Congressional lawmakers have introduced the Domestic Organic Investment Act (DOIA), a bipartisan and bicameral proposal aimed at expanding infrastructure for U.S. organic farmers and processors. The legislation was introduced in the Senate by Sen. Tammy Baldwin and Sen. Susan Collins, with Representatives Andrea Salinas and Derrick Van Orden sponsoring the House version.
The bill seeks to address the gap between the growing organic marketplace, valued at US$71 billion, and the slower expansion of domestic organic production. The DOIA would create competitive grants for organic producers and manufacturers to increase storage, processing, aggregation, and distribution capacity.
Industry groups, including the Organic Trade Association, say demand for organic products continues to grow faster than domestic supply. The DOIA is modeled in part on the Organic Market Development Grant program introduced in 2023, which provides support for organic supply chain needs.
Organic Valley Chief Executive Officer Shawna Nelson noted recent disruptions in co-manufacturing and dairy processing as examples of infrastructure constraints. She stated that expanded investment could support more consistent movement of organic food to U.S. markets.
The proposed legislation directs USDA to establish annual priorities intended to decrease dependence on imports and to incorporate feedback from organic farmers, businesses, and other stakeholders. Eligible applicants would include producers, cooperatives, and commercial entities handling certified organic products, including tribal governments. Grant recipients would need to contribute matching funds.
Past OMDG recipient PURIS expanded processing capacity and organic pea acreage after receiving earlier federal support, combined with additional company investment. PURIS Chief Executive Officer Nicole Atchison said the DOIA could support further development of domestic organic supply chains.
A recent Organically Grown Company supplier survey found that 32 per cent of respondents identified market access as a barrier to growth, 33 per cent cited logistics and infrastructure challenges, and 27 per cent noted limited access to capital. Organically Grown Company CEO Brenna Davis said the DOIA could help address infrastructure limitations affecting small and mid-sized organic producers.
The bill will next move through congressional review and committee consideration.
© OTAFor more information:
Sandy Pfaff
Organic Trade Association
Tel: +1 202 643 4965
Email: [email protected]
www.ota.com
