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Farm bill needs to help organic crops bloom - The Oregonian, June 17, 2012

By The Oregonian Editorial Board

In 1990, sales of organic food in the United States totaled $1 billion. Oregon Tilth's organic certification program was less than a decade old back then, and farmers in some areas had to lobby for exemptions from rules established for conventional agriculture, such as required spraying.

By the time Congress passed the last farm bill in 2008, organic food sales had grown to $22.9 billion. Organic production had become mainstream enough to merit a 24-page U.S. Department of Agriculture report on how organic crops should be treated in the Federal Crop Insurance Program.

Since then, organic food has continued to explode in popularity, with Oregon taking a leading role in both production and consumption. Not surprisingly, the methods for insuring organic crops need to be updated. Sen. Jeff Merkley, D-Ore., has proposed a sensible move that would ensure that producers of organic crops are treated more fairly.

Merkley's amendment would require that organic farmers participating in the crop insurance program be compensated for losses using appropriate price assumptions within three years of the enactment of the 2012 farm bill. Under current law, producers of most organic crops are compensated for their losses based on the price of a non-organic product, which is often much lower, even though they pay a 5 percent premium buying insurance. The premiums on organic crops, which are considered riskier, would remain higher under the amendment.

"This is an issue of fundamental fairness to our organic farmers," Merkley told The Oregonian's Lynne Terry. "Organic farmers are producing higher value crops, and they need to be compensated accordingly when disaster strikes."

He's right, and the amendment accomplishes another important purpose. Organic crops should no longer be treated as a novelty. The gains these food products have made since the last farm bill represent an important and tangible step toward healthier eating habits for Americans. Leveling the financial playing field for organic crop producers is one way to encourage more production and consumption of their products.

Sales of organic food nationwide have increased another 27.6 percent since 2008 to $29.22 billion in 2011. That growth came during a period when sales of many premium-priced products declined or stagnated because of the economic slowdown.

Crop insurance administrators already have started the process of establishing fair reimbursement prices for organics, but Merkley's amendment would speed up the pace of implementation. It's one small step toward treating organic food as the important industry it has become.

Rep. Kurt Schrader, D-Ore., an organic food pioneer and a member of the House Agriculture Committee, said Merkley's proposal "has as good a shot as any" amendment of surviving as the farm bill moves through Congress. Merkley also is optimistic.

To date, non-agricultural parts of the farm bill, such as funding for the Supplemental Nutrition Assistance Program, have generated the most debate. Throw in the usual arguments over subsidies and the regional differences that are inherent to agriculture, and legislators face a tedious slog to produce a bill that can get through the House and Senate. But it's vital to Oregon and the nation that Congress pass a farm bill that positions U.S. agriculture to thrive.

The debate over the bill comes at a time when agriculture is one of the strongest sectors of the state and national economies. Financially viable farms and farm-related businesses are essential to a healthy Oregon economy, particularly in rural areas. Trade agreements, particularly with South Korea, could open important new markets for the state's growers.

While policies affecting organic crops are a small part of the farm bill, they are an important part of the future. Beyond the crop-insurance amendment, other aspects of the bill could help fund increased research, provide more export possibilities and reduce farmers' share of the cost of organic certification.

It's vital to Oregon that Congress overcome regional differences and election-year politics to pass a farm bill that allows Oregon agriculture-related businesses to thrive and plant seeds for an economically and nutritionally healthy future.

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