May 2023 Policy Update

May 2023

By Lily Hawkins, Policy Director

National Organic Standards Board

The NOSB held their spring meeting over 2 weeks in April, starting with 2 days of virtual testimony and followed by an in person meeting in Atlanta, Georgia the following week. Some of the big topics the board discussed included: 

  • A proposal outlining why certified organic producers should automatically be considered climate-smart.
  • Discussion of the realities of crop insurance for organic farmers. 
  • Discussion of the possible use of geolocation technology to aid in deterring fraud.
  • A list of "sunset" materials that are up for their 5-year review to be allowed in organic production

The National Organic Coalition is holding a debrief on Key Outcomes from the Spring 2023 NOSB Meeting & NOC Pre-NOSB Meeting in Atlanta, GA on Wednesday, May 17 from 3:00 to 4:30 pm eastern. Register by Monday, May 15 to participate.

You can read OFA’s comments to the NOSB here

Origin of Livestock; New Information Collection

One year ago, USDA published the long awaited Origin of Livestock (OOL) final rule, creating clear standards for transitioning livestock to organic production and closing loopholes to create a level playing field for organic dairies. The rule allows organic dairy producers to transition non-organic animals to organic only one time. Any new animals are required to be managed organically from the last third of gestation, dairies may not source animals that have been transitioned elsewhere.

There is an allowance in the rule for variances to be requested by small operations under a limited circumstances: 

  • When the certified operation selling the transitioned animals is part of a bankruptcy proceeding or a forced sale 
  • When the certified operation has become insolvent, must liquidate its animals, and as a result has initiated a formal process to cease its operations 
  • If the certified operation wishes to conduct an intergenerational transfer of transitioned animals to an immediate family member 

This April, NOP put out a request for public comment on information collection required when requesting a variance under the above circumstances. They are seeking public comment on the following topics: 

  • Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility
  • The accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used
  • Ways to enhance the quality, utility, and clarity of the information to be collected
  • Ways to minimize the burden of the collection of information on those who are to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.

For more details and to submit comments click this link. The 60-day comment period is scheduled to close on June 26, 2023.

NRCS Announces $75 Million to Assist Producers Transitioning to Organic

Last month NRCS announced that they would invest $75 million in conservation assistance for producers transitioning to organic as part of the Organic Transition Initiative (OTI). The majority of the funding will be used to provide direct assistance to farmers adopting the new EQUIP organic management standard

The remaining $5 million will be dedicated to partnering with technical experts to develop regional networks and support NRCS staff in providing organic training and expertise. USDA is accepting proposals for these partnerships until June 11, 2023. You can read more details on the funding opportunities here.

 


April 2023 Policy Update

April 2023

By Lily Hawkins, Policy Director

Work on 2024 Spending Bills is Underway

Amid heated debate over raising the debt ceiling so that the federal government can continue to run essential programs, Congress is starting the annual process of putting together the “appropriations” bills that set the spending levels for each federal agency, including USDA.

Appropriations Agriculture, Rural Development, Food and Drug Administration Subcommittees in both the House and Senate ask members of congress and the public to submit their budget requests for Fiscal Year 2024 in April. OFA submitted testimony asking for increased funds for programs that benefit organic producers, including the National Organic Program, the Organic Transition Program, and research programs.

House and Senate Agriculture Committees Continue Farm Bill Hearings

As work on marker bills for the Farm Bill continues behind the scenes, the Senate Agriculture Committee is set to begin a new round of hearings when they return from recess in mid-April. The first hearing in the lineup will be with the Nutrition, Specialty Crops, Organics and Research subcommittee and focus on nutrition programs. It’s scheduled for just a few days after Subcommittee Chair Fetterman returns to Washington after his hospitalization. Other hearings tentatively scheduled on the committee agenda are as follows:

  • April 20: Conservation, Climate, Forestry and Natural Resources (conservation focus)
  • April 27: Commodities, Risk Management and Trade (crop insurance and farm credit focus)
  • May 2: Commodities, Risk Management and Trade (commodity groups focus)
  • May 17: Rural Development and Energy (broadband focus)

When the schedule is finalized you will be able to see the dates and times and watch virtually here

Meanwhile on the House side, Chairman G.T. Thompson continues a series of listening sessions, with the next scheduled for April 14 in Binghamton NY. See meeting details and watch the livestream here.

