Page 1

Letterhead

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

Please accept this partial proposal on a new industry-funded promotion, research and information order for 

organic products, which would be developed under the Commodity Promotion, Research, and Information Act 

of 1996 (1996 Act).

I am submitting this proposal on behalf of the Organic Farmers’ Agency for Relationship Marketing, Inc 

(OFARM). OFARM is an organic grain and livestock cooperative incorporated in the State of Minnesota as a 

marketing-agency-in-common with six organic grain and livestock cooperatives as members. The six 

cooperatives have organic producer members in 19 states from Montana to Texas and Louisiana to Kentucky 

and Ohio and states within that region. Dr. Thomas Gray, in USDA’s Rural Cooperatives magazine (Jan./Feb. 

2012) cites OFARM as the largest block of farmer controlled organic grain in the U.S. OFARM is a member of 

OTA.

The OFARM board of directors have voted on a position that the members of the individual cooperatives they 

represent have expressed. Universally they do not believe a mandatory USDA checkoff program is the correct 

vehicle to address the needed organic marketing, research, nor support for increased domestic organic 

production. While our members feel all of these areas are important for the future of a strong organic 

agriculture in the U.S., a USDA Generic Research and Promotion Order for Organic would not be the vehicle of 

choice. That being said, because the OTA has applied to establish such a program, albeit falsely claiming broad 

farmer support, we would like to outline the areas of the proposal that would need to be addressed to fairly 

propose such an idea to the organic agricultural community. 

In October, 2014, OFARM released as series of videos with individual farmers across the Midwest telling their 

story about organic. They can be found at www.organictherealnatural.com. The videos have been viewed 

thousands of times by consumers and promoted by major food coops in the Midwest. This is just one example 

of farmers promoting organic using their own ingenuity and funds, including grant funds to promote organic.

Any proposal must be producer centric and all certificate holders should have the right to vote on any proposed 

research and promotion order.

We are basing our partial proposal on the 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).
Page 2

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

importer of an organic agricultural commodity.

Because the organic market has grown so quickly in the United States with market demand for organic products 

far outreaching the domestic supply, the program objectives should first and foremost focus on bringing new 

farmers into organic production through information and technical assistance. The secondary program objective 

should support farm-gate production research to ensure that organic farmers maintain a competitive edge among 

a growing international organic market. Once domestic organic supply catches up with our domestic demand, 

the program should also focus on broader marketing and promotion goals such as educating consumers about 

what organic is and its benefits and distinguishing organic from other claims and unregulated seals like 

“natural.” Our recommended outline of priority program objectives is rooted in decades of direct independent 

farmer representation, and would most address the current needs of the majority of organic certificate holders 

(that is small to mid-size independent producers).

We feel strongly that an organic research and promotion order should not impose arduous compliance 

requirements on small businesses. In order to prevent this burden, our proposal does not propose to assess 

farmers/producer/growers/ranchers on net producer income nor do we propose to exclude a significant portion 

of the organic community. Our partial proposal recommends that all organic certificate holders should be 

assessed; thus, all organic certification holders should be included in the decisions, referendums, and leadership

of the program. We feel strongly that the assessment should be made on Gross Organic Sales, rather than net 

profit as net profit is complex for small businesses that typically produce all their own farm inputs. We believe 

in accordance with the 1996 Act that all assessments are collected by first handlers or producer handlers not 

individual producers and that assessments should be progressive so that those with the highest margins and most 

opportunity for profit pay the most.

Recommendations for changes

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 foreignmanufactured 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 
Page 3

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:
Page 4

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.

Definitions

Definition of research

We recommend 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 
Page 5

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 producer-handler, 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.

We recommend 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.