March 2022 Policy Update
March 2022
By Patty Lovera, Policy Director
Setting Organic Priorities for the Next Farm Bill
The current Farm Bill expires in 2023, and Congress has started to take the first steps in the process of developing the new version. The House Agriculture Committee has kicked off a series of hearings to examine how USDA programs like conservation and commodity programs are working under the current Farm Bill.
On March 2nd, OFA co-hosted a virtual meeting with the Organic Trade Association to gather input from almost 100 organic farmers and representatives from organic farm groups. The session was focused on how the next Farm Bill can best address the challenges facing organic, including continuous improvement in organic standards, increasing enforcement, removing obstacles to new farms getting certified organic and economic viability for all organic farms. This virtual meeting will be combined with feedback from regional meetings held by organic farm groups and an online survey for organic farmers, to identify OFA’s priorities for the next Farm Bill. You can still get involved in OFA’s process for setting our priorities for organic in the next Farm Bill by taking our Farm Bill priorities survey.
Tracking Delayed Organic Regulations
Two long-awaited regulations that are needed to increase the integrity of the organic standards are still in the approval process. The Office of Management and Budget, a division of the White House that signs off on federal regulations, continues to review USDA’s Origin of Livestock rule and the Organic Livestock and Poultry Standards rule. After the OMB finishes their review, the USDA will have to make any changes required by the OMB and can then release the OLPS proposed rule for public comment and the final version of the OOL rule.
Virtual Advocacy Days
This week, members of OFA’s policy committee and governing council will be doing online visits with their members of Congress, outlining our priority issues. We will be talking about how to fix organic certification cost share, why organic agriculture is a climate solution, and the need for USDA to protect the integrity of the organic label with ramped up enforcement and updates to the organic standards.
Spring Meeting of the National Organic Standards Board
The spring meeting of the National Organic Standards Board will be held during the week of April 25th. It will be a virtual meeting that can be watched online.
Some of the big topics on the board’s meeting agenda include:
- Potential ways to provide NOSB members with technical help and research assistance.
- Discussion of how to increase traceability in complicated organic supply chains (for bulk commodities like grain) to combat fraud.
- Defining new types of genetic engineering that should be prohibited in organic production.
- Possible restrictions on highly soluble forms of nitrogen.
- And 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 19 and the afternoon of Thursday April 21. Sign up soon to get a spot to offer comments to the Board! There is a form at the bottom of the meeting website to sign up.
February 2022 Policy Update
February 2022
By Patty Lovera, Policy Director
New USDA Program on Climate Smart Commodities
Yesterday, Agriculture Secretary Vilsack announced that the USDA would spend $1 billion on grants for pilot programs that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices and include ways to measure and verify greenhouse gas benefits. OFA will be closely reading the rules for the new grant program to see how organic farming fits into the program’s definition of climate-smart. You can read more about this new program here.
Organic Regulations Moving Through Approval Process
Two long-awaited regulations that are needed to increase the integrity of the organic standards are finally moving through the rulemaking process. The Office of Management and Budget, a division of the White House that signs off on federal regulations, is reviewing USDA’s Origin of Livestock rule and the Organic Livestock and Poultry Standards rule. OFA and our allies have met with the OMB about both of these rules to make the case that stronger rules are desperately needed to ensure a level playing field for organic farms and ensure the integrity of the organic label. After the OMB finishes their review, the USDA will have to make any changes required by the OMB and can then release the OLPS proposed rule for public comment and the final version of the OOL rule.
Northeast Organic Milk Update
OFA is still working with regional organic farm organizations and the Northeast Organic Dairy Producers Alliance to identify options for the 89 organic dairy farms in Maine, Vermont, New Hampshire and part of New York who were notified by Horizon Organic that the company plans to end their contract to buy their milk. OFA and other farm organizations participated in a task force organized by the USDA that offered a long list of recommendations for steps USDA could take, ranging from finalizing long-delayed rules like Origin of Livestock, to investing in new processing infrastructure for organic milk. When asked by members of Congress during a hearing about the status of these recommendations, Agriculture Secretary Vilsack said he expected to be making some decisions quite soon.
There are still many details to figure out for the impacted farmers and lots of work to be done to improve infrastructure for organic milk processing in the region. A 6-month contract extension announced by Danone will give the farms a little bit more time to investigate new paths forward, but what the region really needs is a sound market with more buyers for organic milk. OFA and our allies will continue to push Danone and USDA to co-invest in solutions for Northeast dairy infrastructure that will secure a future for Northeast dairy and provide local organic milk for the Northeast.
Unclear Path Forward for Build Back Better bill
With the bipartisan infrastructure bill signed into law in the fall, the future of a second major spending bill is still up in the air. The second package, called Build Back Better, is a “budget reconciliation” bill that uses a special procedure and can be passed only with Democratic votes (which will be necessary because all Republicans have vowed not to vote for it). The House passed its version of Build Back Better just before Thanksgiving, and it includes a big increase in funding for organic research as well as a historic $28 billion increase (over 10 years) for USDA conservation programs including the Conservation Security Program and the Environmental Quality Incentives Program, with a focus on addressing climate change. The House package also included a new program to forgive USDA farm loans for some small farms.
Senate Democrats have not been able to find agreement on their version of the bill, with key players like Senator Joe Manchin (D-WV) blocking the process. There is a lot of speculation about the path forward for this package, with some proposals to break the larger package up into smaller pieces. If that is the path forward, we will need to see if a climate package includes the same historic level of funding for USDA conservation programs that was in the original Build Back Better package.