Spring Meeting of the National Organic Standards Board

The spring meeting of the National Organic Standards Board will take place April 25 through April 27 in person in Atlanta, Georgia.

Some of the big topics on the board’s meeting agenda include: 

  • A proposal outlining why certified organic producers should automatically be considered climate-smart.
  • Discussion of the realities of crop insurance for organic farmers. 
  • Discussion of the possible use of geolocation technology to aid in deterring fraud.
  • A list of "sunset" materials that are up for their 5-year review to be allowed in organic production. 

You can read the Board’s proposed recommendations and discussion documents here.  For information on watching the meeting on Zoom, go to the USDA’s page for this meeting. The public comment sessions for this meeting will be held on the afternoon of Tuesday, April 18 and the afternoon of Thursday, April 20. You can read OFA’s comments to the Board here.


March 2023 Policy Update

March 2023

By Lily Hawkins, Policy Director

Organic Farmers Visit Washington D.C.

Last week, members of OFA’s Policy Committee and Governance Committee traveled to Washington D.C. to advocate for our Farm Bill priorities. Over the course of the week farmers visited the offices of nearly 50 members of Congress to advocate for policies that will strengthen the National Organic Program and support organic farmers, including the following issues:

  • Organic Integrity
  • Assistance for Organic Dairy Farmers
  • Organic Research
  • Making USDA Programs work for Organic Farmers
  • Climate & Conservation
  • Increasing Organic Infrastructure
  • Working with Allies to Build a Better Food System

OFA members also joined allies to participate in the Rally for Resilience and march to the Capitol and conducted meetings at USDA. In a meeting with National Organic Program (NOP) staff they advocated the need for a faster timeline for rulemaking, discussed the rollout of the recently finalized Strengthening Organic Enforcement Rule, and reiterated the importance of limiting organic certification to soil-based farms, not those that rely on hydroponics or container systems. At the Farm Service Agency (FSA), farmers spoke on the need for staff at state FSA offices to be educated on organics, the importance of fully funding organic certification cost-share, and asked questions about the recently announced Organic Dairy Marketing Assistance Program. 

Both the House and Senate Agriculture Committees are accepting public comment on Farm Bill priorities. You can use the links below to make your voice heard. Use OFA’s Farm Bill priorities for talking points and specific programs, and be sure to include information about why these policies will help YOUR farm.

https://agriculture.house.gov/forms/form/?ID=2

https://www.agriculture.senate.gov/farm-bill-input

USDA Announces Funding to Increase Independent Meat Processing Capacity

Last month, USDA Secretary Tom Vilsack announced $59 million in investments to support the Biden-Harris Administration’s Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain. The grants will be provided to five independent processors as part of the Meat and Poultry Processing Expansion Program (MPPEP). Recipients include a facility in Virginia that will use the funds to expand its organic chicken processing capacity. 

This round of grants was preceded by 2 previous rounds of grants announced in November of last year, and this January. Read more about these USDA programs here.

Participate in the National Organic Standards Board’s Spring Meeting

The NOSB meets twice a year to work on recommendations to the USDA about organic standards and the National List of materials that are allowed or prohibited in organic production. The in-person portion of this year’s Spring NOSB will take place in Atlanta, Georgia. 

