The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) today announced the revision of the hourly and unit fees for official inspection and weighing services performed under the U.S. Grain Standards Act (USGSA). The fee revision does not include an additional tonnage fee adjustment.
In March 2024, the Federal Grain Inspection Service (FGIS) published its annual fee notice that adjusted grain inspection and weighing fees. The March notice implemented formula-based adjustments for tonnage fees and supervision fees and applied a regulatory 5 percent increase to all inspection and weighing fees (including hourly and unit fees). However, after the fee adjustment and because of numerous factors, FGIS was still faced with a widening deficit for Fiscal Year 2024.
The regulations currently do not provide a formula for calculating hourly and unit fees (which comprise 80 percent of FGIS’ revenue), and adjustments on tonnage and supervision fees which are limited to 5 percent, have not kept pace with operational costs. To address the looming shortfall, ensure compliance with the USGSA, and maintain the orderly inspection and weighing of grain, FGIS is publishing this interim final rule to revise its hourly and unit fees and recover costs of providing inspection services. With the increased revenue, as well as the continued implementation of cost-saving measures, FGIS projects positive revenue and a positive operating reserve balance by the end of FY24.
The interim rule for the revised fee schedule was placed on public inspection in the Federal Register on June 5, 2024. The rule will be published on June 6, 2024. The new fees will be in effect on July 8, 2024. A 30-day comment period is provided until July 8, 2024.
To ensure that future fees recover the cost of service, FGIS plans to publish a proposed rule for public comment that will establish a fee formula for calculating hourly and unit fees.
For additional information, contact Denise Ruggles at (816) 702-3897 or Denise.M.Ruggles@usda.gov
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