Congress Starts to Prepare for the Next Farm Bill
Even as we try to figure out what will happen with the agriculture and climate spending in the Build Back Better bill, Congress has started to take the first steps in the process of developing the next Farm Bill. The current Farm Bill, passed in 2018, expires in 2023. But the debate over what should be in the bill will begin this year. The House Agriculture Committee has kicked off a series of hearings to examine how USDA programs like conservation and commodity programs are working under the current Farm Bill. And many members of Congress will start to do events like listening sessions or other meetings to gather input about the Farm Bill during their recess periods this spring and summer.
There are several ways you can get involved in OFA’s process for setting our priorities for organic in the next Farm Bill:
January 2022 Policy Update
January 2022
By Patty Lovera, Policy Director
Organic Regulations Moving Through Approval Process
Two long-awaited regulations that are needed to increase the integrity of the organic standards are moving through the rulemaking process. The Office of Management and Budget, a division of the White House that signs off on federal regulations, is reviewing USDA’s Origin of Livestock rule and the Organic Livestock and Poultry Standards rule.
Origin of Livestock Rule: The USDA National Organic Program (NOP)’s failure to strengthen the standards for organic dairy has allowed large-scale organic dairies to undermine those organic farms that comply with the intent of the organic label. In 2015, the NOP published a proposed rule to clarify that, after completion of a one-time transition from a conventional dairy farm, all new dairy animals milked on an organic dairy farm would need to be managed organically from the last third of gestation. The 2015 proposed rule garnered strong public support from the entire organic community, but was never finalized. In 2020, Congress gave the NOP 180 days to finalize the rule, but the agency missed this deadline. OFA and other organizations have been advocating for a final OOL rule that can be consistently enforced and that requires that the entire one-time transition happen over a twelve-month period under the supervision of an organic certification agency as part of the producer’s Organic System Plan.
Organic Livestock and Poultry Standards Rule: This rule is a new version of the long-delayed Organic Livestock and Poultry Practices (OLPP) rule. The OLPP rule was delayed and ultimately withdrawn by the Trump Administration. The new rule would allow USDA to consistently enforce stronger animal welfare standards on organic farms and close loopholes being taken advantage of by some large operations. The OLPP rule was discussed and vetted in the organic community for more than a decade and has widespread support. Animal welfare is an issue of critical importance to organic consumers, and these standards must be tightened to retain consumers’ confidence in the organic label.
After the OMB finishes their review, the USDA will have to make any changes required by the OMB and can then release the OLPS proposed rule for public comment and the final version of the OOL rule.
Northeast Organic Milk Update
OFA is still working with regional organic farm organizations and the Northeast Organic Dairy Producers Alliance to identify options for the 89 organic dairy farms in Maine, Vermont, New Hampshire and part of New York who were notified by Horizon Organic that the company plans to end their contract to buy their milk. Just before Thanksgiving, the groups met with Danone to lay out options for how the company could do better by the organic farmers in the Northeast who helped build their brand. In mid-December, the company announced it will meet one of the requests, by extending farm contracts to 18 months. The company will also provide a small (6% of the milk check for 6 months or $2 per hundred pounds of milk) transition payment for the affected farm families.
There are still many details to figure out for the impacted farmers and lots of work to be done to improve infrastructure for organic milk processing in the region. The contract extension will give the farms a little bit more time to investigate new paths forward, but what the region really needs is a sound market with more buyers for organic milk. OFA and our allies will continue to push Danone to co-invest in solutions for Northeast dairy infrastructure that will secure a future for Northeast dairy and provide local organic milk for the Northeast.
Congress Debates Climate and Social Spending Bill
With the bipartisan infrastructure bill signed into law in the fall, the future of a second major spending bill is still up in the air as Congress starts the new year. The second package, the Build Back Better, is a “budget reconciliation” bill that uses a special procedure and can be passed only with Democratic votes (which will be necessary because all Republicans have vowed not to vote for it). The House passed its version of Build Back Better just before Thanksgiving, and it includes a big increase in funding for organic research as well as a historic $28 billion increase (over 10 years) for USDA conservation programs including the Conservation Security Program and the Environmental Quality Incentives Program, with a focus on addressing climate change. The House package also included a new program to forgive USDA farm loans for some small farms.
Now Senate Democrats have to find agreement on their version of the bill, with key players like Senator Joe Manchin (D-WV) blocking the process over concerns about the total size of the spending package, as well as specific programs like the child tax credit. If the bill finally passes Congress, there will be lots of work to do to communicate with USDA about the details for spending this new money on conservation and research programs, and making sure that organic agriculture is on the list of practices that meet the goals of the Build Back Better bill.
Reminder – Apply for Additional Organic Certification Cost Share!
Organic producers can apply until February 4th for additional assistance for organic certification cost share. The additional funding for organic certification cost share comes from pandemic response money Congress provided to the USDA. In addition to providing additional funding for cost share, USDA has also created new opportunities for farms that are in the process of transitioning to organic certification to get some costs reimbursed.
This additional funding is necessary because reimbursement levels were cut in 2020. Since 2008, the federal government has reimbursed up to 75 percent of organic certification fees paid by organic farms and businesses, with a maximum reimbursement of $750 per certification scope (crops, livestock or handling) per operation. But starting in 2020 and again in 2021, USDA’s Farm Services Agency (FSA) cut reimbursement rates to 50 percent, up to a maximum of $500 per scope.
Some details about the new program:
- Organic certification cost share limits are 25% or $250 from this round of funding. This could be in addition to reimbursement provided under the normal cost share program (which means you could get up to $500 from the original program and an additional $250 from this new round.)
