiscal periods, at the $0.07 per
hundredweight assessment rate, the Committee has received assessment
revenue in excess of expenditures, with the balance being added to its
reserve fund. To keep the Committee's operating reserve within Order's
limit, the Committee was required to either increase its budget or
decrease its assessment rate moving forward. The Committee recommended
decreasing the assessment rate. The recommended $0.05 per hundredweight
rate would facilitate funding the bulk of the Committee's 2025-2026
fiscal period budgeted expenditures from assessment revenue, with
expenditures in excess of assessment income being funded from other
income sources (grants, voluntary contributions, and interest) and
utilizing funds held in the operating reserve. This proposed rule would
draw an estimated $80,288 from the Committee's reserve fund. The
reserve fund's balance, expected to be $612,522 at the end of the 2025-
2026 fiscal period, would be kept at a level that the Committee
believes is appropriate and which is compliant with the provisions of
the Order.
Prior to arriving at this budget and proposed assessment rate, the
Committee discussed various alternatives, including maintaining the
current assessment rate of $0.07 per hundredweight, and decreasing the
assessment rate by varying amounts. However, the Committee determined
that the recommended $0.05 per hundredweight assessment rate would
materially fund most of its budgeted expenses, with the balance made up
from other income and by utilizing $80,288 of its operating reserve.
The proposed assessment rate was derived by considering anticipated
expenses, the projected volume of assessable Idaho-Eastern Oregon
onions, grant funds awarded, other income, the projected balance of
funds held in reserve, and additional pertinent factors.
A review of NASS information indicates that the average producer
price for the 2023 crop year was $21.50 per hundredweight of onions in
the production area. Further, the Committee reported the quantity of
assessable Idaho-Eastern Oregon onions handled in the 2023-2024 fiscal
period was 9,980,829 hundredweight, which yields estimated total
producer revenue of $214,587,824 ($21.50 per hundredweight multiplied
by 9,980,829). Therefore, utilizing the assessment rate of $0.05 per
hundredweight, assessment revenue for the 2023-2024 fiscal period as a
percentage of total producer revenue would have been approximately 0.23
percent ($0.05 multiplied by 9,980,829 per hundredweight divided by
$214,587,824 and multiplied by 100).
This proposed rule would decrease the assessment obligation imposed
on Idaho-Eastern Oregon onion handlers. Assessments are applied
uniformly on all handlers, based upon their volume handled. Some of
those costs may be passed on to producers. However, those costs are
expected to be offset by the benefits derived by the operation of the
Order.
The Committee's meetings are widely publicized throughout the
production area. The Idaho-Eastern Oregon 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 April 17, 2025, 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.
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 Idaho-Eastern
Oregon 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
decreased 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.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, USDA has determined that this proposed
rule is consistent with, and will 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 rule.
List of Subjects in 7 CFR Part 958
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 958 as follows:
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON.
0
1. The authority citation for 7 CFR part 958 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
[[Page 5880]]
0
2. Section 958.240 is revised to read as follows:
Sec. 958.240 Assessment rate.
On and after July 1, 2025, an assessment rate of $0.05 per
hundredweight is established for Idaho-Eastern Oregon onions.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-02589 Filed 2-9-26; 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 February 10, 2026.
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.