A proposed rule, recently published by the Agricultural Marketing Service (AMS), would establish an industry-funded “promotion, research, and information” program (Order) for certified organic products. The Organic Trade Association submitted the proposed program to AMS citing a need to address domestic supply shortages of organic products, pest management, and general market confusion.

Per the Federal Register, the proposed program would strengthen the position of certified organic products in the marketplace, support organic industry research, and improve information access across the organic sector. Proponents believe improved measures will also expand existing markets for organic products.

The proposed rule outlines the statutory authority and need for the program, as well as detailed provisions, including definitions of terms and specific expenses and assessments. If implemented, the program would be financed by an assessment on “domestic producers, handlers and importers of organic products” and administered by an industry board nominated by organic stakeholders and appointed by the Agriculture Secretary. Critically, the proposed initial assessment rate would be “one tenth of one percent of net organic sales for producers and handlers,” and “one tenth of one percent of the transaction value” of organic products imported into the United States for importers. Exemptions to the assessment would be provided for producers with “gross organic sales of $250,000 or less during the prior marketing year” and for organic products “produced domestically and exported” from the U.S.

Comments on the proposed rule must be received by March 20, 2017. Formal comments may be submitted here.