  • Public Comment Webinar Day 1: Tuesday, April 18 from Noon - 5:00 pm Eastern
  • Public Comment Webinar Day 2: Thursday, April 20 from Noon - 5:00 pm Eastern
  • NOSB Public Meeting Day 1: Tuesday, April 25 from 10:00 am - 5:00 pm Eastern
  • NOSB Public Meeting Day 2: Wednesday, April 26 from 10:00 am - 5:00 pm Eastern 
  • NOSB Public Meeting Day 3: Thursday, April 27 from 10:00 am - 1:00 pm Eastern

You can watch the meeting online, and the public comment portions of the meeting will be virtual. Meeting information and the registration form to sign up for public comment are here (registration form is at bottom of page.) The deadline to submit written comments and requests to provide oral comments is April 5, 2023.


February 2023 Policy Update

February 2023

By Lily Hawkins, Policy Director

Strengthening Organic Enforcement Final Rule Released At Last!

National Organic Program enforcement and stopping organic import fraud have been top priorities for Organic Farmers Association members since our founding. After several years of advocacy, the new Strengthening Organic Enforcement (SOE) rule was finally released in January, with an implementation date set for March 19, 2024. Our full 2020 comments on the rule can be read here.

The final rule is a long overdue step towards the robust enforcement needed to protect the integrity of the organic label and the economic viability of organic farms that rely on consumer trust in that label. It will address topics including: applicability of the regulations and exemptions from organic certification; National Organic Program Import Certificates; recordkeeping and product traceability; certifying agent personnel qualifications and training; standardized certificates of organic operation; unannounced on-site inspections of certified operations; oversight of certification activities; foreign conformity assessment systems; certification of grower group operations; labeling of non retail containers; annual update requirements for certified operations; compliance and appeals processes; and calculating organic content of multi-ingredient products. 

There is still more work to do to prevent fraud in the organic sector and provide a level and fair playing field for organic producers. OFA will continue to advocate before Congress to provide the National Organic Program (NOP) with the resources needed to increase the agency’s standards of training, information sharing, and other enforcement activities, and the authority needed to address fraud in domestic or international markets, such as stop sale authority. 

USDA Announces Assistance for Organic Dairy Farms

Organic dairy farmers are in crisis due to drought, market consolidation, and skyrocketing energy and feed costs brought on by unstable global markets and inflation. 

Organic Farmers Association (OFA) and allies have been calling on Congress to provide emergency financial relief to organic dairy farmers to help offset the high cost of production before more farms go out of business. Late last year, congress directed USDA to find sources of funding to help organic dairy farmers. USDA’s Farm Service Agency moved swiftly, and, in January, announced its plans to distribute funding. USDA’s full announcement is posted here.

The details of the new Organic Dairy Marketing Assistance Program (ODMAP) are still in development, and OFA is working with organic dairy farmers and allied organizations to stay abreast of developments and to advocate for a strong program that will deliver the  maximum payments directly and entirely to farmers. So far, USDA has said that the program will be administered by USDA’s Farm Service Agency and will cover up to 75 percent of projected 2023 marketing costs for eligible organic dairy producers - targeting small and mid-sized operations.  

While this aid is desperately needed, the amount of money earmarked for the program will not be enough to make organic dairy farmers whole. New programs specifically tailored to address increased cost of production for organic dairy are still urgently needed as part of the 2023 Farm Bill, and OFA will continue working with our organic dairy farmer members and Congress to advocate for strong long term solutions for organic dairy.

Key Congressional Committees Finalized

This month, the 118th Congress finalized key committee assignments and subcommittee leadership.

The Democratically controlled Senate Agriculture Committee added two new Democrats. Senator Peter Welch (VT) served as US representative since 2007 and is known as an ally to organic farmers. This is his first term in the Senate. John Fetterman is also a newly elected Senator. He formerly served as Lieutenant governor of Pennsylvania, and focused on the need to fight consolidation in agriculture and implement anti-trust policies in meatpacking during his Senate campaign.

