The rule will go into effect after a 30-day period, on or around Jan. 22, 2025. The rule in Public Inspection can be viewed here: https://www.federalregister.gov/public-inspection/2024-30268/increased-assessment-rate-watermelon-research-and- promotion-plan.
Following the 2017-21 Econometric Evaluation conducted by Armada Corporate Intelligence Inc., some board and industry members started a discussion regarding the need for an assessment increase for the board. Then-President Christian Murillo and current President Lee Wroten included the Assessment Rate proposition on the monthly agenda for the Executive Committee in April 2023 and presented “The Case for the Assessment Increase” at the September 2023 board meeting.
Between September 2023 and March 2024, Murillo and Wroten presented at more than 10 watermelon industry organization meetings.
The board met Feb. 24 in Scottsdale, AZ, in conjunction with the National Watermelon Association Annual Convention. Following a favorable report on industry support, the board voted to move forward with a three cent per hundredweight increase to the assessment level.
The board staff, overseen by the Executive Committee, then submitted all necessary documentation to the USDA for the Rulemaking Process which included a 30-day comment period. During the comment period which closed at August 8, 2024, industry members were encouraged to share their opinions on the potential assessment increase. There were 33 comments, which can be reviewed at https://www.regulations.gov/document/AMS-SC-24-0020-0001/comment.
“An assessment increase is a critical first step in ensuring the continued growth and success of our industry,” said Wroten. “By investing in enhanced research, marketing, and promotion efforts, we can drive greater demand for watermelon and strengthen our industry’s position, creating more long-term opportunities for everyone involved.”
Moving forward, the board will prioritize efforts to increase the demand of watermelon through research, promotion, and education. Each part of the program will receive increased funding, with the retail space receiving the largest allocation. On April 1, the committees and board will launch a new program aligned with the new assessment level and fiscal year.
Visit www.watermelon.org/assessment for comprehensive information on the assessment increase including more on the board, the history of the assessment rate, inflation’s impact, justification of the increase including the growth of watermelon volume and FOB, proposed assessment levels, and how those funds will be spent to promote watermelon.
Photo: Past NWPB President Christian Murillo and current NWPB President Lee Wroten at the 2024 NWA Annual Convention in Scottsdale, AZ, where they addressed the NWA membership about an increase in the assessment rate.