The recent announcement that all organic farmers and handlers in the United States would be able to choose whether to pay into and participate in conventional commodity check-off programs or opt out of those programs and put their dollars into a proposed organic research and promotion order now under review by the U.S. Department of Agriculture (USDA) was hailed by the Organic Trade Association (OTA) as a major victory and step forward for the organic sector.
“OTA and organic stakeholders put in a tireless effort to include in the Farm Bill major policy advancements for the organic sector. These are important gains for organic farmers and the organic industry, and will help the organic sector invest in its future,” said Laura Batcha, CEO and executive director of OTA. “This is a significant and positive development for organic stakeholders. It was the clear intention of Congress to provide choice for organic farmers, ranchers and handlers. We are pleased that the organic sector will be able to invest in its unique needs for organic research and promotion that are so critical to the future success of organic.”
In an announcement in the Federal Register on December 31, USDA said the exemption from paying into conventional check-offs for organic farmers, handlers, marketers or importers with the 100 percent organic label would be extended to the primary organic label (95 percent organic) and pertain not exclusively to farmers or handlers who work solely with organic products, but also to those who produce, process, handle and import both organic and conventional products. The 2014 Farm Bill authorized the USDA to expand the exemption.
USDA estimates that not having to contribute to conventional check-offs will free up an extra $13.6 million per year for organic stakeholders to invest back into the organic industry.
There are now 22 national commodity check-off programs in place in the U.S. These programs are funded by producers of the specific commodity and have been a part of American agriculture for almost 50 years. The new rule will also exempt eligible operations from paying into the portion of the assessment in federal marketing order programs designated for market promotion activities. There are 23 federally administered state marketing order programs with market promotion authority.
For more information, visit www.groorganic.net or www.ota.com.
