41 minute read
Growth Strategy
grOwth Strategy: year-rOuNd SaleS FOr FarM aNd FOOd BuSiNeSSeS Tips on diversifying farm income from season extension to agritourism and more
BY MOllY Berntsen, Penn state extensiOn educatiOn PrOgraM assOciate and Maria graziani, Penn state extensiOn sr. educatOr
Advertisement
The following article has been adapted from a workshop series by Penn State Extension Business Management Team called Strategies for Successful Selling and is the final article of a 3-part article reflecting the series.
As a small farm or food business owner, you likely have direct experience with seasonality playing a major role in your business plan as well as the need to adjust your sales strategy throughout the year to continue bringing in income while meeting your customers’ needs. When running a highly seasonal business, the process of developing a business plan that continues to bring in income throughout the year can require some creative thinking! To this end, finding ways to diversify your income or extend your farming season can be an essential ingredient in ensuring that your business continues to thrive and be sustainable year after year.
Diversification and season extension can protect farmers against downside risk and cash flow problems while enhancing business operations by making better use of land, labor, and capital. Furthermore, data from the USDA Economic Research Service highlights the unfortunate reality that increasingly, small-to-medium sized farms are relying on income diversification (specifically off-farm work) to keep their businesses afloat.
When it comes to diversifying your farm’s income, there are several strategies available to you. We have highlighted five major approaches towards achieving year-round sales at your farm or food business: Season Extension, Crop Diversification, Value-Added Products, Agritourism, and Responding to Economic Relief Opportunities.
SEASON EXTENSION
In addition to allowing you to extend your growing season, high tunnel production furthers your ability to create a controlled and uniform growing environment, leading to increased production and improved crop quality. There are many programs in place that can help you with purchasing and installing a high tunnel on your farm.
The Natural Resources Conservation Service (NRCS) offers a financial assistance program to farms that agree to adopt certain conservation practices on their land. Applications for this program are accepted on a continuous basis. The financial assistance program includes several different grants including Agricultural Management Assistance, Conservation Assistance, Environmental Quality Incentives Program (EQUIP), and easements.
NRCS also provides support to farmers through agricultural easements. Agricultural Land Easements protect the long-term viability of the nation’s food supply by preventing conversion of productive working lands to non-agricultural uses. Land protected by agricultural land easements provides additional public benefits, including environmental quality, historic preservation, wildlife habitat and protection of open space. NRCS provides financial assistance to eligible partners for purchasing Agricultural Land Easements that protect the agricultural use and conservation values of eligible land. In the case of working farms, the program helps farmers and ranchers keep their land in agriculture.
Under the Agricultural Land component, NRCS may contribute up to 50 percent of the fair market value of the agricultural land easement. Where NRCS determines that grasslands of special environmental significance will be protected, NRCS may contribute up to 75 percent of the fair market value of the agricultural land easement. You would apply for easement through your county agricultural easement program, usually defined as a conservation district and/or farmland preservation program.
Chart Source: USDA, Economic Research Service and National Agricultural Statistics Service, Agricultural Resource Management Survey and US Census Bureau, Current Population Reports. Data as of November 27, 2019.
CROP DIVERSIFICATION
Farmers who implement crop diversification can experience several benefits such as breaking pest cycles (including plant diseases, insects, and weed infestation), reducing erosion, improving soil structure, and conserving soil moisture. Furthermore, being strategic about how you diversify your crops can help you extend your season in a way that boosts your profits significantly. Take the time to learn about which crops have a growing market demand, such as the following:
Lavender: Able to grow in a variety of climates, lavender is a slam dunk for several reasons, not least of which because it fetches a nice price (a quarter-acre produces around $18,000, when sold in bunches). Lavender grows quickly, is resistant to disease, and propagates easily. Ginseng: This crop grows best in forests, mostly in eastern and northern America. While still viable as an open-field crop, ginseng is most potent and valuable when grown under the canopy of trees. The extra effort is well worth it, though: this “wild-simulated” ginseng can sell for anywhere between $300 and $700 a pound.
