Reuters Covers OCA's Reaction to Organic Standards

US organic industry fears looser gov't standards

WASHINGTON (Reuters) - A massive $397 billion federal spending bill includes
a little-noticed provision that could threaten the U.S. organic food industry by easing federal standards on organic meats, a consumer group said Thursday.

The so-called omnibus federal spending package also has a provision that would require the U.S. Agriculture Department to delay implementing changes on licensing federal grain warehouses.

U.S. food companies last October began carrying new USDA organic labels on juices, produce and meat products. To carry the USDA seal, livestock producers are required to meet strict conditions, including feeding animals 100 percent organic grain or allowing them to graze in ``organically handled'' pasture.

A provision within the so-called omnibus federal spending package would drop the rule when organic feed costs are more than double that of conventional feed.

``This sets a terrible precedent,'' said Simon Harris, spokesman for the Organic Consumers Association, based in Little Marais, Minnesota. ``If you can't comply with the regulations, then don't produce organic meat.''

Congress is expected by the end of the week to approve the long-delayed spending bill that will fund almost every area of the U.S. government exceptthe Pentagon.

Sen. Patrick Leahy, a Vermont Democrat, urged lawmakers to defeat the measure, saying the proposal would weaken current organic standards. Under a separate provision attached to the massive spending package, the USDA would be required to wait 180 days before enacting changes on licensing
federal grain warehouses.

The USDA last week ordered regular audits of federally licensed grain warehouses to ensure farmers' crops were adequately protected in the event of a warehouse bankruptcy.

The department said it would also increase the minimum net worth of federal grain elevators to $150,000 from $50,000.

``The additional time is good for the industry, so it can understand the full impact of these changes,'' said Randy Gordan, spokesman for the National Grain and Feed Association, which worked closely with lawmakers to add the provision.