December 27, 2010

USDA grants conservation fund for organic production

USDA will provide funding to aid organic producers and those transitioning to organic production impose resource conservation practices on their agricultural operations.

"Increasing consumer demand for organically grown foods is providing new opportunities for small and mid-size farmers to prosper and stay competitive in today's economy. The 2008 Farm Bill calls for this assistance, and we want to help these farmers protect the natural resources on their land and create conditions that help foster organic production," Agriculture Deputy Secretary Kathleen Merrigan said.

Fiscal year (FY) 2011 marks the third year of USDA's Organic Initiative, and up to US$50 million is available this year for producers to plan and implement conservation practices that address natural resource concerns in ways that are consistent with organic production. For example, organic producers may use the funding to plant cover crops, establish integrated pest management plans, or implement nutrient management systems consistent with organic certification standards.

Eligible producers include those certified through USDA's National Organic Program, those transitioning to certified organic production, and those who meet organic standards but are exempt from certification because their gross annual organic sales are less than US$5,000. In FY 2010, NRCS obligated nearly US$24 million through the Organic Initiative to help producers implement conservation practices.

Organic Initiative funding is provided through the Environmental Quality Incentives Program (EQIP), a voluntary conservation programme administered by USDA's Natural Resources Conservation Service (NRCS) that promotes agricultural production and environmental quality as compatible national goals. The 2008 Farm Bill provided for assistance specifically for organic farm operations and those converting to organic production.

Under Organic Initiative contracts, producers are paid 75% of the cost for the organic conservation measures they implement. Beginning, limited resource, and socially disadvantaged producers are paid 90%. The programme provides up to US$20,000 per year per person or legal entity, with a maximum total of US$80,000 over six years.