Costing Policy & Analysis

Research Administration Office

University of California

Operating Guidance

No. 96-01
January 26, 1996


Subject: Indirect Costs and Regulated Agricultural Marketing Order Boards, Councils and Commissions


Since 1970, regulated federal and State of California agricultural marketing order boards, councils, and commissions have enjoyed a waiver of indirect costs on the funds they contract to the University due to their special relationship with the University as a Land Grant College which conducts agricultural research for these regulated federal and State agricultural marketing order boards. Over the years, this indirect cost rate exception, No. 70R-001, has been applied to cover various types of agricultural organizations and associations which were not within the original scope of this waiver. The purpose of this Contract and Grant Operating Guidance Memo is to provide clarification of the organizations to which exception No. 70R-001 applies.

The research relationship between the University and commodity boards was recently reviewed by the University/State/Commodity Boards Workgroup on simplifying and streamlining administration of commodity board agreements. The objective of this Workgroup was to have standardized, streamlined procedures and a standardized agreement outlined in the report used by all agricultural marketing order boards. It is anticipated that it will be simpler to implement agreements for the boards, councils, and commissions which adopt these procedures.

The final report of this Workgroup has been forwarded to the Vice President--Agriculture and Natural Resources, the Secretary of the California Department of Food and Agriculture (CDFA), and the Chair of the California Commodity Committee. When that report is approved by them, it will be distributed to Contract and Grant Officers.

This Operating Guidance Memo provides guidance on the indirect cost rate issue which was not included in the Workgroup's report. The Memo includes a list of current federal and State regulated agricultural marketing order boards to which indirect cost rate exception No. 70R-001 applies and guidance on determining the inclusion of future boards under this waiver.

Applicability of Exception No. 70R-001:

Indirect cost rate exception No. 70R-001 applies only to federal and California agricultural marketing order boards which operate under federal Department of Agriculture or State Department of Food and Agriculture regulations. In addition, the University expects that organizations covered by this waiver will use the agreement and procedures described in the Workgroup report. The current covered organizations are listed on Attachments I and II to this Memo. However, it must be emphasized that the list of regulated organizations can change frequently. Growers' organizations vote periodically to decide if they want to become a regulated board or if they want to stop being a regulated board. Therefore, this list will be updated annually. However, if your campus submits a proposal to an agricultural group which is not listed on Attachments I or II, please contact our office so that we can advise you whether the indirect cost rate exception applies to the sponsor in question.

If an agricultural organization which does not come under waiver No. 70R-001 has a published statement on its overhead policy allowing less than the applicable campus rate, campuses can apply for an indirect cost rate exception based on sponsor policy for the organization. We anticipate that the next year will be a transition period during which some sponsors to which waiver No. 70R-001 was incorrectly applied may have to have separate waivers established as awards are renewed or new awards are made. Because some of these proposals are not submitted first through the campus Contract and Grant Office, we anticipate that some sponsors and Principal Investigators will need to be advised of the indirect cost exception request procedures.

Current List of California Advisory Boards, Councils, and Commissions --

Attachment I is a list of current California Advisory Boards, Councils, and Commissions which are operating under the California Food and Agricultural Code. They are all classified as Category 12, Agricultural Marketing Orders, in the Corporate Contracts and Grants System (CGX). As noted above, the Workgroup anticipates that, in general, these boards, councils, and commissions will use the standard administrative procedures and agreement which the Workgroup approved, hopefully making the administration of these awards less costly and time consuming for all parties.

Federal Marketing Order Boards and Committees --

Attachment II is a list of the primary federal marketing order boards and committees which provide research funds to the University. These are also listed under Category 12 in the CGX system.

Other Agricultural Associations Requiring Separate Waivers--

Attachment III provides examples of other agricultural associations which are not regulated marketing order boards to which indirect cost exception 70R-001 does not apply. They either already have their own class indirect cost rate exceptions or will need to have exceptions requested for them if they do not pay full overhead.

Indirect Cost Rate for CDFA Funded Awards:

Indirect cost rate exception No.85R-086 continues to apply a rate of 10% MTDC to all awards provided by California Department of Food and Agriculture funded programs. Agreements for such programs are between The Regents and CDFA.

