During the 1990s, U.S. policy on organic agriculture focused on
facilitating consumer market access to a differentiated product,
and national organic standards were developed during this period.
More recent State and Federal organic initiatives--expanding
organic production and marketing research, technical assistance,
and data development--are aimed at expanding market opportunities
for producers.
- USDA implemented a
national organic program in 2002, which set uniform standards
and provided a "USDA-organic" label to facilitate market
transactions and allay consumer concerns about product
identity.
- USDA's Agricultural Marketing Service currently administers
two organic certification cost-share programs. The first offers
assistance to producers in 15 States and operates with $1.0 million
annually as part of the Agricultural Management Assistance (AMA)
program under the Federal Crop Insurance Act.The second program
expanded assistance to all U.S. farmers and handlers under the 2002
Farm Act, with one-time funding of $5.0 million that has already
been obligated to participating States.
- Congress included provisions in the 2002 Farm Act aimed at
expanding market opportunities for organic producers. For example,
Congress initiated a national cost-share program to help defray the
costs of certification incurred by organic crop and livestock
producers and provided new research funding to determine desirable
traits for organic commodities and identify marketing and policy
constraints on the expansion of organic agriculture. Congress also
included several first-time research, conservation, and marketing
assistance provisions in the 2002 Farm Act to assist organic
producers.
- The Food, Conservation, and Energy Act
of 2008 includes a five-fold increase in mandatory funding for
organic programs over funds mandated in the previous legislation,
and authorizes additional funding for many of these programs. Most
of the mandatory funds are for two existing organic programs--the
organic research program and cost-share assistance program to help
growers and handlers with organic certification costs. The
legislation includes new organic provisions on credit, trade, and
crop insurance. Organic provisions are also included in the
Conservation Title for the first time, and are aimed at helping
producers with the transition to organic farming systems.
- A number of States--and even some localities--have initiated
organic activities in recent years. Minnesota, for example,
maintains a farmer directory to promote organic sales and
facilitate farmer-to-farmer communication. Montana and Washington
provide organic export assistance, and a number of States offer
State-subsidized certification programs. One county in Iowa has set
up an organic exchange board to bring organic landowners and
farmers together and is offering property tax rebates to organic
farmers.
A major objective of these initiatives is to heighten organic
agriculture's positive impact on environmental quality. Potential
benefits from organic farming systems include improved soil tilth
and productivity, lower energy use, and reduced pesticides.
Federal Initiatives on Organic Agriculture
Government research and policy initiatives often play a key role
in the adoption of new farming technologies and systems. Worldwide,
adoption levels for organic farming systems are currently the
highest in European Union countries. Governments in the EU have
been developing consumer education initiatives and providing direct
financial support to producers for transitioning to organic
agriculture since the late 1980s to capture environmental benefits
and support rural development (for a summary of EU organic support
measures, see Market-Led
Growth vs. Government-Facilitated Growth).
In the U.S., a number of USDA agencies started or expanded a
variety of programs on organic agriculture during the 1990s. For
example, the Risk Management Agency has been developing organic
crop insurance, while the Foreign Agricultural Service has been
expanding organic export programs and services, USDA's Agricultural
Research Service, Cooperative State Research Education, and
Extension Service, and Economic Research Service are broadening
their combined research on organic farming and marketing systems
(see the appendix on USDA organic research, program, and regulatory
activities in Recent
Growth Patterns in the U.S. Organic Foods Market for a summary
of these activities).
State Support for Organic Agriculture
State support for organic farmers and handlers has also been
expanding. For example, the number of States offering organic
certification services--mostly at subsidized rates--has risen from
12 States in 1997 to 19 States in 2005. Minnesota and Iowa began
offering small subsidies for conversion to organic farming systems
in the late 1990s as a way to capture the environmental benefits of
these systems. The funds for this program have mostly been from
Federal sources, by designating organic production as a priority
for conservation cost-share coverage under the Federal
Environmental Quality Incentives Program (EQIP). Additional States
are now using or considering the EQIP program for this objective.
And counties like Woodbury County in Iowa are now providing tax
rebates for those who convert from conventional to organic farming
practices.
In 2003, the National Association of State Departments of
Agriculture (NASDA) released a policy statement on organic
agriculture expressing support for a wide range of activities that
would expand public-sector organic research and education and
provide technical assistance to organic and transitional farmers
(for a list of contacts for State organic programs, see NADSA's National Association of State
Organic Programs).