Agriculture and Natural Resources

FSA41 Organic Certification Process

What Does Organic Mean? Over the past several years, there Ronald Rainey has been tremendous growth in con­ Associate Professor ­ Products labeled as “organic” or sumer demand for organically pro­ Agricultural Economics containing the USDA Organic seal duced products. The increase in and Agribusiness have been produced or processed by a demand for organic food products has grower or handler that meets all of resulted in more organic production USDA’s requirements under the as the number of certified organic Harrison Pittman National Organic Program (NOP). operations has continually increased, Director ­ National Only producers or processors that surpassing 7,000 in 2001, doubling Agricultural Law Center have been certified through the the 1993 number of farms. From 1997 National Organic Program are through 2001, the number of certified Shannon Mirus allowed to use the term “organic” organic acres in the United States has on their labels. The NOP is for Staff Attorney ­ National increased by almost 1 million acres, marketing purposes only; the regula­ Agricultural Law Center growing from 1.3 million acres in tions do not address food safety or 1997 to 2.3 million acres in 2001. nutrition. A food labeled “organic” According to the 2007 Census of only carries the guarantee that it was Katherine McGraw Agriculture, there were 24,000 farms Research Associate ­ grown and processed under the speci­ operating on 2.26 million certified Agricultural Economics fied conditions. It is not a health or organic acres. This includes 1.3 mil­ nutrition statement. and Agribusiness lion acres devoted to organic crops with the remaining acres in pasture­ Why Should I Become an land. In 2007, there were a little Jennie Popp over 600,000 acres being converted Professor ­ Agricultural Organic Producer? to organic. Economics and Organic products typically sell for

Agribusiness higher prices than conventionally pro­ duced products. This is partially How Do I Become an Organic because of the increased costs associ­ Producer? ated with raising organic products, but also because consumers are will­ Although you may already be ing to pay extra for organic products. following many of the requirements These price premiums can range any­ of the National Organic Program, to where from 6% to 100% higher than be able to sell your products as prices paid for conventionally grown “organic” you must be certified by a crops, with the premiums typically USDA­accredited certifying agent. To being higher at the wholesale level receive your certification, you must than at the farm gate level. By enter­ meet all the requirements of the ing the organic market, producers are NOP regulations. These regulations able to take advantage of the price cover such topics as what substances premiums that consumers are paying you may use in production and pro­ Arkansas Is for organic products1. cessing, conservation measures, Our Campus ______1 Dimitri, Carolyn, and Lydia Oberholtzer. “Organic Price Premiums Remain High.” Amber Waves. September 2005, available at http://www.ers.usda.gov/AmberWaves

Visit our web site at: /September05/Findings/OrganicPrice.htm (last visited February 21, 2011).

http://www.uaex.edu

University of Arkansas, United States Department of Agriculture, and County Governments Cooperating record­keeping requirements and The fees charged by the On­Site Inspection other administrative procedures certifying agents may vary by loca­ After you have submitted that are required. tion and type of agent. Addition­ your application, the certifying ally, the type and size of farm may The National List of Allowed agent will review it for certifica­ impact the fees charged, which can and Prohibited Substances identi­ tion eligibility. If your operation range from $25 to well over $500. fies synthetic substances that may is eligible, a qualified inspector be used, and the nonsynthetic sub­ As of publication, there are no will conduct an on­site inspection. Depending on the size, type and stances that cannot be used, in USDA­accredited certifying agents complexity of the operation, this organic production and handling in Arkansas. Although Arkansas generally takes two to five hours. operations. The list is developed by does not have accredited certifying USDA and updated periodically Operations with livestock or agents, the Arkansas Agriculture on­farm processing may take with substantial input from the Department does have a cost­ longer. Fields, equipment, crop National Organic Standards share program that offsets some of storage and documentation will be Board (NOSB)2. the certification costs. A current reviewed, including field borders The NOSB’s main mission is list of certifying agents may be where nonorganic crops adjoin to make recommendations about found on the National Organic organic crops, in order to verify there are sufficient buffer zones whether a substance should be Program web site at http://www to avoid drift of nonapproved allowed or prohibited in organic .ams.usda.gov/nop. materials. production or handling, to assist in Application the development of standards for Certification and Annual substances to be used in organic The application that you Inspection production and to advise the submit must contain the following The certifying agent will Secretary on other aspects of the information: implementation of the 1990 review the inspection report along Organic Act. You may submit sub­ • Type of operation to be with the application submitted. If the information is adequate to stances for consideration to be The operation may be certified. prove that the applicant is follow­ added to the list. The current list certified for producing or pro­ ing the proper standards and is available on the National cessing of crops, wild crops, requirements, the certifying agent Organic Program web site at livestock or handling. will grant cer­ http://www.ams.usda.gov/nop. • History of substances applied to tification to the operation The certification process for a land for the previous three farm involves developing and sub­ All organic land must be and issue a years. certificate. mitting an application through a treated organically for three This certifica­ USDA­accredited certifying agent years prior to harvest of the tion remains and an on­site inspection. It is organic crop before it can in effect until important to note that, if your become certified as organic. it is termi­ operation is currently using con­ nated, either • ventional production methods, List of organic products being voluntarily or there is a three­year transition grown, raised or processed. through period to be fully certified. The type of products will enforcement determine what regulations The following sections processes by apply to your farm. USDA. summarize each area of the certifying process and detail • The organic system plan (OSP). Any changes in the operation, available resources. The organic system plan is such as the addition of a new crop, a plan that describes the prac­ additional processing or application USDA­Accredited Certifying tices and substances used in of a prohibited substance, must be Agents production. The plan must also reported immediately to the certify­ There are several USDA­ provide for monitoring prac­ ing agent. Annual inspections by a qualified inspector are required to accredited certifying agents across tices, a record­keeping system maintain the certification. the country. Some are private and lay out your procedures for preventing the commingling of companies that provide the ser­ Guidance Handbook vice, and others are branches of organic and nonorganic prod­ state government, usually state ucts and contamination by In 2010, USDA published a departments of agriculture. prohibited substances. guide book to assist certifying

