California Grape Growers Get Lower Assessment Rate
Published Date: 7/23/2026
Proposed Rule
Summary
Grape growers in southeastern California are set to pay less for their crop assessments, dropping from 3 cents to 2.5 cents per 18-pound lug starting in 2026. This change helps farmers save money while supporting their local grape programs. Comments on this proposal are open until August 24, 2026, so folks have a chance to weigh in!
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Handlers pay 0.5¢ less per lug
If you handle grapes in the designated southeastern California area, the assessment you pay would drop from $0.030 to $0.025 per 18‑pound lug starting January 1, 2026, a decrease of $0.005 per lug. This lower assessment rate would remain in effect until it is changed, suspended, or ended.
Most handlers classified as small firms
The rule affects about six grape handlers in the production area. The Federal analysis shows average handler receipts of $11,687,257, which is below the SBA small‑business threshold of $34,000,000, so most handlers are classified as small entities.
Producers face a small assessment share
For the 2026 fiscal period the committee estimates the assessment ($0.025 per 18‑pound lug) would equal about 0.14 percent of producer revenue based on an expected producer price of $17.82 per 18‑pound lug. The rule notes assessments are applied uniformly to handlers and some costs may be passed on to producers.
Committee uses reserves to cover budget
The Committee set 2026 budgeted expenditures at $88,450 and expects to collect $50,000 from assessments (2,000,000 18‑pound lugs × $0.025). The Committee plans to use $38,450 from reserves (current reserve about $94,083) to fund the budget and reduce the reserve to an authorized level.
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