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Transition costs limiting increases in organic

The Chairman of the House Ag Committee says unless dairies are large, it seems the only ones making money in his district are organic.

“One of the reasons is that it’s somewhat of a limited market because it does cost a lot of money to get into.”       

Collin Peterson of Minnesota says he’d like the transition process to become less burdensome and perhaps more resources for farmers would help.

“We don’t want to make this so easy to get into that it oversupplies and collapses that market like we have oversupplied the overall milk market.”    

Congressman Antonio Delgado of New York also testified during a House Ag Subcommittee hearing Wednesday on the National Organic Program, saying the costs associated with the three-year transition process are an issue.

“We’re talking hundreds of thousands of dollars to make that transition, so, has any thought been given, particularly now post 2014 when the economy is even more difficult, to think through how we can make it easier?”     

Under Secretary Greg Ibach says there’s not enough support from the organic industry to lessen standards of the certification but farmers continue to make the transition.  Organic production increased by more than six percent last year with 1,000 new farms.