Agriculture Marketing Boards

Indirect Cost Recovery

Effective August 6, 2019 in a letter from UC President Janet Napolitano, "awards to the University based on grower assessments or fees on agricultural products from agricultural commodity groups are not required to include indirect cost recovery."

Such awards are typically made by an agricultural commodity group such as a Marketing Order, Agreement, Council or Commission, created either by the California Department of Food and Agriculture (CDFA) or the United States Department of Agriculture. This funding may also be provided by internal CDFA programs funded by grower assessment or fees on agricultural products, and by non-profit associations and other types of entities.

Sponsor Codes for these entities are marked as an "Agricultural Entity" in the Research Enterprise Management System (REMS).

Indirect Cost Exceptions in REMS

When accepting an agreement where President Napolitano's letter is applicable, an indirect cost exception should be routed for approval in REMS.

In your indirect cost exception:

  • Select "Agricultural Interest" as your indirect cost exception basis.
  • Upload a copy of the Napolitano letter (pdf).
  • Upload a copy of the sponsor's indirect cost policy (if it permits any indirect cost recovery greater than zero percent).

Use of California Model Agreement

Under guidance memo RPAC-16-01, agreements from an entity recognized by the as a Marketing Order, Agreement, Council, or Commission by CDFA are not required to be in the format of the Model Agreement used by State of California agencies, the California State University, and the University of California.

More Background