Christmas Tree Promotion, Research, and Information Order

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The Christmas Tree Promotion, Research, and Information Order is a provision of the 2014 U.S. Farm Bill that established a U.S. Department of Agriculture commodity checkoff program for cultivated Christmas trees. The program is funded through a $.15 per tree fee paid by growers. The program creates a marketing program similar to other checkoff programs such as "Got Milk?" or "Beef. It's What's For Dinner". The order was briefly implemented by the U.S. Department of Agriculture's Agricultural Marketing Service in November 2011. After a wave of political criticism the rule that established the program was officially stayed before being passed into law over two years later.

Contents

Provisions

The Christmas Tree Promotion, Research, and Information Order is the U.S. Department of Agriculture rule establishing the industry-funded promotion, research and information program in support of fresh-cut Christmas trees. [1] [2] The order is what is known in the United States as a commodity checkoff program. [3] It was requested by the Christmas tree growing industry as a result of declining numbers in sales and farms nationwide. [3] [4] The program is funded by growers and retailers through a $.15 per tree fee; growers that produce less than 500 trees per year are exempted from the fee. [2] [5] The fee was among the program's most publicized provisions. [1]

While it is up to individuals whether to pass the fee on to consumers, the National Christmas Tree Association (NCTA) stated the order is not expected to affect the retail price of fresh-cut Christmas trees. [3] [6] [7] [8] The program allows farmers to allow the government to implement and oversee the program through a Christmas Tree Promotion Board and the funds collected from assessed trees. The board is made up of producers and importers. At the time the rule was proposed, the USDA had implemented more than 20 similar programs including those responsible for the well-known "Got Milk?", "Beef: It's What's for Dinner" and "The Incredible Edible Egg" campaigns. [6]

The levy is expected to generate $2 million per year. [9] The program includes a 12-member Christmas Tree Promotion Board that would directs funding from the program to promotion programs and advertising meant to show "a favorable image of Christmas trees to the public." [1] [2] The Christmas tree checkoff program also allows for a referendum among all those who paid the 15 cent per tree assessment after three years. [9] This referendum was designed to allow producers and importers to terminate, continue, or amend the program. [2] The program also specified that if a fee over 20 cents per tree or under 10 cents per tree it would require the approval of the majority of producers and importers. [2]

History

Between 1991 and 2007 natural, fresh-cut Christmas tree production in the U.S. declined from 37 million to 31 million. Meanwhile, the artificial Christmas tree industry saw it sale increase dramatically between 2003 and 2007. [1] In the five years between the 2002 and 2007 U.S. Department of Agriculture (USDA) Censuses of Agriculture, the number of Christmas tree farms in the United States went from 21,904 to 12,255. [6]

Work toward the Christmas Tree Promotion, Research, and Information Order began in April 2008 when a group of farmers and retailers began to study similar programs in agricultural industries of similar size. [10] The group's work included more than 100 meetings across the United States. [10] Initially, the proposed rule was published in the Federal Register in November 2010, one year before the order was first implemented. [11] [12] Upon the order's initial publication, the USDA requested input in the form of comments from growers, retailers and the general public. [11] [12] The primary commenting period went from the time the proposed rule was first published, November 8, 2010 until February 7, 2011. [11] After the USDA received several letters from producers, a second commenting period was opened from February 22, 2011 until March 9, 2011. [13] During these two comment periods the USDA received 565 comments concerning the proposed rule; 398 supported it, 147 opposed it and the remaining 20 comments fell into some other category. [1]

The order was originally published in the Federal Register on November 8, 2011 and took effect the same day. [2] USDA authority to establish the program came under the Commodity Promotion, Research and Information Act of 1996, a law which also authorized the similar programs in other agricultural industries. [14]

On the same day the new rule was published in the Federal Register David S. Addington, writing for The Heritage Foundation's blog, labeled the new rule a "tax" and criticized it in his column. [2] [15] Conservative commentators began to attack the proposal, particularly after a link to The Heritage Foundation's article was featured on Drudge Report, a highly trafficked website. [4] [16] The moniker "Christmas tree tax" was applied in numerous media outlets. [1] [4] [14] [12] The Wall Street Journal criticized the program as "corporate welfare". [17] Despite the criticism the Obama administration and the NCTA denied that the program featured a new Christmas tree tax. [3] [16] [18] In addition, some media outlets, such as Agence France Presse, immediately characterized the program as a "tax that's not a tax". [8] By the end of the day on November 8, the rule was rescinded, officially it was "stayed". [19] The notice concerning the rule's cancellation was published in the Federal Register on November 17, 2011; the stay took effect that same day. [19]

