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1 1 (August 14, 2015)

handle is hein.crs/govccxt0001 and id is 1 raw text is: FF. ' iE S .r, & t August 14, 2015 U.S. Farm Policy: Certified Organic Agricultural Production Foods produced using recognized organic farming methods, as certified by the U.S. Department of Agriculture (USDA) and bearing the USDA Organic seal (shown here), account for a small but growing share of the U.S. agricultural industry. Sales of organic foods totaled an estimated $35.9 billion in 2014, S.. representing nearly 5% of all retail food sales in the United States (Figure 1). What Is Organic Agriculture? USDA defines organic agriculture as a production system that is managed in accordance with the Organic Foods Production Act (OFPA, 7 U.S.C. 6501 et seq.) and USDA regulations intended to respond to site-specific conditions by integrating cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biodiversity (65 Federal Register 80550). USDA further defines organic agriculture as using methods that preserve the environment and avoid most synthetic materials, such as pesticides and antibiotics. USDA-approved organic standards describe the types of approved methods farmers and ranchers may use to grow crops and raise farm animals as well as which materials producers may use. These standards describe the specific requirements that must be verified by a USDA-accredited certifying agent before products can be labeled USDA Organic. USDA's National Organic Program (NOP) is a voluntary organic certification program for producers and handlers of agricultural products that have been produced using certain approved organic methods. Organic agriculture became increasingly popular in the United States in the early 1900s. Following the industry's own failed efforts to reach consensus on production and certification standards, and USDA's publication of a 1979 study on how to improve and regulate organic production (Report and Recommendations on Organic Farming), industry representatives petitioned Congress to draft legislation to establish a certification program in the late 1980s. Among the goals of the program were: improve consumer confidence in the legitimacy of products sold as organic; allow for legal action against those who use the term fraudulently; increase the supply and variety of available organic products; and facilitate international trade in organic products. In 1990, Congress enacted OFPA as part of the 1990 farm bill (Food, Agriculture, Conservation, and Trade Act of 1990, P.L. 101-624, Title XXI). OFPA authorized USDA to establish the National Organic Program (NOP), which is a voluntary organic certification program for producers and handlers of agricultural products that have been produced using certain approved organic methods. NOP specifies the methods, practices, and materials that may be used to grow, raise, and process USDA-certified organic products. Final regulations under OFPA were published in December 2000, and NOP became fully operational in October 2002. Regulations governing organic certification are in the Code of Federal Regulations at 7 CFR 205. NOP is administered by USDA's Agricultural Marketing Service (AMS). The National Organic Standards Board (NOSB) is an advisory board that makes recommendations to USDA on a range of organic production issues. Figure I.U.S. Organic Sales, 2000-2014 2000 2002 2004 2006 2008 2010 2012 2014 Food (Nominal) \\1\ Non-Food (Nominal) ...:::...Deflated-Total (Real) Source: CRS from industry survey data reported by the Organic Trade Association (OTA). Data are adjusted for inflation by CRS using the Consumer Price Index (CPI) for all products. Under NOP, USDA developed requirements and an accreditation process for certifying organic agents and enforces these marketing and labeling requirements. USDA also has developed a process for reviewing the so-called National List of Prohibited Substances for Organic Production, which lists the exceptions to organic standards and allows for certain synthetic substances to be used when producing organic products. The National List of allowed and prohibited substances, methods, and ingredients for use in organic production is at 7 CFR 205.105. Some substances and processes are specifically not allowed. For example, genetically engineered ingredients are an excluded method (7 CFR 205.2). What Is the Market for USDA Organic Products? Organic agriculture is composed of both food and non-food products, including personal care products, household products, dietary supplements, pet foods, flowers, and textile products. Data from the Organic Trade Association (OTA) indicate that U.S. organic retail sales totaled $39 billion in 2014, more than double the sales in 2004 (adjusting for price inflation, Figure 1). Food sales comprise the bulk of retail organic sales, with between 90%-95% of total annual sales. Major organic food products include fruits and vegetables; milk and dairy products; beverages; meat and poultry; and a range of $million 45.0 ---- 40.0 ..... gognpo 'pop\qm ggmm g 's a X

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