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        PRIOR PRINTER'S NO. 3401                      PRINTER'S NO. 4038

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2347 Session of 2008


        INTRODUCED BY KESSLER, HANNA, SAYLOR, SHAPIRO, BELFANTI,
           BENNINGTON, BISHOP, BRENNAN, CALTAGIRONE, CLYMER, CREIGHTON,
           D. EVANS, EVERETT, FAIRCHILD, FRANKEL, FREEMAN, GALLOWAY,
           GEORGE, GOODMAN, HARHAI, HENNESSEY, JOSEPHS, KULA, LEACH,
           MAHONEY, MANDERINO, MANTZ, MARSHALL, McCALL, McILHATTAN,
           McILVAINE SMITH, MELIO, MOYER, MYERS, M. O'BRIEN, PETRONE,
           PRESTON, ROSS, SAMUELSON, SCHRODER, SEIP, SIPTROTH, K. SMITH,
           STURLA, J. TAYLOR, VITALI, WANSACZ, YOUNGBLOOD AND FLECK,
           MARCH 12, 2008

        AS REPORTED FROM COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
           HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 24, 2008

                                     AN ACT

     1  Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
     2     Statutes, providing for an organic farming transition
     3     program; and establishing the Organic Agriculture Development
     4     Fund.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Title 3 of the Pennsylvania Consolidated Statutes
     8  is amended by adding a chapter to read:
     9                             CHAPTER 49
    10                        ORGANIC AGRICULTURE
    11  Sec.
    12  4901.  Short title of chapter.
    13  4902.  Purpose of chapter.
    14  4903.  Definitions.
    15  4904.  Duties of department.

     1  4905.  Establishment of fund.
     2  4906.  Transition program.
     3  § 4901.  Short title of chapter.
     4     This chapter shall be known and may be cited as the Organic
     5  Agriculture Development Act.
     6  § 4902.  Purpose of chapter.
     7     The purposes of this chapter are as follows:
     8         (1)  To encourage producers to make a long-term
     9     commitment to organic agriculture.
    10         (2)  To encourage further development of the organic
    11     agriculture industry by including organic agriculture in any
    12     and all promotional and other economic development programs
    13     which are made available to other industry sectors.
    14         (3)  To promote the development and adoption of
    15     economically and ecologically sound organic agriculture
    16     methods, harvesting and irrigation techniques through:
    17             (i)  The control of pests and diseases of
    18         agricultural importance through alternatives that
    19         eliminate the use of pesticides and petrochemicals.
    20             (ii)  The production, processing and distribution of
    21         food and fiber in ways that consider the interactions
    22         among soils, plants, water, air, animals, tillage,
    23         machinery, labor, energy and transportation to enhance
    24         the viability of agricultural soils, public health and
    25         resource conservation.
    26             (iii)  The expansion of marketing opportunities and
    27         promotion of products produced through the practice of
    28         organic agriculture which will encourage the purchase of
    29         Pennsylvania-grown foods and promote regional food
    30         security.
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     1             (iv)  The coordination of research and educational
     2         activities on organic agriculture among private and
     3         public agencies and organizations and individuals within
     4         this Commonwealth.
     5  § 4903.  Definitions.
     6     The following words and phrases when used in this chapter
     7  shall have the meanings given to them in this section unless the
     8  context clearly indicates otherwise:
     9     "Fund."  The Organic Agriculture Development Fund established
    10  in section 4905 (relating to establishment of fund).
    11     "Operating revenues."  The total gross operating earnings of
    12  a producer in a given year determined by adding the revenue for
    13  each of the producer's agricultural products.
    14     "Organic system plan."  An organic plan submitted under
    15  section 2114(a) of the Organic Foods Production Act of 1990
    16  (Public Law 101-624, 104 Stat. 3935) and agreed to by the
    17  producer and a certifying agent under that section.
    18     "Producer."  A person engaged within this Commonwealth or a
    19  production area within this Commonwealth in the business of
    20  producing agricultural commodities or causing agricultural
    21  commodities to be produced.
    22     "Revenue."  The amount determined by multiplying the market
    23  price paid to a producer for an agricultural product by the
    24  producer's actual yield for that agricultural product.
    25     "Revenue loss."  The amount equal to the difference between
    26  the average of the producer's operating revenues for the three
    27  years prior to the first year of transition and the operating
    28  revenue for a year of transition to organic production.
    29     "SPECIALTY CROP."  A CROP OTHER THAN A COMMON COMMODITY.       <--
    30  EXAMPLES, WITHOUT LIMITATION, OF COMMON COMMODITIES ARE CORN,
    20080H2347B4038                  - 3 -     