Hops: Michigan and New York are now in the top 5, hopproducing states. With 800 acres and 400 acres respectively in production, and most sales in both states occurring in-state or in-region. This demand is coming from craft beer producers who are willing to pay the premium difference. Brewers paid an average of $12.83/lb. for craft hops.
Hemp: The global industrial hemp market is projected to grow from USD 4.6 billion in 2019 to USD 26.6 billion by 2025, recording a CAGR of 34%. In addition, the USDA made crop insurance available to hemp growers that produce hemp for fiber, flower, or seeds for the 2020 season.
Mushrooms: For gourmet mushrooms like shiitake, maitake, and oyster, 2017-18 saw a record high at $1.23 billion in total sales. US mushroom crop totaled 917 million pounds and the average reported price was $1.34/lb., up 3 cents from the previous year’s price. Vermicompost: There are two products that “grow” from vermicomposting, the worm population and the compost. Stemming from a relatively inexpensive startup cost (worms, crop residue, repeat), you can produce vermicompost for use on your farm or gardens, or you can sell it for $400 to $1,300 per cubic yard. Markets include greenhouses, vineyards, farms, nurseries, golf courses, turf fields, landscapers, and homeowners. The worms are also a product, depending on variety to sell wholesale to other producers, home composters or into the fishing industry.
Honey: Honey value ranges depending on variety, but has an average commodity price of $1.86/lb. However, the locally produced honey market can and does yield prices between $7-$10/lb. In addition, cultivating honeybee hives is a valuable market, at $815M in sales in 2018.
VALUE-ADDED PRODUCTS
Considering value-added, when coupled with an up-todate understanding of consumer demand and trending sales in the food marketplace, can increase the value of your products tremendously. The list of value-added products includes a wide range of products from cheese, cider, spreads, sauces, and snacks to candles, crafts, dried flowers, soaps, and even furniture.
It’s a good idea to keep abreast of the latest research in terms of food and flavor trends to give you a starting point for some potential directions in which you could take your value-added products. For example, 2020 is seeing a boom in: • Botanical-infused non-alcoholic bottled drinks • Easy-to-serve and ethically raised charcuterie and cheese • Unique, brightly colored vegetables • Prepared nutritious snacks such as hard-boiled eggs, vegetable and fruit infused fresh nutrition bars, or pickled vegetables
As more consumers begin to care about the sustainability of the products they choose, demand is increasing for local food from markets and local farms. Even some restaurants like Shake Shack and Chipotle have begun incorporating locally grown foods into their menus.
AGRITOURISM
If adding more crops to your operation isn’t in the cards, consider tourism-based diversification in agriculture, which can include seasonal offerings such as corn mazes and pumpkin patches, farm-to-fork dinners, and/or petting zoos.
Agritourism has a major economic impact in Pennsylvania.In PA, the average annual income from agritourism per operation in 2017 was $38,261. Total agritourism sales in 2017 in PA were $27 million. Lancaster County led in agritourism operations at 77, followed by Chester County, Bucks County, and Butler County. Source: Penn State Extension
When deciding whether or not to establish an agritourism element in your farm business, it is important to ask yourself three questions: • How is my land currently zoned? • What insurance might I need? • How will this affect the operations of my existing farm business?
The USDA Risk Management Checklist is a tool designed specifically to help you think through the answers to these questions (and many more) in preparation of starting your agritourism operation. See the Extension article Using the USDA Risk Management Checklist User’s Guide to get started in the process of determining what type of agritourism might be the best fit for your current farm businesses!
To read more about the state of agritourism in Pennsylvania, see the Extension article Agritourism in Pennsylvania 2019 Update.
COVID-19 AND ECONOMIC OPPORTUNITIES FOR FARMERS
Due to the current nature of the rapid changes in our society, loans and grants for small businesses and farms, deemed as essential business to the health and well-being of society, are becoming more available to ensure farms and food businesses can stay open for residents. Farms have a unique opportunity to find new customers, expand and strengthen their operations, increase sales online and inperson at farm markets, with delivery and customer pick up.
Online ordering with pick-up and delivery options are fast becoming a normal function of grocery buying for most American families, as they seek to cutdown their presence in crowded public spaces and play their role in reducing the spread of infectious diseases.
