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**TESTIMONY OF**

**BEA JAMES,**

**NATIONAL COOPERATIVE GROCERS ASSOCIATION,**

**BEFORE THE**

**HOUSE COMMITTEE ON AGRICULTURE**

**SUBCOMMITTEE ON SPECIALTY CROPS AND ORGANIC PROGRAMS**

**HEARING ON**

**ORGANIC AGRICULTURE AND RURAL DEVELOPMENT**

**APRIL 18, 2007**

**WASHINGTON, D.C.**

Mr. Chairman and members of the subcommittee, good morning. My name is
Bea James, and I want to thank you for giving me the opportunity to
speak to you about the economic impact of organic production and
processing. My testimony will provide an overview of the delicate,
integral working relationship between local organic farmers and the
retail cooperatives, as well as the thriving economic results produced
by this relationship.

I have worked in the natural and organic food industry for more than 20
years and have a variety of combined experience, including distribution,
production and purchasing in mass market and co-op store formats. I
currently manage the Category Leadership program for the National
Cooperative Grocers Association (NCGA). I also hold the retailer seat on
the USDA National Organic Standards Board (NOSB), although my comments
today do not represent those of the NOSB.

I also am a member of the Minnesota Department of Agriculture Organic
Advisory Task Force, and chaired the Food Market Institute Organic and
Natural Board for more than two years, and serve on the Organic Trade
Association Retailer Task Force.

Although I am not an economist, I would encourage you to read Bill
McKibben's book, *Deep Economy*. McKibben is a scholar in residence at
Middlebury College (Middlebury, Vt.), and on the Green Institute
Advisory Board*.* His book offers compelling economic facts about the
current need to pursue prosperity in a more local direction with cities,
suburbs and regions producing more of their own food.

My point today is simple:

-   The local organic farmer, as an individual -- and as a member of a
    larger community -- has a positive impact on the thriving success of
    our communities, our economy and the integrity of organic
    agriculture.

I am here before you today on behalf of the National Cooperative Grocers
Association (NCGA), a business services cooperative for natural food
co-ops located throughout the United States, which includes more than
130 independent co-op storefronts in 32 states with combined annual
sales of nearly \$800 million.

NCGA is also a founding member of the National Organic Coalition (NOC)
\-- a national alliance of organizations working to provide a
"Washington voice" for members involved in organic agriculture. The
coalition operates under the central principle that protecting the
stringency and integrity of national organic standards is necessary.

Organic agriculture is undoubtedly a bright spot in agriculture today.
Many farmers have made the conversion to organic with hopes for a better
return on their labor and investment.

This conversion is not an easy process, nor should it be. Organic
agriculture is not merely a list of "dos" and "don'ts" that must be
followed. It is a broader commitment to a system of production that uses
nature as an ally to be fostered, not an enemy to be eradicated.

Despite the difficulties in making this shift, the rewards are great for
those farmers, who truly make the commitment to do so...But the rewards
for organic farmers are dependent on consumer acceptance and access to
their product. And there's where the role of NCGA starts.

NCGA is working to provide markets for small, local sustainable and
organic farmers. This partnership not only ensures consumers have a
broad array of organic products available in their stores, but also
makes sure the infrastructure of this symbiotic relationship is
contributing to a thriving community of economic growth and development.

In a general survey conducted by the NCGA, we learned many of our co-ops
are sourcing over 15 percent of their products from local producers. And
as a group, the 12 Minneapolis/St. Paul area co-ops alone have estimated
that almost 19 percent of their retail sales are from local purchases.

The NCGA works with thousands of local farmers and producers across
North America, and we are proud that our co-op members have a first-name
working relationship with them and their families. I would like to share
with you three economic success stories to illustrate the symbiotic
relationship between farm and community.

