The U.S. Department of Agriculture's (USDA) Agricultural Marketing Service (AMS) has initiated a proposed rule that would significantly increase the assessment rate for domestic dates produced or packed within Riverside County, California. This action, published in the Federal Register, responds to a recommendation from the California Date Administrative Committee (CDAC) and seeks to adjust the rate from $0.05 to $0.25 per hundredweight, effective for the 2025-2026 crop year and continuing indefinitely thereafter. This move is presented as essential for maintaining the financial health and operational capacity of the marketing order that governs California dates.
The Role of Marketing Orders in Agricultural Stability
Marketing Order No. 987, established under the Agricultural Marketing Agreement Act of 1937, provides a framework for industry self-regulation designed to stabilize markets and ensure the quality of certain agricultural commodities. For California dates, this Order enables the CDAC, composed of producers and handlers, to administer the program locally. A core function of such committees is to establish annual budgets and collect assessments from handlers to cover administrative expenses, as authorized by sections 987.71 and 987.72 of the Order. These assessments are critical for funding activities that benefit the entire industry, such as research, promotion, and administrative oversight.
Rationale Behind the Assessment Hike
The CDAC unanimously recommended the assessment rate increase during its June 26, 2025, meeting. The primary justification for this substantial five-fold increase is to replenish the Committee's reserve funds. These reserves were depleted during the 2024-2025 crop year following a prior reduction in the assessment rate. The Committee aims to restore its reserve funds to an acceptable level, consistent with the Order's provisions which cap reserves at the average of annual expenses for the preceding five years.
For the 2025-2026 crop year, the CDAC projects expenditures of $88,385, a slight decrease from the previous year's budgeted $89,410. To meet this budget, the Committee estimates handling 300,000 hundredweight of assessable California dates, which would generate $75,000 in assessment revenue at the proposed $0.25 rate. This revenue, combined with approximately $7,285 from the current reserve of $49,553 and $6,100 from the date cull program's surplus allocation, is projected to cover the anticipated expenses. The Committee explicitly considered and rejected alternative assessment rates, concluding that the proposed $0.25 rate was optimal for both funding operations and rebuilding reserves.
Regulatory Context and Economic Impact
AMS, the agency responsible for approving such recommendations, emphasizes that the proposed rate will remain in effect indefinitely until modified, suspended, or terminated based on future CDAC recommendations or AMS review. This ensures long-term financial predictability for the program. The rule is exempt from review under Executive Order 12866, and section 5(c) provides an exemption from Executive Order 14192, "Unleashing Prosperity Through Deregulation."
In compliance with Executive Order 13175, "Consultation and Coordination with Indian Tribal Governments," AMS determined the rule is unlikely to have substantial direct effects on Indian Tribes. Furthermore, Executive Order 12988, "Civil Justice Reform," mandates a review of such rules for civil justice implications, under which California date handlers are subject to these assessments.
An Initial Regulatory Flexibility Analysis (RFA) was conducted to assess the impact on small entities. The analysis determined that the majority of both California date producers and handlers qualify as small entities under Small Business Administration (SBA) definitions. Based on 2024 data, the average annual receipts for producers ($3,253,646) are below the SBA threshold of $3,500,000, and for handlers ($9,358,505), they are below the $34,000,000 threshold. The increased assessment rate would represent approximately 0.18 percent of total producer revenue, calculated at an estimated average producer price of $2,735 per ton for the 2025-2026 crop year. This indicates a relatively small proportional financial burden, even with the significant rate increase.
Public Participation and Future Outlook
Interested parties have until July 20, 2026, to submit written comments on the proposed rule. This public comment period is a standard component of the federal rulemaking process, allowing stakeholders to voice concerns or provide additional data before a final rule is adopted. The CDAC holds public meetings where interested persons can express their views, and AMS continuously evaluates Committee recommendations to determine the necessity of future rate modifications.
This proposed increase reflects a strategic decision by the California date industry, through its administrative committee, to prioritize the long-term financial stability of its marketing order. It is a testament to the dynamic nature of agricultural economics and the need for adaptive regulatory frameworks to support commodity sectors.
