Transitioning to Organic Farming

United States Department of AgricultureAgricultural Marketing Service

Virginia State UniversityPetersburg, VAMarch 14, 2011

Transitioning to Organic Farming

Betsy Rakola, Grants Management Specialist USDA Outreach Conference

National Organic Program

United States Department of AgricultureAgricultural Marketing Service

Organic production:

A production system that is managed in accordance with the Organic Foods Production Act and regulations to respond to site-specific conditions by integrating cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biodiversity.

*As defined by federal regulations

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What Does Organic Mean?*

National Organic Program

United States Department of AgricultureAgricultural Marketing Service

3National Organic Program

Demand outpaces supply• Organic sales grew from $3.5B in 1997 to nearly

$22.2B in 2007• Fruits & vegetables have highest growth rates,

account for 35% of organic farm sales• 2nd largest categories: beverages, dairy, and packaged foods

Market Opportunities

United States Department of AgricultureAgricultural Marketing Service

4National Organic Program

1. Agricultural products from a system that complies with the organic regulations

2. If gross annual sales are more than $5,000, then the operation must be certified

3. Less than $5,000: certification exemptiona) Still must follow organic regulationsb) May only sell direct

What Can Be Sold as Organic?

United States Department of AgricultureAgricultural Marketing Service

5National Organic Program

1. Apply & develop an Organic Systems Plan (OSP)

2. Implement the OSP, get OSP

reviewed by certifying agent

3. On-farm inspection

4. Review of inspection report by certifying agent

5. Decision on certification by certifying agent

5 Steps to Certification

United States Department of AgricultureAgricultural Marketing Service

6National Organic Program

United States Department of AgricultureAgricultural Marketing Service

7National Organic Program

• View the list at www.ams.usda.gov/NOPACAs• 13 certifying agents currently operate in VA

Find the one that works for you

• Costs in Virginia are typically $800-$1000 per year, or $200-$250 after cost share reimbursement

• Fee schedules, availability for Q&A, etc. vary

How to Find a Certifying Agent

United States Department of AgricultureAgricultural Marketing Service

8National Organic Program

Direct to Consumer• Community Supported Agriculture (CSAs)• Farmers Markets

Packer/Processor• Contracts are common, especially for larger

handlers• Most include quality standards, quality

testing protocols

Sales Outlets

United States Department of AgricultureAgricultural Marketing Service

USDA-AMS Market News provides price reports for selected organic products

9National Organic Program

www.ams.usda.gov/marketnews

Market News Reports

United States Department of AgricultureAgricultural Marketing Service

Organic Certification Cost Share Programs

10National Organic Program

United States Department of AgricultureAgricultural Marketing Service

• Reimbursement of 75% of certification costs, up to a maximum of $750 annually

• Includes application fees, inspection costs, etc. for USDA organic certification

• All certified organic farmers, ranchers and processors are eligible

• Not allowed for other certifications

11National Organic Program

WHAT IT IS

United States Department of AgricultureAgricultural Marketing Service

Funding is Available$6.2 million allocated nationwide in 2011

• $50,000 in Virginia• $60,000 in North Carolina• $12,500 in West Virginia

12National Organic Program

United States Department of AgricultureAgricultural Marketing Service

Application Process

13National Organic Program

It’s easy! Apply Now!!• One-page application• Copy of invoice• W-9 or other tax form• Copy of certificate, if you’re newly certified

United States Department of AgricultureAgricultural Marketing Service

Who to Contact

14National Organic Program

VirginiaKent Lewis804-371-6098Kent.Lewis@vdacs.virginia.gov

West VirginiaJean Smith304-558-2210 JSmith@ag.state.wv.us

North CarolinaHeather Lifsey919-707-3127heather.lifsey@ncagr.gov

Other states: www.ams.usda.gov/NOPCostShareProgramParticipants

United States Department of AgricultureAgricultural Marketing Service

For Further Information …

bit.ly/NOPOrganicInsiderRegistration

Subscribe to e-mail updates from the NOP

United States Department of AgricultureAgricultural Marketing Service

Questions?

Betsy Rakola(202) 720-0081

Betsy.Rakola@ams.usda.govwww.ams.usda.gov/NOPCostSharing

16National Organic Program