Capital Press reported in May 2012 that the U.S. Department of Agriculture had not put a timetable on moving the Christmas tree checkoff program forward. [20] The USDA Agricultural Marketing Service did tell the publication that the program was "under review". [20] One of the Christmas tree farmers who spearheaded efforts to establish the Christmas Tree Promotion, Research, and Information Order stated that she did not expect any action on the program until after the 2012 U.S. presidential election. [20] During the summer of 2012 an article posted to USAgNet quoted the director of the NCTA as confirming that there would be no action on the proposal until after the November 2012 election. [21] The July 30 article quoted the NCTA director as stating he had assurances from the current Secretary of Agriculture that the Christmas Tree Promotion, Research, and Information Order would be "released for implementation" before the end of the year. [21] That meant that no funds would be collected under the checkoff program until at least 2013. [21]

The Christmas Tree Promotion, Research, and Information Order was included as originally published in the Agricultural Act of 2014, more commonly known as the Farm Bill, and passed by Congress on January 29, 2014. [5] [22] The order's inclusion was pushed for by members of the U.S. House of Representatives including Oregon Democrat Kurt Schrader and Wisconsin Republican Reid Ribble. Ribble helped negotiate with Republican leaders for the order's inclusion, and though at least one version of the order was rejected it was eventually reworked and added to the Farm Bill without resistance. [5] An April 2014 press release announced that the U.S. Department of Agriculture created rules as mandated by the Agricultural Act of 2014 that allowed the Christmas check-off program to move forward. [22] The department actively began seeking nominations for the Christmas Tree Promotion Board at that time. [22] The rule that officially stayed the program in November 2011 was officially rescinded on April 8, 2014. [23]

Reactions

As stated, when the program was initially enacted many in the media characterized the checkoff program as a "Christmas tree tax". After The Heritage Foundation criticized the program as a tax, many other media outlets followed. [1] [4] [12] [16] The Obama administration and the NCTA both denied that checkoff programs were taxes. [18] [16]

In the aftermath of the "Christmas tree tax" story, other commodity checkoff programs saw their momentum wane. A proposed checkoff program for raspberries, initially expected to be implemented in November 2011, was delayed until the spring of 2012 by the USDA. [20] [24] That checkoff program had been approved by 88 percent of "affected" raspberry growers in May 2011. [20] Though a formal proposal had not been submitted for a blackberry checkoff program, the North American Raspberry and Blackberry Association stated that plans for pursuing one had put on hold due to the negative climate surrounding checkoffs. [20]

In 2014, when the rule was finally enacted, the National Christmas Tree Association stated in a press release that they were "pleased". [7] They also noted that the program would be funded by growers and was expected to have no impact on the consumer price of Christmas trees. [7]

Related Research Articles

<span class="mw-page-title-main">United States Department of Agriculture</span> Department of the US government

The United States Department of Agriculture (USDA) is an executive department of the United States federal government that aims to meet the needs of commercial farming and livestock food production, promotes agricultural trade and production, works to assure food safety, protects natural resources, fosters rural communities and works to end hunger in the United States and internationally. It is headed by the secretary of agriculture, who reports directly to the president of the United States and is a member of the president's Cabinet. The current secretary is Tom Vilsack, who has served since February 24, 2021.

The Agricultural Marketing Service (AMS) is an agency of the United States Department of Agriculture; it maintains programs in five commodity areas: cotton and tobacco; dairy; fruit and vegetable; livestock and seed; and poultry. These programs provide testing, standardization, grading and market news services for those commodities, and oversee marketing agreements and orders, administer research and promotion programs, and purchase commodities for federal food programs. The AMS enforces certain federal laws such as the Perishable Agricultural Commodities Act and the Federal Seed Act. The AMS budget is $1.2 billion. It is headquartered in the Jamie L. Whitten Building in Washington, D.C.

In the United States, a commodity checkoff program promotes and provides research and information for a particular agricultural commodity without reference to specific producers or brands. It collects funds through a checkoff mechanism that is sometimes called checkoff dollars, from producers of a particular agricultural commodity and uses these funds to promote and do research on that particular commodity. As stated earlier the organizations must promote their commodity in a generic way without reference to a particular producer. Checkoff programs attempt to improve the market position of the covered commodity by expanding markets, increasing demand, and developing new uses and markets. Checkoff programs amount to $750 million per year.

<span class="mw-page-title-main">NCTA (association)</span> American telecommunications organization

NCTA, formerly known as the National Cable & Telecommunications Association (NCTA), is a trade association representing the broadband and cable television industries in the United States. As of 2011, NCTA represented more than 90% of the U.S. cable market, over 200 cable networks, and various equipment suppliers and service providers to the cable industry.

