Rule2026-04694
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
March 10, 2026
Effective
April 9, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule implements updates to the Popcorn Promotion, Research, and Consumer Information Order (Order). The updates 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 ever since. Additionally, subpart C is added to the Order, which prescribes late payment and interest charges on past due assessments.
Full Text
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<title>Federal Register, Volume 91 Issue 46 (Tuesday, March 10, 2026)</title>
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[Federal Register Volume 91, Number 46 (Tuesday, March 10, 2026)]
[Rules and Regulations]
[Pages 11441-11443]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04694]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 91, No. 46 / Tuesday, March 10, 2026 / Rules
and Regulations
[[Page 11441]]
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: Final rule.
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SUMMARY: This final rule implements updates to the Popcorn Promotion,
Research, and Consumer Information Order (Order). The updates 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 ever since.
Additionally, subpart C is added to the Order, which prescribes late
payment and interest charges on past due assessments.
DATES: Effective April 9, 2026.
FOR FURTHER INFORMATION CONTACT: George Webster, Marketing Specialist,
or Alexandra Caryl, Chief, Mid-Atlantic Region Branch, 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#4c0b29233e2b29621b292e3f38293e0c393f282d622b233a"><span class="__cf_email__" data-cfemail="bcfbd9d3cedbd992ebd9decfc8d9cefcc9cfd8dd92dbd3ca">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#7e3f121b061f101a0c1f503d1f0c07123e0b0d1a1f50191108"><span class="__cf_email__" data-cfemail="ca8ba6afb2aba4aeb8abe489abb8b3a68abfb9aeabe4ada5bc">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This final 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 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 Popcorn Promotion, Research, and
Consumer 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 was reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' AMS assessed the impact of this final rule on
Indian Tribes and determined this rule does 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 changes to the regulations will be
shared during an upcoming quarterly call. AMS will work with the USDA
Office of Tribal Relations to ensure meaningful consultation is
provided as needed with regard to these changes to the Order.
Executive Order 12988
This action was reviewed under Executive Order 12988, ``Civil
Justice Reform.'' It is not intended to have retroactive effect.
Section 580 of the Act (7 U.S.C. 7489) provides that nothing in this
subtitle preempts or supersedes any other program relating to popcorn
promotion organized and operated under the laws of the United States or
any State.
Under section 577 of the Act (7 U.S.C. 7486), a person subject to
an order may file a written petition with USDA stating that the order,
a provision of the order, or an obligation imposed in connection with
the order, is not established in accordance with the law, and request a
modification of an order or obligation or an exemption from the order
or obligation. 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 date of imposition of the
obligation. 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
changes during a meeting on August 28, 2024.
Assessment Rate Increase
This final rule updates Sec. 1215.51(c) of the Order, which states
that the rate of assessment shall be 5 cents per hundredweight of
popcorn. The rate was administratively increased by the Board in 2001
to 6 cents per hundredweight of popcorn and has been charged of
processors since. This action updates the assessment rate in the Order
to accurately reflect the change that took place in 2001 and helps
eliminate any confusion amongst the industry regarding the current
mandatory assessment.
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.''
[[Page 11442]]
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.''
Previously, the Board outlined 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 were
not reflected in the Order. This final rule codifies 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 rule, a one-time late payment charge of $250 is 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 increases 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, is 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.
Final Regulatory Flexibility Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601 et seq.), AMS considered the economic impact of
this final action on small entities that would be affected by this
rule. Accordingly, AMS prepared this final 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 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.
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\1\ The only NASS data available for this final rule is the
Agricultural Survey data on parity pricing (prices farmers receive)
reported annually in January and the 2022 Agricultural Census.
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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 that, 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 over 4 million
pounds of popcorn annually. The currently charged 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 of 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 4 million pounds or less 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 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
[[Page 11443]]
$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 final 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 imposed by the Order were approved
previously under OMB control number 0581-0093. This final 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 final 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 these
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 these changes throughout 2023 and 2024 and
unanimously recommended the 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.
A proposed rulemaking concerning this action was published in the
Federal Register on June 10, 2025 (90 FR 24353). A copy of the proposed
rulemaking was also made available through the internet by AMS via
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. A 30-day comment period ending July 10,
2025, was provided for interested parties to respond to the proposal.
Comment Analysis
During the proposed rule's 30-day comment period, AMS received one
comment which may be viewed on <a href="https://regulations.gov">https://regulations.gov</a>. The one comment
received did not address the merits of the proposed rule, and
accordingly, no changes were made to the rule as proposed.
After consideration of all relevant material presented, AMS has
determined that that this rule is consistent with and will effectuate
the purposes of the Act.
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 amends 7 CFR part 1215 as follows:
PART 1215--POPCORN PROMOTION, RESEARCH, AND CONSUMER INFORMATION
ORDER
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(c) by removing the number ``5'' and adding in
its place the number ``6''.
0
3. Add subpart C, consisting of Sec. 1215.520, to read as follows:
Subpart C--Past Due Assessments
Sec.
1215.520 Late payment and interest charges for 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.
Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2026-04694 Filed 3-9-26; 8:45 am]
BILLING CODE P
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