22 May 2025

🚬Changes to Tobacco Grading Regulations by USDA

Tobacco Grading and Inspections Services-Rescission of Designated Tobacco Markets

Summary

This action removes and reserves subpart D, titled "Orders of Designation of Tobacco Markets" from the Code of Federal Regulations (CFR). The regulations subpart D are obsolete and unnecessary because The Fair and Equitable Tobacco Reform Act of 2004 eliminated mandatory grading of types of tobacco eligible for price support programs and a referendum of eligible producers voted in favor of terminating the designations for tobacco auction markets in June of 2005.

Agencies

  • Agriculture Department
  • Agricultural Marketing Service

Business Impact ?

$$ - Med

The removal of the mandatory grading system for tobacco may lead to reduced compliance costs and a shift in market operations for tobacco producers, as it deregulates previous requirements that affected their operations.

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