The Republican controlled House Agriculture Committee has added a slew of new members, and  made some changes to its subcommittee structure. Organic policy will now generally come under the jurisdiction of the Subcommittee on Nutrition, Foreign Agriculture, and Horticulture, chaired by Representative Brad Finstad of MN to chair. Some issues of importance to OFA, such as crop insurance and research will be covered by other subcommittees.

Republicans John Rose, Ronny Jackson, Marc Molinaro, Monica De La Cruz, Nick Langworthy, John Duarte, Zach Nunn, Mark Alford, Derrick Van Orden, Lori Chavez-DeRemer, and Max Miller have been added to the committee. And eleven new members were added; freshman legislators, Yadira Caraveo, Andrea Salinas, Marie Gluesenkamp Perez, Don Davis, Jill Tokuda, Nikki Budzinski, Greg Casar, Jasmine Crockett, Jonathan Jackson, Eric Sorensen and Gabe Vasquez, as well as Elissa Slotkin, who is new to the Agriculture committee. There was intense competition for the remaining democratic seats, but House Ag veterans Chellie Pingree, Salud Carbajal, Darren Soto, and Angie Craig all came away with spots.

The subcommittee's jurisdiction will cover trade agreements and commitments, agricultural export programs, and U.S. food aid initiatives; SNAP Oversight of commodity distribution programs, and Marketing and promotion programs related to fruits, vegetables, and other specialty crops.

Farm Bill Hearings Continue

With committee membership largely decided, both House and Senate Agriculture Committees are getting to work on the Farm Bill.

The Senate Agriculture Committee has held two full committee hearings so far in 2023.One focused on Commodity Programs, Crop Insurance, and Credit, and one focused on Trade and Horticulture. You can view the committee calendar and see recordings of past hearings here.

Meanwhile in the House Ag committee, G.T. Thompsone held a listening session at the Pennsylvania Farm show in January, and the House Agriculture Committee held its first official meeting on February 8th.


January 2023 Policy Update

January 2023

By Lily Hawkins, Policy Director

Leadership Changes in Congress

A divided Congress with narrowly held majorities on both sides means a challenging path for the 2023 Farm Bill.  

This month marks the start of the 118th Congress, with Republicans narrowly in the majority. Representative Kevin McCarthy (California) was elected House Speaker early on Saturday, after 15th rounds of voting! This was the first time in 100 years that multiple rounds of voting were required to elect a House speaker. Because the Republican majority is so slim, just 20 House members on the far right were able to hold up the election and eventually extracted concessions that will significantly weaken the speaker position, and empower the most conservative wing of the party.  The delay in electing the House Speaker also pushed back the formation of key House committees including the Ag Committee. Presumed House Ag Chair G.T. Thompson pushed back the date of his first committee listening session. Originally slated for this Saturday, it’s been rescheduled to Friday, January 13th.

Meanwhile in the Senate, where Democrats retained the majority, Agriculture Committee chair Debbie Stabenow (D-Michigan) has announced that she won’t seek reelection in 2024. Senator Mike Bennet (D-Colorado) is likely next in line for her committee chair position, though Senator Klobuchar or Senator Gillibrand may also seek the role. Democrats will be left with  a tough Senate race in battleground state Michigan, providing motivation for them to try to pass the Farm Bill on time, before the next election cycle.

Organic Agriculture Makes Gains in the Appropriations Package

Last month, Congress finally passed the annual spending package, after months of delay. The bill will increase 2023 funding for the National Organic Program from $20 million to $22 million. The package also promises $7.5 million dollars to the Organic Transitions Program for organic research.

In addition to these funding increases, the spending omnibus includes language giving the USDA 30 days to report on available funding for relief for organic dairy farmers, and the following language highlighting the need for increased data collection about market conditions: “The agreement recognizes the need for organic dairy producers to have detailed data about market conditions in order to make decisions about the value of their products. Within 60 days of enactment of this Act, AMS is directed to brief the Committees on the feasibility of collection and publication of organic fluid milk data from all Federal Milk Marketing Orders.”

