Steve Gilman

Northeast Organic Farming Association 

NOFA Interstate Council Policy Coordinator

518-791-3090

stevegilman@verizon.net

Organic Promotion, Research, and Information Order; 

Room 3071-S, STOP 0201; 

Agricultural Marketing Service, USDA; 

1400 Independence Avenue, SW.; 

Washington, D.C. 20250-0201; 

Telephone number (202) 720-5115.

amsadministratoroffice@ams.usda.gov

Thank you for your request for partial proposals on a new industry-funded promotion, 

research and information order (checkoff) for organic products, which would be 

developed under the Commodity Promotion, Research, and Information Act of 1996 

(1996 Act).

This partial proposal is submitted on behalf of the Northeast Organic Farming 

Association—Interstate Council (NOFA-IC) representing the seven independent state 

NOFA Chapter organizations: NOFA-NY, NOFA-VT, NOFA-NH, NOFA/MASS, CTNOFA, NOFA-RI and NOFA-NJ. Founded in 1971, NOFA is one of the oldest grassroots 

organic farming associations in the U.S. with a membership consisting of organic 

farmers, gardeners and consumers. Interstate NOFA has a combined membership of 

6,000 with an average of one-third being farmers.

NOFA has been meeting regularly with organic farming groups from around the country 

(and attended a meeting with top AMS officials in mid-June) to address the proposed 

USDA Generic Research and Promotion Order for Organic (checkoff) and to develop 

more effective and acceptable partial proposals that should be included in any nondiscriminatory, sector-wide organic checkoff program. 

NOFA submits the following partial-proposal based on the Commodity Promotion, 

Research, and Information Act of 1996 (1996 Act) and on the Agriculture Reform, 

Food, and Jobs Act of 2013: SEC. 10012. ORGANIC PRODUCT PROMOTION 

ORDERS which defined the organic commodity in the following way:
(b) Organic Commodity Promotion Order- Section 501 of the Federal Agriculture 

Improvement and Reform Act of 1996 (7 U.S.C. 7401) (as amended by subsection (a)) is 

amended by adding at the end the following:

(f) Organic Commodity Promotion Order-

 (1) DEFINITIONS- In this subsection:

`(A) CERTIFIED ORGANIC FARM- The term `certified organic farm' has the 

meaning given the term in section 2103 of the Organic Foods Production Act of 

1990 (7 U.S.C. 6502).

(B) COVERED PERSON- The term `covered person' means a producer, handler, 

marketer, or importer of an organic agricultural commodity.

HOWEVER, SINCE THIS IS A PROPOSED ALL-COMMODITY ORGANIC 

CHECKOFF PROGRAM -- THESE SPECIAL CIRCUMSTANCES IN THE FINAL 

REGULATION REQUIRES FULL 100% PRODUCER REPRESENTATION OF ALL 

ORGANIC CERTIFICATE HOLDERS -- WHOSE VIEWS AND VOTES MUST BE 

PROPORTIONALLY TABULATED IN ALL THE DECISIONS, REFERENDUMS 

AND GOVERNANCE OF THE PROGRAM. 

NOFA proposes Full Producer Assessment, Representation and Voting Power

1. NOFA proposes all organic certificate holders be assessed.

2. To be equitable, this organic community-wide assessment should be made on Gross 

Organic Sales, rather than Net Profit -- as figuring net profit requires complex 

bookkeeping for small businesses that typically produce all their own farm inputs. 

3. In accordance with the 1996 Act -- all assessments should be collected by first 

handlers or producer handlers not individual producers. 

4. Assessments should be progressive so that those with the highest margins and most 

opportunity for profit pay the most.

5. ALL farmer certificate holders of every scale from all sectors must have:

(a) The full right and ability to vote for the acceptance or rejection of any final organic 

research and promotion order proposal.

(b) Full representation and majority representational voting power based on producer 

sector numbers. 

Background: 

From direct (and often outspoken) farmer feedback and producer surveys we understand 

that over the years farmers’ experience with most commodity checkoff programs has not 

been a positive one, to say the least. Producers are legally responsible for paying an 

assessment (tax) on their production – while having little to no say on how that money is 

spent due to their marginalization and under-representation on the governing boards 
which are dominated by industry interests. As a result the type of research and promotion 

initiatives that would improve and benefit the producer sector are consistently given short 

shrift while industry interests utilize the lion’s share of the funding to promote their 

products and interests. Farmers also resent the excessive funds often spent supporting 

lavish meetings and expense accounts for the governing board members.

Further, many small and mid-size farm sector producers take exception to the claims that 

OTA represents the farmer sector, as espoused in the 2014 Farm Bill negotiations with 

Congress and subsequent OTA checkoff organizing initiatives.

Farmers also see OTA’s proposed blanket exemption for the small farm sector as a selfserving ploy to disenfranchise the small to mid-size farmers who form the majority of 

certificate holders – to muster the remaining (non-exempt) votes to pass their singular 

checkoff proposal, thereby preventing its rejection.

