Credit-Back

What is Credit-Back Authority?

  • Credit-back is an authority that several agricultural commodities (almonds, prunes, etc.) use to allow handlers to conduct eligible marketing activities in return for a partial credit/rebate on assessments.
  • The CWB does not currently have this authority in the marketing order; therefore, formal rule making has been undertaken to add the authority to the order.

Ojective/Purpose of the Program

  • Objective of the program – effectively promote the sale, use and consumption of California walnuts
  • Purpose – to encourage handler market promotion in addition to the CWB’s generic marketing efforts

Structure/Mechanics

  • The credit-back authority, once approved, will be in the Order, whether industry chooses to use or not.
  • Program authorization to spend will be determined on an annualized basis in conjunction with fiscal budgeting.
  • Determining available dollars for the crop year will be based on percent of budgeted assessment revenue.
  • Each handler’s share of available dollars to be based on prior year crop acquisitions.
  • Credit-back will be .70 cents per $1 of spend on eligible marketing & promotional activities.

What are the rules & requirements?

  • Credit-back requires California Walnuts wording and/or handler name with the word “walnut(s)” to be eligible.
  • Credit-back is not intended for use with private label/third-party products. Activities containing other nuts and/or fruits, etc., would receive credit-back based on the proportionate share of walnuts included.
  • Walnuts used as an ingredient in manufactured food products would receive credit-back based on the proportionate share of walnuts included.
  • Complete rules, regulations and eligible/ineligible activities are defined in the Credit-back Guide.

What are the impacts to the Board?

  • To be funded from prevailing assessments, likely reduction in domestic program, given this is the largest area of CWB spend.
  • Available dollars for the crop year to be based on percent of budgeted assessment revenue; CWB Executive Committee to make a recommendation to the Board annually.
  • Similar programs have credit-back in the range of 10%-15% of assessments.
  • Staffing implications to be determined based on the breadth and depth of the program.

More information regarding this referendum can be found on the Federal register.

Update as of February 2021

The U.S. Department of Agriculture (USDA) announced on February 12, 2021, amendments to the federal marketing order regulating the handling of walnuts grown in California. These amendments authorize the California Walnut Board to provide credit for market promotion expenses paid by handlers against their annual assessments due under the program. The amendments were approved in a referendum conducted November 30 through December 11, 2020. They were favored by 80.57% of the growers voting, representing 82.81% of the total volume of walnuts. To gain approval, the amendments needed support of at least two-thirds of the growers voting in the referendum or at least two-thirds of the volume of walnuts grown by those voting in the referendum. A final rule amending the marketing order will be published in the Federal Register.   

This authority will allow handlers to receive a credit-back for eligible marketing expenditures of 70 cents for every dollar in spend. This important authority is one of the ways the CWB is modernizing the Order to make it work harder for industry, using every possible tool available to spur new investment in new product development and marketing initiatives to continue growing walnut consumption. the rule change.

More details can be found here: https://www.ams.usda.gov/content/usda-announces-results-walnut-marketing-order-referendum-0

 

Tip: Maximize California walnuts fresh taste and quality by keeping them in your refrigerator or freezer.

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