Waterloo Cedar Falls Courier, IA
12-16-07
Organic Farm Bill
By MATTHEW WILDE, Courier Staff Writer
CEDAR FALLS --- People want organic food, and Iowa farmers are delivering.
It appears the federal government will finally deliver something to producers:
Help. Congress has proposed hundreds of millions of dollars for organic farmers
and consumers in the farm bill currently being debated.
Organic food sales reached $16.9 billion last year, according to industry
statistics, growing at a rate of about 20 percent a year. Iowa farmers rank in the
top 10 in several organic categories nationwide, including first in pork at more
than 4,500 head a year. Organic foods now command a 3.5 percent market
share nationwide.
This occurred largely without government help. Organic industry officials believe
sales and production could dwarf current figures if Congress passes the farm bill,
which will be a boon to the farm sector.
"Organic really needs more people involved. Demand is just incredible," said Rob
Stanley, owner of Roots Market in Cedar Falls, a health food store specializing in
organic food. "We don't get as many locally grown products as we like,
(compared) to what the demand is."
To boost organic production, the House and the Senate have each proposed the
industry receive a bigger piece of the farm budget.
The House passed a $286 billion, five-year bill in July. It includes $365 million for
grants and research into such things as pest and disease management --- crucial
for an industry that doesn't allow man-made chemicals --- and marketing and
education. The House wants to spend $22 million in new funding to help farmers
transition to organic agriculture and $3 million for organic marketing data
collection and publication.
Senators, though, are still debating their version of the bill. The Senate wants to
spend the same amount of money on grants and research and to help farmers
get certified. Plus, $30 million for farmers market promotion and $24 million in
new money for technical assistance to address export barriers for specialty
crops. The Conservation Security Program would be funded and made
nationwide instead of helping certain watersheds under the Senate version.
"It will reward organic farmers, who will prosper from payments for conservation
practices such as long-term crop rotation ... including (planting) perennial
prospect forages. Those are two key issues we're looking at," said Kathleen
Delate, organic agriculture expert at Iowa State University.
Procedural issues that held up the bill were reportedly worked out by senators
last week. The Senate bill is expected to pass by Christmas, which will allow the
two versions to be reconciled early next year. The 2002 farm bill expired in
September.
Neil Hamilton, an agricultural law professor at Drake University who spoke at the
Iowa Organic Conference last month, expects a new farm bill soon. Whatever
version reaches the president's desk, Hamilton said, the organic industry should
be happy.
"They (organic provisions) aren't controversial. The industry got everything they
asked for," Hamilton said.
"The organic farming community is poised to achieve its greatest political victory
or success to date," he said at the conference.
One thing organic farmers asked for was equity in crop insurance. Organic
producers currently must pay a 5 percent surcharge; yet, in times of loss,
producers often are paid less.
"(Lawmakers) took an important steps to help strengthen the safety net for
organic producers and manufactures," said Caren Wilcox, executive director of
the Organic Trade Association, in a press release.
Convincing farmers to switch to organic farming can be difficult. It is more labor
intensive and time consuming since weeds and insects can't be controlled by
chemicals. Lower yields are common, at least at the beginning, since synthetic
fertilizers are prohibited and it takes awhile to build the organic content in the soil.
Plus, the 36-month transition period to purge the soil of unwanted chemicals can
be difficult. During the time, farmers are raising organic crops but aren't being
paid for it.
The extra money proposed in the farm bill should mean more organic acres in
the future, industry experts said.
Stanley sure hopes so.
The organic retailer prefers to buy locally. The food is fresher and the money
stays in the community, he said. But the vast majority of farmers in Northeast
Iowa use genetically modified seed and chemicals, neither of which are allowed
on certified organic crops.
Growers who are certified often sell directly to consumers or don't raise enough
to meet Stanley's needs, so goods from wholesalers line most of the shelves.
For example, there is a shortage of organic oats for oatmeal and other foods he
would like to buy locally. He said the reward can be great.
Stanley will pay from 50 cents to 75 cents a pound, which equates to $16 to $24
per bushel. A conventional oat farmer is happy to get $2.70 per bushel after
harvest.
"That's something that can be completely grown here. I do think it's great (the
government) is starting to recognize organics in farm programs," Stanley said.
Mike Natvig, a grain and livestock farmer near Cresco, switched to organic
production in the mid-1990s. It was getting hard to make a living farming 420
acres conventionally. Plus, he had health concerns about chemicals.
Natvig has been following the farm bill's progress and hopes it passes. The
marketing money and cost-share help to pay his $1,500 yearly certification bill
will improve profitability.
But he is most excited about the opportunity for young farmers. With the cost of
land, both purchase and rent, machinery and crop inputs, Natvig said, organics
provide the best opportunity for young people to start farming.
"For younger farmers it's a good way to get in without farming thousands of acres
and still make a decent living," Natvig said. "There's definitely room for
expansion."
He sells about 400 hogs a year and about 25 steers. What grain isn't fed to
livestock is sold. This year he got about $12 per bushel for corn and $18 for
soybeans, two to four times conventional prices.
Hamilton says the new farm bill should help Iowa remain a leader in the local
food movement.
That is OK with Kamyar Enshayan, director of the Buy Fresh, Buy Local initiative
in the Cedar Valley. In 2006, local residents, restaurants and institutions bought
$671,000 worth of fresh meat, vegetables, fruit and dairy products from
Northeast Iowa farmers.
None of that money left the area, Enshayan said. The proposed organic
provisions in the farm bill should pad local farmers' pockets even more.
Enshayan, an agricultural engineer by trade, said the environment wins as well.
"I see a broader picture. After 10 years of research, we can confidently say
organic agriculture improved soil conditions," he said. "For Iowa, the biggest
thing is soil and water conservation."
Contact Matthew Wilde at (319) 291-1579 or matt.wilde@wcfcourier.com.
{M3Iowa's rank nationwide in organic production
{M3--- 453 organic producers: 4th
--- 64,158 organic acres: 10th
--- 4,566 organic hogs: 1st
--- 242,526 organic laying hens: 3rd
--- 15,260 organic turkeys: 4th
--- 886,280 organic broilers: 4th
--- 1,626 organic beef cattle: 7th
--- 2,675 organic dairy cows: 10th
Source: United States Department of Agriculture/Economic Research Service,
U.S. Organic Farming.
{M3Organic provisions proposed in the next Farm Bill
{M3The following are just a few of the ways Congress would like to assist organic
agriculture:
--- Provides $22 million in new money to help farmers transition into organic
production (House and Senate).
--- $30 million (Senate) or $32 million (House) for farmers market promotion.
--- $3 million (House) or $5 million (Senate) for organic data collection to provide
better price and yield information.
--- $365 million in mandatory funding for specialty crop block grants (House and
Senate).
--- $20 million in mandatory funding to establish and operate the National Clean
Plant Network.
Source: House and Senate agriculture committees.