July 2015

Process for Establishing an Organic 

Research and Promotion Program

The 2014 Farm Bill authorized the Secretary of 

Agriculture to issue, under the 1996 Act, an organic 

commodity promotion order. The 1996 Act 

authorizes the establishment of programs for 

developing, financing, and carrying out promotion, 

research, and information programs designed to 

strengthen the position of agricultural commodity 

industries in the marketplace, maintain and expand 

domestic and foreign markets and uses for 

agricultural commodities, develop new markets and 

uses for agricultural commodities, or assist 

producers in meeting their conservation objectives. 

On May 12, 2015, USDA’s Agricultural Marketing 

Service (AMS) received a proposal for an organic 

research and promotion program from the Organic 

Trade Association, and invited other stakeholders to 

submit alternative proposals or partial proposals to 

assist with the development of an organic 

promotion, research, and information program. 

Below are the steps to establish an organic research 

and promotion order, and the requirements needed 

in a complete proposal. 

Steps for Establishing an Organic 

Research and Promotion Program

1. The Organic Trade Association submitted 

their proposal to USDA on May 12, 2015, 

and posted a letter of credit. 

2. The deadline for submission of alternate 

proposals or partial proposals to USDA was 

July 20, 2015. 

3. USDA will review all submissions against 

the requirements for a complete proposal. 

4. At any time in the process, USDA may also 

hold public meetings on the proposal(s) 

(optional).

5. After analyzing the submissions, USDA will 

publish a proposed rule in the Federal 

Register for public comments. Ex parte 

communication begins.

6. The proposed rule(s) will include a 60-day 

comment period.

7. If, after reviewing the comments, USDA 

concludes that the program has merit and 

meets legislative intent, USDA will publish 

a final proposal in the Federal Register and 

announce a referendum.

8. USDA will conduct a referendum to 

determine industry support for a program.

9. If the program is approved by the industry 

voters in the referendum, USDA will 

publish a final rule to implement the 

program. If the referendum fails, the 

program will not be implemented.

10. If the program is implemented, USDA will 

seek nominations for board members.

11. The Secretary will appoint the board 

members and, in collaboration with the 

industry, set a date for the board’s 

organizational meeting.

12. At its organizational meeting, the board will 

address such matters as bylaws, staff, office 

location, assessment collection, reporting 

forms and procedures, budget, and 

marketing plan.

13. The bylaws, budget, and marketing plan 

must be submitted to USDA for review and 

approval.

14. After USDA approval, the program becomes 

operational. Assessment collections begin.
July 2015

Proposal Requirements

Complete proposals submitted to USDA should 

include an overview of the industry and address 

objectives and details of the proposed program. 

Specific requirements are listed below: 

Industry Analysis 

 Develop a profile of the industry, including 

such information as the volume, value, and 

geographic distribution of domestic 

production; the volume, value, and countries 

of origin of imports; and the number of large 

and small businesses. 

Justification 

Determine the justification for a national program. 

Address questions such as: 

 What marketing problems exist (e.g., 

declining sales or prices, lack of industry 

price support programs), and how would a 

national program address these problems? 

 What alternatives were considered, and why 

were they rejected? 

 How much income could the program 

expect to generate at the optimum 

assessment rate? 

 How much would it cost to administer the 

program, including Government 

reimbursements (user fees)? 

 After program administration costs are paid, 

how much funding would remain to finance 

the program? 

 Could an effective research and promotion 

program be conducted with the remaining 

funds? 

Objectives 

 Identify what the industry expects to achieve 

through the program. 

Impact on Small Business 

 Describe how the program’s reporting, 

recordkeeping, and other compliance 

requirements would affect small businesses. 

The description should include an estimate 

of the types of small businesses that would 

be subject to the order and the type of 

professional skills necessary to prepare 

reports and otherwise comply with the 

program. This analysis should describe each 

compliance requirement, including the 

payment of assessments, and estimate the 

costs, comparing large and small entities. 

Distinguish initial costs from recurring or 

operating costs and indicate where different 

compliance requirements may be necessary 

for small businesses. In addition, identify all 

relevant federal rules that may duplicate, 

overlap, or conflict with the proposed 

program. 

Industry Support 

 Determine the level of industry support for 

the program. USDA will not consider a 

proposal for which there is not substantial 

industry support. 

Text of the Proposal 

 Draft the text for the proposed order or text 

for a partial order.

Ex parte communication

Once the proposal is published in the Federal 

Register, ex parte communication about the 

substance of the proposal between any USDA 

representative involved in the decision process and 

interested persons about the substance of the 

proposed order is prohibited. Discussion about 

procedural matters and status reports are permitted.

For more information about the proposal 

process, please visit: 

www.ams.usda.gov, click on “Research and 

Promotion Programs,” and follow links to “How to 

Propose a National Research and Promotion 

Program,” and click on “Text of a Proposed Order 

for Research and Promotion Programs.”