Further Partial Proposal Recommendations:

Referendum Procedures

1. Eligible voter means any person who is currently (i) an organic producer, organic 

producer-handler, organic handler, organic product processor, or organic importer 

that either has gross organic revenue in organic products during the representative 

period. Any person that holds multiple organic certificates (i.e. for both 

production and handling) will be allowed only one vote.

2. Eligible importer means any person who is currently an organic importer with 

gross organic revenue of organic products during the representative period as a 

principal or as an agent, broker, or consignee of any person who produced or 

handled organic products outside of the United States for sale in the United States, 

and who is listed as the importer of record for such organic products. Importation 

occurs when organic products outside of the United States is released from 

custody by Customs and introduced into the stream of commerce in the United 

States. Included are persons who hold title to foreign-manufactured organic 

products immediately upon release by Customs, as well as any persons who act on 

behalf of others, as agents or brokers, to secure the release of organic products 

from Customs when such organic products is entered or withdrawn for use in the 

United States.

Voting

The Department will use the USDA AMS National Organic Program database of 

organic certificate holders and mail a ballot to each certificate holder with a stamped 

return address envelope. Also the Department will instruct certifiers to mail a ballot to all 

the entities it certifies to ensure that all eligible voters receive at least one ballot and 

accompanying information in the mail. All ballots will be cast by mail directly to the 

Department. Voter will be instructed to fill out the ballot and place the finished ballot in 

an envelope with the word “Ballot” on it. That envelope with the word Ballot on it will be 
placed into a stamped addressed envelope that contains the returned mailing address of 

the voter and who they are certified by and mailed to the Department. The process of 

counting the ballots will be conducted in a way that ensures each voter is anonymous. 

Instructions for voting procedure

1. Provide ballots and related material to be used in the referendum. The related 

material will at least include information from those proposing the referendum 

and those opposing it to ensure that the vote has all the information in one 

mailing. The ballot shall provide for recording essential information, including 

that needed for ascertaining whether the person voting, or on whose behalf the 

vote is cast, is an eligible voter;

2. Give reasonable public notice of the referendum

a. By using available media or public information sources, including paid 

advertising. Such sources of publicity may include, but are not limited to, 

print and radio; and

b. By such other means as the agent may deem advisable, including holding 

outreach educational meeting on the proposal to be voted on in different 

parts of the country, especially in those rural areas that lack internet 

connectivity.

Composition of the Board

1. The Board shall be composed of 25 members and shall be established as follows:

a. Sixteen organic producers representing equitable diversity in geography, 

commodity, and size of operation. None of these producer members may 

hold additional organic certificates (no producer-handlers, organic 

handlers or product processors). 

b. Two organic producer-handler members;

c. Three organic handler members;

d. Two organic product processor members;

e. One organic importer member; and,

f. One at-large public member, who shall be a non-voting member.

2. The Board shall conduct outreach to all known organic producers, organic 

producer-handlers, organic handlers, organic product processors and organic 

importers to solicit nominations for serving on the Board. Organic producers, 

organic producer-handlers, organic handlers, organic product processors, organic 

importers, and non-voting at large candidates may submit nominations to the 

Secretary; 

3. The Board shall strive for diversity in its membership. This includes diversity 

that meets Equal Employment Opportunity requirements, as well as diversity 

among organic products based on the proportions of assessments paid, diversity 

among crop type, diversity among geographic regions, diversity among the 

segments represented in the supply chain, diversity in the size of operations, 

diversity in marketing expertise, and diversity in research experience.

4. Board members shall serve without compensation, but shall be reimbursed for 

reasonable travel expenses, which may include a per diem allowance or actual 
subsistence allowance while working for the Board away from their homes or 

regular places of business as approved by the Board, which they incur when 

performing Board business. For producer members, reimbursed reasonable travel 

expenses will include compensation for the hiring of temporary help to cover their 

work on the farm when performing Board business. 

5. All Board meetings will be open to the public and will have public comment as a 

part of their agenda.

Allocation of funds

1. A summary of proposed expenditures for each program, plan or project. This shall 

include the following allocation of expenditures:

a. The funds shall be allocated as follows: 65 percent for research, 20 percent 

for information, 10 percent for promotion, and 5 percent for discretionary 

funds; and

b. Of the funds allocated to research, no less than half shall be allocated to 

producer/farmer/ranchers who want to carryout organic research, 

demonstration, and education projects on their farms either individually 

or in groups. This research should take into account regional differences

and priorities for producer-oriented research. Funds should be allocated 

equitably to reflect regional producer research needs.

2. The Board will not accept voluntary contributions. 

3. The Board may not expend for administration, maintenance, and the functioning 

of the Board an amount that is greater than 10 percent of the assessment and 

other income received by and available to the Board for the fiscal year. For 

purposes of this limitation, reimbursements to the Secretary shall not be 

considered administrative costs.

4. Any program, plan or project receiving funds shall not expend for administration 

an amount that is greater than 10 percent of the total funds allocated to the 

program, plan or project.

