USDA proposes another inspection fee hike
USDA proposes another inspection fee hike
WASHINGTON -- The U.S. Department of Agriculture is proposing another rate hike to certify fresh fruits and vegetables at terminal markets and is promising more increases to follow.
The proposed 15 percent increase, which amounts to an additional $2.4 million, is needed to help cover program costs, maintain adequate reserves and update technology, according to USDA. Agriculture officials inspect, grade and certify fresh fruits and vegetables and other products on a voluntary, user-fee basis.
This comes, however, after USDA increased inspection fees in January 2006 to help cover rising operating costs, the majority of which go to support federal employee salaries and benefits.
USDA's Fresh Products Branch estimated that it will spend $15.3 million in inspection work during fiscal 2006, but costs are projected to reach $20.4 million. These costs are expected to increase to $21.6 million during fiscal 2007 and $22.5 million during fiscal 2008, said USDA.
"FPB believes that increasing fees incrementally is appropriate at this time," USDA said in its Dec. 1 proposal. "Additional fee increases beyond FY 2008 will be needed to sustain the program in the future. However, we will continue to reduce costs, wherever possible."
Last year, Western Growers Association and United Fresh Produce Association said that they supported the inspection fee increases but urged USDA to explore other avenues such as improving efficiencies before increasing user fees in the future.
Comments on the proposal are due Jan. 2.
The proposed 15 percent increase, which amounts to an additional $2.4 million, is needed to help cover program costs, maintain adequate reserves and update technology, according to USDA. Agriculture officials inspect, grade and certify fresh fruits and vegetables and other products on a voluntary, user-fee basis.
This comes, however, after USDA increased inspection fees in January 2006 to help cover rising operating costs, the majority of which go to support federal employee salaries and benefits.
USDA's Fresh Products Branch estimated that it will spend $15.3 million in inspection work during fiscal 2006, but costs are projected to reach $20.4 million. These costs are expected to increase to $21.6 million during fiscal 2007 and $22.5 million during fiscal 2008, said USDA.
"FPB believes that increasing fees incrementally is appropriate at this time," USDA said in its Dec. 1 proposal. "Additional fee increases beyond FY 2008 will be needed to sustain the program in the future. However, we will continue to reduce costs, wherever possible."
Last year, Western Growers Association and United Fresh Produce Association said that they supported the inspection fee increases but urged USDA to explore other avenues such as improving efficiencies before increasing user fees in the future.
Comments on the proposal are due Jan. 2.
