Organic farm bill title to solve undersupply?

The OTA said the provisions it is seeking within the 2007 Farm Bill will carry benefits at all levels of the organic industry, and could contribute to solving undersupply of certain commodities.

"The 2007 Farm Bill is the key piece of legislation coming up that can influence organic agriculture and trade for years to come. We envision that all sectors of the organic business community can benefit if we work together on a Farm Bill that addresses the entire organic value chain,"​ said Katherine DiMatteo, OTA's executive director.

Farm bills, regulated by the US Department of Agriculture (USDA) and renewed every five to six years, are a collection of laws that set the overall direction of the nation's agriculture.

The legislation set out in a farm bill aims to provide a safe and affordable supply of food through programs that promote US agriculture. The bills typically contain provisions for commodity prices, agricultural trade and crop insurance, amongst others.

"Organic agriculture is growing in the US and we feel there need to be certain provisions for organic farmers in order to encourage production. This will make more organic ingredients available to food manufacturers, although at this point we can't suggest any numbers,"​ an OTA spokesperson told FoodNavigator-USA.com.

Indeed, organic food manufacturers are currently facing tough supply conditions for certain commodities, particularly dairy products, meat and oranges.

And according to Organic Monitor, which provides business research consulting on the global market for organic goods, undersupply in the organic market is resulting in shelves remaining empty, companies withdrawing from the market and others looking internationally to supplement supply needs.

"Increasing volume of organic fruit, vegetables, grains, seeds, beans, and herbs are being imported into the US. Finished products are also imported to meet consumer demand for all things organic,"​ said Organic Monitor last month.

The OTA's 2004 Manufacturers' Survey reveals that the organic foods industry reached $10.8 billion in 2003 and has grown at an average rate of 19.5 percent per year since 1997. But according to Organic Monitor, a shortage of supply is stifling sales.

"Nearly all market sectors would grow at much higher rates if sufficient supply was available. For instance, lack of organic milk has caused many retailers to have empty shelves throughout the year,"​ it said.

The USDA is currently reviewing the OTA's proposal for the next farm bill, along with a further 4,348 comments that were received.

In 1990, the farm bill set national organic standards for the food industry, although these were not actually implemented until 2002, according to the OTA.

The association is now calling for a separate organic section in the new bill, which will consist of four major provisions.

These include the establishment of a National Organic Agriculture Initiative, which the OTA claims is necessary to provide overall policy direction for the nation's increasing organic production. This would be similar to directives that already exist in a number of other countries, said the OTA.

For example, in 2004, the European Commission published a European Action Plan for Organic Food and Farming, which provides an "overall strategic vision for organic farming's contribution to the common agricultural policy."​

The OTA is also calling for an Organic Production Office, which would "be responsible for coordinating communication between all USDA organic programs to ensure the maximum amount of cooperative effort."​

A third provision sought is for the enhancement of existing legislation. "Although progress was made in funding organic production in the 2002 Farm Bill, some items can be improved, and almost all need to be re-authorized,"​ said the OTA.

Finally, the OTA is asking for the expansion of certain USDA agency programs to meet the needs of organic producers and the organic trade in general.