- This new funding covers expenses from 2020, 2021 and 2022. You can apply for 2020 and 2021 at the same time.
- There are two new options for expenses that can get some amount of reimbursement (for either certified or transitioning operations):
- Educational expenses (such as conference registrations, reimbursable for 75% up to $200)
- Soil testing expenses (reimbursable for 75% up to $100.)
The application period for expenses from 2020 and 2021 closes on February 4th.
For more details on how to apply:
https://www.farmers.gov/pandemic-assistance/otecp
December Policy Update
December 2021
By Patty Lovera, Policy Director
Reminder – Apply for Additional Organic Certification Cost Share!
In November, after many months of delay, the USDA announced that additional assistance for organic certification cost share is available. This additional funding is necessary because reimbursement levels were cut in 2020. Since 2008, the federal government has reimbursed up to 75 percent of organic certification fees paid by organic farms and businesses, with a maximum reimbursement of $750 per certification scope (crops, livestock or handling) per operation. But starting in 2020 and again in 2021, USDA’s Farm Services Agency (FSA) cut reimbursement rates to 50 percent, up to a maximum of $500 per scope.
The additional funding for organic certification cost share comes from pandemic response money Congress provided to the USDA. In addition to providing additional funding for cost share, USDA has also created new opportunities for farms that are in the process of transitioning to organic certification to get some costs reimbursed.
Some details about the new program:
- Organic certification cost share limits are 25% or $250 from this round of funding. This could be in addition to reimbursement provided under the normal cost share program (which means you could get up to $500 from the original program and an additional $250 from this new round.)
- This new funding covers expenses from 2020, 2021 and 2022. You can apply for 2020 and 2021 at the same time.
- There are two new options for expenses that can get some amount of reimbursement (for either certified or transitioning operations):
- Educational expenses (such as conference registrations, reimbursable for 75% up to $200)
- Soil testing expenses (reimbursable for 75% up to $100.)
The application period for expenses from 2020 and 2021 closes on January 7th. OFA is working to get USDA to extend this deadline, but right now the deadline is January 7th, so apply as soon as you can.
For more details on how to apply:
https://www.farmers.gov/pandemic-assistance/otecp
Congress Debates Climate and Social Spending Bill
In mid-November, President Biden signed the long-awaited bipartisan infrastructure bill in law. The new law will fund major investments in the nation’s roads, bridges, public transit systems, broadband internet, energy grid and water systems. But this is only one of the major spending bills Congress has been debating for much of the year, and a second bill with funding for social programs, agriculture and addressing climate change is still in play. The second package, the Build Back Better, is a “budget reconciliation” bill that uses a special procedure and can be passed only with Democratic votes (which will be necessary because all Republicans have vowed not to vote for it).
The House passed its version of Build Back Better just before Thanksgiving, and it includes a big increase in funding for organic research as well as a historic $28 billion increase (over 10 years) for USDA conservation programs including the Conservation Security Program and the Environmental Quality Incentives Program, with a focus on addressing climate change. The House package also included a new program to forgive USDA farm loans for some small farms.
Now Senate Democrats are negotiating on their version of the bill, with key players like Senator Joe Manchin (D-WV) demanding changes to the bill on issues like clean energy programs and spending for social programs like childcare. The process of getting agreement within Senate Democrats will determine when (and if) this bill passes, and it looks likely that the process will drag on into the new year. If the bill finally passes Congress, there will be lots of work to do to communicate with USDA about the details for spending this new money on conservation and research programs, and making sure that organic agriculture is on the list of practices that meet the goals of the Build Back Better bill.
Organic Dairy in the Northeast
OFA has continued to work with regional organic farm organizations and the Northeast Organic Dairy Producers Alliance to identify options for the 89 organic dairy farms in Maine, Vermont, New Hampshire and part of New York who were notified by Horizon Organic that they would not be renewing their contract to buy their milk after next September. We have been participating in a task force convened by the U.S. Department of Agriculture, which is about to send a list of recommendations for what the federal government could do to help to the Secretary of Agriculture.
And just before Thanksgiving, the groups met with Danone to lay out options for how the company could do better by the organic farmers in the Northeast who helped build their brand. Unfortunately, the company has not committed to taking any steps the groups recommended to either stay in the region or to compensate farmers who will lose contracts next year.
We will continue to work with our allies to let consumers know that Danone North America (which owns Horizon Organic) is not living up to its commitment to being a socially responsible company. You can take action here to tell Danone to live up to its social mission.
Advocating for Organic in the Next Farm Bill
The Farm Bill is a massive piece of legislation that Congress passes roughly every five years. The Farm Bill covers the broad range of programs run by the U.S. Department of Agriculture, including commodity support programs, agricultural conservation programs, trade and international food aid, domestic nutrition assistance (SNAP), farm credit programs, rural development, agricultural research and extension, forestry, horticulture, crop insurance, and a variety of other policies. The current Farm Bill became law in late 2018, and expires in late September 2023.
But even when Congress is not actively writing a new Farm Bill, there is still work to be done. In between periods of congressional debate on the text of the bill, advocates like OFA work to make sure that the USDA is implementing the programs created by the Farm Bill. For example, the 2018 Farm Bill instructed the USDA to establish new regulations to increase the department’s capacity to detect and prevent fraud in organic supply chains. The USDA is still working on finalizing these new rules, three years after the Farm Bill became law, and OFA and other advocates have been pushing the department to finish a strong rule as soon as possible.