______2 The Organic Foods Production Act of 1990, part of the 1990 Farm Bill, authorized the Secretary of Agriculture to appoint a 15­member National Organic Standards Board (NOSB). agents and organic producers with soliciting public comment producers. Additionally, exempt understanding the NOP process and finalizing new guid­ organic producers may not use and regulations. The guide can be ance for inclusion in the USDA Organic seal on their downloaded from USDA’s National the Handbook. products. Producers that are Organic Program Web link. The exempt may use the word “organic” goals of the guidebook as listed on Exemptions From to market their products, but the the NOP web site3 are: USDA Organic seal may only be Certification used on certified organic products. The goal of the Program The NOP regulations allow Handbook is to provide small producers and handlers who those who own, manage or follow the organic regulations on certify organic operations production and handling to sell with guidance and instruc­ their products as organic without tions that can assist them being certified. This exemption in complying with the applies only to those small produc­ National Organic Program ers and handlers whose gross sales (NOP) regulations. The of organic agricultural products are Handbook includes three $5,000 or less per year. Although types of documents: 1) guid­ exempt from the certification ance, which provides inter­ process, these producers and han­ pretations of NOP dlers must still comply with the Exempted producers may statutory or regulatory NOP regulations that govern pro­ sell their products at farmers’ mar­ requirements, 2) instruc­ duction, labeling and record­keep­ kets but should have procedures in tions, which informs certi­ ing for organic products. place to store, transport and dis­ fying agents and certified play organic and nonorganic prod­ operations about best prac­ Restrictions for Exempt ucts separately. These products tices for conducting busi­ may also be sold to grocery stores ness related to certification, Organizations and restaurants for resale as accreditation, international There are several restrictions organic, but the retailer may not activities and compliance in place for producers and handlers process or repackage the product and enforcement and that are exempt from the certifica­ and then sell it as organic. 3) policy memos, which tion process. Products from an provide formal communica­ exempt operation may not be sold Labeling Foods as “Organic” tion to public audiences on to a handler to be further processed The National Organic Program NOP policy regarding a and used in products labeled regulations give the term “organic” specific regulatory require­ “organic.” Processors selling certi­ a special legal meaning when used ment. It is our intention to fied organic products or products on food products. The regulations expand this project over labeled as “organic” may only use specify when a food can be labeled time by issuing draft guid­ ingredients from a certified organic as “100% Organic,” “Organic” and ance on additional topics, producer, not from exempt organic “Made With Organic.”

Labeling of organic products and use of the USDA Organic seal.

100% Organic Organic Made With Organic No Label of Organic Must contain 100% Must contain 95­100% Must contain 70­95% Products with less than organic products organic products organic products 70% organic products

May use USDA Organic May use USDA Organic May NOT use USDA May NOT use USDA seal seal Organic seal Organic seal

USDA Organic seal.

This seal is used by certified producers to identify products that are produced and/or processed according to the guidelines and allows consumers to easily identify certified “organic” products.

______3 USDA National Organic Program web site, http://www.ams.usda.gov/AMSv1.0/nop (last visited on February 21, 2011.). Penalties the United States Department of 2. National Sustainable Agricul­ Agriculture. You may also be in ture Information Service – Penalties are in place for violation of state fraud or mis­ ATTRA Web page, available labeling products as “organic” if branding laws, which carry their at http://attra.ncat.org you are not a certified organic own penalties separate from those /organic.html. producer and for claiming to be enforced by USDA. exempt if you do not meet the 3. National Agricultural Law qualifications. Making these false For More Information Center’s National Organic Pro­ claims is fraud and can result in a gram Reading Room. The Web civil penalty of up to $10,000 per 1. USDA Agricultural Marketing link is http://www.national violation. The National Organic Service National Organic Pro­ aglawcenter.org/readingrooms Program regulations are federal gram Web page, available at /organicprogram/. regulations and are enforced by http://www.ams.usda.gov/nop.

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DR. RONALD RAINEY is associate professor ­ agricultural economics Issued in furtherance of Cooperative Extension work, Acts of May 8 and agribusiness with the University of Arkansas Division of Agriculture and June 30, 1914, in cooperation with the U.S. Department of in Little Rock. HARRISON PITTMAN is director and SHANNON Agriculture, Director, Cooperative Extension Service, University of MIRUS is staff attorney with the National Agricultural Law Center Arkansas. The Arkansas Cooperative Extension Service offers its in Fayetteville. KATHERINE MCGRAW is research associate ­ programs to all eligible persons regardless of race, color, national origin, agricultural economics and agribusiness and DR. JENNIE POPP is religion, gender, age, disability, marital or veteran status, or any professor ­ agricultural economics and agribusiness with the University of other legally protected status, and is an Affirmative Action/Equal Arkansas Division of Agriculture in Fayetteville. FSA41­PD­2­11N Opportunity Employer.