You can find more information on changes occurring in 2020 for farmers and food producers on the Penn State Extension Coronavirus Information Page, as we are quickly and continuously developing resources to support the farming community.
RESOURCES
NRCS Financial Assistance:
nrcs.usda.gov/wps/portal/nrcs/main/pa/programs/financial/
Agricultural Management Assistance Program:
nrcs.usda.gov/wps/portal/nrcs/detail/pa/programs/financial/ama/?cid=nrcseprd928008
Conservation Innovation Grants:
nrcs.usda.gov/wps/portal/nrcs/detail/pa/programs/financial/cig/?cid=nrcs14 2p2_018083
Environmental Quality Incentives Program:
nrcs.usda.gov/wps/portal/nrcs/detail/pa/programs/financial/eqip/?cid=stelprdb1266191
Agricultural Conservation Easement Program:
nrcs.usda.gov/wps/portal/nrcs/main/pa/programs/easements/acep/
USDA Service Center Locator:
offices.sc.egov.usda.gov/locator/app?service=page/CountyMap&state=PA&s tateName=Pennsylvania&stateCode=42
Conservation District Locator:
pacd.org/?page_id=59
USDA Risk Management Checklist User’s Guide:
extension.psu.edu/using-the-usda-risk-management-checklist-users-guide
Agritourism in Pennsylvania 2019 Update:
extension.psu.edu/agritourism-in-pennsylvania-2019-update
Penn State Extension Coronavirus Information Page:
extension.psu.edu/coronavirus
Molly Berntsen is an Education Associate for Penn State Extension in Allegheny County, where she works as a farmer educator in agricultural entrepreneurship. Molly is passionate about strengthening local food systems and communities throughout western Pennsylvania. Previously, she has worked in food systems and education at DC Greens in Washington, DC and the Environmental Charter School of Pittsburgh. Molly holds a B.S. in Biology from Carnegie Mellon University and is currently pursuing a Masters in Social Work from the University of Pittsburgh. Maria Graziani holds an MBA from Carlow University and joined Penn State Extension in 2016. She is a former urban farmer and value-added producer who is currently part of a team that ensures agriculture in Pennsylvania is a thriving business that supports farming families, communities and commerce. Ms Graziani’s engagement in agricultural economic research, entrepreneurship, and program development, is creating a systems-approach to local and regional food production and working to put the producer on the pulse of industry changes, advancements and opportunities.
A Full-Service Certication Agency A Full-Service Certication Agency Now offering Now offering Transitioning Farmer services! Transitioning Farmer services!
814-422-0251 • paorganic.org
transitions Inspiration for Organic: A Q & A with Transitioning Farmers
Homefields Inc. is located in Millersville, PA. Homefields is a non-profit organization dedicated to creating new life options for people who have disabilities. A modern ranch and 1800s farmhouse are the homes, and a 23-acre farm is the stage. Hundreds of people who have a disability or other barrier to traditional employment have engaged at the farm, growing organically-minded produce for community shareholders. Six adults with intellectual and developmental disabilities call Homefields “Home.” Homefields is committed to organic production practices. They are working with Rodale Institute’s organic crop consulting program and plan on applying for organic certification in the Fall of 2020.
Homefields’ Farm Manager, Katie Landis, shares insights on Homefields’ transition to organic with Emily Newman, a Rodale Institute Organic Crop Consultant..
1. Can you tell us a bit about your operation?
The farm has been around for 20 years. We are a part of Homefields Inc. which is a larger non-profit organization. Homefields was founded in the early 1990s by five families who all had an adult child with a disability and were looking for a more natural, peaceful place for their children to live so they got together and purchased the farm. A couple years later the vegetable production side of Homefields started. We at first collaborated with Goodwill Industrires who ran the farm CSA program working with adults with disabilities for about 17 years. In 2017 they parted ways with us and Homefields has been running the farm side of things since then. We manage 23 acres but we have about 7 in vegetable production.
