H.R. 7318: Opportunities in Organic Act

This bill, known as the Opportunities in Organic Act, aims to amend the Farm Security and Rural Investment Act of 2002 to enhance the support for organic farming in the United States. Here’s a breakdown of what the bill proposes in simpler terms:

Creation of the Opportunities in Organic Program

The bill replaces the current National Organic Certification Cost-Share Program and establishes a new initiative called the "Opportunities in Organic Program." This program is designed to:

• Assist farmers and handlers in obtaining organic certification.
• Provide support and technical assistance specifically for transitioning to organic farming practices.

Expanded Definitions

The bill clarifies certain terms relevant to the program, including:

• Certified Organic Farm: A farm that has been certified in accordance with organic production standards.
• Eligible Nonprofit Organization: Nonprofits that focus on serving socially disadvantaged farmers or vulnerable agricultural areas.

Financial Support for Certification

The Secretary of Agriculture is required to cover costs incurred by producers or handlers in obtaining organic certification, subject to certain limits:

• The standard payment ceiling is set at $1,500 per applicant.
• Payments may exceed this limit in areas with high certification costs or for socially disadvantaged groups, ensuring that no producer is hindered by affordability issues.

Funding for Transition Support

The bill allocates funds to eligible nonprofit organizations to:

• Support farmers transitioning to organic practices.
• Provide technical assistance, training, and resources to help these farmers succeed.

Specific Activities to Aid Transition

The funding can be used for a variety of activities, including:

• Recruiting producers to start transitioning to organic.
• Providing assistance with compliance, recordkeeping, and applications needed for organic certification.
• Supporting on-farm research and development of sustainable farming practices.
• Facilitating mentorship relationships between experienced organic farmers and those new to organic practices.

Support for Supply Chain Development

The bill supports organic supply chain development by funding efforts that enhance market access for organic producers. This includes:

• Improving existing organic handling operations.
• Purchasing necessary farm equipment that enhances market access.

Financial Appropriations

The bill specifies funding allocations for various fiscal years to sustain the Opportunities in Organic Program:

• $50 million for each of fiscal years 2027 and 2028.
• $80 million for fiscal year 2029.
• $100 million for each of fiscal years 2030 and 2031.

Promotion of Education and Outreach

The Secretary of Agriculture is directed to enhance educational resources and outreach for organic practices, which will include:

• Regional education sessions on organic management.
• Resources tailored to meet the needs of socially disadvantaged farmers and small farms transitioning to organic.

Monitoring and Evaluation

The bill establishes requirements for monitoring and reporting on the success and participation in the program. This includes:

• Tracking the demographics and sales of program participants.
• Collecting data on barriers faced in the transition to organic farming.

Relevant Companies

• TSN (Tyson Foods) - As a meat processor, Tyson may be impacted by increased organic grain farming and certification, potentially altering sourcing practices.
• SYF (Synchrony Financial) - Provides financing solutions to farmers, possibly seeing increased demand for funding related to organic transitions.