     1  SOYBEAN AND WHEAT.
     2     "Task force."  The Pennsylvania Organic Advisory Task Force
     3  under section 4904(c) (relating to duties of department).
     4     "Technical and educational assistance."  The conveyance of
     5  information and counsel regarding economic and business
     6  planning, marketing and organic practices, such as entomological
     7  practices and pest and weed control and prevention, that satisfy
     8  organic practices.
     9  § 4904.  Duties of department.
    10     (a)  Promotion of opportunities for organic agriculture.--In
    11  order to promote opportunities for organic agriculture in this
    12  Commonwealth, the department shall:
    13         (1)  Survey producers and support services and
    14     organizations to determine information and research needs in
    15     the area of organic agriculture practices.
    16         (2)  Work with The Pennsylvania State University and
    17     Pennsylvania-based nonprofit organic and sustainable
    18     agriculture research institutions to demonstrate the on-farm
    19     applicability of organic agriculture practices to conditions
    20     in this Commonwealth.
    21         (3)  Administer the programs of the department so as to
    22     work toward the promotion of organic agriculture in this
    23     Commonwealth.
    24         (4)  Inform agencies of how Federal or State programs
    25     could utilize and support organic agriculture practices.
    26         (5)  Work closely with producers, The Pennsylvania State
    27     University and Pennsylvania-based nonprofit organic and
    28     sustainable agriculture research institutions, and other
    29     appropriate organizations to identify opportunities and needs
    30     as well as to ensure coordination and avoid duplication of
    20080H2347B4038                  - 4 -     

     1     State agency efforts regarding research, teaching, marketing
     2     and extension work relating to organic agriculture.
     3         (6)  Collect the annual organic inspection reports for     <--
     4     each producer receiving payment under this chapter for a
     5     minimum of ten years from the first year of transition to
     6     organic methods of agriculture.
     7         (6)  FOR EACH PRODUCER RECEIVING PAYMENT UNDER THIS        <--
     8     CHAPTER, COLLECT:
     9             (I)  THE ANNUAL INSPECTION REPORTS FOR EACH OF THE
    10         FIRST FOUR YEARS FROM THE BEGINNING OF TRANSITION TO
    11         ORGANIC METHODS OF AGRICULTURE; AND
    12             (II)  THE ANNUAL ORGANIC CERTIFICATIONS FOR EACH OF
    13         THE NEXT SIX YEARS FOLLOWING THE END OF THE PERIOD UNDER
    14         SUBPARAGRAPH (I).
    15     (b)  Report.--By November 15 of each even-numbered year, the
    16  department, in conjunction with the task force created under
    17  subsection (c), shall report on the status of organic
    18  agriculture in this Commonwealth to the committees in each house
    19  of the General Assembly with jurisdiction over agriculture. The
    20  report shall include:
    21         (1)  A description of current Federal or State programs
    22     directed toward organic agriculture including significant
    23     results and experiences of those programs.
    24         (2)  A description of specific actions the department is
    25     taking in the area of organic agriculture, including the
    26     proportion of the department's budget spent on organic
    27     agriculture.
    28         (3)  A description of current and future research needs
    29     at all levels in the area of organic agriculture.
    30         (4)  Suggestions for changes in existing programs or
    20080H2347B4038                  - 5 -     

     1     policies or enactment of new programs or policies that will
     2     affect organic agriculture.
     3         (5)  A description of market trends and potential for
     4     organic products.
     5         (6)  Available information, using currently reliable
     6     data, on the price received, yield and profitability of
     7     organic farms, and a comparison with data on conventional
     8     farms.
     9         (7)  Available information, using currently reliable
    10     data, on the positive and negative impacts of organic
    11     production on the environment and human health.
    12     (c)  Task force.--
    13         (1)  The secretary shall appoint a Pennsylvania organic
    14     advisory task force to advise the secretary on policies and
    15     practices to improve organic agriculture in this
    16     Commonwealth. The task force shall consist of the following
    17     residents of this Commonwealth:
    18             (i)  Three farmers using organic agriculture methods.  <--
    19             (I)  FIVE CERTIFIED ORGANIC FARMERS FROM AT LEAST      <--
    20         THREE DIFFERENT SECTORS OF AGRICULTURE, INCLUDING
    21         LIVESTOCK, COMMODITIES AND SPECIALTY CROPS.
    22             (ii)  Two organic food wholesalers, retailers or
    23         distributors.
    24             (iii)  One accredited organic certification agent.
    25             (iv)  Two organic food processors.                     <--
    26             (IV)  ONE ORGANIC FOOD PROCESSOR.                      <--
    27             (v)  One representative from The Pennsylvania State
    28         University Agriculture Extension Service.
    29             (vi)  One representative from a Pennsylvania
    30         postsecondary research institution.
    20080H2347B4038                  - 6 -     

