Honey Packers and Importers; Increased Assessment Rate

Issuing agencies

Abstract

This final rule implements 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 assessment rate will remain in effect indefinitely until modified or terminated.

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 167 (Monday, August 31, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 167 (Monday, August 31, 2026)]
[Rules and Regulations]
[Pages 55733-55735]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17715]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

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. 

========================================================================


Federal Register / Vol. 91, No. 167 / Monday, August 31, 2026 / Rules 
and Regulations

[[Page 55733]]



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, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule implements 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 assessment rate will remain 
in effect indefinitely until modified or terminated.

DATES: This final rule is effective September 1, 2026, when the 
assessment rate will be $0.0175. On and after January 1, 2027, the 
assessment rate will be $0.02.

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#743f15001d115a371b1b1f34010710155a131b02"><span class="__cf_email__" data-cfemail="571c36233e32791438383c172224333679303821">[email&#160;protected]</span></a> or <a href="/cdn-cgi/l/email-protection#aaebc6cfd2cbc4ced8cb84e9cbd8d3c6eadfd9cecb84cdc5dc"><span class="__cf_email__" data-cfemail="a5e4c9c0ddc4cbc1d7c48be6c4d7dcc9e5d0d6c1c48bc2cad3">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: This final 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 was reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments,'' which requires agencies to consider whether their 
rulemaking actions will have Tribal implications. AMS determined this 
final rule is unlikely to have substantial direct effects on one or 
more Indian Tribes, or the relationship between the Federal Government 
and Indian Tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian Tribes.

Executive Order 12988

    This action was reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' The Act 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 petition with the Secretary of Agriculture 
(Secretary) stating the order, any provision of the order, or any 
obligation imposed in connection with the order, is not established in 
accordance with the law and requesting a modification of the order or 
an exemption from the order. Any petition filed challenging the order, 
any provision of the order, or any obligation imposed in connection 
with the order, shall be filed within 2 years after the effective date 
of the order, provision, or obligation subject to challenge in the 
petition. The petitioner will have the opportunity for a hearing on the 
petition. Thereafter, the Secretary will issue a ruling on the 
petition. The Act provides the district court of the United States for 
any district in which the petitioner resides or conducts business shall 
have 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 the Secretary's final ruling.

Background

    Under the Order, the National Honey Board (NHB or Board) 
administers a nationally coordinated program of research, promotion, 
and information 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, Sec.  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 imported into 
the United States through the United States Customs and Border 
Protection (Customs or CBP).
    The assessment rate has changed only 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 Sec.  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 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 final rule amends Sec.  1212.52(a) by increasing the 
assessment rate from $0.015 per pound to $0.0175 per pound, effective 
September 1, 2026, and establishes an 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

[[Page 55734]]

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 only 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 Sec.  
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 in Sec.  
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.

Final 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 this rule on small 
entities. Accordingly, AMS has considered the economic impact of this 
action on such entities.
    This rule increases the assessment rate on importers and handlers 
of honey to $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 action increases the assessment imposed on first handlers 
and importers but does 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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 the CBP Automated 
Customs Entry (ACE) 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 of which are 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. This final rule does not require changes to the current 
information collection. Should any changes become necessary, they would 
be submitted to OMB for approval.
    This final rule will not impose any additional reporting or 
requirements on either small or large importers or first handlers of 
honey. 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.
    Regarding alternatives, the Board considered not making these 
changes to the Order and leaving it as-is. If the Order were left 
unchanged, operational costs and services provided by the Board would 
have continued to be issues that could have resulted in the Board 
failing to cover its expenses through assessments as prescribed in 
Sec.  1212.52(a). After considering these potential issues, 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 Secretary. The members who voted 
represent producers, handlers, importers, and the industry marketing 
cooperative.
    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

[[Page 55735]]

