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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