Organic Agriculture Research Policy Targets
in the 2007 Farm and Food Bill

Recommendations for Coordinated Organic Agricultural Research, Extension, Education, Economics and Development (“O-RED”)

--by Mark Lipson, March 2007

Synopsis: A coordinated strategy for scaling-up organic agricultural research, outreach and development should provide a mixture of funding methods and programs to gradually achieve an overall “fair share” spending total of approximately $120 million/year. Critical program priorities are identified as components of this integrated approach.

• Integrated legislative approach: 2007 marks 10 years since Congress first recognized organic agricultural research in policy language. Organic research and extension is still emerging very slowly, in a piecemeal fashion within USDA-REE agencies. 2007 Farm & Food Bill legislation should define a coordinated strategy to move forward deliberately from this rudimentary state. With public resources generally declining for agriculture science, increasing demand for organic research and education must be met with maximum fiscal efficiency. In addition, with multiple proposals for major restructuring of USDA-REE agencies and land-grant university formula funding, organic research outcomes may easily get lost in the shuffle. Legislative policy should address the needs and opportunities of organic agriculture as a whole, taking an integrated approach to policy goals and funding levels. Appropriate configuration of agency roles and objectives should follow logically from the overall policy targets, within whatever new institutional structures are devised.
  
• Overarching “Fair Share Goals” policy language: Current USDA-REE agency resources applied specifically to organic agriculture total about 0.6% ($12 Million) annually, well behind current (2007) market share of 3% (of total U.S. food retail). U.S. organic consumer demand continues to double every 3-4 years. Established trends will take organic “market share” to nearly 10% by FY2012. Due in part to the dearth of research and development funding, domestic organic production is not adequate to meet current demand. As U.S. producers fall further behind the growing requirements for organic supplies, the balance of trade in organic goods will continue to worsen. An increased rate of growth for U.S. organic production –to achieve a “fair share” of the demand for U.S. organic producers -- requires a coordinated approach to research, extension and development, and an overall funding baseline that gradually approaches a “fair share” of USDA-REE resources by FY 2012.
  
• Total coordinated “O-RED” funding baselines: Assuming a rough constant baseline of $2 Billion for USDA-REE agencies (or successors), organic REE fair-share funding ought to range from $60 Million in FY08, reaching close to $200 Million in FY2012. We suggest an overall policy target of $120 Million annually, rising significantly from current funding but gradually to match increasing capacities.
  
• Mixture of funding and program approaches: USDA-REE agencies and land-grant universities need a minimum funding threshold to build capacity in organic agriculture. However, agencies and institutions vary widely in their readiness to effectively utilize increased funding. We recommend a mixed approach that allows for gradual increase of resources, subject to institutional capacity and performance. Accordingly, the overall policy target should be split approximately in thirds:
  
  • Mandatory allocations ($40 Million annually).
    
  • Additional discretionary authorizations (up to $40 Million annually).
    
  • Utilization of all USDA REE and Rural/Community Development
    competitive programs for appropriate organic research, outreach and development objectives, as capacity and merit are demonstrated (gradually reaching up to $40 Million).
    
• Critical Program Objectives for Organic Research, Extension, Education, Economics and Development:
  
  • Establish permanent scientific and administrative leadership positions to manage USDA-REE agency activities in organic agriculture, and to coordinate with other USDA branches.
    
  • Significant scale-up of the existing successful CSREES competitive organic grants program (the Integrated Organic Program).
    
  • Establish long-term core capacities within each region of USDA-ARS, including information management infrastructure at the National Agriculture Library (ARS-AFSIC).
    
  • Provide capacity for state and multi-state organic extension services, especially targeted to new and socially disadvantaged producers.
    
  • Enhance the organic data collection program efforts.
    
  • Train Natural Resource Conservation Service personnel and Technical Service Providers in organic principles and practices, for integrating organic and transitioning operations into NRCS conservation programs.

3/1/07 Mark Lipson, Policy Program Director,
mark@ofrf.org, 831-426-6606 or 408-497-3673