WASHINGTON (FNS) -- Industry groups have reached a compromise on a long-standing dispute over the Perishable Agricultural Commodities Act that would phase out retailer license fees by 1999.
The compromise would also restrict nonpayment probes by the U.S. Department of Agriculture. "There's something for everybody in this compromise," Sarah Delea, director of public affairs for United Fresh Fruit and Vegetable Association, Alexandria, Va., told SN.
The industry groups involved in the compromise would not comment on the details last week. A congressional staffer, however, said the plan has the support of Reps. John Boehner (R., Ohio) and Richard Pombo (R., Calif.), sponsors of two PACA bills that had polarized the industry.
Under the plan, the retailers' licensing fees would be phased out incrementally beginning in 1997, until they are completely eliminated in 1999. To reduce administrative costs, "a paperless trust" would be created so industry members would not have to file paperwork with the USDA to settle disputes. The compromise would only permit USDA investigations if a written complaint had been filed.
Retaining the trust provision, designed to prevent slow-pay and no-pay problems, was a key goal for growers and shippers.
The House Subcommittee on Risk Management and Speciality Crops is expected to complete its work on the plan by the end of June and forward it to the full House Agriculture Committee. A full House vote is expected later this summer.
