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No Assessments on Hardwood Lumber and Plywood

Wednesday, October 28, 2015
Sandler, Travis & Rosenberg Trade Report

The Department of Agriculture’s Agricultural Marketing Service has terminated a rulemaking that sought to establish a Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order to strengthen the position of hardwood lumber, hardwood lumber products, hardwood lumber value-added products and hardwood plywood in the marketplace and to maintain and expand markets for these products. This program would have been financed by assessments initially set at $1 per $1,000 in sales of hardwood lumber and hardwood lumber products; $0.75 per $1,000 in sales of hardwood lumber value-added products plus $1 per $1,000 in sales of green hardwood lumber, minus the dollar value of the green hardwood lumber purchases; and $3 per $1,000 in sales of hardwood plywood. Exports would have been covered as well.

AMS states that it is terminating this proceeding based on comments received (a significant majority of which opposed the proposal), outstanding substantive questions and significant proposed modifications. This action will remove communication prohibitions and allow AMS to engage fully with all interested parties to discuss and consider the evolving needs of the industry going forward.

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