There are about 175 shareholders in our CSA. They all come to the farm to pick up. We have 3 pick up days every week. A big part of our CSA is our pick your own field and our pick your own strawberries. This year we implemented a choice CSA so people can set preferences about which vegetables they like and don’t’ like and they can also then make swaps before pick up time happens so they are getting more of what they like. We are pretty excited about that. With our CSA, we grow the whole range of vegetables
Katie Landis, Homefields’ Care Farm Manager, ready for work on the 23-acre Millersville farm. Photo: Homefields Inc.
you would expect to get from a CSA, a little bit of everything.
2. What is your interest in getting certified organic?
For me getting certified organic would be easier than trying to explain how we are using organic practices but that we can’t say that we are organic. It will just be simpler to stick that label on things and have people just know. Also, we will have better accountability. We can prove to everybody that this is what we are doing.
3. What has been the biggest stumbling block to certification and how are you working to overcome it?
I think the biggest stumbling block in my mind was cost and just the amount of paperwork that might be involved but I feel like over the years we have implemented a lot of that paperwork ahead of time. We do a lot of recordkeeping and a lot of tracking of things already. So aside from the application I really don’t know if there is going to be a whole lot more. And working with a Rodale Institute Crop Consultant is helpful, so that’s great.
4. What advice would you give another farmer who is in your situation, maybe practicing organic but not certified?
I feel like the bigger you are the more important it is to have that accountability. Also, there are programs like the USDA grant that we are working from that you can get help
for free which is really awesome. If they want to do it, just try to figure it out.
5. We all know that farming is extremely hard work, often requiring long days in difficult conditions. What motivates you to get up each day and keep going?
Here on this farm, what motivates me is the people really. All the shareholders are so happy to see us, so happy that we are growing food for them. Our employees, farmhands and volunteers are all really happy to be here and so happy to be growing food. It’s just a really awesome, natural, peaceful, healthy environment to be in.
6. Is there anyone who has influenced you in your farming journey that you want to tell us about?
My biggest mentor was a woman named Eli Weaver who is with Lancaster Farmacy. They grow mostly flowers and medicinal herbs. She was the farmer at the first farm that I worked at and she really inspired me to want to explore more. She got me interested in farming and organic agriculture.
7. Are there any fundamental farming “lessons” that you have learned in your farming career that you would like to share with farmers who will read your interview?
You have to just take each day as it comes and realize that you are not going to get everything on your list completed and that tomorrrow is another day. There will always be weeds and you have to accept some level of weeds. I heard a quote somewhere about weeds — it was something like “perfection is not attainable so you have to shoot for 80% being good enough.” I try to think about that since I do have some perfectionist tendencies. Our shareholders are seeing the vegetables and the strawberries — they are not seeing the weeds when they come, even though that’s what I am seeing. They are happy.
Katie Landis, Farm Manager of Homefields Inc., is working with Organic Crop Consultants at the Rodale Institute. The consulting services are FREE to Pennsylvania farmers transitioning to organic thanks to funding from the PA Department of Agriculture. Farmers who make the transition to organic can earn two to three times the price of their conventional counterparts and increase the value of their land, giving farmers a valuable asset for future generations. Rodale Institute is a trusted resource for technical assistance, regulatory advice and community connections. Consultations typically begin with a phone call, followed by a site visit. Support is provided throughout the entire transition to make sure farmers are on the right track.
Farmers that are interested in receiving consulting services can contact the Rodale Institute directly by calling 610- 683-1416 or Consulting@RodaleInstitute.org.
About 80 students and teachers from Hambright Elementary School came by to investigate, explore, create, compute and otherwise immerse themselves in various spaces at Homefields. Photo: Homefields Inc.
staceY Budd executive assistant President’s Message
BY tina ellOr, PcO BOard President
The 2020 COVID-19 pandemic has posed unique challenges to many organizations and PCO is no exception. As we adapted to sheltering in place and working from home, we were at the same time continuing our search for a new Executive Director. We were forced by circumstance to conduct this search and all of our interviews virtually which, although not ideal, had the happy result of the selection of Diana Kobus as our new Executive Director. Diana comes to PCO with over a decade of non-profit leadership in an environmental accreditation and certification organization.