Samuela Evans
(510) 987-9849

Subject Index: 08
Organization Index: S-105

David F. Mears
Director, Research Administration


Vice President Gomes
Assistant Director Webster
Extramural Funds Managers


January, 1996


Operating under the California Food and Agricultural Code

Alfalfa Seed Production Research Board
Ms. Pat Honchell, Manager
531-D North Alta Avenue
Dinuba, CA 93618
(209) 591-4792

California Apple Commission
Mr. Kenton Kidd, President
1941 N. Gateway Blvd., Ste 102
Fresno, CA 93727
(209) 456-0900

California Apricot Advisory Board
Mr. Gene Stokes, Manager
1280 Blvd.,. Way #107
Walnut Creek, CA 94595
(510) 937-3660

California Artichoke Advisory Board
Ms. Mary Comfort, Manager
P.O. Box 747
Castroville, CA 95012
(408) 633-4411

California Asparagus Commission
Mr. Bill DePaoli, Manager
4565 Quail Lakes Drive, Ste A-1
Stockton, CA 95207

California Avocado Commission
Mr. Mark Affleck, President
1251 E. Dyer Rd., #200
Santa Ana, CA 92705
(714) 568-6761

California Dry Bean Advisory Board
Mr. Gerald Munson, Manager
531 - D North Alta Avenue
Dinuba, CA 93618
(209) 591-4866

California Beef Council
Ms. Jane Anderson, Exec. Director
551 Foster City Blvd.,. #A
Foster City, CA 94404
(415) 571-7100

Cantaloupe Advisory Board
Mr. Gerald Munson, Manager
531 - D North Alta Avenue
Dinuba, CA 93616
209) 591-5715

California Fresh Carrot Advisory Board
Mr. Gerald Munson, Manager
531 - D North Alta Avenue
Dinuba, CA 93618
(209) 591-5675

California Celery Advisory Board
Ms. Pat Honchell, Manager
531 - D North Alta Avenue
Dinuba, CA 93618
(209) 591-0434

California Cherry Marketing Program
Mr. Jim Culbertson, Manager
P.O. Box 877
Lodi, CA 95240
(209) 368-0685

Citrus Research Board
Mr. Ted Batkin, Manager
P.O. Box 230
Visalia, CA. 93279
(209) 738-0246

Dairy Council of California
Ms. Peggy Biltz, CEO
1101 National Drive, Ste B
Sacramento, CA 95834-1274
(916) 263-3560

California Date Commission
Mr. Perry Hedin, Manager
45701 Monroe Street, Ste 8
Indio, CA. 92202

California Egg Commission
Mr. Robert Pierre, President CEO
1150 N. Mountain Avenue #114
Upland, CA 91786
(909) 981-4923

California Fig Advisory Board
Mr. Ron Klamm, Manager
P.O. Box 709
3425 N. First, #109
Fresno, CA 93726
(209) 224-3447

California Cut Flower Commission
Mr. Lee Murphy, President
2339 Gold Meadow Way, Ste. 101
Gold River, CA. 95670
(916) 852-5166

California Forest Products Commission
Ms. Carol Crow, President
2150 River Plaza Drive, Ste 325
Sacramento, CA 95833
(916) 568-1141

California Grape Rootstock Improvement Commission
Mr. Don Dilly, Interim Manager
1220 N, Street, Room 425
Sacramento, CA 95814
(916) 654-1245

California Kiwifruit Commission
Mr. Mark Houston, President, CEO
1540 River Park Dr. # 110
Sacramento, CA 95814

Iceberg Lettuce Advisory Board
Mr. Edward Kurtz, Manager
512 Pajaro Street
Salinas, CA 93901
(408) 443-3205

California Melon Research Board
Ms. Pat Honchell, Manager
531 - D North Alta Avenue
Dinuba, CA 93618
(209) 591-0435

Manufacturing Milk Advisory Board
Mr. Adri Boudewyn, CEO
P.O. Box 4680
Modesto, CA 95352
(209) 521-1060

California Fluid Milk Processor Advisory Board
Mr. Jeff Manning, Exec. Dir.
1801A Fourth St
Berkeley, CA 94710
(510) 883-1085

California Milk Producers Advisory Board
Mr. Adri Boudewyn, CEO
400 Oyster Point Blvd, #214
So. San Francisco, CA 94080
(415) 871-6455

California Cling Peach Advisory Board
Mr. Thomas Krugman, General Manager
P. O. Box 7111
San Francisco, CA 94120
(415) 541-0100

California Pear Advisory Board
Ms. Jean-Marie Peltier, Exec. Dir.
1521 I Street
Sacramento, CA 95814
(916) 441-0432

California Pepper Commission
Ms. Pat Honchell, Manager
531-D North Alta Avenue
Dinuba, CA 93618
(209) 591-3925

California Pistachio Commission
California Pistachio Marketing Agreement
Ms. Karen Reinecke, President
1318 E. Shaw Avenue, Ste 420
Fresno, CA 93710
(209) 221-8294

California Plum Advisory Board
California Plum Marketing Board
Mr. Jon Field, Manager
P.O. Box 968
Reedley, CA 93654-0968
(209) 638-8260
[Agreements are provided under the name: California Tree Fruit Agreement.]