USDA Releases 2021 Organic Survey Results

Last month, USDA’s National Agricultural Statistics Service (NASS) release the results of their 2021 Organic Survey, a census of all known operations with certified or transitioning organic production in the United States conducted in cooperation with the USDA’s Risk Management Agency (RMA). The survey results show a 13% increase in total sales of organic products from 2019, and a 5% increase in the number of certified organic farms in that same period. Click here for the full results of the 2021 survey and previous surveys.

Save the Date: Rally for Resilience

Over the past year we’ve seen the launch of significant federal incentives for climate-friendly agriculture. And with 2023 as a Farm Bill year, the time is now to keep the pressure on in Washington for further policy change. 

On March 6-8 farmers and farm organizations from around the country will converge in DC and at satellite events in other states to call on Congress to make sure the 2023 Farm Bill provides farmers with the resources and incentives they need to address climate change.

Click here to view the event page and find out how you can get involved.


December 2022 Policy Update

December 2022

By Lily Hawkins, Policy Director

All Midterm Election Results Are Now In

One month after the midterm elections we know the final outcome of all the national races. After John Fetterman’s win in Pennsylvania and Rev. Warnock’s victory in the runoff in Georgia, the Democrats will maintain their Senate majority despite Kyrsten Sinema’s recent decision to register as an independent.  Senator Stabenow will likely maintain her role as Chair of the Senate Agriculture Committee.

Meanwhile, Republicans have taken control of the House, but with a smaller majority than they had hoped for.  Representative G.T. Thompson of Pennsylvania has been elected as the new Chair of the House Agriculture Committee. He will have a challenge ahead in crafting a Farm Bill acceptable to both the far-right Freedom Caucus in the house and the Democratic-controlled Senate.

2023 Farm Bill Hearings Continue

Despite the narrow path the next Farm Bill will have to walk, incoming House Agriculture Chairman Thompson has publicly stated that he is committed to passing it on time. He has announced that he will hold a listening session-style hearing at the Pennsylvania Farm Show in Harrisburg during the first weekend in January. This will be a chance for him to formally lay out his priorities for the must-pass legislation as Committee Chair for the first time.

Meanwhile, House and Senate Agriculture Committees continue to hold hearings on the Farm Bill under the current leadership. Last week, Colorado organic farmer and former NOSB member Steve Ela delivered powerful testimony during the Senate Agriculture hearing on Farm Bill research programs, saying that more research is needed on the benefits of a systems-based approach in overcoming problems in agriculture. 

You can read his full testimony here, and watch the hearing here

Extended Deadline for Annual Spending Bills Draws Near

October 1 marked the beginning of the federal government’s new fiscal year. Congress was supposed to have passed annual appropriations bills to set spending for federal agencies such as the USDA.  However, they were unable to reach an agreement on the final package of bills and passed a resolution allowing them to avoid a government shutdown by extending the deadline until December 16th.

With that deadline rapidly approaching, the two parties have yet to reach an agreement on spending levels for the final omnibus bill. Democrats have threatened to pass a year-long funding extension that will freeze federal spending at the current levels through September 30th, 2023.

In the appropriations bills that have been drafted for the USDA for Fiscal Year 2023, organic programs are faring well. The House has already passed a bill that would increase funding for the National Organic Program and includes language to direct the NOP to strengthen its enforcement of organic soil health requirements. The Senate has a draft bill, which also included an increase in funding for the NOP and good report language on enforcement. The Senate bill still needs to be passed, and any differences between the two bills must now be reconciled and passed by the extended December deadline.

