[Federal Register Volume 83, Number 93 (Monday, May 14, 2018)]
[Proposed Rules]
[Pages 22213-22214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10131]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 83, No. 93 / Monday, May 14, 2018 / Proposed 
Rules  

[[Page 22213]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1255

[Doc. No. AMS-SC-16-0112; PR-A1, PR-B]


Organic Research, Promotion, and Information Order; Termination 
of Rulemaking Proceeding

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule; termination of proceeding.

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SUMMARY: This action terminates a rulemaking proceeding that proposed 
to establish a national research and promotion program for certified 
organic products under authority of the Commodity Promotion, Research 
and Information Act of 1996 (1996 Act). The program was proposed by the 
proponent group, the Organic Trade Association (OTA). Based on 
uncertain industry support for and outstanding substantive issues with 
the proposed program, USDA is terminating the proceeding.

DATES: This termination is made on May 15, 2018.

ADDRESSES: Promotion and Economics Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW, Room 1406-S, Stop 0244, 
Washington DC 20250-0244.

FOR FURTHER INFORMATION CONTACT: Heather Pichelman, Division Director, 
Promotion and Economics Division, Specialty Crops Program, AMS, USDA, 
see ADDRESSES; Telephone: (202) 720-9915, Fax: (202) 205-2800, or 
Email: [email protected].

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding include: 
A proposed rule published in the Federal Register on January 18, 2017 
(82 FR 5746), which provided a 60-day comment period that ended on 
March 20, 2017. On February 27, 2017, a document was published in the 
Federal Register that extended the comment period until April 19, 2017 
(82 FR 11854).

Preliminary Statement

    The 1996 Act authorizes USDA to establish agricultural commodity 
research and promotion orders which may include a combination of 
promotion, research, industry information, and consumer information 
activities funded by mandatory assessments. Section 10004 of the 
Agricultural Act of 2014 (2014 Farm Bill) (Pub. L. 113-79) amended 
section 501 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7401), which authorizes generic commodity promotion 
programs under the various commodity promotion laws, to allow for an 
organic commodity promotion order.
    On May 15, 2015, USDA received a proposal for a national research 
and promotion program for certified organic products from OTA. OTA is a 
membership-based trade organization representing growers, processors, 
certifiers, farmers associations, distributors, importers, exporters, 
consultants, retailers, and others involved in the organic sector.
    OTA proposed a program that would be financed by an assessment on 
certified organic products and administered by a board of industry 
members selected by the Secretary of Agriculture. The purpose of the 
program would be to strengthen the position of certified organic 
products in the marketplace, support research to benefit the organic 
industry, and improve access to information and data across the organic 
sector.
    A proposed rule consisting of OTA's proposal was published in the 
Federal Register on January 18, 2017 (82 FR 5746), which provided a 60-
day comment period that ended on March 20, 2017. On February 27, 2017, 
a document was published in the Federal Register that extended the 
comment period until April 19, 2017 (82 FR 11854). The proposed rule 
included a request for comments on substantive aspects of the proposed 
program, including the support for, and method of, assessing imports; 
the approach for calculating assessments including how ``dual-covered 
commodities'' would be handled; and the de minimis exemption level.
    In response to the proposed rule, USDA received almost 15,000 
comments. The comments revealed that there is a split within the 
industry in terms of support for the proposed program. While some 
comments voiced support for a collective industry program, other 
comments stated that industry was not aligned in backing the proposal. 
Opponents raised concerns about the proposed program, including how the 
de minimis level would eliminate a majority of organic farmers from the 
program; the disproportionate impact on high value commodities as 
assessments would be tied to sales value; whether organic promotion is 
possible without being disparaging to other agricultural commodities; 
voting methodology; financial burden on small entities to comply; and 
cited the challenges to tracing imported organic products. Both those 
in support of, and those in opposition to the proposed program 
requested changes to the method of assessment for imports and a 
reduction in the paperwork burden on covered entities. Other 
outstanding significant issues with the proposal are the assessment of 
non-food products and products ``made with (specified ingredients)''.
    Research and promotion programs are brought about by collective and 
united industry action. The comments received on the proposed organic 
program disclosed divergent views within the organic industry. Based on 
uncertain industry support for and unresolved issues with the proposed 
program, USDA is terminating the proceeding. This action also 
terminates the rulemaking procedure on the proposed referendum 
procedures (82 FR 5438).
    Termination of this rulemaking proceeding will remove ex parte 
communication prohibitions and allow USDA to engage fully with all 
interested parties to discuss and consider the evolving needs of the 
industry going forward. Based on the above, USDA is terminating this 
rulemaking proceeding.

Regulatory Flexibility Act and Paperwork Reduction Act

    As part of the proceeding conducted for this rulemaking, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601-612) and the 
Paperwork Reduction Act of 1955 (44 U.S.C. Chapter 35) were considered. 
Because this action terminates the underlying rulemaking proceeding, 
the economic conditions of small entities are not changed as a result

[[Page 22214]]

of this action, nor have any compliance requirements changed. Also, 
this action does not provide for any new or changed reporting and 
recordkeeping requirements. Accordingly, all supporting forms for the 
proposed program will be withdrawn.

Termination of Proceeding

    In view of the foregoing, it is hereby determined that the 
rulemaking proceeding proposing to establish a national research and 
promotion program for certified organic products should be and is 
hereby terminated.

List of Subjects in 7 CFR Part 1255

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Organic, Promotion, Reporting and 
recordkeeping requirements.

    Authority:  7 U.S.C. 7411-7425; 7 U.S.C. 7401.

    Dated: May 8, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-10131 Filed 5-11-18; 8:45 am]
 BILLING CODE 3410-02-P