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What Happens to Organic Rules and Funding When Administrations Change?

icardozo — Wed, 18 Dec 2024 17:58:46 +0000

December 18, 2024

Republicans and Democrats have alternated control of the presidency five times over the last 25 years. During such transitions, policy and regulatory priorities often shift to align with the goals of the newly elected party when a new administration takes office, with the outgoing party's priorities being paused, revised or reversed.

The organic community experienced this firsthand in 2017 when the Organic Livestock and Poultry Practices (OLPP) rule was paused and later attempted to be rescinded. This action led the Organic Trade Association to file a lawsuit challenging the decision under the Administrative Procedure Act (APA). Ultimately, the Biden administration finalized a similar rule called the Organic Livestock and Poultry Standards (OLPS). Unlike OLPP, OLPS is not expected to face the same fate despite the action happening under the previous Trump administration.

In this post, we explain the status of organic rules finalized and pending under the Biden administration and what could happen next.

Authority of Congress and the New Administration

When a new administration takes office, it has the authority to review and potentially alter rules finalized by the previous administration. However, Congress also plays a significant role in determining the fate of these rules through the Congressional Review Act (CRA).

The CRA allows Congress to rescind any rule published within the final 60 legislative days of a congressional session. This period, known as the lookback period, is somewhat tricky to calculate because it excludes times when Congress is adjourned. Given congressional calendars one could estimate that the current lookback period applies to any rule published after August 1,2024. If Congress wants to rescind a rule during this period, at least 30 senators must sign a discharge petition to bring the issue to a vote in the Senate. If the majority votes in favor of disapproval, the rule is overturned.

It is also standard practice for a new administration to pause on a rule not yet in effect when they take office. This pause allows time to review any regulations that have been finalized in the last days of the outgoing administration. During this review, the new administration can delay the effective and implementation dates of these rules. However, if they want to make changes, roll back rules, or rescind a rule, they must follow the procedures outlined in the Administrative Procedure Act (APA), which include a new notice-and-comment rulemaking process. Rules that are still in the proposed stage can be withdrawn or altered at the new administration's discretion.

In short, the power to change or halt regulations is shared between the incoming administration and Congress, each with its own legal processes and also clear limitations.

Status of Organic Rules Under the Biden Administration

Final Rules:

Since taking office, the Biden administration has made significant progress in finalizing and implementing over 12 organic regulations. These rules fall into two main categories: those that are fully effective and those that are effective but not yet fully implemented.

Finalized and Fully Effective Rules: Many of the finalized rules under the Biden administration are routine updates to the National List of Allowed and Prohibited Substances. These updates ensure that the National Organic Program (NOP) remains current and reflects the recommendations made by the National Organic Standards Board (NOSB). These rules include various sunset reviews and amendments that address substances allowed in organic crop production, handling, and livestock management. All but one of these routine rules have been fully implemented and are now in effect.

In addition to these routine updates, the administration finalized two major rules that have a significant impact on the organic industry. The Strengthening Organic Enforcement (SOE) rule enhances oversight and enforcement to prevent fraud in organic supply chains. The Origin of Livestock (OOL) rule clarifies the requirements for transitioning dairy animals into organic production. Both of these rules have been fully implemented, providing greater integrity and transparency within the organic sector. They cannot be revised or rescinded in a CRA process.
Finalized Rules – Effective but Not Fully Implemented: One major rule, the Organic Livestock and Poultry Standards (OLPS), was finalized and became effective on January 12, 2024. However, not all parts of this rule are currently in effect. Most of the implementation requirements are scheduled for January 2, 2025. Some provisions, such as those related to indoor and outdoor stocking rates and poultry housing exits, will not be enforced until January 2, 2029. Making changes to these implementation dates would require a new rulemaking process under the Administrative Procedure Act (APA) or would face legal challenges.
Rules Subject to the Congressional Review Act (CRA): One rule falls within the scope of the Congressional Review Act (CRA), the 2025 Sunset Review and Substance Renewals. This rule was published after the estimated CRA threshold of August 1, 2024, making it eligible for congressional review. However, since it deals with routine updates to the National List of Allowed and Prohibited Substances, it is considered non-controversial. Therefore, delays or disapproval by Congress are unlikely.

Proposed Rules:

A key proposed rule under consideration is the Market Development for Mushrooms and Pet Food. On the Unified Agenda USDA estimated the completion date of this rule to be December 2024 – however these dates are often missed. If this rule is finalized before January 20, 2025, it could be subject to review by the incoming administration. The new administration might choose to delay its implementation for further review, and it would also be eligible for potential disapproval by congress under the CRA.

On the other hand, if the rule is not finalized by January 20, 2025, its fate will be in the hands of the new administration. The incoming administration could decide whether to proceed with finalizing the rule or withdraw it entirely. While this rule is less controversial compared to other organic regulations, its priority level under a new administration is uncertain.

Rules on the Unified Agenda:

Two rules currently listed on the Unified Agenda are still in the development phase. The first addresses Inert Ingredients in Pesticides for Organic Production, and the second focuses on Nitrogen Fertilizers for Crops, including substances like sodium nitrate and ammonia extracts. Because these rules are still being developed, their future will largely depend on the priorities of the incoming administration. If a new administration decides these rules are not a priority, they could delay or halt their progress.

