The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) today announced the 2024 fee schedule for official inspection and weighing services, supervision of official inspection and weighing services, and miscellaneous fees for other services performed under the U.S. Grain Standards Act (USGSA).
The Federal Grain Inspection Service (FGIS) is required by the USGSA to charge and collect reasonable inspection fees to cover the cost of performing official inspections. Federal Grain Inspection Service (FGIS) is also required to annually review its fees for service, including national and local tonnage, and supervision tonnage fees. The inspection service calculates its tonnage fees, which, by regulation, consist of the national tonnage and local tonnage fees. The service also reviews the amount of funds available in its operating reserve at the end of each fiscal year to ensure that it has 4.5 months of operating expenses, which is also required by regulation. However, the current regulatory process has prevented FGIS from increasing fees to the degree that the grain industry paid less for service in 2023 than they did in 2016.
Due to a shortfall in its operating reserves, FGIS is increasing all USGSA inspection and weighing fees by the regulatory limit of 5 percent for 2024. In reviewing the operating reserve account at the end of fiscal year 2023, FGIS assessed its program operating reserves to be in a deficit of $504,270; the program needs to increase annual revenue by approximately $11.9 million to maintain the 4.5 months of operating reserves required by regulation.
In addition, the inspection service is conducting a periodic review of all its inspection and weighing fees. Fees will require further adjustments to ensure full cost recovery for providing inspections and weighing services.
Effective April 1, 2024, the FGIS USGSA tonnage fees are as follows:
- National Tonnage Fee: $0.057 per metric ton (mt).
- Local Tonnage Fees (which are the local field office per metric ton tonnage fee, plus the national tonnage fee): New Orleans: $0.069; League City: $0.137; Pacific Northwest: $0.192; Toledo: $0.211.
Effective April 1, 2024, the FGIS supervision fee is $0.007 per ton on domestic shipments officially inspected or weighed, including land carrier shipments to Canada and Mexico. This fee is assessed to delegated and designated official agencies and is based on calculations using the published formula in the regulations.
The notice for the new fee schedule was published in the Federal Register March 7, 2024.
For additional information contact Denise Ruggles, Program Analyst at (816) 702-3897 or Denise.M.Ruggles@usda.gov.
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