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OPN Connect Newsletter 18 · June 29, 2017

What’s The Future of the Organic Check-Off?


By Melody Meyer 

After years of public debate and months of public comments the fate of the GRO Organic check-off now lies in the hands of the USDA. Lauded by many as the answer to organic funding needs, the program is also hotly contested by some farmers and conventional commodity groups. With the debate now quieted, the destiny of the organic check-off could come into view as early as this fall.

Terramera

The Organic Check-off - how we got here

Between 2012 and 2015 the Organic Trade Association and check-off proponents conducted public outreach on key tenets of the proposal. The final application was petitioned to the USDA in May 2015, with many key revisions and reforms included in the draft as a result of the stakeholder outreach.

Equal representation of producers and handlers on the governing board was just one idea incorporated into the proposal. The design offers a unique check-off paradigm with full value chain assessment, with only those  farmers and handlers with gross organic revenue below $250,000 having  the option to voluntarily pay into the program.

Nature Safe

The proposal earmarks up to 75 percent of the check-off funds for research (including regional priorities), for disseminating information on organic research and studies, and for technical assistance. It also ensures that all the research, inventions and innovations resulting from organic check-off programing remain in the public domain. The balance of the funds will be used for promotional purposes such as consumer education, advertising and crisis management for the organic industry.

And for those who believe the program isn’t working, there is a built in safety net that calls for an industry referendum every seven years to decide whether or not to continue the program.

On January 17, 2017 the USDA published the proposed rule and opened it up for public comment. Comments originally due on March 20th were extended by the new administration by 30 days to April 19, 2017. At closing there were 14,757comments submitted to the federal register both in favor and against.

Organic Ag Products

What’s the Future Hold?

Currently the USDA is analyzing and reviewing the comments on both sides. At this point they have several options that will ultimately decide the future of the program. Among the available options for the USDA:

  • incorporate changes from the public comments, publish a final rule and conduct a referendum for the industry to vote on. If the referendum passes, an industry governed board would be appointed by USDA.
  • incorporate changes from the public comments into another proposed rule that would open up another round of public comments in the federal register.
  • site the “no” comments and reject the rule entirely with no further action.
  • simply do nothing because the USDA is under no obligation to move forward in any way.

Check-off proposals often endure the machinations and grindings of the federal government. It’s a little known fact that the Christmas tree check-off program took nine long years from the time the application was submitted in 2008 until the board was appointed in 2016.

Ocean Mist

The Organic Trade Association holds a bond that reimburses the USDA for the staff time spent on the application. This bond expires in September so there should be some indication this coming fall of where the USDA will go.

In the end the decision will need to balance the concerns of small farmers and commodity groups with an organic industry looking for funding, all within an administration that is pro-business.

Read past OPN coverage of GRO Organic:

To GRO or Not to GRO

What is GRO Part II

GRO Organic - the Buzz - What Others Are Saying

 

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