California grape growers catch a fee break
Published Date: 4/9/2026
Rule
Summary
Grape growers and handlers in southeastern California will pay less in fees starting May 11, 2026. The assessment rate drops from 4 cents to 3 cents per 18-pound lug of grapes, saving money for those in the industry. This lower fee will stay in place until any future changes are made.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Assessment Rate Cut to $0.03 per Lug
The assessment that handlers pay for grapes grown in a designated area of southeastern California is lowered from $0.040 to $0.030 per 18-pound lug (a $0.010 or 25% reduction). The new $0.030 rate applies for the 2025 fiscal period and subsequent fiscal periods and the rule is effective May 11, 2026.
Majority of Handlers Classified as Small Businesses
There are about six grape handlers in the production area and AMS estimates average 2024 handler revenue of about $16,371,937, which is below the Small Business Administration $34,000,000 size threshold; therefore, the majority of handlers subject to the order are classified as small entities. The rule does not impose new reporting or recordkeeping requirements on handlers.
Producers May See Lower Passed-Through Costs
Assessments are applied uniformly to handlers and the rule states some assessment costs may be passed on to producers; with the $0.030 per 18-pound lug rate and a projected average producer price of $13.11 per 18-pound lug, the assessment represents about 0.23% of producer revenue for the 2025 fiscal period.
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