Funding for the Organic Transition Initiative (OTI):

Concerns have been raised about whether funds allocated for the Transition to Organic Partnership Program (TOPP) and the Organic Market Development Grants (OMDG) could be clawed back by a new administration.

TOPP funding comes from the American Rescue Plan Act (ARPA). Although ARPA funds faced claw backs under the Fiscal Responsibility Act (FRA) of 2023, any funds that had already been obligated were not subject to claw backs. Since TOPP funds are already obligated and contracted, any recission would likely face legal challenges. Some OTI funds for the Natural Resources Conservation Service (NRCS) organic practice standard were not obligated by the time the FRA was passed and were clawed back. Funding for these programs continued from other sources such as the Inflation Reduction Act (IRA) and some could be at risk. This risk doesn't extend to the Organic Specialist component of NRCS funding as those funds are similarly obligated.

Similarly, OMDG funding is also protected and unlikely to be challenged. The funds have already been obligated and contracted through grants, making it legally difficult to claw them back.

Lastly, the Organic Dairy Promotion Grants were established to support organic milk purchasing in schools via Dairy Business Innovation Centers. If these grants are obligated before a new administration takes office, they will have the same legal protections as the other OTI funds, making them difficult to rescind.

Conclusion

The Organic Trade Association closely monitors these regulatory actions and funding decisions on a day-to-day basis. Our goal is to ensure that organic standards continue to meet the needs and expectations of both our members and organic consumers and work to safeguard the availability of critical funds that support the growth and integrity of the organic industry.

Advancing Organic: Reflecting on 2024 and Gearing Up for 2025

icardozo — Mon, 16 Dec 2024 14:45:15 +0000

December 16, 2024

The end of a year and the beginning of a new one – a time for the Organic Trade Association to reflect on our successes during the past 12 months, and this year more than ever, to look ahead at the challenges in store for all of us.

Our association started 2024 with an eye on the future and the introduction of the expanded leadership team of co-CEOs Tom Chapman and Matthew Dillon. With collectively more than four decades of experience in organic across the industry, these two organic champions have truly been dynamic collaborators who have ensured that the trade association is well positioned to support the continued growth and improvement of the evolving organic sector.

The American organic sector is bigger than ever. U.S. sales of certified organic products are at record levels, even as inflation has pressured consumers. OTA’s 2024 Organic Industry Survey reported that organic sales closed in on the $70 billion mark in 2023, a new high for organic. Consumers are clear-eyed about their priorities in the products they chose for themselves and their families, valuing health and sustainability, and seeking out the USDA Organic label.

And there’s more good news. We partnered with Euromonitor International in a survey of around 1,200 folks across the country to see what today’s consumers think about organic, and the findings show a deep trust for the USDA Organic seal. The Organic seal is trusted by 70 percent of consumers – the most trusted of any agricultural label, and the second-most trusted food label existing, second only to the American Heart Association’s iconic checkmark.

Our trade association is working hard to help our organic producers and businesses gain new markets, both in the U.S. and around the world. We’ve been awarded new grants from the USDA to deepen consumers’ understanding of all of organic’s scientifically proven benefits and enlarge organic markets at home. Our international trade team secured record funding to help organic exporters promote their products globally.

Our membership has shown their commitment to organic like never before. During the year, 240 of our members volunteered their time to take part in 45 meetings of member councils, task forces and forums. Our Advocacy Day in May – our annual member-wide fly-in to DC to advocate for organic – saw 148 of our organic champion members meeting on Capitol Hill with 161 congressional offices, including face-to-face meetings with 30 members of Congress.

Looking ahead – challenges and opportunities

We all know that we’re entering a new political landscape in 2025. Organic has lost some important champions on Capitol Hill and in the administration. Incoming members of Congress and policy makers will need to be educated about the many benefits of organic, and of the need to provide the support necessary for organic to expand. The Organic Trade Association has been preparing and strategizing on the most effective ways to advocate for organic in this new climate, and we are up to the task.

It’s often said that elections have consequences. But elections also provide opportunities, and, for the organic community, the opportunity to engage with lawmakers and policy makers and advocate for organic has never been greater. We look forward to collaborating with our members to continue organic’s forward trajectory.

2025 will mark an important milestone for this association. It will be the 40th anniversary of the formation of the Organic Trade Association. When we were first formed in February of 1985, we were called the Organic Foods Association of North American or OFPANA. OFPANA was changed to OTA later that year. Much has changed since then.

We were created to be an organic association that could advocate for its members and develop a set of unified guidelines for organic standards. We wrote the benchmark “Guidelines for the Organic Food Industry” which helped set the groundwork for the Organic Foods Production Act in 1990 and ultimately the publication of the National Organic Standards by USDA in 2000.

We’ve never stopped fighting for the organic industry in 40 years, and we’re not going to stop now. We’re just getting started. With your help in the coming year, organic will continue to progress, enriching the health of our environment and our people.