Other important topics for organic farmers in the Farm Bill include funding for organic-focused research, as well as the organic certification cost-share program. And the Farm Bill can create opportunities for harmful changes too, such as past attempts to change the requirements for who can serve on the National Organic Standards Board.
That’s why OFA is starting a process to set our priorities for the 2023 Farm Bill. Even though Congress won’t pass new legislation until 2023, the debate over what should be in that bill has already begun and will pick up steam in 2022. To get ready, we are going to be reaching out to organic farmers and farm organizations around the country to get your input on what priorities we need to advocate for in the next Farm Bill.
The Organic Trade Association (OTA) has been hosting meetings with organic stakeholders in partnership with Dr. Kathleen Merrigan from the Swette Center for Sustainable Food Systems at Arizona State University. One meeting was for organic certifiers, one for national advocacy groups, one is for organic farmers and farmer organizations, and one meeting was open to all.
Organic Farmers Association will be co-hosting the national farmer meeting on March 2nd (Virtual). OFA will bring a grassroots effort to the national organic farmer meeting and we invite state and regional groups to engage your organic farmer members in a state-level conversation to identify their farm bill priorities. An organic farmer representative and staff/board representative from each organic farmer organization will be invited to the March 2nd meeting to represent their farmers’ priorities.
November Policy Update
November 2021
By Patty Lovera, Policy Director
Organic Certification Cost Share
After months of waiting, last week the USDA announced its plan to provide additional assistance for organic certification cost share. This additional funding is necessary because reimbursement levels were cut in 2020. Since 2008, the federal government has reimbursed up to 75 percent of organic certification fees paid by organic farms and businesses, with a maximum reimbursement of $750 per certification scope (crops, livestock or handling) per operation. But starting in 2020 and again in 2021, USDA’s Farm Services Agency (FSA) cut reimbursement rates to 50 percent, up to a maximum of $500 per scope.
The newly announced funding for organic certification cost share comes from pandemic response money Congress provided to the USDA. In addition to providing additional funding for cost share, USDA has also created new opportunities for farms that are in the process of transitioning to organic certification to get some costs reimbursed.
Some details about the new program:
- Organic certification cost share limits are 25% or $250 from this round of funding. This could be in addition to reimbursement provided under the normal cost share program (limited to 50% or $500.)
- This new funding covers expenses from 2020, 2021 and 2022. You can apply for 2020 and 2021 at the same time (starting on November 8th.)
- There are two new options for expenses that can get some amount of reimbursement (for either certified or transitioning operations):
- Educational expenses (such as conference registrations, reimbursable for 75% up to $200)
- Soil testing expenses (reimbursable for 75% up to $100.)
- The application period for expenses from 2020 and 2021 opens on November 8th and closes on January 7th. The website below has details on how to apply through the Farm Services Agency and what additional paperwork has to be filed if you already got a cost share payment.
For more details:
https://www.farmers.gov/pandemic-assistance/otecp
NOSB Meeting
In October, the USDA’s National Organic Standards Board (NOSB) held its fall meeting, once again virtually because of the pandemic. The board heard two days of a public comment period and then conducted several days of their meeting, covering a range of topics. There were several key decisions made that will impact organic farms. One was a vote to prohibit ammonia extract, a high nitrogen fertilizer that was being petitioned for use but that the board rejected on concerns that it was not compatible with organic production. The board also voted not to allow the antibiotic kasugamycin to be used for plant disease control, and after years of discussion, voted to allow the use of biodegradable biobased mulch if it meets a specific set of criteria for compostability and what materials are included in the portion of the product that is not bio-based. The board also started an important discussion on potential ways to improve traceability in the organic supply chain as a way to help deter and detect fraud.
You can read OFA’s comments to the NOSB here.
USDA Considers Climate-Smart Agriculture
The USDA recently accepted public comments on how the department should define “climate-smart agriculture,” how it should encourage adoption of climate-smart agriculture and how it should promote markets for climate-smart commodities.
OFA weighed in to urge the USDA to base the definition of climate-smart agriculture on the already established infrastructure of the organic standards, but we also pointed out several ways that the organic standards must be strengthened to truly serve as the gold standard on climate including prohibiting hydroponic operations and requiring pasture-based livestock production.
You can read OFA’s comments here.
Congress Makes Progress on Infrastructure
In October, all of the action in Congress continued to focus on how to invest in the nation’s roads, bridges, public transit systems, broadband internet, energy grid and water systems through a bipartisan infrastructure package, as well as a second bill with funding for social programs, agriculture and addressing climate change. This second package is a “budget reconciliation” bill that uses a special procedure and can be passed only with Democratic votes.
Late last week, the House narrowly passed one of these bills, the bipartisan infrastructure bill. The Senate had already passed this bill earlier in the summer, so now the bill goes to President Biden for his signature. Meanwhile, the debate over the second bill, the Build Back Better Bill that covers climate and social programs, continues. The current version of the bill includes a big increase in funding for organic research as well as a historic $28 billion increase (over 10 years) for USDA conservation programs including the Conservation Security Program and the Environmental Quality Incentives Program, with a focus on addressing climate change. The package also included a new program to forgive USDA farm loans for some small farms. The process of moving this bill is on hold while the final budget score for the bill is recalculated at the demand of several moderate Democrats. Once that process is finished, the House could then vote on the bill, sending it along to the Senate.