Delayed Organic Regulations

With the Origin of Livestock final rule finally being released this spring, we still need USDA action on several other critical issues related to the integrity of the organic label. The public comment period on the proposed Organic Livestock and Poultry Standards rule closed last month and is now back at the Office of Management and Budget, a division of the White House that signs off on federal regulations, for review. We are also waiting for the USDA to finalize the Strengthening Organic Enforcement rule, which includes a long list of changes to the USDA’s process for detecting and preventing fraud in organic supply chains. Several months ago Agriculture Secretary Vilsack pledged that the rules would be released this year, so OFA is watching closely for any movement. 

Do you have experience with Commodity Contracting through the Agricultural Marketing Service?

USDA wants to hear about "Barriers Facing Small Firms and Businesses Providing Halal, Kosher and Organic Products in Commodity Contracting With the Agricultural Marketing Service.” The Agricultural Marketing Service (AMS) wants to update its Commodity Procurement Program Small Business and New Vendor Strategy and is accepting public comment through December 27th. More information is available here.

It is difficult for organic producers to participate in these federal contracts, which purchase and distribute food to schools, food banks, Tribal organizations, and international food aid programs because they are generally awarded based on price. If you have experience dealing with these programs or have been frustrated that they aren’t more accessible, please consider submitting a comment this month, or reaching out to OFA Policy Director Lily Hawkins at lily@organicfarmersassociation.org.

Second Pool of Grants Awarded Through Partnerships for Climate-Smart Commodities

Yesterday, Secretary Vilsack announced that USDA will be investing $325 million in 71 projects as part of the Partnerships for Climate-Smart Commodities funding opportunity. This is the second round of funding and follows the September announcement of 70 projects selected to receive up to a total of $2.8 billion. USDA is distributing this funding with the goal of expanding markets for climate-smart commodities to benefit producers and reduce greenhouse gas emissions. This second round was intended to focus on projects involving small and/or underserved producers and minority-serving institutions.

There was enormous interest in the program with over $18 billion worth of proposals submitted. Several organizations with an organic focus received awards, including many projects led by OFA organization members and allies. The full list of awards given can be found here.


November 2022 Policy Update

November 2022

By Lily Hawkins, Policy Director

Today is Election Day

With many tight midterm races around the country, we are expecting changes in the committees working on annual spending bills and the 2023 Farm Bill.  Once the votes have been counted and election results determined, each party will convene conferences in both the Senate and the House to determine their nominees. Whichever party comes away with the majority will appoint the committee chairs, and the percentage of a party’s representation in each chamber will determine how many seats they get on each committee. Then in January when the newly elected Senators and Representatives take office, they will vote to confirm the nominees. OFA will provide analysis of what those new assignments mean for organic policy in DC. 

Expanded List of Import Codes Available for Organic Oversight

Identification and oversight of organic imports is key to ensuring organic integrity. USDA is working with Customs and Border Protection (CBP) to provide new electronic import oversight tools to monitor imports at US ports and borders.

Products with at least 3 importers and $1 million in annual imports can be assigned a unique Harmonized Tariff Schedule (HTS) code that the tool U.S. Customs and Border Protection (CBP) uses to track goods. Until recently there were only a few dozen of these HTS codes available for organic products, but the number has expanded over the last few years, and is now up to 84 organic, with 12 added this year.

HTS codes specific to organic will be especially important as electronic NOP Import Certificates are phased in. Some importers are already using the electronic system, as part of a voluntary pilot phase. USDA says they are working with stakeholders to build the case for more organic HTS codes to protect the organic seal and support supply chain traceability. 

Ask the USDA for rapid implementation on Organic Animal Welfare Standards

This August, the USDA released a proposed rule to update the Organic Poultry and Livestock Standards. The public comment was originally set to close on October 11th, but has been extended through November 10th. 

These updated standards have been awaited for years, with many delays including lawsuits triggered by the USDA’s decision not to finish an earlier proposal. OFA supports the proposed rule, which would not allow porches in chicken houses to qualify as outdoor access. 

