UNITED STATES DEPARTMENT OF AGRICULTURE 

AGRICULTURAL MARKETING SERVICE 

BEFORE THE ADMINISTRATOR 

) 

In re: ) 

Carol A and Nathan D. Harkness ) 

Cozy Valley Fmm ) 

) 

Administrator's Decision 

APL-028-17 

This Decision responds to an appeal (APL-028-17) of a Notice of Noncompliance and 

Proposed Suspension of National Organic Program certification issued to Cozy Valley Fatm of 

Gillett, Pennsylvania by Northeast Organic Fanning Association of New York (NOFA-NY). The 

operation has been deemed not in compliance with the Organic Foods Production Act of 1990 

(Act) 1 and the U.S. Department of Agriculture (USDA) organic regulations.2 

BACKGROUND 

The Act authorizes the Secretary to accredit agents to certify crop, livestock, wild crop, 

and/or handling operations to the USDA organic regulations (7 C.F.R. Pai1205). Certifying 

agents also initiate compliance actions to enforce program requirements, as described in section 

205.662, Noncompliance procedure for certified operations. Persons subject to the Act who 

believe they are adversely affected by a noncompliance decision of a certifying agent may appeal 

such decision to the USDA Agricultural Marketing Service (AMS) pursuant to§ 205.680 

Adverse Action Appeals Process-General, and§ 205.681, Appeals of the USDA organic 

regulations. 

1 7 u.s,c. 6501-6522 

2 7 C.F.R. Part 205 

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FINDINGS OF FACT 

1. NOFA-NY is an accredited certifying agent under the USDA organic regulations. Cozy 

Valley Farm (Cozy Valley) of Gillett, Pennsylvania, is certified under USDA organic 

regulations for crops and livestock. 

2. On April 3, 2014, NOFA-NY issued a Notice of Noncompliance to Cozy Valley for 

missing the February 28, 2014 deadline to submit an updated organic system plan and 

certification fees. 

3. On July 29, 2014, NO FA-NY issued a Notice of Proposed Suspension to Cozy Valley. 

4. On October 22, 2014, Cozy Valley and NOFA-NY signed a Settlement Agreement in 

which Cozy Valley agreed to provide NOFA-NYupdated certification materials and 

application fees by February 28 of each year. 

5. On February 28, 2015, Cozy Valley missed the deadline to submit continuation of 

certification fees/materials. NOF A-NY arranged a 2-installment payment plan for Cozy 

Valley Farm, the first installment was collected in late March 2015 and the second on 

November 19, 2015. 

6. On June 13, 2016, NOFA-NY issued a Notice of Noncompliance to Cozy Valley for 

failing to submit continuation of certification materials/fees. The noncompliance was 

resolved in September 2016. 

7. On March 7, 2017, NOFA-NY sent a reminder letter to Cozy Valley stating that the 

February 28 deadline for submitting the 2017 certification materials/fees has passed and 

extending the deadline to March 23, 2017. This marks the fourth consecutive year that 

Cozy Valley missed the February 28 deadline. 

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8. On April 6, 2017, NOFA-NY issued a Combined Notice of Noncompliance and Proposed 

Suspension to Cozy Valley for failing to submit 2017 certification fees/materials per the 

Settlement Agreement. NOFA-NYproposed a 30-day suspension. 

9. On April 28, 2017, Cozy Valley submitted a request for mediation to NOFA-NY. 

10. On May 1, 2017, Cozy Valley submitted an appeal to the National Organic Program, 

which was accepted. 

11. On May 4, 2017, NOFA-NY rejected Cozy Valley's request for mediation. 

DISCUSSION 

NOF A-NY proposed a 30-day suspension of Cozy Valley's organic certification, which 

would prohibit all sale, labeling or representation of its products as organic until the operation's 

certification is reinstated. The reason for the proposed suspension was the repeated failure, from 

2014 to 2017, to submit the documents and fees needed to continue certification on time. 

The record in this case shows that NOFA-NY offered flexibility to Cozy Valley on 

multiple occasions to bring the operation into compliance. This included reminder letters, 

mediation that resulted in a settlement agreement in 2014, and alternative payment plans in 2015 

and 2016, so that payment of certification fees coincided with operational cash flow. In addition, 

when Cozy Valley did not submit the updated certification materials and fees by the deadline 

again in 2017, NOFA-NY extended the deadline for Cozy Valley by nearly one month. NOFANY issued a Combined Notice of Noncompliance and Proposed Suspension for breaking the 

terms of the 2014 Settlement Agreement, which was executed to resolve a prior Notice of 

Proposed Suspension issued in 2014. 

In its appeal, Cozy Valley explained that drought conditions in 2016 adversely affected 

the operation's milk production capacity. Cozy Valley also described how measures to adjust 

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herd size, pasture management, calving schedules, and lower milk production caused by drought, 

has reduced monthly operational income below monthly costs for 2016 and into 2017. In the 

appeal, Cozy Valley acknowledged the cash flow imbalance, but offered no alternative actions or 

timetable to indicate how the noncompliance could be corrected. 

CONCLUSION 

Cozy Valley Farm has repeatedly failed to comply with the requirement in the USDA 

organic regulations to annually submit an updated organic system plan and pay certification fees 

in 2014, 2015, 2016 and 2017. The USDA organic regulations require producers or handlers to 

pay annual certification fees and submit an updated organic production or handling system plan 

annually to their certifier (§ 205.406). This is a basic and essential requirement for organic 

certification. In this case, the 4-year pattern of failing to submit materials on time to continue 

certification demonstrates that the operation has not met certification requirements. 

DECISION 

The appeal is denied and NOFA-NY's Notice of Noncompliance and Proposed 

Suspension is upheld. Cozy Valley Farm, operated by Carol A. and Nathan D. Harkness, is to be 

suspended. 

Attached to this formal Administrator's Decision denying Cozy Valley Farm's appeal is a 

Request for Hearing form. Cozy Valley Farm has thirty (30) days to request an administrative 

hearing before an Administrative Law Judge. 

If Cozy Valley Farm waives the hearing, the Agricultural Marketing Service will direct 

NO FA-NY to issue a Notice of Suspension. The suspension will be effective for 30 days from 

the date of the hearing waiver. After the 30-day suspension period, the operation may, " ... submit 

a request to the Secretary for reinstatement of its certification. The request must be accompanied 

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by evidence demonstrating correction of each noncompliance and conective actions taken to 

comply with and remain in compliance with the Act and the regulations in this part." 

Done at Washington, D.C., on this Qo~ 

day of hl{JU.J>t- , 2017. --

Bruce Summers 

Acting Administrator 

Agricultural Marketing Service 

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