Organic Produce Association Releases Economic Analysis on Testing Out of the Organic Three-Year Transition Rule

September 24, 2024

The Organic Produce Association has released a comprehensive economic analysis outlining the potential impacts of testing out of the U.S. Department of Agriculture’s (USDA) three-year organic transition rule. The study, which focuses on fresh apples, berries, and tomatoes, reveals that modernizing the organic certification process could yield significant benefits for farmers, consumers, and the agricultural market.

The USDA’s current rule mandates that farms undergo a three-year transition period using organic practices before achieving organic certification. While designed to maintain the integrity of organic standards, this waiting period poses financial challenges to many farmers. The analysis suggests that allowing farms to test out of the transition requirement, especially for those already following organic principles, could offer substantial economic and consumer advantages.

Key Findings of the Report:

  1. Increased Organic Transition Among Farmers: The study estimates that between 20 and 30 percent of conventional farmers would transition to organic production if they were allowed to test out of the three-year waiting period. This could expand the number of certified organic producers, boosting organic supply across the country.
  2. Impact on Consumer Prices and Availability: Testing out of the transition period would create a significant positive shift for consumers, who would benefit from increased access to organic produce and lower prices. The analysis forecasts that prices for organic produce could decrease by 13% to 40%, depending on the specific commodity, making organic foods more affordable and accessible to a broader segment of the population.
  3. Farmer Profitability and Price Impacts: Although the influx of organic producers would lead to lower market prices for organic produce, farmers are still projected to benefit from higher overall demand. The analysis shows that net profits for farmers could increase by 3% to 10% of the current retail value, depending on the crop, with higher volumes of organic sales offsetting the price reductions.

The Organic Produce Association welcomes the opportunity to engage in meaningful discussions about the economic benefits of a test-out option for organic certification. The Executive Summary of the analysis can be found here, and the full study can be found here.  For additional information, please contact the Organic Produce Association (info@organicproduceassoc.com).