However, the USDA has proposed possible 5 year or 15 year timelines for certified egg-producing operations to come into compliance with the rule once it’s been finalized. OFA is urging USDA to set a faster 3 year timeline, to rapidly finalize the rule and level the playing field for farmers as soon as possible.

Click here to send a comment telling USDA you support the proposed rule, and that they need to set a more aggressive 3 year implementation timeline

Join the USDA Listening Session on Organic Pinpointed Market Development Support

On November 15th USDA will host a listening session to “invite input from stakeholders about innovative ways in which organic infrastructure investments could support increased access to processing, storage, distribution, and consumer markets.” The listening session will take place on Zoom from 3-4pm EST, and written questions and comments can be submitted in advance. This is an opportunity for organic farmers to let the USDA know how Organic Transition Initiative funding can be most helpful. For more details and the RSVP link click here.

Coming Up: OFA’s Annual Policy Platform Process

Over the winter, OFA will begin its annual policy platform and priority setting process. This begins with a survey of all U.S. certified organic farmers and OFA organizational members asking them to submit policy position proposals and prioritize policy issues. Once the results are in, OFA’s Policy Committee will review the results, and draft policy statements for review and comment by membership. The final proposals will be voted on by OFA farmer members, and those that get 60% of the popular vote and 60% popular support in at least two-thirds of the regions will become part of the OFA policy platform.


October 2022 Policy Update

October 2022

By Lily Hawkins, Policy Director

Comments on Proposed Animal Welfare Standards Due November 10th

This summer, the USDA released a proposed rule to update the organic standards for how livestock are raised. This comes after years of delay, including lawsuits triggered by the USDA’s decision not to finish an earlier proposal. The proposed Organic Livestock and Poultry Standards rule would not allow porches in chicken houses to qualify as outdoor access, but does request input from the public on how long it should give current operations to come into compliance with tighter standards. The deadline for public comments was originally set for October 11th, but last week it was pushed back to November 10th. 

These stronger standards are long overdue, and we are asking USDA to set a faster 3 year timeline than the 5 year or 15 years they have proposed for certified egg-producing operations to meet the outdoor space requirements for laying hens.. 

To weigh in, visit our action page and tell USDA you support the proposed rule, and that they need to set a more aggressive 3 year implementation timeline

Deadline for Annual Spending Bills Extended

October 1 marked the beginning of the federal government’s new fiscal year. Congress was supposed to have passed annual appropriations bills to set spending for federal agencies such as the USDA by September 30th.  However, they were unable to reach an agreement on the final package of bills and instead passed a resolution to allow the government to continue operating under the 2022 budget until December 16th - narrowly avoiding a government shutdown. 

In the appropriations bills that have been drafted for the USDA for Fiscal Year 2023, organic programs are faring well. The House has already passed a bill that would increase funding for the National Organic Program and includes language to direct the NOP to strengthen their enforcement of organic soil health requirements. The Senate has a draft bill, which also included an increase in funding for the NOP and good report language on enforcement. The senate bill still needs to be passed, and any differences between the two bills must now be reconciled and passed by the extended December deadline.

Watch the National Organic Standards Board’s Fall Meeting

The NOSB meets twice a year to work on recommendations to the USDA about organic standards and the National List of materials that are allowed or prohibited in organic production. After several years of virtual meetings, the NOSB is planning for an in-person meeting in October in Sacramento, California, but will continue to only take public testimony virtually.  Watch OFA’s tweets @OrganicFarmersA to follow organic farmer testimony. 

  • Public Comment Webinar Day 1: Tuesday, October 18 from Noon - 5:00 pm Eastern
  • Public Comment Webinar Day 2: Thursday, October 20 from Noon - 5:00 pm Eastern
  • NOSB Public Meeting Day 1: Tuesday, October 25 from 9:00 am - 5:00 pm Pacific
  • NOSB Public Meeting Day 2: Wednesday, October 26 from 9:00 am - 5:00 pm Pacific
  • NOSB Public Meeting Day 3: Thursday, October 27 from 9:00 am - 5:00 pm Pacific

The deadline to register for comments has closed, but you can still watch the meeting online. Click here for more information and the link to watch! You can also read OFA’s written comments.

