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USDA/AMS | RIN: 0581-AA40 | Publication ID: Fall 1999 |
Title: National Organic Program | |
Abstract: The program is proposed under the Organic Foods Production Act of 1990 (title XXI of the Food, Agriculture, Conservation and Trade Act, Pub. L. 101-624), as amended (OFPA or Act), which requires the establishment of national standards governing the marketing of certain agricultural products as organically produced to facilitate commerce in fresh and processed food that is organically produced and to assure consumers that such products meet consistent standards. This program would establish national standards for the organic production and handling of agricultural products, which would include a national list of synthetic substances approved for use in the production and handling of organically produced products. It also would establish an accreditation program for State officials and private persons who want to be accredited to certify farms and handling operations that comply with the program's requirements and a certification program for farms and handling operations that want to be certified as meeting the program's requirements. The program additionally would include labeling requirements for organic products and products containing organic ingredients and enforcement provisions. It further provides for the approval of State organic programs and the importation into the United States of organic agricultural products from foreign programs determined to have equivalent requirements. On December 16, 1997, the proposed rule was published with a public comment period that ended on April 30, 1998. Over 275,000 comments were received and are currently being reviewed with a subsequent revised proposed rule planned for calender year 1999. | |
Agency: Department of Agriculture(USDA) | Priority: Economically Significant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Proposed Rule Stage |
Major: No | Unfunded Mandates: No |
CFR Citation: 7 CFR 205 | |
Legal Authority: PL 101-624, sec 2101 to 2123 7 USC 6501 to 6522 |
Legal Deadline:
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Statement of Need: The purpose of these regulations is to implement the Organic Foods Production Act (OFPA). The Act requires the establishment of consistent national standards for products labeled as organic; mandatory independent, third-party certification of such products; U.S. Department of Agriculture (USDA) oversight of the independent certifiers and their inspectors; and assurance that imported organic food products are produced and processed under practices equivalent to USDA standards. Establishment of the National Organic Program is necessary to eliminate the confusion that exists among consumers because of the variety of standards under which organic foods are currently produced, and the irregular and sometimes unsubstantiated labeling claims. As required by law, the National Organic Standards Board made recommendation on the development of the program. Based on recommendations of the Board, the Agency prepared a proposed rule for the accreditation of State and private persons to carry out the certification procedures and processors of organic foods, and a separate proposed rule for defining standards for the production of organic crops, livestock, and for processing foods to be labeled as organic. The proposed rule for standards will include the national list of prohibited substances and allowed synthetic substances to be used in organic production and processing. The standards will also include the process for the collection of user fees, enforcement provisions, determination of equivalency of foreign certification programs (either national or private certification programs), and the ongoing functions of the Board. The Board submitted recommendations for most of the program to the Secretary. |
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Summary of the Legal Basis: This regulatory action is authorized by statute. The Organic Foods Production Act of 1990, which is title XXI--Organic Certification--of the 1990 Farm Bill, calls for the Secretary of Agriculture to establish an organic certification program that relies on State and private agencies to verify that agricultural products are produced according to national standards. The Act also authorizes State officials to establish State Organic Certification Programs, provided that the provisions of each program are first submitted to USDA and approved by the Secretary. |
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Alternatives: The Board developed recommendations through an open discussion process with the interested parties. The Board formed six subcommittees to draft recommendations for the following subject areas: crop standards; livestock standards; processing, packaging, and labeling standards; materials; accreditation of certifying agents; and, international (import) requirements. The Board held 14 full board meetings and 11 subcommittee meetings, during which the Board accepted public comments. In addition, the Agency held four public hearings on livestock to develop additional input to the development of livestock standards. In reviewing the Organic Foods Production Act, the subcommittees identified about 25 specific topics requiring recommendation development such as an organic plan, pesticide drift, livestock health, and materials review. Draft documents were prepared by the subcommittees in the specific subject areas and circulated initially to known individuals with expertise in these subjects in the organic community for comment. Comments were received and documents revised and sent out to a mailing list exceeding 1,000 names, for additional public comment. Documents