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Opportunities to Invest in the Growing Organic Sector through the 2012 Farm Bill Organic agriculture is one of the fastest growing sectors of agriculture, creating jobs in rural America and lucrative market opportunities for American family farmers. For 10 years, the industry grew at an average annual rate of 20 percent, and is now a greater than $31 billion industry. Continued growth of organic agriculture requires investment in programs that provide research and market information to farmers, offset the costs of organic certification, enforce the organic standards, and provide fair access for organic producers to existing programs. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE (OREI) OREI is USDA’s flagship competitive research and extension grants program dedicated to organic agriculture. OREI funds research and extension projects to meet production, marketing, and policy needs of the growing organic industry. is research helps farmers succeed and increase production. is competitive program funds only a small percentage of proposals. 2012 Farm Bill: $30 million annually in mandatory funding. ORGANIC DATA INITIATIVE (ODI) ODI is a multi-agency collaboration ensuring USDA’s collection of organic statistics, organic price reporting, and current organic economic reports. e Economic Research Service, the National Agricultural Statistics Service, and the Agricultural Marketing Service contribute to the initiative. Organic data collection, that is relative to conventional producers, will better inform the high-growth organic industry. 2012 Farm Bill: $5 million in mandatory funding over the life of the farm bill. PO Box 440 • Santa Cruz, CA • 95061 • 831-426-6606 www.ofrf.org

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Page 1: Opportunities to Invest in the Growing Organic Sector through the

Opportunities to Invest in the Growing Organic Sector through the 2012 Farm BillOrganic agriculture is one of the fastest growing sectors of agriculture, creating jobs in rural America and lucrative market opportunities for American family farmers. For 10 years, the industry grew at an average annual rate of 20 percent, and is now a greater than $31 billion industry.

Continued growth of organic agriculture requires investment in programs that provide research and market information to farmers, offset the costs of organic certification, enforce the organic standards, and provide fair access for organic producers to existing programs.

ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE (OREI)

OREI is USDA’s flagship competitive research and extension grants program dedicated to organic agriculture. OREI funds research and extension projects to meet production, marketing, and policy needs of the growing organic industry. This research helps farmers succeed and increase production. This competitive program funds only a small percentage of proposals.

2012 Farm Bill: $30 million annually in mandatory funding.

ORGANIC DATA INITIATIVE (ODI)

ODI is a multi-agency collaboration ensuring USDA’s collection of organic statistics, organic price reporting, and current organic economic reports. The Economic Research Service, the National Agricultural Statistics Service, and the Agricultural Marketing Service contribute to the initiative. Organic data collection, that is relative to conventional producers, will better inform the high-growth organic industry.

2012 Farm Bill: $5 million in mandatory funding over the life of the farm bill.

PO Box 440 • Santa Cruz, CA • 95061 • 831-426-6606 www.ofrf.org

Page 2: Opportunities to Invest in the Growing Organic Sector through the

ORGANIC CERTIFICATION COST-SHARE PROGRAM

To prove that organic farmers are meeting the standards, producers and handlers must be inspected annually and conduct tests such as pesticide residue testing. This cost-share program helps certified organic farmers and handlers offset the costs of certification by providing a small reimbursement of currently no more than $750 per year, capped at 75% of total certification costs. Most importantly, certification cost-share helps small, mid-sized, and beginning organic farmers enter the market and sustain their business.

2012 Farm Bill: Consolidate the national program under Agricultural Management Assistance (AMA) and designate 50% of AMA’s budget for cost-share at no cost to the farm bill.

NATIONAL ORGANIC PROGRAM (NOP)

NOP ensures the integrity of the organic seal. Funded through the annual agricultural appropriations process, NOP performs regulatory oversight of the organic label and ensures that consumers are getting what they pay for when choosing organic foods.

2012 Farm Bill: $15 million annually and an additional $5 million in mandatory funding over the life of the farm bill for technology upgrades and improvements.

IMPROVED ACCESS TO CONSERVATION PROGRAMS

The Conservation Stewardship Program and the Environmental Quality Incentives Program-Organic Initiative (EQIP-OI) are working lands conservation programs that improve soil and water quality while also increasing productivity on farmland. The 2012 Farm Bill should make these programs fairer and more accessible to organic and transitioning farmers.

2012 Farm Bill: Make the conservation programs better for organic farmers by: • Removing the lower payment limit for organic producers under EQIP-OI • Continuing to fund CSP and maintaining the provisions on special outreach and technical assistance to organic producers • Continuing CSP and EQIP-OI coordination with organic certification

ORGANIC CROP INSURANCE

USDA does not provide appropriate risk management tools for organic producers. The agency charges an unjustified surcharge to organic farmers, and does not pay organic farmers at the organic price after a loss for most commodities. The agency does not provide appropriate tools for diversified farmers.

2012 Farm Bill: Make the farm safety net work for organic farmers by: • Eliminating the unjustified surcharge on organic producers • Mandating the creation of organic price elections • Creating risk management tools for diversified farmers

ORGANIC FARMING RESEARCH FOUNDATION | www.ofrf.orgPO Box 440, Santa Cruz, CA 95061 | 831.426.6606110 Maryland Ave., NE, Suite 307, Washington, DC 20002 | 202.730.6561