In order
to have access to the word “organic” in marketing or sales materials, most
producers need to be certified. Those who are exempt from required certification are small
organic farms and businesses whose gross agricultural income from organic sales
is less than $5,000/year, if they are brokers, distributors, and traders,
retail food establishments, or exempt handling operations (who still need to
comply with specific sections of USDA organic regulations). The certification
process is not free, with the costs and fees varying widely depending on the
certifying agent and the size, type, and complexity of the operation. Often,
there is an application fee, annual renewal fee, assessment on annual
production or sales, and inspection fees. While there might be an array of initial
fees, producers are often able to be reimbursed up to seventy-five percent of
their organic certification costs once they are certified.
While
many producers are turning to the organic market, there are some challenges
that face this industry. First, it may be difficult for some producers to make
a substantial profit margin during the required 36-month period in which
they must conform to their organic production guidelines, but are unable to sell under the
organic seal until after these three years have passed. Due to the large
consumer demand for organic products while the industry was being established,
there were significant shortages in which producers could not keep pace with
the fast-growing demand. Fluctuating market conditions and significant price
premiums also challenge the organic industry in the United States’ weakened
economic condition. Other labels, such as “natural” and “antibiotic free,” are
also providing some competition to the organic industry.
With all
of the challenges it may face, the organic industry offers benefits to the
agriculture industry. Its aims to lessen
environmental impact and unnecessary use of antibiotics and hormones, and
promote ecological balance are advantageous to
the environment and biodiversity conservation. However, the methods used in
organic production result in a lower overall yield of crops and products. Also,
conventional practices are more resilient to field-scale challenges than
alternative practices. These characteristics of conventional farming practices
are particularly important, especially with the world’s population increasing
at steady rate. Innovation will be needed to provide the agricultural
commodities necessary for the projected ten billion people by 2050.
Literature cited:
Field-scale experiments reveal persistent yield gaps in
low-input and organic cropping systems. Kravchenko, A., Snapp, S., and
Robertson, G., December 2016:
National
Organic Program, USDA. FAQ: Becoming a Certified Operation:
National
Organic Program, USDA. What is Organic?: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateC&navID=NationalOrganicProgram&leftNav=NationalOrganicProgram&page=NOPConsumers&description=Consumers&acct=nopgeninfo
Emerging Issues in the U.S. Organic
Industry, USDA/ERS, June 2009: https://www.ers.usda.gov/webdocs/publications/eib55/9396_eib55_reportsummary_1_.pdf