Congress Members Campaigning in Home Districts

With the midterm elections just one month away you may see your member of Congress campaigning at events in your area. This is a great opportunity to ask them to support our priority issues.

Here are some ideas of what to say if you get the chance:

  • “Will you support Farm Bill funding to support independent organic farmers and help move more U.S. farms to organic methods?”
  • “Will you encourage the USDA to swiftly implement updates to animal welfare provisions in the organic standards?”
  • You can even invite your member of Congress to visit your farm for a more in depth conversation. 

Grants Awarded Through Partnerships for Climate-Smart Commodities

In September, the USDA announced 70 projects that were selected to receive up to a total of $2.8 billion as part of a funding opportunity called Partnerships for Climate-Smart Commodities. This was the first of two planned funding pools that the USDA is distributing with the goal of expanding markets for climate-smart commodities to benefit producers and reduce greenhouse gas emissions. There was enormous interest in the program with over $18 billion worth of proposals submitted. Several organizations with an organic focus received awards, the full list of awards given in this first round can be found here

Project proposals for the second pool were due in June, and are currently being evaluated by the USDA, and the selections should be announced later this year. They say the focus of the second round will be on projects involving small and/or underserved producers and minority-serving institutions.


OFA Oral Comments to NOSB - Fall 2022

Click here for OFA Submitted Written Comments: Fall 2022

 

 


Pipeline Foods "Clawback" Letters

Information for Organic Farmers Who Sold Grain to Pipeline Foods

On July 8, 2021, organic and non-GMO grain buyer Pipeline Foods filed for Chapter 11 bankruptcy. Earlier this year, the company’s bankruptcy proceeding was finalized by a court in Delaware.

Unfortunately, for some organic farmers who sold to Pipeline, this situation is still not behind them. This summer, some farmers have received “clawback” letters from a law firm in Minnesota serving as the trustee for Pipeline Foods’ liquidation.

IF YOU HAVE RECEIVED ONE OF THESE LETTERS, DO NOT IGNORE IT.  Unfortunately, this seems to be a legitimate part of the bankruptcy process.

The letters claim that farms that were paid by Pipeline Foods during the 90 days leading up to the bankruptcy filing (on July 8, 2021) now must return a portion of that payment to the bankruptcy proceeding.

Here are some things you can do if you have received one of these letters:

  1. Gather information about your history with Pipeline Foods – how many times did you sell grain to the company, on what dates, when did they make payment, etc. This could be important in establishing that the payment you got during the 90-day period before the bankruptcy was similar to your previous transactions with the company.  If you have contracts with Pipeline, gather those as well.
  2. Contact an attorney. If you already have an attorney you use for farm business, start with them. Ask if they have experience with bankruptcy proceedings. If not, ask them to refer you to someone who does.
  3. When you show the letter from the bankruptcy trustee to your attorney, ask them to look into two possible arguments to make in response:
  • Your payment should be exempt from a preference claim because it was made in the “ordinary course of business.”
  • Your payment should be exempt from a preference claim because it was a contemporaneous transaction made for “new value.” (This would apply to payments made for grain delivered within 90 days before the bankruptcy date.)
              These exemptions are spelled out under 11 USC 547(c).
  1. Ask for an extension. The letter from the trustee gives a very tight deadline to reply with a payment. The first step your attorney may want to take is to ask for more time to formulate your response explaining why your payment is not subject to clawback by the trustee.
  2. Let OFA know if you have received one of these letters. We will try to keep people updated and share resources about ways to respond. You can email Kate Mendenhall, OFA Executive Director, kate@organicfarmersassociation.org or fill out a short survey about your situation.  Knowing how many farmers have been affected will help us strategize on the best way to help you as a whole.