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Narrow
exemption leaves few eligible for assessment waiver
By
Greg Brown
Associate Editor
The
USDA has proposed exempting organic producers from conventional marketing
order promotion assessments. But, the proposed rule stemming from the
farm bill limits the exemption to producers who are 100 percent organic.
That is the rub, according to industry groups.
Kevin Moffit, executive director of USA Pears/Pear Bureau Northwest
said that the recommendation would have little effect on the order’s
bottom line. With between 1/2 to 1 percent of the order being 100 percent
organic, the rule will not affect efforts greatly.
“There probably aren’t that many 100 percent organic growers
of pears,” he said. “We’re supportive of that position,
now that the USDA rules have finally been published. But, it is fairly
limiting because it does exempt only 100 percent organic growers.”
But, Moffit said, the organization is working well with organic pear
producers by reaching out to organic supermarket chains big and small.
In the move announced in December, the USDA's Agricultural Marketing
Service would amend 28 fruit and vegetable marketing order programs
that authorize market promotion activities. The changes would exempt
producers and marketers of solely 100 percent organic products from
paying commodity promotion assessments.
The 2002 Farm Bill directed the USDA to issue regulations exempting
any person who produces and markets solely 100 percent organic products
and who does not produce any conventional or non-organic products from
paying assessments under a commodity promotion law. The word “solely”
really limits the impact of the proposed rule, industry sources said.
Moffit estimated that there are, perhaps, fewer than five strictly organic
pear growers in the Northwest.
“There are a few that will be exempt from the marketing order,
if they choose to be. But we plan to continue to promote organic pears
through the continued use of our USA Pears logo and marketing efforts.
“We promote organic pears with supermarket groups such as Whole
Foods and Wild Oats, that carry a lot of organic produce,” said
Moffit. “We promote the product in the way they want us to promote
in their stores.
“In addition, we try to reach out to the smaller organic supermarkets
and try to promote in those,” he said. In Portland, for example,
the group works with New Season, a four-chain organic operation.
“It is not possible for a trade association to say this organic
product is better than conventionally grown. But, by going out and working
with organic supermarket groups and moving the volume of organic fruit
that we have, we feel that we are giving our grower base a good shake
in representing them.”
The proposed rule would affect the 28 regional marketing order programs
that authorize market promotion activities. These include programs for
Texas citrus; Florida avocados; California nectarines; California peaches
and pears; Washington apricots; Washington sweet cherries; Washington/Oregon
fresh prunes; Southeastern California grapes; Oregon/Washington winter
pears; cranberries grown in the States of Massachusetts, et al.; tart
cherries grown in the states of Michigan, et al.; Oregon/Washington
Bartlett pears; California olives; Oregon/California potatoes; Colorado
potatoes; Georgia Vidalia onions; Washington/Oregon Walla Walla onions;
Idaho/Eastern Oregon onions; Texas onions; Florida tomatoes; Texas melons;
California almonds; Oregon/Washington hazelnuts; California walnuts;
Far West spearmint oil; California dates; California raisins; and California
dried prunes.
The Organic Trade Association’s (OTA) executive director, Katherine
DiMatteo, said that the proposed rule was not as inclusive as the association
would have liked to see. DiMatteo was withholding final judgment, saying
that the proposed rule had the potential to be very good news to the
organic industry.
“We’re not clear as to the level of difficulty that producers
will face with this proposed exemption. We’re not sure just how
easy it will be for a grower to remove their operation from a marketing
order,” said DiMatteo.
OTA petitioned USDA soon after the rule’s announcement to extend
the comment period, because it fell during the busy holiday period.
“We want as many producers as possible to get the benefit of the
exemption,” said DiMatteo. “This presents a good opportunity
for growers to save some money, and get relief from an additional assessment.”
DiMatteo said that the OTA was going to continue looking into the proposed
rule and examine how the individual marketing orders handle the promotion
and assessment of organic products.
Comments on the proposed rule may be sent to the Docket Clerk, Marketing
Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA,
1400 Independence Avenue, S.W., STOP 0237, Washington, D.C. 20250 0237;
fax (202) 720 8938; or e-mail to moab.docketclerk@usda.gov.
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