In New Prague, Minnesota, Dan Minar's third-generation farm is thriving,
but this would not have happened without the co-op partnership. The
Minar family farm goes as far back as 1926. Seven years ago the Minars
decided to commit to sustainable agriculture and began selling their
milk in glass jars to six co-ops in the Twin Cities area. In 2004, they
became USDA-certified organic and today their Cedar Summit Farms
products can be found in more than 90 retail outlets throughout the
Midwest. As Dan Minar put it, "we would not be where we are today if it
was not for the co-ops. Our sales started with them, and are successful
because of them."

On the West coast, Judy and Paul Fuller operate Sweet Creek Foods, which
produces pickles, fruit spreads and salsas for co-ops in Washington,
Oregon and California. They started as a small, organic farm delivering
pickles to just a few co-ops in Oregon. In 2004, the Fullers realized
they needed help obtaining the supply of produce needed to process their
products. The Fullers now support their neighboring rural, organic farms
by purchasing from nine other families, who operate farms ranging from
20-50 acres.

Now, the Fullers provide unique and wholesome organic products to eight
co-ops in Oregon, six in Washington and two in California. "We could buy
organic strawberries from China and save a significant amount of money,"
said Paul Fuller, "but we believe in sustainability, and want to support
our local organic farms. Our products are not only organic and local.
They are sold locally at co-ops that are our neighbors. Many resources
are saved in our method of production. We believe in that."

On the East coast, John and Joy Primmer have operated Windstone Farms
since 1989. They started out with just a quarter of an acre growing a
few vegetables for Wild Oats Co-op in Williamstown, Mass., Long story
short, Wild Oats Co-op encouraged the Primmers to become certified
organic, which they did. Over the years, the co-op met with them each
winter to assess what sold as well as to discuss ideas for other
products they might consider growing for the co-op.

Eighteen years later, the co-op purchases essentially all of the produce
the Primmers can grow. Windstone Farms has expanded its tilled acreage
to 21 acres, is getting more money for the crops they grow, and spends
very little time or money on marketing.

These examples illustrate what is clearly a win-win-win situation for
the farmers, the co-ops and their customers.

Organic consumers have a strong philosophical desire to support local
agriculture, and value the quality and freshness they receive in doing
so. Organic consumers also appreciate the smaller ecological footprint
the distribution of local organic food makes, enjoy knowing organic
farmers, and value the connection their purchases give towards the food
they are eating. The small local organic farm adds to the integrity and
value of the organic label by creating these hands-on experiences for
their communities.

Current organic standards are strict and they should be. Organic
standards should not be a stagnant standard, but should involve
continuous quality improvement as our technology and understanding
evolves. In some cases, synthetic products are used in organic
production and processing. However, for each synthetic product or
ingredient that is permitted, there should be a rigorous process
underway to find ways of meeting that need with an organic product or
ingredient.

Currently, the USDA National Organic Program National List allows
synthetic substances and nonorganically produced agricultural products
as ingredients in or on processed products labeled as "organic" or "made
with organic," and there are currently 58 processing materials under
consideration for the National List. Clearly the outpouring of
petitioned nonorganic items could be avoided if there was improved
supply of organic products in our industry. The organic standard should
not be diluted with additional nonorganic agricultural materials or
synthetics. Consumers expect organics having roots and meaning,
according to the Organic Foods Production Act of 1990.

If we are to maintain the hope and promise that organic agriculture has
become, it is critical that we meet consumer demand with ample supply
and continued standards based in organic integrity. Simply put, we need
more organic farms and continued government funding for expanding the
organic sector in agriculture.

I appreciate the opportunity to provide testimony on this important
topic. Through our work with the National Organic Coalition (NOC), we
are very focused on the 2007 farm bill process, and look forward to
working with this Subcommittee as you move forward in writing the bill
this summer. Attached to my written testimony is a summary of our farm
bill priorities on a wide range of issues and programs, and I urge your
strong consideration of these proposals.

Mr. Chairman, and members of the Subcommittee, I thank you and encourage
you to recognize that local organic farms are vital to the success of
the communities we all live in. In conclusion my point today remains:

-   The local organic farmer, as an individual, and as a member of a
    larger community, has a positive impact on the thriving success of
    our communities, our economy and the integrity of organic
    agriculture.