Organic Processing Vo1.5 #2

DIALOGUE

historic $80 million over five years for this important initiative. In the 2002 bill, it was funded at $3 million.

Price and yield analysis is also needed in organic agriculture. That is why the Farm Bill currently moving through Congress provides $5 million over five years for organic production and market data initiatives. These funds will go to the Agricultural Marketing Service (AMS), the Economic Research Service (ERS), and the National Agricultural Statistics Service (NASS), to fund com-

“There are too few
resources to help

farmers to transition into organic agriculture. Tell us more about this program and how it can support the growth of organic and help create more sustainable farming practices.

farmers to transition to
use of renewable sources
of ener”gy.”

prehensive reporting of prices relating to organically produced agricultural products and to expand and publish organic census analysis. This lack of basic information has also contributed to the lack of adequate crop insurance products for organic farmers. The organic industry has grown large enough that USDA needs to provide comprehensive, national data for this industry.

OP: Speaking of which, organic farmers currently have to pay an additional 5
percent surcharge for crop insurance, presenting yet another financial barrier
for organic farmers. How does the Farm Bill address this issue?

Harkin: The surcharge for organic crop insurance policies was implemented by USDA regulations under their general authority to establish premium rates for the program. As I understand it, the surcharge was established based on the blanket assumption that since producers growing organic crops, by definition, do not have access to pesticides and other chemical plant protection products, they would fare worse and generate more losses under adverse weather or pest pressure than would comparable crops grown using conventional practices. USDA did not make an effort to determine whether this assumption is in fact valid on a crop by crop basis.

I believe that the 5 percent surcharge as currently assessed is completely arbitrary with no data to back up why it is needed. That’s why the Senate Farm Bill prohibits the Federal Crop Insurance Corporation from charging a surcharge on premiums paid to insure organic crops. It allows surcharges to be required only when consistent evidence of greater loss variability is validated on a crop by crop basis. As mentioned before, it’s also important to note that the increase in funds to organic price and yield information will also help improve crop insurance for organic producers.

Harkin: Organic farmers can contribute greatly to sound conservation practices, yet for too long I have felt that conservation programs have not been user friendly to organic producers. I created the Conservation Security Program (CSP) in the 2002 Farm Bill to pay farmers for incorporating conservation practices on working lands. We expanded that program substantially in the new Senate Farm Bill and we intend to improve CSP’s usefulness for organic farmers.

It’s important to note that some producers in the country are using EQIP to transition into organic agriculture, but EQIP is not available in all states for organic practices. The Senate farm bill outlines national standards that the Natural Resources Conservation Service (NRCS) can use to administer this conservation program for organic producers. Farmers will be allowed to use up to $20,000 per year, but no more than $80,000 over a three or four year period, to transition to organic agriculture.

OP: How do you see these added
measures for organic in the Farm Bill
affecting processors and ultimately the
American consumer?
OP: You have mentioned that you want to make the Environmental Quality
Incentives Program (EQIP), which provides incentive payments and cost
shares to implement conservation practices, more universally available for

Harkin: The goal of the Senate Farm Bill with respect to organics is simple: give organic agricultural producers the tools they need to transition into this burgeoning market so that they may grow more organic products right here in the United States. If processors can meet demand and reduce transportation costs, they could pass cost savings onto consumers while boosting the availability, variety and quality of organics in the marketplace.