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 final rule.
    A proposed rule concerning this action was published in the Federal 
Register on March 9, 2026 (91 FR 11189). A copy of the proposed 
rulemaking was also made available through the internet by AMS and the 
Office of the Federal Register via <a href="https://www.regulations.gov">https://www.regulations.gov</a>. A 30-
day comment period ending April 8, 2026, was provided for interested 
parties to respond to the rule as proposed. AMS received 58 comments, 
and of the 58 comments received: one comment remains unposted as it is 
both out of scope of this rulemaking and contains sensitive personally 
identifiable information; 39 opposing comments were from industry 
members not known to be subject to the Order; 13 supportive comments 
were from stakeholders subject to the Order and members of the public; 
one opposing comment was from a first handler subject to the Order; one 
was neutral; and a further three submissions had no written comment.
    Some commenters asserted that the Board's promotional activities, 
including materials featuring foreign honey origins, disproportionately 
benefit imported honey and therefore harm domestic beekeepers. AMS 
reviews all promotional materials to ensure compliance with legislative 
authority, USDA policy, and the Guidelines for AMS Oversight of 
Commodity Research and Promotion Programs. AMS must deny any promotion 
seen as disparaging to any market segment, producer, importer, handler, 
competing product, or other agricultural commodity. Additionally, 
promotion that is false or misleading to consumers and anything outside 
the scope of Board-authorized activities is prohibited. As required by 
Sec.  1212.47(e), the Board must generically promote honey and create a 
favorable image of honey and honey products to the public and food 
industry as part of its mission to maintain, develop, and expand 
domestic and foreign markets. AMS therefore concludes that generic 
promotion, as required under the Act and Order, effectuates the 
purpose, mission, and goal of the program.
    Some commenters claimed the assessment rate increase will harm 
domestic beekeepers who are already facing market pressures, rising 
labor costs, pest pressures, and low honey prices. It is important to 
note that most small-scale and hobbyist beekeepers are not subject to 
the Order and therefore do not pay assessments to the Board. 
Beekeepers' economic burden argument does not reflect a regulatory 
burden imposed by the assessment increase, because they do not pay 
assessments unless they are also a first handler subject to the Order, 
which none of the 39 opposing commenters indicated. Therefore, AMS does 
not expect domestic beekeepers to be harmed by this rule.
    Several commenters request AMS remove the organic exemption or 
apply assessments only to imported honey. The exemption of organic 
products, established in Sec.  1212.53(c), is in accordance with USDA's 
National Organic Program (NOP) (7 CFR part 205), as amended by 
Exemption of Organic Products from Assessment Under a Commodity 
Promotion Law, 80 FR 82006 (Dec. 31, 2015), effective February 29, 
2016. The amendment was required by section 10004 of the Agricultural 
Act of 2014 (Pub. L. 113-79). Therefore, removing or changing the 
exemption is outside the scope and authority of this rule.
    Several commenters argued, unrelated to the merits of the rule, 
that promotional activities should cease and funds instead be diverted 
to bee health research, sustainability, or authenticity testing. The 
Board currently funds nutrition, market, and production research and is 
required to invest no less than five percent (5%) of their anticipated 
annual assessment revenue into production research per the Order. The 
Board has full discretion, subject to the approval of the Secretary, to 
allocate funds.
    Several commentors discussed increasing Nuclear Magnetic Resonance 
(NMR), deoxyribonucleic acid (DNA), or Isotope Ratio Mass Spectrometry 
(IRMS) testing for all imported honey, and destruction of fraudulent 
products. These recommendations are outside the scope of this action.
    One neutral comment was submitted by the National Honey Board and 
offered an alternative effective date if the June 1, 2026, date was not 
met by the USDA and AMS. Their suggestion is to execute the first 
increase on first day of the following month after publication in the 
Federal Register, for example July 1st, 2026, August 1st, 2026, and so 
on, and keeping the second increase effective date of January 1, 2027. 
AMS agrees with this approach. Accordingly, after review and 
consideration of all comments received, AMS makes changes to the 
effective date of the initial assessment rate increase.
    After considering all relevant material presented, including the 
information and recommendations submitted by the Board, public 
comments, and other available information, AMS has determined that this 
final rule is consistent with and effectuates the purposes of the Act.

List of Subjects in 7 CFR Part 1212

    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 amends 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 August 31, 2026, the assessment rate shall be $0.015 
per pound of assessable honey and honey products. For the period of 
September 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. 2026-17715 Filed 8-28-26; 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>