Diana has a Masters in Environmental Sciences with a focus in Organic Agriculture and has been Executive Director of the Institute for Environmental Practice (IPEP) for the past twelve years following a stint with Whole Foods Markets in the early 2000s. She is currently the President of the Council of Engineering and Scientific Specialty Boards. She brings extensive leadership experience along with a passion for organic production and the critical impact it has on climate and the environment. I am looking forward to the time when we can get together in person and welcome Diana to our organic farming community. Our successful search for our new executive director couldn’t have been done without the valuable input and efforts of our staff and stakeholders, and our Interim Executive Director, Katherine DiMatteo. Thank you to all of you who took the time to participate in focus groups and interviews and who helped us in our search for qualified candidates.
OUR COMMON HUMANITY
We are working through challenging times, not only the global pandemic and the resultant economic crisis but also
UPCOMING BOARD MEETINGS:
Tuesday, July 21, 2020
Agenda highlights: • Approval of 2020 financial re-projections • Board policy updates
Thursday, October 15—Friday, October 16, 2020
Agenda highlights: • Strategic planning updates • Approval of 2021 Fiscal Budget the exposure of some of the weaknesses of our democracy with the deaths of George Floyd, Breonna Taylor, and Ahmaud Arbury-the latest in a long shameful history of racial discrimination.
Charles Dickens wrote A Tale of Two Cities in 1859 that opens with this line: “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair….”I think this view shares some of what is happening now. I choose to interpret these words as hopeful that our current health, economic, and social crises will lead to serious self-reflection both as individuals and as a society leading to positive change.
Amidst all of the bad news, there is also plenty of good news of people coming together to help keep their communities fed and strong and to stand together in the face of injustice. It is to me a demonstration of the recognition of our common humanity.
“This country will not be a good place for any of us to live in unless we make it a good place for all of us to live in.” —Theodore Roosevelt
Stay well, stay strong, keep up the good work. — Tina Ellor
CalliNg FOr
BOard NOMiNatiONS
Every year, PCO has five open board seats to fill. As a member-based organization, we look to you to consider nominating yourself or others you feel would lead our work with the integrity we strive to uphold. PCO’s Advisory Board is responsible for ensuring adherence to legal standards and ethical norms, overseeing the organization’s financial health, monitor and strengthen our programs and services, all while building a strategic plan to help us meet our goals. PCO values a diverse and inclusive board that supports the mission of PCO and represents the membership by having a balance of interests, backgrounds and perspectives. To support this diversity, the board is comprised of both certified and non-certified operations, industry professionals, academia and consumers. Board members are elected for a 3- year term and are eligible to serve a total of 2 consecutive terms.
Our nomination period is open from August through Mid-October. Nominations are submitted to the Governance Committee for review.
For more information about board roles and responsibilities — view our website at: paorganic.org/board/board-nominations.
dear aggy
Dear Aggy,
I’m planning on incorporating some molasses into my foliar sprays, or maybe even adding the dry version to my fertilizer blend. Does PCO need to review the molasses, or can I just order it through my farm store? — Thanks, Molly
Hi Molly,
Yes, PCO will need to review the specific molasses that you’re planning on using. There’s a surprising number of molasses formulations out there, and not all of them are allowed. In order to determine compliance with the National Organic Program, we will need a copy of the label, as well as verification from the manufacturer that there are no added preservatives or other additives (such as those added to improve flowability). Sulfured molasses products have added sulfur dioxide as a preservative and are not allowed. Dry molasses will also need to be reviewed, as there are possibly carriers involved. Remember — just because a product is allowed for one use, doesn’t mean it’s allowed for all uses. Molasses allowed for crop use may not be allowed for livestock use. When in doubt, call PCO! — Best, Aggy
Do you shop online at Amazon?
Support PCO at the same time with AmazonSmile!
The AmazonSmile Foundation will donate 0.5% of the purchase price from your eligible AmazonSmile purchases to PCO at no adiitional cost to you. To shop at Amazon Smile simply go to smile.amazon.com from your web browser. Then select “Pennsylvania Certified Organic” using your existing Amazon.com account. You may also want to add a bookmark to smile.amazon.com to make it easy to return and start your shopping and supporting!
