by Web Editor | Oct 30, 2015 | News
There will be no Hardwood Checkoff promotions program.
The U.S. Department of Agriculture has stopped the rulemaking process on the controversial “Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order.” Published in the Oct. 28 Federal Register, the notice from the USDA’s Agricultural Marketing Service states: “Based on comments received, outstanding substantive questions and significant proposed modifications from stakeholders, USDA is terminating the proceeding.” The termination is effective Oct. 29.
Originally published in the Federal Register in November 2013, the proposed Hardwood Checkoff sought to set a tax on lumber producers to help promote wood sales, similar to the “Got Milk?” and “Pork: The Other White Meat” ad programs. The USDA said it received more than 900 comments to the original proposal, the majority of which opposed the program.
A supplemental notice was issued in June 2015, with comments collected through Sept. 7. The sponsoring Blue Ribbon Committee also submitted revisions in September in an attempt to gain the necessary support for the program. Those revisions, which included the removal of plywood, flooring and green mills, and the scaling back of fees, would have reduced the generated revenues significantly below the $10 million sought in the original proposal.
However, the USDA said, “In response to the supplemental notice, USDA received over 300 comments; a majority of the comments continued to oppose the program. Based on all the comments received, outstanding substantive questions and significant proposed modifications to the proposed program from stakeholders, USDA is terminating the proceeding. This action also terminates the proposed rules on the referendum procedures.”
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/usda-kills-hardwood-checkoff-program?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
by Web Editor | Sep 11, 2015 | News
Plywood, flooring and green mills would be removed and fees would be scaled back under a simplified proposal for the Hardwood Checkoff program – an ad promotion program for hardwood lumber manufacturers similar to the ‘Got Milk’ program run by milk producers. The proposed changes to the “Hardwood Lumber and Hardwood Plywood Promotion, Research, and Information Order” would result in program funding being cut from an estimated $10 million down to around $3 million to $4 million.
Hardwood Checkoff sponsor The Blue Ribbon Committee submitted a letter to the USDA dated Sept. 7 calling for the changes. The public comment period closed Sept. 9, with more than 1,300 woodworkers weighing in on the USDA’s June 9 re-proposal of the Hardwood Checkoff.
The latest changes involve a notable reduction in the scope of the program — from the original 1,426 mills targeted to approximately 375 mills selling kiln-dried lumber only. The eligible mills would be assessed at a flat rate of $.50 per $1,000 in sales, while mills under $2 million would continue to be exempted.
According to the BRC, “The changes we are recommending would significantly reduce [the checkoff], resulting in a roughly $3 to $4 million annual program…we would point out that even this lowered amount is over 10 times what has ever been collected through voluntary programs in the past.” The committee also noted the greater ability to leverage checkoff funds through building on the programs already begun by the softwood and paper checkoffs.
The BRC said opposition to the original proposal convinced it “that the target would need to be reduced.” Specifically, the BRC agreed to remove green mills, plywood, and unfinished flooring from the program, and to simplify the assessment rate to one calculation, lowered from $1 to $.50 per $1,000 in sales.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/plywood-flooring-dropped-hardwood-checkoff-proposal?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
