US Honey Industry: Understanding the New Assessment Fee

You might care about this because this final rule from the U.S. Department of Agriculture (USDA) announces an increase in the fee paid by certain honey businesses. This fee, called an assessment, helps fund promotion and research for the honey industry. Currently, handlers and importers of more than 250,000 pounds of honey or honey products per year pay 1.5 cents ($0.015) per pound. This rule changes that rate in two steps. Starting September 1, 2026, the rate will go up to 1.75 cents ($0.0175) per pound. Then, on January 1, 2027, it will increase again to 2 cents ($0.02) per pound. The National Honey Board, which manages these funds, recommended this change. They need more money because of inflation, which has raised costs for their operations, promotions, and research projects. Also, they face increased costs from processing refunds for imported organic honey, which is exempt from these fees. The goal of this increase is to allow the Board to continue its work effectively, supporting the honey industry's position in the market. The rule also explains that this change will add about $2.99 million to the program's budget. What makes this rule particularly interesting is how it addresses the challenges of maintaining industry programs in an inflationary economy. The National Honey Board's decision to increase assessments directly reflects the rising costs of doing business and conducting marketing and research. Since the last fee change in 2015, inflation has gone up by 36%, which greatly reduces the Board's purchasing power. This means they can do less with the same amount of money. Another significant aspect is the impact of organic honey reimbursements. Even though organic honey is exempt from these fees, Customs still collects them at import. This forces the National Honey Board to process refund requests and set aside a large amount of money for these reimbursements. This process ties up funds that could otherwise go towards promoting honey. By increasing the general assessment, the Board hopes to better manage these financial demands and ensure they have enough money for their core activities, like promoting honey and funding important research projects. This adjustment shows a direct response to economic pressures and specific operational hurdles within the industry's funding mechanism. The groups most interested in this legal document would primarily be businesses involved in the honey industry. This includes honey packers, honey importers, and first handlers of honey who deal with more than 250,000 pounds of honey or honey products annually. These entities will directly see an increase in the fees they pay. Honey producers and beekeepers might also be interested, as these assessments indirectly support market development for their products. Companies that import organic honey will find the discussion about reimbursement processes relevant, as it highlights operational aspects of their exemptions. Additionally, anyone involved in agricultural marketing, commodity promotion boards, or food industry economics could find this document insightful. It provides a real-world example of how industry-funded programs adapt to economic changes and administrative challenges. Legal professionals specializing in agricultural law or trade regulations would also find this rule pertinent for understanding compliance requirements and financial obligations within the honey sector.