STAY CONNECTED, VISIT: paorganic.org
Certification update
Marissa evankovich certification Program Manager
Happy Summer!
This year has been a year of uncertainty and change, and here at PCO has been no exception. As you may have read in the inspections update of this issue, we’ve had to think and be proactive about how we are going to schedule and handle the onsite inspections of your operations. We may need to update how we conduct your inspections if the situation hasn’t improved for us to be safely on site. Things are changing day by day in the instructions and information we’re sending to our inspectors, and, as a result, to our certification staff, and to you. Thank you all for your patience as we change our processes and procedures, and for your understanding regarding any delays you’ve experienced in paperwork or anything else. We are still determining on how to best be available and serve you, while balancing safety.
If you’re adding anything to your certification, this year may be a little different than in years past, and it may be a little different than in future years on how PCO approves these changes. We are evaluating whether any new changes to your OSP (such as adding fields, greenhouses, production lines, or another poultry house) need a physical onsite inspection prior to issuing PCO approval. Typically, these type of changes would be inspected on site, in person, prior to use if at all possible. However, due to the limitations we are facing this year, we are working to do as many ‘desk audits’ or pre-inspection approvals as possible. Many factors go into the decision on whether something can be approved, so please contact your certification specialist if you are making any big changes to your OSP, and if you aren’t sure, call us!
One last item I’d like to mention: it’s never too early to think about the cost share program! Please remember, all fees must be paid by 9/30/2020 in order to be eligible for this year’s cost share program. Haven’t had your inspection yet? No problem! Call our accounting department for a prebill! We are also happy to work with you on payment plans if necessary. More information will be sent to you in the next few months on the cost share program.
STAY CONNECTED, VISIT: paorganic.org
legislative update
kyla smith certification director
Earlier this summer, a bipartisan bill was introduced in the U.S. Senate by Ranking Member Debbie Stabenow (D-MI), Senator Mike Braun (R-IN), Lindsey Graham (R-SC), and Sheldon Whitehouse (D-RI) to establish a USDA program aimed at streamlining access to voluntary carbon markets for farmers. The Growing Climate Solutions Act would: • Facilitate a voluntary program for farmers interested in participating in carbon markets and receiving payments for implementing climate friendly practices that capture carbon, reduce emissions, improve soil health, and make operations more sustainable. • Establish a program where USDA would certify interested third-party verifiers and technical assistance providers to verify and measure practices. While approved third-party verifiers would be able to advertise that they are USDA certified, this would not be a market-facing label. • Help facilitate and connect farmers interested in receiving payments for carbon offsets with a “one-stop-shop” website with resources on how to get started as well as a list of
USDA-certified entities.
• Establish a federal advisory council to provide recommendations to the Secretary of Agriculture on the certification program. The Secretary would establish details of the program. • As a federally administered program, it would be complementary to private sector programs that already exist for farmers interested in participating in carbon markets. PCO will monitor the progress of this bill and evaluate its support among our stakeholders as well as applicability to our mission and vision.
USDA MISSES ‘ORIGIN OF LIVESTOCK’ FINAL RULE DEADLINE
In the Fiscal Year 2020 appropriations bill, Congress gave the U.S. Department of Agriculture (USDA) 180 days to finalize the National Organic Program’s (NOP) Origin of Livestock Rule. USDA failed to complete this rule by the June 17th deadline. As such, Senators Susan Collins (R-ME) and Patrick Leahy (D-VT) to Secretary of Agriculture Sonny Perdue calling on the agency to finalize this rule without further delay. “The 180-day period that Congress provided USDA to finalize this rule has now closed. While we recognize that the demand for service and program delivery at USDA has increased dramatically during the pandemic, we
urge the Department to finalize the Origin of Livestock proposed rule without further delay and establish a timeline for its implementation.”
Additionally, PCO, along with nearly 70 other organizations, companies and farms, signed a letter urging Congress to ensure USDA complies with the law and finalizes the rule as soon as possible.
