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Organic foods industry, certification costs continue to grow

OLYMPIA – Farm production of organic foods has doubled in the past five years and the cost to certify organically grown foods is outpacing the fees charged by the Washington State Department of Agriculture’s (WSDA) Organic Food Program.

Organic sales by Washington’s farmers have increased to $97 million in 2005 from $47 million in 2000. Organic agriculture remains the fastest growing sector of agriculture across the country, growing at a rate of 20% annually, according to the U.S. Department of Agriculture.

The workload to the state’s organic certification service is also growing. Over the last few years, the Organic Food Program has struggled to keep up with the increased demand for organic certification, currently 954 farms and food processing operations. Revenue under the current organic certification fee structure has not kept pace with the increased cost of certification services requested by Washington’s farmers and food processors. Under state law, the program is required to recover the full cost of organic certification through those fees.

“Our state's organic farmers rely on WSDA’s organic certification to protect the integrity of the organic label,” said Miles McEvoy, WSDA's Organic Food Program Manager. “The continued success of the organic food industry depends upon maintaining the organic standards through verification and enforcement, a process that takes significant time and energy.”

At the request of the Organic Advisory Board, which is comprised of representatives of the state’s organic food industry, WSDA has developed modest fee increases to ensure that organic certifications continue without delay or interruption. The department is now seeking public input on several proposed changes, which include:

• Increased application fees for new organic certifications to $250 from $100;
• New $20 renewal fees to offset the cost of a required annual on-site visit;
• Increased late fees for unpaid accounts; and
• Establishment of fees for those requesting expedited inspections within two weeks.

More information on the proposal can be found at: http://www.agr.wa.gov/FoodAnimal/Organic/

WSDA will hold a public hearing on the proposed changes at 2 p.m. on Wednesday, Nov. 8 in Room 259 of the Natural Resources Building, 1111 Washington Street, Olympia, WA.

The public can also send comments by email to mmcevoy@agr.wa.gov, by fax to (360) 902-2087 or by mail to WSDA Organic Food Program, PO BOX 42560, Olympia WA 98504-2560.

In August, WSDA sent a summary of the fee increases to approximately 950 certified organic producers, processors and handlers. The department received 22 comments, the majority of which were positive.

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