The U.S. Department of Agriculture (USDA) is proposing to lower the assessment rate paid by handlers of grapes grown in a designated area of southeastern California. The proposal, published by the Agricultural Marketing Service (AMS) in the Federal Register on July 23, 2026, would reduce the assessment from $0.030 to $0.025 per 18-pound lug beginning with the 2026 fiscal period and continuing until changed again. According to USDA, the California Desert Grape Administrative Committee recommended the decrease after determining its reserve funds were sufficient to support program operations while allowing for a lower assessment rate. Public comments on the proposal will be accepted through August 24, 2026.
Why the Assessment Rate Is Changing
The assessment helps fund the administration of Marketing Order No. 925, which oversees grapes grown in the designated southeastern California production area. Committee members unanimously voted in favor of the proposed reduction during a November 2025 meeting, recommending a 2026 operating budget of $88,450. USDA estimates the industry will handle approximately 2 million 18-pound lugs of grapes during the fiscal year, generating about $50,000 in assessment revenue, with the remaining expenses covered by reserve funds. Officials said lowering the assessment would help reduce reserve balances while still maintaining adequate funding for the program.
What Growers and Handlers Should Know
The proposed rule primarily affects grape handlers operating under the federal marketing order rather than consumers. Marketing orders establish standards and funding mechanisms for certain agricultural commodities, and assessment rates are reviewed periodically based on projected expenses and industry conditions. USDA noted that the reduced assessment would remain in effect indefinitely unless it is modified, suspended, or terminated through a future rulemaking process. Interested growers, handlers, and members of the public can review the proposal and submit comments before the August 24 deadline through the Federal Register or Regulations.gov.
What to Read Next
How Retailer Apps Can Save More Than Paper Coupons
SNAP Online Shopping Costs That Benefits May Not Cover
What Grocery Shoppers Should Know About USDA’s Latest Price Forecast
The post USDA Proposes Lower Assessment Rate for Southeastern California Grape Growers appeared first on Grocery Coupon Guide.
