The Agriculture Department has estimated that U.S. sales of organic products reached $28.4 billion in 2012. As of last April, officials counted a record 19,474 certified organic operations in the United States.
The new Agriculture Department rule, which takes effect Feb. 29, expands the ability of these organic growers to opt out of 22 federal research and promotion programs and 23 marketing orders.
However, longtime organic almond producer and consultant Cindy Lashbrook, from California’s Merced County, countered in an interview Monday that broadening the exemption “makes it too easy for the big guys” to get an advantage.
Until now, only growers who exclusively produce certified organic products have been permitted to avoid paying the promotion and marketing program fees. The new rule, formally published last Thursday 31 December, expands this exemption to growers that produce both organic and non-organic crops.
Research and promotion programs, run by organizations such as the Cotton Board and the National Watermelon Promotion Board, and marketing orders, overseen by the likes of the Modesto-based Almond Board of California and the Fresno, California-based Raisin Administrative Committee, differ in some respects but are all funded by industry fees.
The money, in part, supports advertising campaigns. The problem, some organic farmers believe, is that generic ads don’t promote their unique product, which often sells at premium prices.
For the mainstream promotion and marketing programs, the broader organic exemption first authorized by Congress in 2014 poses the prospect of diminished income.
Emiliano Escobedo, executive director of the Mission Viejo, California-based Hass Avocado Board, cautioned in public comments that “loss of revenue due to the expanded exemption will impact funding streams for the very programs this rule seeks to promote.” The California Almond Board expects a reduction of $298,000 and the Raisin Administrative Committee expects a reduction of $180,000, among other changes cited by federal officials.
“These boards and committees will have to adjust programs and reduce budgeted expenses accordingly,” the Agriculture Department noted.
All told, the Agriculture Department estimates the new exemptions will reduce payments to existing promotion and marketing order programs by some $13.6 million.
Separately, the department is still mulling an Organic Trade Association-backed proposal to establish an industry-funded promotion program for organic crops. Among organic farmers, the idea has incited mixed opinions.
Source: fresnobee.com