<span class="mw-page-title-main">Christmas tree cultivation</span> Cultivation of trees used as Christmas trees

Christmas tree cultivation is an agricultural, forestry, and horticultural occupation which involves growing pine, spruce, and fir trees specifically for use as Christmas trees.

<span class="mw-page-title-main">Christmas tree production in the United States</span>

While the first Christmas tree farm may have appeared as early as 1901, Christmas tree production in the United States was largely limited to what could be harvested from natural forests until the 1950s. Among the important Christmas tree producing areas in the U.S. are Wisconsin, North Carolina, Pennsylvania and the Pacific Northwest. In 2002 Christmas tree production in the United States totaled 20.8 million trees and the U.S. was one of the world's leading producers of natural Christmas trees. That same year, Pennsylvania was the top producer in the United States.

The National Christmas Tree Association (NCTA) is a professional organization in the United States of over 5,100 "Christmas tree professionals" in various capacities. The group focuses its work into three areas: promotion and research, federal representation, and professional education. The association was founded in 1955 and has more than 1,800 members.

<span class="mw-page-title-main">Richard F. Cebull</span> American judge (born 1944)

Richard Frank Cebull is a former United States district judge of the United States District Court for the District of Montana.

The National Pork Board is a program sponsored by the United States Department of Agriculture Agricultural Marketing Service whose purpose is to provide consumer information, perform industry-related research, and promote pork as a food product. The board's activities are funded by a mandatory commodity checkoff program, which requires hog producers to pay a small percentage-based fee each time an animal is sold.

"Pork. The Other White Meat." was an advertising slogan developed by advertising agency Bozell, Jacobs, Kenyon & Eckhardt in 1987 for the National Pork Board. The campaign was paid for using a checkoff fee (tax) collected from the initial sale of all pigs and pork products, including imports. Medical researchers and the United States Department of Agriculture classify pork as red meat.

The Dairy Promotion Program or National Dairy Checkoff is a United States commodity checkoff program for dairy product promotion, research, and nutrition education as part of a comprehensive strategy to increase human consumption of milk and dairy products and to reduce dairy surpluses.

The Sheep Promotion, Research, and Information Act of 1994 enabled domestic sheep producers and feeders and importers of sheep and sheep products to develop, finance, and carry out a nationally coordinated program for sheep and sheep product promotion, research, and information. The program is funded as a commodity checkoff program.

The American Egg Board (AEB) is a United States checkoff marketing organization, which focuses on marketing and promotion of eggs for human consumption. The AEB is best known for its long-running slogan, "The Incredible, Edible Egg", and the Just Mayo scandal.


The United Soybean Board (USB), is the governing body that instantiates the U.S. commodity checkoff program for soybeans. It is made up of 73 volunteer farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. The soybean checkoff is a congressionally-mandated assessment on soybeans, whose proceeds are used to fund soybean research and promotion efforts. The checkoff is managed by the United Soybean Board under the supervision of the United States Department of Agriculture Agricultural Marketing Service. In 2014, the checkoff was $109.1 million.

Dairy Management Inc. is an American trade association funded primarily by the U.S. Dairy Promotion Program, itself funded by government-mandated checkoff fees on dairy products and federal tax dollars and dedicated to promoting the sale of American-made dairy products. It also operates under the names Innovation Center for U.S. Dairy, American Dairy Association, National Dairy Council and U.S. Dairy Export Council.

<span class="mw-page-title-main">U.S. Farmers and Ranchers Alliance</span>

The U.S. Farmers and Ranchers Alliance is an alliance of agriculture related interest groups and organizations that promote industrial agriculture in the United States. Their aim is to promote a positive image of modern agricultural practices. They are supported by checkoff funds from the United States Department of Agriculture and by cooperate donations. The alliance has been criticized for a bias towards corporate agricultural practices.

<span class="mw-page-title-main">Mushroom Council</span>

The Mushroom Council is a U.S. organization of fresh mushroom producers created and funded through a commodity checkoff program.

<span class="mw-page-title-main">National Processed Raspberry Council</span> U.S. agricultural organization

The National Processed Raspberry Council is a U.S. organization that promotes and researches processed raspberries. It is part of a commodity checkoff program overseen by the U.S. Department of Agriculture.

The Christmas Tree Promotion Board is a U.S. organization established by federal law through a commodity checkoff program. The board was created when the Christmas Tree Promotion, Research, and Information Order was signed into law as part of the 2014 U.S. Farm Bill.