were further revised, became committee position papers and were sent out to the mailing list for additional public comment. If the comments were minimal the documents were then approved by the subcommittees and forwarded to the full Board to be approved as draft recommendations. These documents were then further revised with full board-member input and submitted a final time for public comment. Upon receipt of comments, revisions were made, and the document was approved as a recommendation to the Secretary. Approximately 25 of these recommendations were approved at a Board meeting in June 1994 and forwarded to the Secretary (after minor editing in the approval process) in August 1994. In all of the documents, the Board committees considered alternatives and altered positions based on reasoned public comments received. The Board will continue to provide recommendations for modification or additions to program recommendations as the program is implemented and operating. The allowed synthetic substances and prohibited natural substances on the National List are subject to review by the Board and the Secretary every 5 years in order for the National List to be valid according to section 211(e) of the OFPA. The Secretary received the recommendations and used them as the basis for developing proposed rules for implementing the program. The Secretary may not accept recommendations that are deemed to be inconsistent with Department policy or lack a defensible position. |
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Anticipated Costs and Benefits: The calculations and research related to the costs and benefits for the program are still under development. Because information is not collected on organic farmers, as a class, there is a lack of a good database to be used in determining the impacts of the program. Administrative costs would include staff costs for managing the accreditation program, costs for a peer review panel, costs for site visits to observe and review certifier program activities, overhead and/or indirect costs. If it is determined that income from the accreditation program would need to pay for all costs associated with the program, additional costs would include staff and indirect costs for support for the Board, ongoing materials reviews for the National List, enforcement costs, international equivalency costs to determine whether to allow organic imports, collection and management of the user-fee program, and approval of State programs. The program anticipates being funded through user fees. However, we believe that full user-fee support will not be possible for at least 3 years following implementation; appropriated general funds will be necessary to provide support while the organic industry develops a sufficient economic base. It is expected that the industry will soon be able to financially cover program activities related to accreditation if it continues to grow at its current annual rate of 20 percent as reported by a private natural foods magazine; however, full coverage of costs related to development of State and international programs may not be possible for several years. The tangible benefits of the program are numerous. The benefits will extend to the marketplace, where it is expected that the price of organic food will decrease with increasing volume and availability and benefit current and potential consumers; all products labeled as organic will have been produced from systems certified to a national and consistent standard; truthful market information will be developed; access to international markets with products from certification programs overseen by USDA will be improved; certifying agents will be relieved of the financial costs related to standards development, materials review, and other endeavors that duplicate activities at the Federal level; and manufacturers and processors will be able to buy certified organic products from producers certified by different certifying agents without requiring the paperwork process in use today. Finally, exports will be enhanced by a common natural standard. |
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Risks: The program does not purport to directly address either environmental problems or food residue issues. Any reduction in risks to public health, safety, or the environment are indirect benefits of the criteria used by organic producers in choosing materials that serve as an adjunct to the preferred methodology of mechanical and biological control measures. Organic agriculture is based on management practices and materials that enhance ecological activity. Organic producers seek to reduce or eliminate practices and materials that do not enhance ecological activity. Organic producers seek to reduce or eliminate practices and materials that may harm soil life, deplete nonrenewable resources, pose a hazard to water and air quality, or threaten farmworker health. The Act requires the establishment of a "National List" of approved synthetic and prohibited natural materials as an integral part of the program. Synthetic materials approved for the National List must have been determined by the USDA, FDA, and EPA to be not harmful to human health or the environment. |
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Timetable:
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Regulatory Flexibility Analysis Required: Yes | Government Levels Affected: State, Tribal |
Small Entities Affected: Businesses | |
Included in the Regulatory Plan: Yes | |
Agency Contact: Eileen Stommes Deputy Administrator, Transportation and Marketing Programs Department of Agriculture Agricultural Marketing Service Room 4006, P.O. Box 96456, Room 2748-So. Bldg., Washington, DC 20090-6456 Phone:202 720-3252 |