	Background

Organic farming, as defined in the final rule establishing the U.S Department of Agriculture (USDA) National Organic Program (NOP), is "a production system that is managed in accordance with the [Organic Foods Production] Act and regulations ... to respond to site-specific conditions by integrating cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biodiversity." The Organic Foods Production Act of 1990

Congress passed the Organic Foods Production Act (OFPA) of 1990 (Title 21 of P.L. 101-624 , the Food, Agriculture, Conservation, and Trade Act of 1990; the 1990 farm bill) with widespread support from organic industry groups, the National Association of State Departments of Agriculture, and other farm and consumer groups. After October 21, 2002, all products sold as organic had to be in compliance with the regulations and carry the "USDA Organic" seal. Others, notably some of the newer entrants into the organic market, are concerned lest the regulations become so prescriptive that they deprive producers and processors of the opportunity to benefit from the expanding market for organic products. Critics of the NOP are expressing their concern that as more time passes without a final rule, additional large feedlot dairy operations are being certified organic in possible violation of the OFPA. On October 24, 2008, USDA published its proposed rule to amend the NOP livestock standards to clarify the role pasture plays in the production of organic ruminants. Major Organic Provisions in the 2002 Farm Bill

		Cost-Sharing Start-Up Costs

Although the OFPA requires the cost of the National Organic Program to be fully supported by user fees collected for USDA accreditation and certification services, Congress has appropriated funds on several occasions to help the program in its initial stages. Title X of the farm act gave USDA authority to continue to defray the costs of producers and handlers seeking organic certification through FY2007, and authorized a one-time, mandatory transfer of $5 million from the Commodity Credit Corporation (CCC) to establish a national organic certification cost-share program under the NOP. Other provisions in the research title (1)Â require ERS to gather and maintain segregated data on the production and marketing of organic agriculture; and (2) require ERS and the National Agricultural Library to make it easier for U.S. organic producers, researchers, and extension professionals to obtain the results of organic research conducted in foreign countries. Organic Agriculture in the 2008 Farm Bill

Title X of the Food, Conservation, and Energy Act of 2008 ( P.L. Certification Cost-Sharing

The 2008 farm bill reauthorizes the National Organic Certification Cost-share Program and provides a one-time transfer of $22 million in mandatory funds to support it. The bill provides a total of $78 million in mandatory funds for the initiative in FY2009-FY2012, and also authorizes $25 million annually in appropriations. House and Senate appropriators will determine the actual funding available.
Congress passed the Organic Foods Production Act (OFPA) in 1990 as part of a larger law governing U.S. Department of Agriculture (USDA) programs from 1990 through 1996 ( P.L. 101-624 , the Food, Agriculture, Conservation, and Trade Act of 1990). The act authorized the creation of a National Organic Program (NOP) within USDA to establish standards for producers and processors of organic foods, and permit such operations to label their products with a "USDA Organic" seal after being officially certified by USDA-accredited agents. The purpose of the program, which was implemented in October 2002, is to give consumers confidence in the legitimacy of products sold as organic, permit 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.
Policy issues affecting the National Organic Program since implementation largely reflect the differences in interpretation among stakeholders of the language and intent of OFPA and the actual operation of the program under the final rule. The NOP was challenged in 2003 by a lawsuit claiming that many of the regulations were more lenient than the original statute permitted. Although the issues around the lawsuit were ultimately resolved, partly by court-ordered rulemaking and partly by an amendment to the OFPA that was attached to the FY2006 appropriations bill, new issues concerning program operation continue to arise.
One of these relates to USDA's efforts to write a new regulation governing access to pasture for organic dairy cows (and other ruminants). Tight supplies of certain organic commodities, particularly dairy products, and the entry into the market of major grocery retailers wanting to sell organic foods are adding pressure to this debate. Critics charge that large organic dairy operations are not abiding by the intent of OFPA by feeding organic grain to cows in feedlots, and that the principle of grazing is central to consumers' concept of organic milk. Supporters of existing regulations point to the need for flexibility in order to maintain an organic dairy sector that can meet growing demand. USDA published its proposed rules on October 24, 2008.
The new omnibus law that will govern USDA programs and policies through FY2012 contains several provisions affecting organic agriculture and the NOP ( H.R. 2419 / P.L. 110-246 ; the Food, Conservation, and Energy Act of 2008). The law provides $22 million in mandatory funds to continue a cost-share program to help farmers obtain organic certification; $5 million in mandatory funds and $25 million in authority for appropriated funds over five years to support the collection and analysis of organic production and marketing data; and $78 million in mandatory funds over four years to support the organic agriculture research and extension initiative.
This report will be revised as events warrant.