USDA has finalized its rules regarding organic producers' exemption from participating in the various checkoff programs: The rule, required by the most recent farm bill, was passed on the last day of 2015, and takes the exemption allowing 100-percent organic farms and businesses to decline participation in marketing efforts under various checkoff programs, and expands it to include operations that are not 100-percent organic.
The final rule notes that all organic products certified under the USDA National Organic Program will be eligible for the exemption as will all crops and products grown on farms or marketed by producers that also offer non-organic products. The change centers on the concept that non-organic products sold in any conventional markets will continue to be subject to the checkoff tax, which pays for marketing and other promotions that may or may not affect organic goods. The exemption does not, however, cover farm production research, which could affect products from organic farms.
The new rule is expected to become effective in two months and will apply to farmers, processors, feeders, handlers, manufacturers, marketers and importers, according to the specifics listed in the Federal Register.
USDA is currently considering an organic checkoff proposal, but the rule expansion will be in force until a final decision on that specific proposal is confirmed, the report noted.