A Happy New Year to All. Together we grow Organic.

Tracy Favre, Board of Directors President, Organic Trade Association

The Organic Center and OTA Represent the U.S. at IFOAM’s Organic World Congress in Taiwan

mparker — Wed, 11 Dec 2024 02:41:38 +0000

December 10, 2024

Repost from The Organic Center.

The Organic Center and The Organic Trade Association (OTA) were honored to join the 21st IFOAM - Organics International’s Organic World Congress held in Chiayi County, Taiwan on November 30 – December 6. The Organic World Congress is a global gathering of organic farmers, researchers, businesses, trade groups, civil society, and other stakeholders. These passionate voices unite around a shared vision: making organic the foundation of agriculture worldwide.

The Organic Center’s Director of Science Programs Dr. Amber Sciligo and OTA co-CEO Tom Chapman represented the eponymous organizations at the Congress.

Host country Taiwan is the fourth largest export market for American organic products. Taiwan demonstrates how international cooperation fosters resilience for farmers, enhances environmental sustainability, and provides its people with healthy, delicious, and nutritious choices.

DAY 1

The first day of the World Congress began Monday with Dr. Sciligo of The Organic Center delivering an inspiring keynote “Cultivating Organic Solutions for True Sustainability,” which highlighted U.S. efforts to amplify the positive message of organic.

OTA co-CEO Chapman participated in a pre-conference session co-organized by Eduardo Cuoco from IFOAM Organics Europe and Mariano Serratore at ICEA Istituto Certificazioni Etiche e Ambientali to explore how organic systems can thrive in a metrics-driven world. Organic leaders like Andrew Smith, PhD (Rodale Institute), Paul Alvarez (Regenerative Organic Alliance), and Paul Holmbeck (IFOAM - Organics International), as well as leaders from around the globe, delved into current sustainability trends and strategies to elevate organic’s profile.

With introspection, humility, and reflection, the Congress explored how organic’s holistic approach—rooted in true cost accounting—can be integrated into broader sustainability conversations. By addressing the complexities of interconnected metrics, we aim to ensure that sustainability efforts are impactful, enduring, and rise above fleeting buzzwords. Together, the Congress embraces the challenge of crafting lasting solutions to agriculture’s most pressing issues.

DAY 2

Dr. Sciligo showcased The Organic Center's cutting-edge research projects that deliver on farmer-driven priorities. These initiatives tackle real-world challenges, helping American organic farmers thrive by applying solutions directly to challenges in their production operations.

The day was packed with insightful sessions and networking focused on knowledge sharing, best practices, opportunities and challenges in expanding organic markets, as well as policies to scale organic agriculture globally.

Chapman shared updates on the new USDA National Organic Program (Agricultural Marketing Service)’s producer group certification rules under the Strengthening Organic Enforcement regulations. These rules are critical for supporting small-scale farmers worldwide—producers of crops like cacao, coffee, tea, spices, coconut, cotton, and more.

Chapman was joined during this session by representatives Markus Arbenz from the Research Institute of Organic Agriculture FiBL Federica Varini from Naturland, Shailesh Patel from Fairtrade International, Dang Thi Bich Huong of Vietnam Organic. On the agenda was a discussion of the grower group lawsuit, while the Congress engaged with hardworking small producers who could be significantly impacted. Learn more here.

DAY 3

On Day 3, Chapman shared insights on Multiple Pathways to Market Success. He was joined by an incredible panel of global experts from Asia, Africa and Europe, including Raffaele Zanoli, Flávia Moura e Castro, Sylvia Kuria 🇰🇪 Prof. Shih-Hsiung Chen, and Hilke Hartmann.

Dr. Amber Sciligo from The Organic Center was elected to represent North American interests on the board.

Newly elected World Board members were appointed and welcomed including Karen Mapusua, Marco Schlüter, Sarah Compson, Shamika Mone, Boyet Uchida, Mag, Paul Holmbeck, Amber Sciligo, Julia Lernoud, and Bablu.

This team of global leaders brings exceptional expertise and dedication to advancing organic agriculture. Together, they will steer IFOAM-Organics International according to the strategic direction set during the General Assembly, ensuring the organization remains at the forefront of ecological sustainability and innovation. Unfortunately, none of the three candidates from the African continent were elected, resulting in the board being without an African member for the first time in decades. However, at the General Assembly, the membership voted to recommend that the World Board co-opt (add) a member from Africa and work is already underway.

The future looks bright with the new leadership. The next Organic World Congress will take place in the Negros Occidental Province, Philippines in 2027.

Key takeaways from the Organic World Congress include:

Younger generations with growing purchasing power, especially Gen Z and Millennials, are prioritizing and paying for organic products, seeing it as a solution to current challenges.
From the U.S. to Kenya, organic farmers face significant hurdles in getting their products to market, which highlights the critical need for investment in organic supply chains.
Opportunities in trade shows: Global trade shows like BIOFACH play a pivotal role in fostering conversations and enabling market discovery for organic producers. It’s inspiring to see the global organic community united in driving meaningful progress.