Proposed Rule2026-04567
Honey Packers and Importers; Increased 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
March 9, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the National Honey Board to increase the assessment rate for first handlers and importers from 1.5 cents ($0.015) per pound of assessable honey and honey products to 2 cents ($0.02) per pound of assessable honey and honey products over two fiscal periods. The proposed assessment rate would remain in effect indefinitely until modified or terminated.
Full Text
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<title>Federal Register, Volume 91 Issue 45 (Monday, March 9, 2026)</title>
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[Federal Register Volume 91, Number 45 (Monday, March 9, 2026)]
[Proposed Rules]
[Pages 11189-11191]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04567]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1212
[Doc. No. AMS-SC-25-0122]
Honey Packers and Importers; Increased Assessment Rate
AGENCY: Agricultural Marketing Service (AMS), USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
National Honey Board to increase the assessment rate for first handlers
and importers from 1.5 cents ($0.015) per pound of assessable honey and
honey products to 2 cents ($0.02) per pound of assessable honey and
honey products over two fiscal periods. The proposed assessment rate
would remain in effect indefinitely until modified or terminated.
DATES: Comments must be received by April 8, 2026.
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 0244, Washington, DC 20250-0237;
submitted by fax: (202) 720-8938; or submitted electronically by email:
<a href="/cdn-cgi/l/email-protection#f5a6b8dba0a6b1b4dbb8a7a5dbb4b8a6dbb8b1b1b69a9898909b81b580869194db929a83"><span class="__cf_email__" data-cfemail="fba8b6d5aea8bfbad5b6a9abd5bab6a8d5b6bfbfb89496969e958fbb8e889f9ad59c948d">[email protected]</span></a>; or via the Federal e-rulemaking
portal 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. The identity of the individuals or entities
submitting the comments will be made public on the internet at the
address provided above. Do not submit confidential business information
or otherwise proprietary, sensitive, or protected information. Comments
are posted to <a href="http://regulations.gov">regulations.gov</a> without change.
FOR FURTHER INFORMATION CONTACT: Katie Cook, Marketing Specialist, or
Alexandra Caryl, Chief, Mid-Atlantic Region Branch, Market Development
Division, Specialty Crops Program, AMS, USDA; telephone: (202) 720-8085
or via email: <a href="/cdn-cgi/l/email-protection#4803293c212d660b272723083d3b2c29662f273e"><span class="__cf_email__" data-cfemail="fbb09a8f929ed5b8949490bb8e889f9ad59c948d">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#01406d6479606f6573602f426073786d41747265602f666e77"><span class="__cf_email__" data-cfemail="c687aaa3bea7a8a2b4a7e885a7b4bfaa86b3b5a2a7e8a1a9b0">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This proposed rule affecting the Honey
Packers and Importers Research, Promotion, Consumer Education and
Industry Information Order (7 CFR part 1212) (Order) is authorized by
the Commodity Promotion, Research, and Information Act of 1996 (7
U.S.C. 7411-7425) (Act).
Executive Order 12866
This action is exempt from the Office of Management and Budget
(OMB) review process required by Executive Order 12866. This rule
amends an existing research and promotion program and is necessary for
the continued operation of the Honey Packers and Importers Research,
Promotion, Consumer Education and Industry Information Order.
Additionally, this action is exempt from the requirements of Executive
Order 14192, ``Unleashing Prosperity Through Deregulation,'' pursuant
to section 5(c).
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' The 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.
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 Commodity Promotion, Research, and
Information Act of 1996 (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 National Honey Board (NHB or Board)
administers a nationally coordinated program of research, development,
advertising, and promotion designed to strengthen the honey industry's
position in the marketplace, and to establish, maintain, and expand
markets for honey and honey products. To fund the program, 7 CFR
1212.52 authorizes the Board to collect assessments on first handlers
and importers who handle and/or import more than 250,000 pounds of
honey or honey products per calendar year.
