PRIOR PRINTER'S NO. 3401 PRINTER'S NO. 4038
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. 20080H2347B4038 - 2 -
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. C10L03BIL/20080H2347B4038 - 12 -