Organic Dairy in the Northeast
This summer, Horizon Organic, which is owned by Danone, notified 89 organic dairy farmers in Maine, Vermont, New Hampshire and the northern part of New York that they would not be renewing their contract to buy their milk after next September. OFA is working with regional organic farm organizations and the Northeast Organic Dairy Producers Alliance to identify other marketing options for the impacted farms and to pressure USDA to strengthen the organic standards and make sure that large operations are not undercutting producers who meet high standards.
October Policy Update
October 2021
By Patty Lovera, Policy Director
Congress Debates Infrastructure and Climate Policy
In September, Congress continued to debate a plan to invest in the nation’s roads, bridges, public transit systems, broadband internet, energy grid and water systems through a bipartisan infrastructure package, as well as a second bill with funding for social programs, agriculture and addressing climate change. This second package is a “budget reconciliation” bill that uses a special procedure and can be passed only with Democratic votes. (This process can only be used a limited number of times and is supposed to be limited to funding existing government programs. It was used earlier this year to pass the American Rescue Plan to address economic impacts of the pandemic.)
The debate among Democrats about the budget reconciliation bill has been contentious, and the size of the full package is still unclear. The original proposal totaled $3.5 trillion and would include a big increase in funding for organic research as well as a historic $28 billion increase (over 10 years) for USDA conservation programs including the Conservation Security Program and the Environmental Quality Incentives Program, with a focus on addressing climate change. The package also included a new program to forgive USDA farm loans for some small farms. But it seems clear that the reconciliation package will end up being significantly smaller than the original proposal, and we don’t yet know whether these cuts will be applied evenly to every program funded in the original bill or if certain programs will be reduced more. After failing to reach an agreement on the size of the reconciliation package at the end of September, the Democratic congressional leadership extended the timeline for negotiations to continue until the end of October. The current plan is that the House will vote on both the bipartisan infrastructure bill and the reconciliation package once there is an agreement on the reconciliation package. (The Senate has already passed the infrastructure bill.)
In addition to the drama over these two massive bills, Congress had to deal with an urgent deadline for keeping the federal government running as we entered the new fiscal year on October 1. Because they have not completed the process of passing the appropriations (or spending) bills that set funding levels for federal agencies like the USDA, Congress had to pass a “continuing resolution” to keep the government running with last year’s spending levels to avoid a government shutdown. This extension runs until early December, when Congress with either have to pass another extension or complete the appropriations bills for the rest of this fiscal year. The House has passed its version of the USDA appropriations bill, but the full Senate has not yet voted on the USDA’s bill. Both versions of the bill would increase funding for the National Organic Program, with instructions to emphasize enforcement of organic standards and organic research as well as urging the USDA to fix the reimbursement levels for organic certification cost share.
Pandemic Assistance for Farmers and Food Businesses
The USDA has launched a new program called the Pandemic Response and Safety Grant Program will give grants to food processors, distributors, farmers markets, and producers to respond to coronavirus, including for measures to protect workers. Funding requests may range from $1,500 to $20,000, and small businesses and non-profit organizations will be the focus of the first round of funding, with medium sized businesses becoming eligible in the second round. Approximately $650 million is available for grants for costs incurred between January 27, 2020 and December 31, 2021. Grants will cover the activities associated with workplace safety (including PPE), developing online platforms, retrofitting facilities, increasing worker transportation services, providing worker housing or medical service to deal with Covid-19. You can get more details on these grants here. The application closes on November 8th.
Advocating for Organic Dairy Farmers in the Northeast
This summer, Horizon Organic, which is owned by Danone, notified 89 organic dairy farmers in Maine, Vermont, New Hampshire and the northern part of New York that they would not be renewing their contract to buy their milk after next September. Danone is blaming logistics and trucking issues for their decision to drop these farmers from their routes. But there are other issues in the organic marketplace are part of this story – especially USDA’s failure to update and enforce key organic standards for dairy cows such as enforcement of the pasture standards and long overdue updates to the Origin of Livestock rule to stop the continuous cycling of animals in and out of organic on large operations. In the absence of USDA upholding high standards for organic dairy operations, larger operations in the Midwest and West have gotten into the organic market, undercutting producers in the Northeast especially.
OFA is working with regional organic farm organizations and the Northeast Organic Dairy Producers Alliance to pressure USDA to strengthen the organic standards and to help identify other marketing options for the impacted dairy operations. Agriculture Secretary Vilsack convened a meeting last week to discuss the situation and gave the update that the USDA’s National Organic Program is working on a revised version of the Origin of Livestock proposed rule that could be completed in early 2022.
September Policy Update
September 2021
By Patty Lovera, Policy Director
Organic Certification Cost Share
On August 17th, USDA’s Farm Services Agency announced that funds were available for organic producers to apply for reimbursement of their 2021 organic certification costs. Unfortunately, this round of reimbursement is once again at the reduced level the agency implemented last year (50% up to $500 per certification scope). Producers can be reimbursed for expenses made between October 1, 2020 and September 30, 2021, including application fees, inspection costs, fees related to equivalency agreement requirements, travel expenses for inspectors, user fees, sales assessments and postage.
OFA and our allies are still pushing USDA to restore the cost share reimbursement levels to the 75% up to $750 level that the program is authorized for by the last Farm Bill. Earlier this summer, in an announcement about special programs being rolled out to respond to the pandemic, USDA pledged to spend $20 million on organic certification cost share and assistance for organic transition. We are still waiting for details on this additional spending program.
In the meantime, organic farmers should go to state department of agriculture or county FSA office to apply for the cost share assistance that is available right now. Your certifier should be able to help you find out who administers cost share in your state.
