Newhouse urges USDA to address Organic Certification Cost Share Program changes

Working to support the nation’s organic farmers and ranchers, U.S. Rep. Dan Newhouse (R-WA), co-chair of the House Organic Caucus, recently expressed concerns about the recent changes to the Farm Service Agency’s (FSA) Organic Certification Cost Share Program (OCCSP).

Rep. Newhouse joined 38 colleagues, including U.S. Reps. Rodney Davis (R-IL), Tom Reed (R-NY), and Stacey Plaskett (D-VI) in sending the Aug. 25 bipartisan letter to U.S. Department of Agriculture (USDA) Secretary Sonny Perdue. The particular changes concerning the lawmakers is a proposed reduction in the reimbursement rate and maximum assistance permitted under the program.

“This change in the reimbursement rate was not anticipated by stakeholders, and we believe it directly contradicts the intent of the overwhelmingly bipartisan Agriculture Improvement Act of 2018 which reauthorized and funded OCCSP,” the lawmakers wrote.

The FSA announced Aug. 10 a Notice of Funding Availability for Fiscal Year 2020 OCCSP funding. This reflects an FSA administrative decision to reduce the reimbursement rate to 50 percent of eligible costs up to $500 per scope instead of the current 75 percent of eligible costs up to $750 per scope, according to the letter.

The lawmakers noted that the 2018 Farm Bill provided $24 million from the Commodity Credit Corporation to OCCSP for fiscal years 2019-2023, with supporting language directing the USDA secretary to use all available carryover funding from fiscal years 2014-2018.

“It was the intent of Congress that producers and handlers would be eligible to receive the maximum amount of assistance as permitted by law, and any changes to the reimbursement rate were not expected at the time of enactment,” the lawmakers wrote.

Washington state currently has the fourth-highest number of USDA-certified organic farmers, ranchers, processors, and distributors in the country, with Rep. Newhouse’s district representing the highest number in the state, according to the congressman’s office.

“The spread of COVID-19 dramatically impacted supply chains and the agricultural workforce, resulting in decreased productivity and tighter margins during an already stressed time in the agriculture economy,” the lawmakers wrote. “For organic producers who have struggled to receive assistance via other USDA programs, the OCCSP was seen as a reliable form of support.”

Rep. Newhouse, a senior member of the House Appropriations Committee, and his colleagues argue that the USDA must use all available authority and funding to provide assistance and protection to the nation’s organic farmers and ranchers.