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The Organic Livestock and Poultry Practices final rule, published on January 19, 2017, adds provisions to the USDA organic regulations to address livestock and poultry living conditions, health care practices, and animal handling and transport, and during slaughter. The final rule was originally scheduled to become effective on March 20, 2017; the effective date was subsequently delayed to May 19, 2017.  AMS published a notice further delaying the effective date to November 14, 2017. Per a document published on November 14, 2017, the January 2017 rule was further delayed to May 14, 2018. As stated within the November 2017 publication, this proposed rule requests public comments on: (1) the scope of the Secretary’s authority under of the Organic Foods Production Act including 7 USC 6509; (2) whether the requirements in the final rule are the most innovative and least burdensome tool for meeting regulatory objectives; and, (3) whether the revised benefits calculations, which corrected a mathematical error in the final rule, justify the estimated costs.

Statement of Need:

This action is needed to ensure only regulations that are properly supported by legislative authority and requirements of executive orders are met.

Summary of the Legal Basis:

AMS National Organic Program is authorized by the Organic Foods Production Act of 1990 (OFPA) to establish national standards governing the marketing of organically produced agricultural products (7 U.S.C. 6501-6522). The USDA organic regulations set the requirements for the organic certification of agricultural products (7 CFR part 205).

Alternatives:

As AMS evaluates the concerns outlined in the abstract, the possible outcomes of the evaluation range from allowing the January 2017 final rule to become effective to withdrawing the January 2017 final rule.

Anticipated Costs and Benefits:

AMS estimated that the discounted costs, transfers, and benefits of the January 2017 final rule, for three different producer response scenarios, would range from $8.2 to $31 million annually due to increased compliance and regulatory burdens. In addition, there is also an estimated $3.9 million undiscounted annual paperwork burden.  AMS also estimated transfers ranging from $80 to $86 million annually caused by producers exiting the organic market. AMS estimates the benefits would range from $3.3 to $31.6 million for all producer response scenarios when the mathematical error is corrected.

Risks:

This action is likely to be contentious.