In a significant regulatory shift, the USDA announced the termination of Federal Marketing Order No. 929, which governed the handling of cranberries in several states, including New Jersey. This decision affects not only the regulatory framework but also data collection, reporting, and recordkeeping requirements associated with cranberries, marking a substantial change for the industry.
Background and Implications
Federal Marketing Order No. 929, established under the Agricultural Marketing Agreement Act of 1937, was designed to help stabilize the cranberry market through production research, marketing promotion, and other regulatory measures. The order impacted cranberry growers and handlers in states like Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, Washington, and parts of New York.
New Jersey, known for its significant cranberry production, particularly in the Pine Barrens region, will see substantial changes following this termination. Local growers, who have long adhered to the order’s regulations, will now operate without the federal oversight that has been in place since 1962. This shift is expected to reduce administrative burdens and potentially lower costs for producers and handlers.
The decision to terminate the order follows a referendum held among cranberry producers from June 9 to June 30, 2023. The results indicated that 73.5% of cranberry growers, representing 79.9% of production volume, voted in favor of terminating the program. This outcome reflects a broad consensus that the benefits of the marketing order no longer outweigh its costs.
Economic Impact
For New Jersey’s cranberry producers, many of whom are small businesses, the termination could mean a more flexible and less costly regulatory environment. According to the USDA, the average return per cranberry grower was estimated at $308,598, indicating that the majority of producers in the regulated area qualify as small entities under SBA definitions.
The USDA’s final regulatory flexibility analysis concluded that the termination of the order would not unduly burden small businesses. Instead, it is expected to alleviate some of the compliance costs associated with federal regulations, potentially benefiting New Jersey’s cranberry industry by allowing more streamlined operations.
With the removal of these regulations, New Jersey cranberry producers will need to adapt to a new market environment. The termination is anticipated to reduce costs and administrative duties, but it also means losing certain benefits previously provided by the order, such as marketing promotions and production research funded through handler assessments.
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