Changes to Whole Farm Revenue Insurance
On September 1, USDA announced changes to the Whole Farm Revenue Protection program for the 2022 season. Two of the changes could be make the program work better for organic producers:
- Increasing expansion limits for organic producers to the higher of $500,000 or 35 percent. Previously, small and medium size organic operations were held to the same 35 percent limit to expansion as conventional practice producers.
- Allowing a producer to report acreage as certified organic, or as acreage in transition to organic, when the producer has requested an organic certification by the acreage reporting date. This change fulfills one of the policy positions OFA adopted earlier this year.
You can read more about the changes to the Whole Farm Revenue program here.
Pandemic Assistance for Farmers and Food Businesses
The USDA continues to roll out programs to address the impacts of the Covid-19 pandemic on the food system. A new program called the Pandemic Response and Safety Grant Program will give grants to food processors, distributors, farmers markets, and producers to respond to coronavirus, including for measures to protect workers. Funding requests may range from $1,500 to $20,000, and small businesses and non-profit organizations will be the focus of the first round of funding, with medium sized businesses becoming eligible in the second round. Approximately $650 million is available for grants for costs incurred between January 27, 2020 and December 31, 2021. Grants will cover the activities associated with workplace safety (including PPE), developing online platforms, retrofitting facilities, increasing worker transportation services, providing worker housing or medical service to deal with Covid-19. You can get more details on these grants here. The application for grants opens on September 23 and closes on November 8th.
Coronavirus Food Assistance Program Deadline Extended
In late August, USDA announced an extension to the Coronavirus Food Assistance Program 2, which provides direct payments to agricultural producers whose operations were directly impacted by the coronavirus pandemic. The original application period for CFAP 2 closed in December 2020 but USDA has reopened the signup period until October 12, 2021. The program uses three different methods for calculating payment rates based on the type of crops or livestock. Even if you were not eligible for the first round of CFAP (which was the case for many organic farms), it may be worth checking again because the USDA has changed some of the eligibility requirements and the methods for calculating payments, which may work better for organic farms. You can get details about who is eligible and how to apply here.
Organic and Budget Reconciliation
Over the August recess and into September, Congress continued to move closer towards a plan to invest in the nation’s roads, bridges, public transit systems, broadband internet, energy grid and water systems through a bipartisan infrastructure package. The infrastructure package is more limited than some early proposals, which means that funding for things like agriculture and addressing climate change will be handled through a “reconciliation” bill that is passed only with Democratic votes. (This process can only be used a limited number of times and is supposed to be limited to funding existing government programs. It was used earlier this year to pass the American Rescue Plan to address economic impacts of the pandemic.)
Yesterday, the House Agriculture Committee passed (with only Democratic votes) parts of the agriculture portions of the reconciliation package. We are still waiting for details on a reported $28 billion (to be spent over 10 years) for conservation programs, with a focus on climate change. But we do know that the agriculture bill as it is currently drafted contains a big increase for organic research. There are still several steps to go for this reconciliation package, and negotiations will continue to be fairly tense because of the very tight margins in both the House and the Senate.
Horizon Organic Drops 89 Organic Dairy Farmers in the Northeast
Horizon Organic, which is owned by Danone, recently notified 89 organic dairy farmers in Maine, Vermont, New Hampshire and the northern part of New York that they would not be renewing their contract to buy their milk after next September. Danone is blaming logistics and trucking issues for their decision to drop these farmers from their routes. But there are other issues in the organic marketplace are part of this story – especially USDA’s failure to update and enforce key organic standards for dairy cows such as enforcement of the pasture standards and long overdue updates to the Origin of Livestock rule to stop the continuous cycling of animals in and out of organic on large operations.
In the absence of USDA upholding high standards for organic dairy operations, larger operations in the Midwest and West have gotten into the organic market, undercutting producers in the Northeast especially. It is extremely frustrating for producers in the Northeast to see USDA’s current focus on restoring resilience in the food supply chain and encouraging more farmers to transition to organic, while at the same time USDA’s failure to strengthen the standards for organic dairy is leading to producers potentially being pushed out of the industry. OFA is working with allies like the Northeast Organic Dairy Producers Alliance and others in the region to identify other options for the impacted dairy operations, call on Horizon to offer these farms more time and more financial support and to pressure USDA to strengthen the organic standards so that all organic dairy farms are following the same rules, no matter where they are.
August Policy Update
August 2021
By Patty Lovera, Policy Director
Climate Change and Agriculture
This month, Congress moved a little closer towards a plan to invest in the nation’s roads, bridges, public transit systems, broadband internet, energy grid and water systems through a bipartisan infrastructure package. The negotiations have been tense, but it appears that the Senate will soon pass a bipartisan infrastructure bill, while the prospects in the House are still somewhat up in the air. One result of the negotiations is that the infrastructure package is more limited than some early proposals, which means that possible funding for things like agriculture and addressing climate change will mostly have to be addressed in a different piece of legislation. The most likely way for that to happen during this Congress is through a “reconciliation” bill that is passed only with Democratic votes. (This process can only be used a limited number of times and is supposed to be limited to funding existing government programs. It was used earlier this year to pass the American Rescue Plan to address economic impacts of the pandemic.)
Once Congress is done with the bipartisan infrastructure package, Democratic leadership will try to get their members to agree on a package to pass under reconciliation – and there are efforts underway to dramatically increase funding for USDA’s conservation programs as part of a reconciliation bill. The details of how the increased funding will be distributed still need to be worked out, but a major motivation for Democrats working on this issue is to provide more money to support farming practices that help address climate change.
