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During the 1990s, U.S. policy on organic agriculture
focused on facilitating consumer market access to a
differentiated product, and national organic standards
were developed during this period. More recent State
and Federal organic initiatives—expanding organic
production and marketing research, technical assistance,
and data development—are
aimed at expanding market opportunities for producers.
- USDA implemented a national
organic program in 2002, which set uniform standards
and provided a "USDA-organic" label to facilitate
market transactions and allay consumer concerns about
product identity.
- USDA's Agricultural Marketing Service currently
administers two
organic certification cost-share programs. The
first offers assistance to producers in 15 States
and operates with $1.0 million annually as part of
the Agricultural Management Assistance (AMA) program
under the Federal Crop Insurance Act. The second program
expanded assistance to all U.S. farmers and handlers
under the 2002 Farm Act, with one-time funding of $5.0
million that has already been obligated to participating
States. USDA has proposed expanding the AMA program
to all 50 States and increase the maximum Federal cost
share from $500 to $750 or up to 75 percent of costs
incurred, whichever is lowest.
- Congress included new
provisions in the 2002 Farm Act aimed at expanding
market opportunities for producers. For example,
Congress initiated a national cost-share program
to help defray the costs of certification incurred
by organic crop and livestock producers and provided
new research funding to determine desirable traits
for organic commodities and identify marketing
and policy constraints on the expansion of organic
agriculture.
- A number of States—and even some localities—have
initiated organic activities
in recent years.
Minnesota, for example, maintains a farmer directory to promote organic sales
and facilitate farmer-to-farmer communication, Montana and Washington provide
organic export assistance, and a number of States offer State-subsidized certification
programs. One county in Iowa has set up an organic exchange board to bring
organic landowners and farmers together and is offering property tax rebates
to organic farmers.
A major objective of these initiatives is to heighten
organic agriculture's positive impact on environmental
quality. Potential benefits from organic farming systems
include improved soil tilth and productivity, lower
energy use, and reduced pesticides.
Federal Initiatives on Organic Agriculture
Government research and policy initiatives often play
a key role in the adoption of new farming technologies
and systems. Worldwide, adoption levels for organic
farming systems are currently the highest in European
Union countries. Governments in the EU have been developing
consumer education initiatives and providing direct
financial support to producers for transitioning to
organic agriculture since the late 1980s to capture
environmental benefits and support rural development
(for a summary of EU organic support measures, see Market-Led
Growth vs. Government-Facilitated Growth).
In the U.S., a number of USDA agencies started
or expanded a variety of programs on organic agriculture
during the 1990s. For example, the Risk Management Agency
(RMA) has been developing organic crop insurance, while
the Foreign Agricultural Service (FAS) has been expanding
organic export programs and services, USDA's Agricultural
Research Service (ARS), Cooperative State Research Education,
and Extension Service (CSREES), and Economic Research
Service (ERS) are broadening their combined
research on organic farming and marketing systems (see
the appendix on USDA organic research, program, and
regulatory activities in Recent
Growth Patterns in the U.S. Organic Foods Market for
a summary of these activities).
Congress also included several first-time research, conservation,
and marketing assistance provisions in the Farm Security
and Rural Investment Act of 2002 (2002 Farm Act) to assist
organic producers:
Research and Technical Assistance—An
Organic Agriculture Research and Extension Initiative
authorizes $3 million per year in new mandatory
appropriations in fiscal years 2003-07. These funds
are being used to administer competitive research
grants focused on organic agriculture production,
breeding, and processing methods, as well as marketing
and policy constraints.
Conservation Initiatives—The Conservation
Security Program provides payments to producers
for adopting or maintaining land management and conservation
practices to address resource concerns. This new program
may interest organic farmers who commonly adopt these
types of practices as part of their organic farming
systems.
Exemptions from Marketing Assessments—The
2002 Farm Act specifies that certified organic producers
who produce and market only organic products and do
not produce any conventional or nonorganic products
will now be exempt from paying an assessment under
any commodity promotion law. In January 2005, USDA
exempted these producers from
paying assessments under research
and promotion programs, and for market promotion activities
under marketing
order programs.
State Support for Organic Agriculture
State support for organic farmers and handlers has also
been expanding. For example, the number of States offering
organic certification services—mostly at subsidized
rates—has risen from 12 States in 1997 to 19 States
in 2005. Minnesota and Iowa began
offering small subsidies for conversion to organic
farming systems in the late 1990s as a way to capture
the environmental benefits of these systems. The
funds for this program have mostly been from Federal
sources, by designating organic production as a priority
for conservation cost share coverage under the Federal
Environmental Quality Incentives Program (EQIP).
Additional States are now using or considering the
EQIP program for this objective. And counties like
Woodbury
County in Iowa are now providing tax rebates for
those who convert from conventional to organic farming
practices.
In 2003, the National
Association of State Departments of Agriculture (NASDA)
released a policy statement on organic agriculture
expressing support for a wide range of activities that
would expand public-sector organic research and education
and provide technical assistance to organic and transitional
farmers (for a list of contacts for State organic
programs, see
NADSA's National
Association of State Organic Programs).
See related readings
on organic policy.
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