Currently, first handlers and importers who handle and/or import
more than 250,000 pounds per calendar year pay $0.015 per pound of
assessable honey and honey products. The Order specifies that first
handlers are responsible for paying the assessment to the Board on all
domestically produced honey and honey products the first handler
handles. Producers who are first handlers are responsible for paying
the assessment to the Board. Importers are responsible for payment of
assessments to the Board on all honey and honey products the importer
imports into the United States through the United States Customs and
Border Protection (Customs).
The assessment rate has changed once since the program was
established in 2008. In 2015, the assessment rate increased from $0.01
to the current rate of $0.015. Pursuant to 7 CFR 1212.52(f), the Board
may recommend to the Secretary an assessment change as it deems
appropriate by at least two-thirds vote of members present at a meeting
of the Board. Additionally, the Order specifies that the recommendation
may not increase the assessment by more than $0.02 per pound and by
more than $0.0025 in any single fiscal year.
Board Recommendation To Adjust the Assessment Rate
This proposed rule would amend 7 CFR 1212.52(a) by increasing the
assessment rate from $0.015 per pound to $0.0175 per pound, effective
June 1,
[[Page 11190]]
2026, and another increase to $0.02 per pound, effective January 1,
2027.
The Board first discussed this recommendation at their spring 2024
meeting. In June 2024, the Board shared the potential of an assessment
increase at the National Honey Packers and Dealers Association (NHPDA)
meeting. The NHPDA voted to request NHB raise the assessments to $0.02.
The Board met on October 25, 2024, and voted 9 in favor to 1 opposed to
recommend the assessment increase from $0.015 cents to $0.02 cents per
pound of assessable honey.
Since the last assessment change in 2015, inflation in the U.S. has
risen 36%. When applying this increase across costs for staffing,
promotion, and research, it significantly affects the Board's budget
and contracts with agency partners. Although NHB's assessment revenue
has increased slightly since 2023, inflation and the cost of conducting
business have outpaced it. Consequently, the Board's effectiveness is
compromised due to the loss of purchasing power, which limits
implementation of necessary promotion and research projects.
The Board's budget also continues to be constrained by rising
reimbursement requests on imported organic honey. Pursuant to 7 CFR
1212.53(c), products that are 100 percent organic, as defined by the
National Organic Program, may be exempt from assessments under the
Order. Customs collects assessments on all imported honey and honey
products, meaning importers must request a reimbursement from the NHB
for any certified organic honey that was assessed. Aside from the costs
incurred to process these reimbursement requests, the Board must set
aside substantial funds for reimbursements requested throughout the
fiscal year and 90 days into the next fiscal year as required by 7 CFR
1212.53(e)(1). This causes the Board to be more conservative with
promotion and research efforts to ensure funds are available to
reimburse these assessments. By increasing assessments, the Board will
fund promotion and research efforts with less concern of having to move
funds to cover reimbursement requests for certified organic honey.
Initial Regulatory Flexibility Act and Paperwork Reduction Act
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of the proposed rule on
small entities. Accordingly, AMS has considered the economic impact of
this action on such entities.
This rule proposes an increased assessment rate on importers and
handlers of $0.02 per pound of honey. Based on the calculated volume of
honey assessed in 2024, described below, the increased assessment rate
would add $2.99 million to the program's budget, with $2.42 million
being paid by importers and $567,782 paid by handlers. Assessments are
applied uniformly to all first handlers and importers who handle or
import an amount of honey above the de minimis threshold of 250,000
pounds. This proposed action would increase the assessment imposed on
first handlers and importers but not disproportionately burden small
domestic first handlers and importers.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
unduly or disproportionately burdened. The Small Business
Administration (SBA) defines small agricultural producers of honey as
those having annual receipts equal to or less than $3.25 million (North
American Industry Classification System (NAICS code 112910,
Apiculture)) (13 CFR 121.201), and small agricultural service firms
(first handlers and importers) as those having annual receipts equal to
or less than $34 million (NAICS code 115114, Postharvest Crop
Activities except Cotton Ginning).\1\
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\1\ The activities of honey handler and importers span multiple
NAICS classifications in industry group 311999--All Other
Miscellaneous Food Manufacturing. The small business size standards
associated with these classifications are defined by number of
employees; however, with the data available to USDA, basing the
definition of a small business on average annual receipts results in
a more meaningful analysis of the impact of the rule on honey
handlers and importers in the RFA. Therefore, USDA used the
definition of a small firm which engages in ``Postharvest Crop
Activities (except Cotton Ginning)'' as a more appropriate criterion
for this analysis.
