Web Note: Keep in mind that the annual USDA budget is $90-100 billion, and that the budget for the 2007-2012 Farm Bill is $286 billion, most of which goes into propping up industrial agriculture, genetically engineered crops, unhealthy food, and the profits of large agribusiness corporations and retail chains such as Cargill, Monsanto, McDonald's, and Wal-Mart. From this perspective a few hundred million for organic and transition to organic programs over a five year period are just nickles and dimes, a thin veneer of greenwashing painted over a multi-billion dollar Agri-toxics Bondoggle that is destroying the environment, undermining public health, killing off small farms, using up unsustainable amounts of fossil fuels, topsoil, and water, decreasing irreplaceable biological diversity, and destabilizing an already disrupted climate.

Ronnie Cummins
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CEDAR FALLS --- People want organic food, and Iowa farmers are delivering.

It appears the federal government will finally deliver something to producers: Help. Congress has proposed hundreds of millions of dollars for organic farmers and consumers in the farm bill currently being debated.

Organic food sales reached $16.9 billion last year, according to industry statistics, growing at a rate of about 20 percent a year. Iowa farmers rank in the top 10 in several organic categories nationwide, including first in pork at more than 4,500 head a year. Organic foods now command a 3.5 percent market share nationwide.

This occurred largely without government help. Organic industry officials believe sales and production could dwarf current figures if Congress passes the farm bill, which will be a boon to the farm sector.

"Organic really needs more people involved. Demand is just incredible," said Rob Stanley, owner of Roots Market in Cedar Falls, a health food store specializing in organic food. "We don't get as many locally grown products as we like, (compared) to what the demand is."

To boost organic production, the House and the Senate have each proposed the industry receive a bigger piece of the farm budget.

The House passed a $286 billion, five-year bill in July. It includes $365 million for grants and research into such things as pest and disease management --- crucial for an industry that doesn't allow man-made chemicals --- and marketing and education. The House wants to spend $22 million in new funding to help farmers transition to organic agriculture and $3 million for organic marketing data collection and publication.

Senators, though, are still debating their version of the bill. The Senate wants to spend the same amount of money on grants and research and to help farmers get certified. Plus, $30 million for farmers market promotion and $24 million in new money for technical assistance to address export barriers for specialty crops. The Conservation Security Program would be funded and made nationwide instead of helping certain watersheds under the Senate version.

"It will reward organic farmers, who will prosper from payments for conservation practices such as long-term crop rotation ... including (planting) perennial prospect forages. Those are two key issues we're looking at," said Kathleen Delate, organic agriculture expert at Iowa State University.

Procedural issues that held up the bill were reportedly worked out by senators last week. The Senate bill is expected to pass by Christmas, which will allow the two versions to be reconciled early next year. The 2002 farm bill expired in September.

Neil Hamilton, an agricultural law professor at Drake University who spoke at the Iowa Organic Conference last month, expects a new farm bill soon. Whatever version reaches the president's desk, Hamilton said, the organic industry should be happy.

"They (organic provisions) aren't controversial. The industry got everything they asked for," Hamilton said.

"The organic farming community is poised to achieve its greatest political victory or success to date," he said at the conference.

One thing organic farmers asked for was equity in crop insurance. Organic producers currently must pay a 5 percent surcharge; yet, in times of loss, producers often are paid less.

"(Lawmakers) took an important steps to help strengthen the safety net for organic producers and manufactures," said Caren Wilcox, executive director of the Organic Trade Association, in a press release.

Convincing farmers to switch to organic farming can be difficult. It is more labor intensive and time consuming since weeds and insects can't be controlled by chemicals. Lower yields are common, at least at the beginning, since synthetic fertilizers are prohibited and it takes awhile to build the organic content in the soil.

Plus, the 36-month transition period to purge the soil of unwanted chemicals can be difficult. During the time, farmers are raising organic crops but aren't being paid for it.

The extra money proposed in the farm bill should mean more organic acres in the future, industry experts said.

Stanley sure hopes so.

The organic retailer prefers to buy locally. The food is fresher and the money stays in the community, he said. But the vast majority of farmers in Northeast Iowa use genetically modified seed and chemicals, neither of which are allowed on certified organic crops.

Growers who are certified often sell directly to consumers or don't raise enough to meet Stanley's needs, so goods from wholesalers line most of the shelves.

For example, there is a shortage of organic oats for oatmeal and other foods he would like to buy locally. He said the reward can be great.

Stanley will pay from 50 cents to 75 cents a pound, which equates to $16 to $24 per bushel. A conventional oat farmer is happy to get $2.70 per bushel after harvest.

"That's something that can be completely grown here. I do think it's great (the government) is starting to recognize organics in farm programs," Stanley said.

Mike Natvig, a grain and livestock farmer near Cresco, switched to organic production in the mid-1990s. It was getting hard to make a living farming 420 acres conventionally. Plus, he had health concerns about chemicals.