Johanns v. Livestock Marketing Association, 544 U.S. 550 (2005), is a First Amendment case of the Supreme Court of the United States. At issue was whether a beef producer could be compelled to contribute to beef industry advertising.

References

  1. 1 2 3 4 5 6 7 'Christmas tree tax to promote the real thing", Chicago Tribune , November 9, 2011, accessed September 26, 2012.
  2. 1 2 3 4 5 6 7 "Christmas Tree Promotion, Research, and Information Order", Federal Register , Col. 76, No. 216, November 8, 2011, accessed September 26, 2012.
  3. 1 2 3 4 "NCTA Position Statement on New Christmas Tree Checkoff Program", (press release), National Christmas Tree Association , November 9, 2011, accessed September 26, 2012.
  4. 1 2 3 4 Tapper, Jake. "Obama Administration to Delay New 15 Cent Christmas Tree Tax", ABC News , November 9, 2011, accessed September 26, 2012.
  5. 1 2 3 "Perkowski, Mateusz. Christmas tree checkoff gets greenlight", Capital Press, April 8, 2014, accessed November 18, 2014
  6. 1 2 3 Finz, Stacey. "Christmas tree growers fighting for sales", San Francisco Chronicle , November 25, 2011, accessed September 26, 2012.
  7. 1 2 3 "NCTA Comments on Checkoff Order Implementation" (pdf), press release, February 10, 2014, accessed November 18, 2014.
  8. 1 2 "U.S. rethinks 'Christmas tree tax' that's not a tax", Agence France Presse via Google News, November 9, 2012, accessed September 26, 2012.
  9. 1 2 Perkowski, Matuesz. "USDA approves Christmas tree checkoff", Capital Press , November 7, 2011, accessed September 26, 2012.
  10. 1 2 "Christmas tree farmers set the record straight", (press release), November 17, 2011, accessed September 26, 2012.
  11. 1 2 3 Turner, Jimmie. "USDA Seeks Comments on Establishing New Christmas Tree Promotion, Research, and Information Order", (press release), November 9, 2010, accessed September 26, 2012.
  12. 1 2 3 4 Browning, William. "Christmas Tree Tax Has Roots in 1996 Law", Yahoo! News , November 9, 2011, accessed September 26, 2012.
  13. ↑ Fobia, Hakim. "USDA Re-opens Comment Period for Proposed Christmas Tree Promotion, Research, and Information Order", (press release), February 22, 2011, accessed September 26, 2012.
  14. 1 2 Cohn, Alicia M. "USDA backs off Christmas tree tax, will revisit issue", The Hill , November 9, 2011, accessed September 26, 2012.
  15. ↑ Addington, David S. "Obama Couldn't Wait: His New Christmas Tree Tax", The Foundry The Heritage Foundation blog, November 8, 2011, accessed September 26, 2012.
  16. 1 2 3 4 Jackson, David. "Obama team delays Christmas tree fee", USA Today, November 9, 2011, accessed September 26, 2012.
  17. ↑ "About that 'Christmas Tree Tax', (editorial), The Wall Street Journal , November 14, 2011, accessed September 26, 2012.
  18. 1 2 Reilly, Ryan J. "Tree Farmers Blast 'Sinister' 'Smear' Of 'Obama's Christmas Tree Tax'", TPM Muckraker - Talking Points Memo, November 9, 2011, accessed September 26, 2012.
  19. 1 2 "Christmas Tree Promotion, Research, and Information Order; Stay of Regulations", (pdf), Federal Register , USDA - Agricultural Marketing Service, November 17, 2011, accessed September 26, 2012.
  20. 1 2 3 4 5 6 Perkowski, Matuesz. "'Tax' anger stalls proposed checkoffs", Capital Press, May 4, 2012, accessed September 26, 2012.
  21. 1 2 3 "Schroeder: Christmas Tree Check-Off Still in the Works, USAgNet, July 30, 2012, accessed September 26, 2012.
  22. 1 2 3 "As Required by New Farm Bill, USDA to Allow Christmas Tree Research and Promotion Program to Move Forward Archived 2014-11-29 at the Wayback Machine ", press release, United States Department of Agriculture , Agricultural Marketing Service, April 4, 2014, accessed November 18, 2014.
  23. ↑ "Rules and Regulations" (pdf), Federal Register, vol. 79, no. 66, p. 18987, April 7, 2014, via USDA Agricultural Marketing Service, accessed November 18, 2014.
  24. ↑ "Perkowski, Mateusz. USDA OKs raspberry checkoff", Capital Press, May 10, 2012, accessed November 19, 2014.

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