     1             (vii)  One representative from a nonprofit
     2         organization representing producers.
     3             (viii)  One at-large member.
     4             (ix)  One representative from the United States
     5         Department of Agriculture.
     6             (x)  One organic consumer representative.
     7         (2)  The task force shall meet at least twice each year.
     8         (3)  The terms of members shall be determined by the
     9     secretary.
    10         (4)  Task force members shall be entitled to actual
    11     expenses incurred while engaged in performing duties of the
    12     task force.
    13         (5)  This subsection shall expire December 30, 2016.
    14     (d)  Registration of State organic production and handling
    15  operations.--The secretary may facilitate the registration of
    16  State organic production and handling operations, including
    17  those exempt from organic certification according to 7 CFR
    18  205.101 (relating to exemptions and exclusion from
    19  certification), and certification agents operating within this
    20  Commonwealth.
    21  § 4905.  Establishment of fund.
    22     (a)  Establishment.--There is hereby established within the
    23  State Treasury, the Organic Agriculture Development Fund, which
    24  shall be an interest-bearing restricted revenue account, in
    25  which shall be deposited such moneys as are appropriated, given,
    26  granted or donated for purposes of this chapter by the Federal
    27  Government, the Commonwealth or any other governmental or
    28  private agency or person.
    29     (b)  Purpose.--Moneys deposited in the fund and interest
    30  earned on moneys deposited in the fund shall be used solely for
    20080H2347B4038                  - 7 -     

     1  the purpose of carrying out the provisions of this chapter.
     2  § 4906.  Transition program.
     3     (a)  Intent.--It is the intent of the General Assembly that
     4  farmers be offered an incentive to use organic agriculture best
     5  management practices as an approved farm management plan to
     6  accomplish the following:
     7         (1)  To improve the profitability of Commonwealth farms,
     8     increase self-employment opportunities for farmers,
     9     revitalize local and regional food systems and encourage
    10     innovation in farming.
    11         (2)  To restore nutrients to soils and to avoid the use
    12     of synthetic fertilizers, herbicides and pesticides on farm
    13     fields as a means of preventing chemicals from entering
    14     surface water and groundwater.
    15         (3)  To sequester carbon in the soil as a means of
    16     reducing greenhouse gases in the atmosphere.
    17     (b)  Establishment.--The department shall establish an
    18  organic farming transition program, a cost-sharing and an
    19  incentive program for fiscal years 2008 through 2014 to
    20  reimburse producers of agricultural products for the costs of
    21  transition to organic production and to provide financial
    22  assistance to producers of agricultural products for losses in
    23  yields during the transition to organic production.
    24     (c)  Administration of program.--
    25         (1)  The department shall use the moneys appropriated to
    26     the fund to assist producers to develop and implement
    27     infrastructure and practices necessary to transition land and
    28     animals to meet the requirements of the Organic Foods
    29     Production Act of 1990 (Public Law 101-624, 104 Stat. 3935)
    30     and to provide financial assistance to producers for losses
    20080H2347B4038                  - 8 -     

     1     in yields during transition to organic production.
     2         (2)  The department may only pay a producer under this
     3     section if the producer:
     4             (i)  Submits to the department an organic transition
     5         plan that contains the following:
     6                 (A)  An organic system plan approved by an
     7             accredited organic certification agent.
     8                 (B)  The expected costs for infrastructure and
     9             practices.
    10                 (C)  The environmental and economic benefits
    11             derived from the infrastructure or implementing
    12             organic practice standards.
    13                 (D)  A demonstration of the existence of a market
    14             or the reasonable expectation of a future market for
    15             the products to be produced.
    16                 (E)  A schedule setting out sufficient
    17             information from which to determine operating
    18             revenues for that part of the producer's farming
    19             operations intended to be converted to organic for
    20             each of the three years preceding the date of the
    21             organic transition plan.
    22             (ii)  Agrees to adhere to the organic system plan
    23         approved by an accredited organic certification agent or
    24         an organic system plan as amended by an accredited
    25         organic certification agent for a period of at least ten
    26         successive years.
    27             (iii)  Agrees to receive technical and education
    28         assistance from the department, farm extension agents of
    29         The Pennsylvania State University, or from organizations,
    30         institutions and consultants with cooperative agreements
    20080H2347B4038                  - 9 -     