Natvig has been following the farm bill's progress and hopes it passes. The marketing money and cost-share help to pay his $1,500 yearly certification bill will improve profitability.

But he is most excited about the opportunity for young farmers. With the cost of land, both purchase and rent, machinery and crop inputs, Natvig said, organics provide the best opportunity for young people to start farming.

"For younger farmers it's a good way to get in without farming thousands of acres and still make a decent living," Natvig said. "There's definitely room for expansion."

He sells about 400 hogs a year and about 25 steers. What grain isn't fed to livestock is sold. This year he got about $12 per bushel for corn and $18 for soybeans, two to four times conventional prices.

Hamilton says the new farm bill should help Iowa remain a leader in the local food movement.

That is OK with Kamyar Enshayan, director of the Buy Fresh, Buy Local initiative in the Cedar Valley. In 2006, local residents, restaurants and institutions bought $671,000 worth of fresh meat, vegetables, fruit and dairy products from Northeast Iowa farmers.

None of that money left the area, Enshayan said. The proposed organic provisions in the farm bill should pad local farmers' pockets even more.

Enshayan, an agricultural engineer by trade, said the environment wins as well.

"I see a broader picture. After 10 years of research, we can confidently say organic agriculture improved soil conditions," he said. "For Iowa, the biggest thing is soil and water conservation."

Contact Matthew Wilde at (319) 291-1579 or matt.wilde@wcfcourier.com.

{M3Iowa's rank nationwide in organic production

{M3--- 453 organic producers: 4th

--- 64,158 organic acres: 10th

--- 4,566 organic hogs: 1st

--- 242,526 organic laying hens: 3rd

--- 15,260 organic turkeys: 4th

--- 886,280 organic broilers: 4th

--- 1,626 organic beef cattle: 7th

--- 2,675 organic dairy cows: 10th

Source: United States Department of Agriculture/Economic Research Service, U.S. Organic Farming.

{M3Organic provisions proposed in the next Farm Bill

{M3The following are just a few of the ways Congress would like to assist organic agriculture:

--- Provides $22 million in new money to help farmers transition into organic production (House and Senate).

--- $30 million (Senate) or $32 million (House) for farmers market promotion.

--- $3 million (House) or $5 million (Senate) for organic data collection to provide better price and yield information.

--- $365 million in mandatory funding for specialty crop block grants (House and Senate).

--- $20 million in mandatory funding to establish and operate the National Clean Plant Network.

Source: House and Senate agriculture committees _____________________________________________________
OTA on Senate Farm Bill

From: Organic Trade Association
December 14, 2007
 Contact: Laura Trivers (301-229-6481)
U.S. Senate approves Farm Bill with provisions for Organic Agriculture

WASHINGTON, D.C. (Dec. 14, 2007) ­ In a 79 to 14 vote, the U.S. Senate today approved its version of the Farm Bill that included funding and direction for key organic priorities, according to Caren Wilcox, executive director of the Organic Trade Association (OTA).

 "The Senate Farm Bill includes important steps to help strengthen the safety net for organic producers and manufacturers," Wilcox said. "These measures include funding for organic research, data collection, and transition to organic production, as well as eliminating the crop insurance premium for organic producers." Currently, organic producers must pay a 5% surcharge for crop insurance; yet, in times of loss, the producers receive not the usually higher organic crop price, but the lower conventional price.  The Senate version of the Farm Bill
recognizes that increased funding is essential for the National Organic Program at the U.S. Department of Agriculture at the full authorized level;

 ·         includes $5 million for organic data collection to help provide better price and yield information for organically-grown crops;

·         includes $22 million in new money for certification cost share to aid organic farmers;

·         bars USDA from charging a premium surcharge on organic crop insurance, unless validated by loss history on a crop-by-crop basis;

·         adds organic production as an eligible activity in the Environmental Quality Incentives Program;

·         adds to the Soil and Water Conservation Protection Loans a priority for those converting to organic farming practices and adds conversion to organic production as an eligible loan purpose;

·         provides $80 million over the life of the bill for organic agriculture research and extension; and

·         includes a sense of the Senate resolution that funding for organic research should be commensurate with organic agriculture's share of the market, currently about 3 percent.

"We in the organic community appreciate all the support we have received for our priorities in the Senate. Thank you to Chairman Harkin, Senator Leahy, who led efforts to create a national organic program, and Senator Chambliss. With their leadership and interest, organic agriculture and processing will have access to the many federal programs typically reserved for non-organic production and processing." Wilcox said. The Organic Trade Association (OTA) is the membership-based business association for organic agriculture and products in North America. Its more than 1,650 members include growers, shippers, processors, certifiers, farmers' associations, distributors, importers, exporters, consultants, retailers and others. OTA's mission is to promote and protect the growth of organic trade to benefit the environment, farmers, the public and the economy.   

Organic Trade Association - PO Box 547, Greenfield, MA 01302
(413) 774-7511 info@ota.com