Assessments

1. Organic producers and organic producer-handlers shall pay one-hundredth of one 

percent (.001%) of Gross Organic Sales. 

2. Organic handlers and product processors, shall pay an assessment starting at 0.01 

% for those companies under $10 million in gross organic sales; 0.1% for all 

companies over $10 million in Gross Organic Sales of products that are certified 

to the “100% organic” or “organic” standard pursuant to 7 CFR § 205.301(a) and 

(b). Organic handlers and product processors shall pay an assessment of 70% of 

0.1% of Gross Organic Sales of products that are certified to the “made with 

organic” standard pursuant to CFR § 205.301(c).

3. Organic importers shall pay an assessment to the Board through Customs on 

organic products imported for marketing in the United States. Organic importers 

shall pay an assessment of 0.1% of Gross Organic Sales of products that are 

certified to the “100% organic” or “organic” standard pursuant to 7 CFR § 
205.301(a) and (b). Organic importers shall pay an assessment of 70% of 0.1% of 

Gross Organic Sales of products that are certified to the “made with organic” 

standard pursuant to 7 CFR § 205.301(c). If Customs does not collect an 

assessment for the organic product from an organic importer, the organic importer 

is responsible for paying the assessment directly to the Board within 90 calendar 

days after the end of the quarter in which the organic products were imported.

Referenda

1. Subsequent referenda. Every seven years, the Department shall hold a referendum 

to determine whether assessed entities favor the continuation, suspension, or 

termination of the Order. The Order shall continue if it is favored by a majority of 

the assessed entities voting. The Department will also conduct a referendum if 10 

percent or more of all assessed entities request the Department to hold a 

referendum. Bloc voting shall be prohibited.

Proposed Definitions:

Research NOFA recommends a definition of organic research under the proposed 

generic research and promotion program that focuses on the real research needs of 

independent producers which would help to close the gap between national supply and 

demand as well as keep US producers competitive with a growing international organic 

market. Our proposed definition for research is as follows:

Research means any type of investigation, study, evaluation, or analysis 

(including related education, extension, and outreach activities) designed to improve 

organic farm production systems and practices, increase farm profitability and 

productivity, expand organic farming opportunities, and enhance quality of life for farm 

families and their communities; enhance plant and animal breeding and varietal 

development for organic systems and improve the availability of other production inputs; 

optimize natural resource conservation, biodiversity, and environmental outcomes of 

organic agriculture; advance organic farm and food safety objectives; enhance or increase 

the consumption, or production of organic products; or to do studies on nutrition, market 

data, processing, environmental and human health benefits, quality of organic products, 

including research directed to organic product characteristics and product development, 

including new uses of existing organic products, new organic products or improved 

technology in the production, processing and packaging of organic products.

Organic certificate holder: Organic certificate holder means a person who is not exempt 

or excluded from certification pursuant to 7 CFR 205.101 and who holds a valid organic 

certificate pursuant to 7 CFR 205.400 through 7 CFR 205.406.

Organic handler: Organic handler means a person who is handling certified organic 

products in accordance with the requirements specified in 7 CFR 205.101 or 7 CFR 

205.270 through 7 CFR 205.272 and all other applicable requirements of this part 205 

and receives, sell, consign, deliver, or transport certified organic products into the 

current of commerce in the United States, the District of Columbia, the Commonwealth 

of Puerto Rico, or any territory or possession of the United States.
Organic importer: Organic importer means any organic producer, organic producerhandler, organic handler with gross organic revenue person who imports certified 

organic products from outside the United States for sale in the United States.

Organic producer: Organic producer means a person who has produced certified 

organic products in accordance with the requirements specified in 7 CFR 205.101 or 7 

CFR 205.202 through 7 CFR 205.207 or 7 CFR 205.236 through 7 CFR 205.240 and all 

other applicable requirements of part 205.

NOFA recommends including a definition of organic producer-handler that defines the 

small- to mid-size producer who markets organic products directly to the consumer. This 

type of handler operates at a much smaller scale than the typical handler, which is often 

a large processing facility marketing at the wholesale level. Our proposed definition for 

Organic Producer-Handler is as follows:

Organic producer-handler: Organic producer-handler means a person who is an organic 

producer who markets organic products direct to the consumer. 

Organic product processor: Organic product processor means a person who has 

cooked, baked, heated, dried, mixed, grinded, churned, separated, extracted, cut, 

fermented, eviscerated, preserved, dehydrated, frozen, or otherwise manufactured organic 

products, and includes the packaging, canning, jarring, or otherwise enclosing organic 

food in a container.

Person: Person means any individual, group of individuals, partnership, corporation, 

association, cooperative, or any other legal entity.

Thank you for calling for, and your consideration of, these Partial Proposals. To be 

equitable and rectify the negative producer checkoff experiences of the past, NOFA 

believes that any all-commodity organic checkoff must fully represent all sectors of the 

organic community with proportional majority representation to all producer sector 

certificate holders.

Sincerely,

Steve Gilman, NOFA-IC Policy Coordinator