     1         with the department relating to the development and
     2         implementation of organic practice standards or other
     3         aspects of transition to organic production, including
     4         marketing, business and risk management plans.
     5             (iv)  Agrees to submit to annual verification by an
     6         accredited organic certification agent to determine
     7         compliance of the producer with organic certification
     8         requirements.
     9         (3)  The department shall only pay producers under this
    10     section for the costs of the following:
    11             (i)  Organic practices and activities during
    12         transition to certified organic production consistent
    13         with an approved plan to transition to certified organic
    14         production.
    15             (ii)  Farm infrastructure necessary to implement
    16         organic practice standards, so long as the infrastructure
    17         is consistent with an approved plan to transition to
    18         certified organic production.
    19             (iii)  Organic livestock welfare measures, so long as
    20         the infrastructure or practices and activities are
    21         necessary to implement an organic practice standard and
    22         are consistent with an approved plan to transition to
    23         certified organic production.
    24             (iv)  Advanced organic practices consistent with
    25         approved certified organic production.
    26             (v)  Technical assistance, including the costs of
    27         developing an approved transition plan under this
    28         section.
    29             (vi)  Other measures the department, after
    30         consultation with the task force, determines are
    20080H2347B4038                 - 10 -     

     1         appropriate.
     2         (4)  The department shall provide a producer with
     3     financial assistance in an amount equal to the revenue loss
     4     for that part of the producer's farming operations being
     5     converted to organic during a year of transition to organic
     6     production.
     7         (5)  The maximum amount paid to a producer for transition
     8     to organic production under this section, whether for payment
     9     of costs or revenue loss, or an aggregate of both, shall be
    10     $10,000 per fiscal year for a period of not more than four
    11     successive years, except:
    12             (i)  In the case of a producer who annually produces
    13         three or more specialty crops, the producer may not
    14         receive payments under this section that in the aggregate
    15         exceed $20,000 per year for a period of not more than
    16         four successive years.
    17             (ii)  In the case of a producer whose principal
    18         farming enterprise is livestock, the individual or entity
    19         may not receive payments under this section that in the
    20         aggregate exceed $20,000 per year for a period of not
    21         more than four successive years.
    22         (6)  A certified organic producer under the national
    23     organic production program shall be eligible for
    24     reimbursement and financial assistance under this section to
    25     make the transition to organic production for new lands and
    26     livestock.
    27         (7)  THE DEPARTMENT SHALL ASSURE THAT A PRODUCER MAKING    <--
    28     APPLICATION UNDER THIS CHAPTER DOES NOT RECEIVE PAYMENT IN
    29     ANY FORM FROM MORE THAN ONE FEDERAL OR COMMONWEALTH PROGRAM
    30     FOR A PARTICULAR INDIVIDUAL TRANSITION COST.
    20080H2347B4038                 - 11 -     

     1     (d)  Schedule and manner of payment.--
     2         (1)  The department shall pay a producer the amount for
     3     which the producer qualifies under subsection (c) by February
     4     15 of each year of transition to organic production.
     5         (2)  By December 31 of the same year, the producer shall
     6     submit to the department a report of actual transition
     7     expenses paid and a report of operating revenues and revenue
     8     loss, if any, resulting from the producer's organic farming
     9     operations for that year.
    10         (3)  If the annual total of actual transition expenses
    11     and revenue loss is less than the amount paid under paragraph
    12     (1), the balance shall be deducted from the payment for the
    13     next year.
    14         (4)  The producer shall return to the department any
    15     balance on hand at the end of the fourth year of transition
    16     to organic production with the report for the fourth year.
    17     (e)  Termination of payments.--The department shall MAY        <--
    18  terminate payments under this section and shall MAY require       <--
    19  repayment in whole of payments already received if the
    20  department determines that the producer is not pursuing organic
    21  certification under the Organic Foods Production Act of 1990.
    22     Section 2.  This act shall take effect in 60 days.






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