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By Melody Meyer - The federal government shutdown is going on its fifth week with no clear resolution in sight. According to estimates from S&P Global, the shutdown has already cost the U.S. economy $3.6 billion, and If it continues two more weeks, the economic damage could surpass $5.7 billion.
The shutdown is affecting farmers across the nation. Local Farm Service Agency (FSA) offices are closed, affecting farmers with agency loans. Food safety inspectors are working while missing paychecks and crucial Ag data isn’t being collected. What does the shutdown mean specifically for the Organic Sector?
Many organic programs are left without moorings in this uncharted territory. The National Organic Program (NOP) and all of its activities have been completely shuttered - their operations ground to a standstill This is the agency that enforces the organic standards. NOP employees are at home unable to answer industry emails or phone calls.
If someone files a complaint about possible fraud in the marketplace, it falls on deaf ears. As complaints and investigations mount, the backlog of problems will only grow. Making timely resolutions for farmers and consumers an ongoing issue. Certifiers and farmers can’t reach out to NOP for clarifying questions and technical assistance related to the organic standards.
“The Organic Trade Association is monitoring closely the impact of the shutdown on organic producers and handlers,” said Laura Batcha CEO of the Organic Trade Association. “The longer it goes on the more likely the impact reverberates out to the consumer and the integrity of the seal” the association underscored.
Laura Batcha, CEO of the Organic Trade Association
Future rule-making on the organic standards is not getting done by NOP staff. NOP employees will be unable to travel to this training and any upcoming conferences where their input and guidance is needed.
Organic had big wins in the Farm Bill that was passed in December. The implementation of the 2018 Farm bill provisions related to organic, including increased oversight and enforcement measures for the global organic supply chain will be delayed. This is especially a problem because it was mandated that the work be completed within 12 months of the Farm Bill being signed into law.
To add insult to injury, increased funding for the NOP and organic research contained in the Fiscal Year 2019 spending bills will not go into effect until a spending deal is reached by the White House and Congress.
Certification coast share dollars were also authorized in the 2018 Farm Bill. These dollars typically get pushed out to states and are replenished as farmers use them to offset the cost of certification. If states run out of money and USDA is delayed in requesting more funds, there could be a lag in reimbursements going out to organic farmers.
Organic is unique in that not paying for certification is grounds for revoking certification. In fact, non-payment is one of the most common reasons farmers get decertified. If the funds aren’t there to reimburse small and transitioning farmers we could see a rash of revoked certifications across the country.
The Farm Bill increased funding for organic research with baseline funding for OREI. There will be delays in getting Requests for Proposals out – and we are already five months late because the Farm Bill should have been passed last September. This means there will at least be a half year without active research funding for organic farmers.
Meanwhile organic market and agricultural production reports crucial to organic farmers aren’t being collected. This data helps organic farmers plan future crops, obtain loans and collect on insurance. While the data isn’t being collected farmers are in economic limbo.
Organic is a small sector of the total US agriculture landscape. But its effects on rural prosperity and farm income are mighty - representing a bright spot for farmers across the country.
As the shutdown grinds on organic farmers have a lot to lose as their programs remain adrift. Let’s demand the shutdown ends soon and organic programs can be restored so organic can continue to prosper and flourish.
