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Organics industry facing potential cuts in farm bill

 

KUTZTOWN, Pa. — As negotiations continue on the federal farm bill, members of the organics community weighed the pros and cons of the House version that failed to pass on Friday. While there are a few upsides, several potential cuts in current programs are worrisome to organics advocates.

As historic low prices continue to plague farmers and ranchers, organics offer a higher price point and economic opportunity, said Kate Mendenhall, director of the Organic Farmers Assoc. (OFA), a nonprofit advocacy group. However, some of the government programs that supported farmer transitions are in danger of going away.

“Conventional farmers in the Midwest are interested in transitioning into organic acres, but it’s a large financial investment with changes in crop management … All of the (government) support for family farms and our rural economy is important to keep in place, but not the priority for Congress,” Mendenhall added.

The perceived lack of support in the House for organics seems at odds with growing consumer demand for it. Organic sales account for more than 4 percent of total food sales and consumer demand continues to show double-digit growth, according to the Center for Rural Affairs. Demand, in fact, has outpaced domestic supply, creating a $1 billion annual import market.

“Eighty percent of organic soybeans and 40 percent of organic corn come from imports. This is an opportunity for U.S. Midwestern farmers,” Mendenhall said.

 Indiana Farm Bureau voiced its support of the state’s diverse ag community. “The volume of organic products sold in America has steadily increased in recent years,” said Bob White, director of national government relations.

“Our organization recognizes the importance and value that comes with the diversity of Indiana agriculture. Whether it is livestock, row crops, specialty crops or organics, the sales of these products are a vital part of the economy.”

The proposed House bill – as it now stands – increases funding to $30 million for the Organic Agriculture Research and Extension Initiative, the only research program to receive an increase in the draft bill, according to the National Sustainable Agriculture Coalition. That’s up from $20 million in the 2014 farm bill.

But the House bill also whacked all funding for the National Organic Certification Cost Share Program, which supports U.S. producers who want to certify their products as organic.

In an OFA poll, Mendenhall said organic farmers rated the cost share program as a top priority.

“It’s a really important program. It gives a break on certification fees, which are above $1,000 per farm. It reimburses up to $750, which is not a huge check but does make a difference, allowing smaller beginning farmers to get into the certification program,” she explained.

Other farm bill programs that are important to the organic ag community, as identified by the Center for Rural Affairs, include the Conservation Reserve Program’s Transition Incentives and the Value-Added Producer Grants Program, which House legislators have proposed to eliminate. Organic production is an eligible value-added activity.

“The value-added producer grant is not organic-specific. It’s an investment in small business to get equipment or pay consulting fees as they expand. An example might be packaging an edible product or a dairy adding a creamery,” Mendenhall said.

She said that organic farmers are not well represented on Capitol Hill, accounting for potential legislative losses; however, she is hopeful the Senate will make the needed changes, even if the House does not.

“We don’t want to be left out. We are hoping that the Senate will close up the places that are underfunded and left out. We hope the Congress sees the benefits to farmers and consumers and will make the changes. We are calling on our constituents to call their senators,” Mendenhall said.

5/23/2018