OTA applauds long-awaited organic exemption from commodity check-offs
OTA applauds long-awaited organic exemption from commodity check-offs
Considered a move that can fuel self-investment in the growing organic sector, the recent announcement that all organic farmers and handlers in the United States would be able to choose whether to pay into and participate in conventional commodity check-off programs or opt out of those programs and put their dollars into a proposed organic research and promotion order now under review by the U.S. Department of Agriculture, was hailed by the Organic Trade Association as a major victory and step forward for the organic sector.
In a Jan. 4 press release issued by the OTA, Laura Batcha, chief executive officer and executive director, said, “OTA and organic stakeholders put in a tireless effort to include in the Farm Bill major policy advancements for the organic sector. These are important gains for organic farmers and the organic industry, and will help the organic sector invest in its future.”
The USDA estimates that not having to contribute to conventional check-offs will free up an extra $13.6 million per year for organic stakeholders to invest back into the organic industry.
There are now 22 national commodity check-off programs in place in the United States. These programs are funded by producers of the specific commodity and have been a part of American agriculture for almost fifty years. The new rule will also exempt eligible operations from paying into the portion of the assessment in federal marketing order programs designated for market promotion activities. There are 23 federally administered state marketing order programs with market promotion authority.
“This is a significant and positive development for organic stakeholders,” said Batcha. “It was the clear intention of Congress to provide a choice for organic farmers, ranchers and handlers. We are pleased that the organic sector will be able to invest in its unique needs for organic research and promotion that are so critical to the future success of organic.”