California Potato Research Advisory Board
Mr. Jim Melban, Manager
531 - D North Alta Avenue
Dinuba, CA 93618
(209) 591-0436

California Prune Board
Mr. Richard Peterson, Exec. Dir.
P.O. Box 10157
5990 Stoneridge Drive # 101
Pleasanton, CA 94588-2706
(510) 734-0150

California Wild Rice Board Rice Handlers Advisory Board
California Rice Research Advisory Board
Mr. Melvin Androus, Manager
335 Teagarden Street
P.O. Box 507
Yuba City, CA 95992
(916) 673-6247

California Salmon Council
Mr. David Goldenberg
108 Conductor Way
Folsom, CA. 95630-8017
(916) 358-2960

California Seafood Council
Ms. Diane B. Pleschner, Manager
P.O. Box 91639
Santa Barbara, CA 93190
(805) 568-3813

California Strawberry Commission
Mr. Dave Riggs, President
41 Hanger Way
P.O. Box 269
Watsonville, CA 95077-0269
(408) 724-1301

Processing Strawberry Advisory Board
Mr. George R. Faxon, Manager
P. O. Box 929
Watsonville, CA 95077-0929
(408) 724-5454

California Table Grape Commission
Mr. Bruce Obbink, President
P.O. Box 5498
Fresno, CA 93755
(209) 224-4997

California Tomato Board
Mr. Ed Beckman, Manager
2019 North Gateway Blvd.
Fresno, CA 93727
(209) 251-0628

Processing Tomato Advisory Board
Mr. Tom Ramme, Manager
P.O. Box 1285
W. Sacramento, CA 95691
(916) 371-3470

California Tree Fruit Agreement
Mr. Jon Field, Manager
P.O. Box 968
Reedley, CA 93654-0968
(209) 638-8260
Provides agreements for California Plum Advisory Board, Nectarine Administrative Committee, and Peaches Commodity Committee.

California Walnut Commission
Mr. Dennis Balint, CEO
1540 River Park Drive, Ste 104
Sacramento, CA 95815
(916) 646-3807

California Wheat Commission
Ms. Bonnie Fernandez, President CEO
P.O. Box 2267
Woodland, CA 95776
(916) 661-1292

Lake County Winegrape Commission
Ms. Shannon Gunier, Manager
P.O. Box 877
Lakeport, CA 95453
(707) 995-3421

Lodi-Wood Bridge Winegrape Commission
Crush District #11, Local Commission
Mr. Mark Chandler, Manager
1420 South Mills Avenue, Ste K
Lodi, CA 95242
(209) 367-4727



American Egg Board

California Almond Board

California Date Administrative Committee

Lemon Administrative Committee

Nectarine Administrative Committee [Provided by California Tree Fruit Agreement]

Peaches Commodity Committee [Provided by California Tree Fruit Agreement]

California Olive Committee

Raisin Administrative Committee

California Desert Grape Administrative Committee

Winter Pear Control Committee


January, 1996


Listed below are examples of other agricultural associations which are either not California or federal regulated marketing order boards to which indirect cost exception no. 70R-001 does not apply or are federal regulated boards with different indirect cost rates..

A. Other Associations with approved indirect cost rate exceptions for reduced overhead on a class basis:

California Association of Nurserymen -- No. 85R-076

California Crop Improvement Association --

Cotton Inc. -- No. 83R-022

National Dairy Council -- No. 82R-109

National Livestock and Meat Board -- No. 82R-167

National Pork Producers Council -- No. 93R-029

United Soybean Board -- No. 95R-063

Washington Tree Fruit Research Commission -- No. 95R-027

Wisconsin Milk Marketing Board -- No. 86R-052

B. Other associations which will require indirect cost rate exceptions if they are not paying full overhead:

California Beet Growers Association -- No current awards

California Cherry Growers and Industries Foundation -- Current award

California Citrus Quality Council -- Current award

California Clean Growers Association -- Current award

Northern California Flower Growers and Shippers Assn. -- No current awards

California Tomato Research Institute -- Current award

USA Rice Federation -- Current award