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Administration Proposes New FMMO User Fees in FY 2018 Budget

May 31, 2017

Last week, the Trump Administration issued its proposed federal budget for fiscal year 2018. The budget proposal would cut many U.S. Department of Agriculture programs and reduce the department’s workforce by 5.5 percent. In addition, the administration proposes to save $29 billion from the crop insurance program and $193 billion from the Supplemental Nutrition Assistance Program (SNAP) over 10 years. 

The proposed budget also includes a legislative proposal that would allow the department to collect a new user fee from the industries that benefit from the USDA Marketing Orders and Agreements Programs, including Federal Milk Marketing Orders (FMMO), to “recover the full cost of the agency’s oversight of these programs.” Currently, dairy processors and manufacturers pay for the salaries and expenses of non-Washington D.C.-based staff who administer the FMMO program.    

Lawmakers in Congress from both parties were quick to declare the administration’s proposals as “dead on arrival.” They noted that previous administrations had proposed similar program cuts and user fees for congressional consideration, and that Congress generally ignored those proposals as well. Instead, members of the House and Senate will develop and approve their own budget and appropriations bills, which are highly unlikely to include such significant program cuts or authority for any new user fees at USDA. 

Members with questions may contact Dave Carlin, IDFA senior vice president for legislative affairs and economic policy, at dcarlin@idfa.org.

 
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