USDA’s 2022 Budget
After some delays, Congress made some progress in the last month on one of their yearly tasks, passing “appropriations” bills that set the spending levels for various branches of the federal government like the USDA. The full House has passed its version of the bill that covers USDA, and last week, the Senate Appropriations Committee passed its version out of committee and sent it to the full Senate. Both versions of the bill would increase funding for the National Organic Program, with instructions to emphasize enforcement of organic standards and organic research as well as urging the USDA to fix the reimbursement levels for organic certification cost share. The next fiscal year for the federal government starts on October 1st, so this process will speed up (or raise the prospect of a government shutdown) in September.
Pipeline Foods Bankruptcy
On July 8th, Pipeline Foods filed for Chapter 11 bankruptcy. According to the company’s website, it contracted with 1,461 growers in 2019 (the most recent number available.) If you are an organic grain producer who sold grain to Pipeline Foods and have not been paid, there are a couple of things you can do right now:
- Contact the state department of agriculture for the state where your grain was delivered. Many states have grain dealer licensing programs that administer funds or insurance programs to cover obligations from grain dealer defaults. Each state has its own program, so the details vary on how to apply and how much of the loss will be covered. You can find the websites for programs in many of the states where Pipeline bought grain here.
- If you delivered grain in a different state than where your farm is located, you may also want to contact your state department of agriculture to see if there are programs that cover this loss. Most states license the grain dealer, so they cover transactions at grain facilities in the state (where the grain is delivered, not where it is grown.) But it is also worth checking with your home state in case they have a program that could help. Some state programs may eventually hold information sessions about what options farmers have in this situation, so keep an eye on the websites for your state grain program.
- Consider seeking legal help if you made deliveries shortly before the bankruptcy filing, or before making any new deliveries to Pipeline. Several states have suspended the company’s grain dealer license. Those with open contracts for future delivery of grain to Pipeline facilities in Minnesota may now be able to get out of those contracts – see the Minnesota Department of Agriculture’s website for the steps you need to follow.
OFA will continue to look for other options for organic farmers who are impacted by this bankruptcy, and will share more information as we find it. But contacting a state grain program and getting your own legal advice are short-term steps you should take as soon as possible.
What You Can Do
Members of the House of Representatives have already left DC for their August recess and members of the Senate should be leaving DC soon. Especially after last summer’s limitations due to the pandemic, you are likely to see your members of Congress out and about at fairs and other events. If you get a chance to talk to them, let them know that organic is climate-smart agriculture and that USDA needs to do more to protect organic integrity. You can also read OFA’s guide to setting up an “in-district” meeting with your members of Congress while they are back home during the August recess.
July Policy Update
July 2021
By Patty Lovera, Policy Director
There has been a lot of news coming out of USDA as we enter summer, with multiple public comment periods and announcements about new programs using pandemic relief money.
Increasing Resilience in Food Supply Chains
In late June, OFA submitted comments to USDA answering a series of questions about weaknesses and risk in agriculture and food supply chains. The comment period will generate input for USDA to use as it comes up with recommendations to increase the resilience in the food system, in light of the serious disruptions that happened to some food supply chains during the Covid-19 pandemic. We submitted stories of how organic farmers around the country adapted to the pandemic as well as pointing out the unique characteristics of organic production that need to be considered in future programs, such as the need for updated organic regulations, strong enforcement by USDA, affordable organic certification, increasing organic research and building more organic processing infrastructure.
Organic Certification Cost Share
After nearly a year of working to get Congress or USDA to restore the reimbursement level for the organic certification cost share program, we hope to hear some good news soon. Last August, USDA’s Farm Service Agency (FSA) announced a reduction in the reimbursement rates for the Organic Certification Cost Share Program. The cost share program reimburses organic farms and handling operations up to 50 percent of an operation’s certification expenses, to a maximum of $500 per certification scope (crops, livestock, wild crops, or handling). Previously the limit on reimbursement was 75 percent, up to a maximum of $750 per scope. In June, USDA announced a series of programs it intends to start this summer, using funding provided by Congress to deal with effects of the pandemic on the agriculture sector. Included on the list was funding for organic transition and organic certification cost share. We hope to get the details from USDA soon and will let you know when we do. In the meantime, you can take action below to remind Congress about this funding gap that still needs to be filled.
Origin of Livestock Rule
Yesterday was the deadline for a public comment period on potential revisions to a proposed rule on how livestock can be transitioned to organic production. The Origin of Livestock rule has been a source of controversy for over a decade, and organic dairy farmers have been urging the National Organic Program (NOP) to tighten up the standards to close a loophole that is exploited by some operations to continuously transition conventional animals into organic production. The NOP’s failure to strengthen the standards for organic livestock has allowed large-scale organic dairies to undermine those organic farms that comply with the intent of the organic label.
In 2015, the NOP published a proposed rule to clarify that, after completion of a one-time transition from a conventional dairy farm, all new dairy animals milked on an organic dairy farm would need to be managed organically from the last third of gestation. The 2015 proposed rule garnered strong public support from the entire organic community but has never been finalized. The NOP took public comments on the proposed rule in 2015, again in 2019 and now again in 2021. Yesterday, OFA submitted detailed comments to urge the NOP to make sure that conventional animals that are transitioned to organic using the one-time allowance are not transferred or sold as organic animals and to set the fastest possible effective date for this new rule.
