Date: 1983-08-01
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. I rise in support of H.R. 2590. The bill would amend the Agricultural Adjustment Act. as amended by the Agricultural Marketing Agreement Act of 1937. to add filberts (otherwise known as hazelnuts) to the list of 22 commoditIes for which research and marketing promotion. including paid advertising. may be undertaken through a Federal marketing order. In the United States. filberts are produced commercially essentially only in Oregon and in Washington with the greatest production in Oregon. The handling of these filberts is currently conducted tinder a Federal marketing order which has been in effect since 1949. This order. however. only provides for regulation of the volume of inshell filberts that may be marketed domestically and of the quality of shelled filberts that may be marketed domestically and for export. U.S. production has increased substantially in the past decade. In 1982 there was a record crop about 50 percent higher than the recent 5year average. Domestic filbert production has grown from 7.170 tons in 1976 to 18.400 tons in 1982. and It appears to be continuing on an upward trend. The major domestic market for domestic filberts is in the inshell variety. The inshell filberts are sold for winter holidays. and sales have remained at an average of 5.000 tons per year. Exports have also remained at a low level. The domestic filbert Industry believes that market growth. required by recent and continued increased production. can only come about by expanding the demand for their product. This legislation would give them this tool. It would permit them to advertise with funds collected under the marketing order. and It would also authorize handlers to offset at least a part of their direct advertising costs against program assessments. Currently. promotion of filberts it. governed by an Oregon State regulation permitting assessment of growers only. Under this program approximately $61.000 is spent on market promotion which amount is entirely inadequate to do an effective job. This legislation would amend the current Federal marketing order program to authorize raising the much needed funds for market promotion ibrough expanding consumer demand. both in the United States and abroad. for this nutritious food. It would also allow the domestic filbert industry to compete more effectively with foreign production. which currently accounts for 97 percent of the world market. The general consensus of the industry is that the Federal filbert marketing board which represents both handlers and growers Is the only industrywide body with the authority to collect and manage the amount of money needed to properly promote filberts nationwide. Implementation of the authority contained in section 1 of H.R. 2590 would only occur through a formal rulemaking process to amend the current filbert marketing order. It would require a public hearing and approval in a referendum of producers. Mr. Speaker. the provisions of section 2 of this bill require a short explanation. Last year. the Congress passed the Potato Research and Promotion Act Amendments of 1982 (Public Law 97244). The Secretary of Agriculture ordered a referendum held on amendments to the potato plan in order to conform with the 1982 act. This referendum failed to pass. An opinion was subsequently issued by the General Counsels Office of USDA that the rejection of the amendments in the 1982 referendum had the effect of terminating the then existing plan. The committee does not agree with this opinion. To resolve the controversy and avoid possible litigation. section 2 of H.R. 2590 would amend the Potato Research and Promotion Act to make clear that the failure of potato producers in December 1982 to approve certain amendments to the plan issued under the act did not invalidate the then existing plan. Furthermore. this section would also exempt from producer approval in a referendum the requirement for public representation on the board and the provision requiring the USDA to be reimbursed for any referendum and administrative costs incurred by it under the act. Section 2. Mr. Speaker. is simply a curative legislative provision. I ask all Members to join me in supporting enactment of H.R. 2590. Mr. Speaker. I yield 5 minutes to the gentleman from California .