Organic and Specialty Crop Transition Assistance

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2 Organic and Specialty Crop Transition Assistance FARM BILL EDUCATION WORKSHOP, NOV. 6 DONN COOPER, FARMER SERVICES COORDINATOR GEORGIA ORGANICS

3 Value of Certified or Exempt Organically Produced Commodities Sold, 2012

4 Certified Naturally Grown Farmers: Georgia

5 National Organic Certification Cost Share Program (NOCCSP) Reimburses for 75% of organic certification costs, up to $750. Georgia Crop Improvement Association; Quality Certification Services (QCS); California Certified Organic Farmers (CCOF); Oregon Tilth.

6 Organic Cost Share Program Annual Funding 2008 FARM BILL 2014 FARM BILL Fiscal Year Total Mandatory Funding Fiscal Year Total Mandatory Funding 2008 $4.4 M 2009 $4.4 M 2010 $4.4 M 2011 $4.4 M 2012 $4.4 M Total $22 M 2014 $11.5 M 2015 $11.5 M 2016 $11.5 M 2017 $11.5 M 2018 $11.5 M Total $57.5 M Source: National Sustainable Agriculture Coalition (

7 National Organic Certification Cost Share Program (NOCCSP): Georgia Georgia: $130,000 annually for five years (until the next Farm Bill). Approximately $40,000 used in Jamie Arrington: Must register with state Georgia Organics 100 Organic Farms Campaign

8 Sustainable and Organic Research Farm Bill Program 2008 Farm Bill 2014 Farm Bill Organic Agriculture Research and Extension Initiative (OREI) $78,000,000 $100,000,000 Specialty Crop Research Initiative $180,000,000 $400,000,000 Beginning Farmer and Rancher Development Program $75,000,000 $100,000,000 Organic Production and Market Data Initiatives $5,000,000 $5,000,000 Foundation for Food and Agriculture Research N/A $200,000,000 Total $338,000,000 $805,000,000 Source: National Sustainable Agriculture Coalition

9 Sustainable and Organic Research: OREI Organic Agriculture Research and Extension Initiative (OREI): Supports competitive research, extension and education grants. Newly prioritizes research examining food safety issues specific to organic production systems, benefits of organic agricultural production on rural communities and rural economic vitality, and research needs of organic producers to comply with National Organic Program (NOP) regulation. Stengthen organic seed systems (including prevention of inadvertent introduction of GMO traits through cross-pollination. Explore technology to control weeds and pests while maintaining healthy water resources. For FY 2014, proposals addressing management of diseases, nematodes, weeds and insect pests in the Southern Region are especially encouraged. Concerns: Also prioritizes farm financial benchmarking and requires researchers outside of universities to match entire grant amount.

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11 Other 26% Labor 47% Utilities 6% Fertility and Seed Amendments 6% Car and Truck Expenses 7% Seeds and Plants Purchases 8% Organic Specialty Crop Farm Case Study: Expenses

12 Sustainable and Organic Research: ORG Integrated Research, Education, and Extension Competitive Grants Program (ORG) Largely same scope as OREI with more focus on climate mitigation and environmental services. FY 2014 funding set at $3.7 M, with individual awards capped at $200,000 annually and $500,000 total over three years. University of Georgia Poultry Science Department received $500,000 to research strategies to enhance de novo biosynthesis of methionine for organic poultry.

13 Sustainable and Organic Research: General Reauthorizes the National Sustainable Agriculture Information Service (ATTRA): Removes Sustainable Agriculture Research and Education (SARE) program s permanent authorization after Research & Education Grants, Large System Research Grants, Professional Development Grants, On-Farm Research Grants, Producer Grants, Sustainable Community Innovation Grants, Graduate Student Grants, Young Scholars Enhancement Grants

14 Other Organic and Specialty Crop Programs: NRCS Environmental Quality Incentives Program EQIP FUNDING LEVELS 2014 $1.35 B 2015 $1.6 B 2016 $1.6 B 2017 $1.65 B 2018 $1.75 B NRCS EQIP general payment limitation increased by 150% to $450,000 Nearly 40% traditionally used for irrigation installation and CAFO waste storage facilities (NSAC). Advanced payments for socially disadvantaged producers, beginning and limited resource farmers, and veterans raised from 30% to 50%. 5% set aside for beginning farmers and ranchers EQIP Organic Initiative limits payments to $20,000 annually and $80,000 over rolling six year Farm Bill

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16 Sustainable and Organic Research: Miscellaneous Specialty Crop Block Grant: $72.5 M per year through 2017, $85 M per year starting in 2018 Up from $55 M in 2008 Farm Bill. In 2014, $66 million awarded. Georgia received $1,393, Whole Farm Revenue Protection: RMA insurance product that recognizes inherent management benefits of on-farm diversification. 85% coverage level Premium subsidy up to 80% when at least two crops are grown Premium discount for increased diversification Coverage for both crops and livestock Inclusion of some incidental processing expenses necessary to make commodity ready for market, i.e. washing, trimming, packaging, etc. $8.5 M liability limit

17 Sustainable and Organic Research: Miscellaneous (Cont.) Organic Price Elections for insurable organic crops Elimination of 5% surcharge for crops insured under organic farming practices. Contract price option available for organic producers with guaranteed contracts (62 organic crops covered). Phased in changes to organic transitional yields to reflect actual organic production. Currently, RMA is working to obtain sufficient data. Most specialty crops and fruits are only insured in California, Oregon, Washington, Idaho. FSA Microloans Borrowing limit raised from $35,000 to $50,000. Up to 7 year term. Eligible experience includes non-farm business management, military leadership, advanced education.

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