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The Board reported there were 95 importers and 34 first handlers of
honey and honey products covered under the program during the 2024
fiscal period. Total assessments for 2024 were $8.96 million, of which
81 percent was paid by importers and 19 percent was paid by first
handlers. This data can be used to estimate the average annual revenue
from honey sales of importers and first handlers along with determining
the number of these considered to be small businesses based on the SBA
definitions. Of total paid assessments in 2024, importers paid $7.26
million, and first handlers paid $1.70 million. The amount of honey
assessed in pounds can be calculated by dividing 2024 assessment values
by the 2024 assessment rate of $0.015 per pound. This results in
assessed honey volumes of 484.11 million pounds for importers and
113.56 million pounds for first handlers. Based on analysis of Customs
and Border Protection importer data, the 2024 average importer price
for honey was $5.34 per pound. Little data is available regarding
handler prices; therefore, USDA used this estimated importer price as a
proxy for handler price for the purposes of this RFA. Multiplying the
estimated importer and handler price of $5.34 per pound by the 2024
assessed volumes results in estimated 2024 total revenues for assessed
entities of $2.59 billion for the 95 assessed importers and $606.39
million for the 34 assessed handlers. Assuming equal distribution of
revenues, per entity annual receipts would be $27.21 million per
importer and $17.83 million per handler, both below the SBA threshold
for a small business, which calls for annual receipts no greater than
$34 million.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), the information collection and recordkeeping requirements
imposed by the Order have been approved under OMB control number 0581-
0093.
As with all Federal research and promotion programs, reports and
forms are periodically reviewed to reduce the burden of 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, operational costs and services provided by the Board
would continue to be issues that could result in the Board failing to
cover its expenses through assessments as prescribed by 7 CFR
1212.52(a). After considering these potential issue, the Board decided
against leaving the Order unchanged.
Regarding outreach efforts, the Board discussed the assessment rate
change at its meetings throughout 2024. Board staff also traveled to
industry events, like the NHPDA meeting, to garner feedback and gauge
support. On October 25, 2024, the Board voted to recommend the
assessment rate change to the
[[Page 11191]]
Secretary. The members who voted represent producers, handlers,
importers, and the industry marketing cooperative. AMS performed this
initial RFA analysis regarding the impact of this action on small
entities and invites comments concerning the potential effects of this
action.
USDA 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 1210
Administrative practice and procedure, Advertising, Consumer
education, Honey and honey products, Marketing agreements, Promotion,
Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, AMS proposes to revise 7
CFR part 1212 as follows:
PART 1212--HONEY PACKERS AND IMPORTERS RESEARCH, PROMOTION,
CONSUMER EDUCATION AND INDUSTRY INFORMATION ORDER
0
1. The authority citation for part 1212 continues to read as follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
0
2. Amend Sec. 1212.52 by revising paragraph (a) to read as follows:
Sec. 1212.52 Assessments.
(a) The Board will cover its expenses by levying in a manner
prescribed by the Secretary an assessment on first handlers and
importers. Through May 31, 2026, the assessment rate shall be $0.015
per pound of assessable honey and honey products. For the period of
June 1, 2026, through December 31, 2026, the assessment rate shall be
$0.0175 per pound of assessable honey and honey products. On and after
January 1, 2027, the assessment rate shall be $0.02 per pound of
assessable honey and honey products.
* * * * *
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-04567 Filed 3-6-26; 8:45 am]
BILLING CODE;P
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