Organic Livestock and Poultry Practices Rule
In mid-June, Secretary of Agriculture Tom Vilsack announced that the USDA would revisit the critical issue of strengthening the animal welfare standards for organic operations. The controversy over the OLPP rule has spanned multiple administrations, with a final rule released at the end of the Obama Administration, only to be withdrawn by the Trump Administration. Two lawsuits then challenged USDA’s decision to withdraw the rule, objecting to USDA’s position that it did not have the authority to regulate animal welfare standards under the Organic Foods Production Act. In his statement, Secretary Vilsack said that once the lawsuits are resolved, the USDA intends to draft a proposed rule on OLPP, including addressing the issue of porches in poultry houses. We will keep you posted on when the rule-writing process begins.
Climate Change and Agriculture
Just like last month, the debate on climate policy in Congress continued to be tied to the negotiations over the infrastructure package. In June, the full Senate passed one of the many bills that have been introduced related to climate and agriculture, in hopes that it could be included in an infrastructure package.
The bill that passed the Senate is the Growing Climate Solutions Act, which would give USDA the job of providing technical assistance and certification services for private carbon payment programs. The idea of carbon markets, whether private or run by an government agency like USDA, remain very controversial. The prospects for the Growing Climate Solutions Act in the House are not clear and some powerful members of the House Agriculture Committee do not yet support the bill. And the GCSA is not the only bill related to climate and agriculture that Congress could include in an infrastructure package. Another bill that would encourage the expansion of UDSA conservation programs to promote climate-friendly practices, and that highlights organic as a climate solution, is the Agriculture Resilience Act. You can take action here to support the Agriculture Resilience Act.
Take Action – Organic Certification Cost Share
While we are hoping for good news from USDA about restoring the reimbursement level for the cost share program, we are also continuing to let Congress know that this funding gap needs to be filled. This is the time of year when Congress works on the “appropriations” bills that set the spending levels for each federal agency, including USDA. Congress could get USDA to restore the reimbursement levels for organic certification cost share through the next appropriations bill. You can help by asking your members of Congress to make sure that USDA restores the reimbursement level for organic certification cost-share. You can take action here.
June Policy Update
June, 2021
By Patty Lovera, Policy Director
Origin of Livestock
In mid-May, the USDA’s National Organic Program (NOP) opened a public comment period (again) on the proposed rule to update the Origin of Livestock regulation for organic. This rule needs to be updated to close a loophole in the organic standards that is being exploited by large dairy operations and the organic community has been working to fix this problem for over a decade. The NOP’s failure to strengthen the standards for organic livestock has allowed large-scale organic dairies to undermine those organic farms that comply with the intent of the organic label.
In 2015, the NOP published a proposed rule to clarify that, after completion of a one-time transition from a conventional dairy farm, all new dairy animals milked on an organic dairy farm would need to be managed organically from the last third of gestation. The 2015 proposed rule garnered strong public support from the entire organic community but has never been finalized. Now, after years of advocacy by the organic community, the NOP has released a revised proposed rule for public comment.
The comment period is open until mid-July. OFA will be submitting detailed comments to urge the NOP to make sure that conventional animals that are transitioned to organic using the one-time allowance are not transferred or sold as organic animals. And we will be urging the fastest possible effective date for this new rule. You can get more details to help you write your own comment here or sign on to OFA’s petition about the proposed rule here.
Climate Change and Agriculture
The debate on climate policy in Congress continued to be tied to the negotiations over the infrastructure package. Several bills related to agriculture and climate have been introduced in hopes that some pieces of those bills will be included in an infrastructure package passed by Congress later this summer.
The USDA is still working on its climate strategy and evaluating the input received earlier this spring in a public comment period. In May, USDA released a preliminary progress report that highlighted a long list of options they might include in their climate strategy without really narrowing the list down. There is a lot of debate, especially among Republicans in Congress, about what an appropriate role for is USDA in programs to pay farms for sequestering carbon – the options range from having USDA provide technical assistance and certification services for private carbon payment programs, all the way to USDA creating a “carbon bank” that puts USDA in the role of paying farmers for carbon sequestration and then selling those credits to carbon emitters. But while that debate rages on, one area where they does seem to be more agreement is expanding USDA conservation programs to promote climate-friendly practices. One bill that would encourage that, and that highlights organic as a climate solution, is the Agriculture Resilience Act. You can take action here to support that bill.
New USDA Officials
The process of filling USDA jobs for the new administration continues to move along. The Senate Agriculture Committee recently had a confirmation hearing for the nominee for USDA’s General Counsel, Janie Simms Hipp, who is expected to be confirmed by the full Senate soon. This is an important position for organic because the General Counsel is the top lawyer inside USDA who reviews new regulations, including organic standards, before they can be finalized.
And the USDA announced this spring that the nominee for Under Secretary for Marketing and Regulatory Programs is Jenny Lester Moffitt – who comes from an organic farm in California! The Under Secretary is responsible for several major agencies inside USDA, including the branch housing the National Organic Program. You can read more about Jenny Lester Moffit here. We don’t know yet when she will be confirmed by the Senate, so stay tuned.
Take Action - Advocate for Organic This Summer!
Since the U.S. Capitol is still closed to the public, we don’t know when we can have organic farmers meet with their members of Congress in Washington, DC. But that doesn’t mean we have to wait to tell Congress what they need to do to help organic farmers.
Members of Congress will be home in their districts quite a bit this summer (most likely for the entire month of August), and they will be out and about trying to make up for the public appearances that were canceled last year. If you think you can attend a town hall or other public forum and ask a question about organic, let us know and we can help you get ready. Or if you want to try to meet with any of your members of Congress (or their local staff) in their local offices, we can help you set up an appointment and share OFA resources to bring to the meeting.