Materials update
jen Berkebile Materials Program Manager
MATERIAL REVIEW STATUS CHANGES
Please note the following status changes for materials reviewed by PCO for use by certified operations.
ALLOWED
n Livestock Materials • First Pulse D Oral Drench by Ralco Nutrition, Inc., is allowed as a livestock medical treatment with restriction.
• KNS Mineral by Farming Solution is allowed as an OPT grass-fed feed additive/ supplement. • Xcite by Advancing Eco-Agriculture is allowed as a livestock feed additive/ supplement.
PROHIBITED — Operators must immediately discontinue use of these products unless otherwise noted.
n Crop Materials • Arm & Hammer Baking Soda by Church & Dwight Co., Inc., is prohibited as crop disease control and as a fertilizer/ soil amendment.
• Citric Acid by Shandong TTCA Biochemistry Co is prohibited as a crop production aid. • Limestone from Hanson Aggregates / Milton Quarry is now prohibited as a fertilizer/ soil amendment due to insufficient information. You may use up any that you have on hand.
n Livestock Materials • Avi Lyte by Ralco Nutrition, Inc., is prohibited as a livestock feed additive/ supplement. Contact Jen at PCO about using up any that you have on hand. • Bovi Soft Barrier by BouMatic, LLC, is prohibited as a livestock teat dip/ udder care product. • CalviVault by Van Beek Natural Science, LLC, is prohibited as a livestock medical treatment. prohibited as a livestock feed additive/ supplement due to insufficient information. You may use up any that you have on hand.
• Complete Poultry Vitamins and Electrolytes by Paragon
Specialty Products, LLC (PSP) is prohibited as a livestock medical treatment due to insufficient information. You may use up any that you have on hand. • LactoLife 4-12 Mineral by Belisle Solution Nutrition is prohibited as an OPT grass-fed feed additive/ supplement.
You may use up any that you have on hand. • Lacto Vie Mineral Mix 16-8 by Belisle Solution Nutrition is prohibited as an OPT grass-fed feed additive/ supplement. You may use up any that you have on hand. • Organic Pure Cleanse by River Feed and Supplies is prohibited as a livestock parasiticide. You may use up any that you have on hand. • Vitamin E by AgriLabs, Inc., is prohibited as a livestock medical treatment.
inspection update
jenny cruse inspection Program Manager
2020 INSPECTIONS EXPECTATIONS
COVID-19 has brought about changes in the way PCO is handling organic inspections in 2020. The changes, while not ideal and not permanent, are designed to protect public health while ensuring compliance with the USDA Organic Regulations.
Depending upon circumstances, inspections may occur remotely/virtually, through a limited-contact onsite visit, or via desk audit by the inspector. Your inspector may opt for a hybrid approach. Onsite inspections are required for new operations prior to certification.
PROCESSES FOR INSPECTIONS
1. PCO communicates inspection prioritization information to inspector. 2. Inspector reaches out to client to discuss scheduling and format.
3. Inspector communicates any preliminary requirements (e.g., preparatory meeting for remote inspections, social distancing, or timelines for sharing/sending documents).
It is critical that expectations are clearly communicated and that both parties agree, especially in regards to social distancing protocols and mask wearing prior to the inspection to aid in a smooth inspection.
Organic Updates — Inspection Update
continued from page 17
4. Inspection occurs.
5. Follow-up on paperwork requirements as applicable.
6. Exit Interview (if not already conducted during Step 4).
Below are PCO expectations for each inspection type.
LIMITED CONTACT ONSITE INSPECTIONS
Onsite inspections will only occur if the inspector and client agree that the risk of disease spread is low and/or can be sufficiently mitigated.
• Six feet of separation between the inspector and client must be maintained.
• The inspector and client should communicate regarding any illness or potential exposure to illness prior to meeting.
• Masks should be worn when appropriate.
• Hand washing and/or sanitization and sanitization of jointly handled tools and equipment is required.
• The inspector may request to visit the operation alone and call the client on the phone while onsite.
• Samples of organic product may be collected for residue testing.
• The onsite inspection may be limited to essential viewing of the premises. The inspector may request that part of the inspection is handled at a distance.
