California Mill Assessment Fee Increases: 2025-2027 Impact Analysis

Published August 2, 2025 | By Eric Grant, Agricultural Regulatory Consultant | 7 min read

California's mill assessment fees are increasing significantly over the next three years, directly impacting pesticide companies' operational costs. Here's what you need to know and how to prepare.

⚠️ Important Disclaimer

The regulatory information in this article is for educational purposes only and is subject to frequent changes by state and federal agencies. This content reflects information available at the time of publication and may not represent current requirements. Always consult official state and federal sources or a qualified regulatory consultant for the most up-to-date and specific guidance before making compliance decisions. EccoEdge Compliance LLC assumes no responsibility for decisions made based solely on this information.

🚨 URGENT: Immediate Cost Impact

California mill assessment fees are increasing by 22% over three years: From 24.5 mills (2024) to 30 mills by 2027. Companies with $1M in California pesticide sales will see annual assessment costs rise from $24,500 to $30,000.

Fee Increase Timeline

2024 (Current): 24.5 Mills

$0.0245 per dollar of pesticide sales

July 1, 2025 - June 30, 2026: 27 Mills

$0.027 per dollar of pesticide sales (+10.2% increase)

July 1, 2026 - June 30, 2027: 29 Mills

$0.029 per dollar of pesticide sales (+18.4% from 2024)

July 1, 2027 and Beyond: 30 Mills

$0.030 per dollar of pesticide sales (+22.4% from 2024)

Additional Assessment Coming

California anticipates an additional assessment authorized by Section 12841.1 will increase to 1.04 mills ($0.00104) in 2026, further raising total costs.

Financial Impact Analysis

Annual CA Sales 2024 Cost 2025 Cost 2027 Cost Increase
$500,000 $12,250 $13,500 $15,000 +$2,750
$1,000,000 $24,500 $27,000 $30,000 +$5,500
$2,500,000 $61,250 $67,500 $75,000 +$13,750
$5,000,000 $122,500 $135,000 $150,000 +$27,500

Strategic Recommendations

1. Budget Planning

Adjust 2025-2027 budgets to account for 22% mill assessment increase. For companies with $1M+ California sales, this represents $5,500+ in additional annual costs by 2027.

2. Pricing Strategy Review

Consider gradual price adjustments to offset mill assessment increases. The 2.5 mill increase from 2025-2026 alone represents a 10.2% cost increase on all California sales.

3. Market Diversification

Evaluate opportunities in lower-cost states. Nebraska ($15 soil amendment), New Mexico ($100 pesticide), and Arizona ($100 pesticide) offer significantly lower regulatory costs.

4. Compliance Monitoring

Track quarterly mill assessment reporting deadlines carefully. Late fees and penalties will compound the increased base assessment costs.

MillPay System Updates

California's MillPay online portal handles mill assessment reporting and payments. Key features for managing increased costs:

  • Automatic Calculations: MillPay will automatically apply new mill rates as they become effective
  • Multiple Payment Options: EFT, credit cards (2.7% processing fee), or check payments
  • Quarterly Reporting: Forms due within 30 days of quarter end
  • Upload Capability: Bulk upload sales data for companies with extensive product lines

Registration Required

Companies must provide DPR with an Authorized MillPay User letter on company letterhead before accessing the system. Up to three persons can be authorized per firm.

Why These Increases Matter

California's mill assessment supports the Department of Pesticide Regulation's (DPR) operations, funding 80% of the DPR budget. The increases reflect:

  • Rising operational costs for regulatory oversight
  • Enhanced environmental monitoring programs
  • Increased pesticide registration and renewal processing
  • Container recycling program expansion

Industry Impact: For companies with significant California market presence, these increases represent substantial cost pressure that requires strategic planning and potentially pricing adjustments to maintain profitability.

Next Steps for Your Business

Immediate Actions:

  1. Calculate Impact: Determine exact cost increase based on your California sales volume
  2. Budget Adjustment: Update 2025-2027 financial projections
  3. Pricing Review: Evaluate whether price adjustments are necessary
  4. Market Analysis: Consider expansion into lower-cost states
  5. Compliance Check: Ensure MillPay registration is current and authorized users are updated

Need Help Navigating California's Regulatory Changes?

EccoEdge Compliance monitors regulatory updates across all states to help you stay ahead of cost increases and compliance requirements.

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