• An Exit Interview will be conducted.
REMOTE/VIRTUAL INSPECTIONS
Remote/virtual inspections will typically only occur if the inspector and client can agree to the use of web conferencing or other software that enables real-time dialog and visual verification of the OSP.
• A preliminary meeting should be held between the inspector and client to ensure the technological requirements can be met and to assure a mutual understanding of how the inspection will proceed.
• Records should be organized in advance of the virtual/ remote inspection so they can easily be shared easily.
• An Exit Interview will be conducted.
• Any elements of the OSP that cannot be verified remotely will be followed up on using an onsite visit. This will be billed separately from the initial inspection activity.
DESK AUDIT
These will typically be used when it is not feasible to conduct an onsite inspection nor a remote/virtual inspection. • The inspector will request specific records from the client. • The inspector will establish a reasonable timeline for exchange of information. • Scans or copies of records should be sent to the inspector.
Clients should not send original copies.
• An Exit Interview will be conducted.
• Any elements of the OSP that cannot be verified via desk audit will be followed up on using an onsite visit. This will be billed separately from the initial inspection activity.
Regardless of inspection format, clients must respond
to inspector communications and requests for sched
uling, paperwork, and etc. Failure to respond to an inspection scheduling request may delay certification and/or result in a Notice of Noncompliance.
All parties must adhere to social distancing guide
lines for onsite inspections. If the inspector or client perceives that the other party is not honoring social distancing protocols, this should be communicated directly. If the problem persists, either party can end the inspection and notify PCO. Inspectors who do not follow social distancing guidelines may have work reassigned. Clients who refuse to follow the same guidelines will be seen as having refused the inspection, and this may result in a Notice of Noncompliance.
USDA-NOP has not waived PCO’s responsibility to conduct onsite inspections during the 2020 season. Therefore, inspections conducted remotely or via desk audit will have an onsite follow-up at a point when risks to safety have subsided. Follow-up inspections may be announced or unannounced.
Contact PCO Inspection Program Manager Jenny Cruse: jcruse@paorganic.org or 814-422-0251 ext. 250 with any questions.
Standards and Policy update kyla smith, certification director
The National Organic Program (NOP) and Customs and Border Protection (CBP) have announced the deployment of the electronic organic import certificate beginning at the end of April. The electronic organic import certificate will be available through CBP’s primary import system known as the Automated Commercial Environment (ACE). This organic certificate is being launched as an optional filing step, not as required.
The electronic organic import certificate is expected to become required with the publication of the Strengthening Organic Enforcement final rule.
While the NOP electronic organic import certificate is not currently mandatory, U.S. importers who wish to request the NOP import certificate from exporters and include it in their import filings may do so at any time. Trade filers wishing to begin using and piloting this new feature should work with their software vendor on its availability.
The NOP provided the following information for trade filers: • Importers and customs brokers who file entries in ACE may start receiving filing requirement notifications for the new Organic HTS Code flags. Once the electronic import certificate becomes mandatory in ACE, the flags will let filers know what commodities will require the use of the certificate. Requirements are being phased in and full implementation is expected in 2021. • Automated Broker Interface, or ABI, software vendors are actively engaging with NOP to ensure that updates to their applications are compliant and available well in advance of the full regulation implementation. • As these software vendors incorporate the new message set, we encourage voluntary filing. We appreciate customs brokers who start submitting data, so we can fully test and make sure this new message set does not slow trade for valid organic products. • Find Organic Entity Numbers for USDA certified organic farms and businesses around the world in the Organic
Integrity Database. Use the ten-digit NOP Operation ID. • If there is no NOP Operation ID because the import is from an NOP trade partner, enter that trade partner’s
Organic Entity Number. If there is none, enter 0000000000.
U.S.–TAIWAN ORGANIC EQUIVALENCY REACHED
Earlier this summer U.S. Department of Agriculture (USDA) announced a new U.S.-Taiwan equivalence arrangement, effective May 30, 2020, to enable increased trade between the two regions. The new bilateral arrangement allows organic products certified in the United States or Taiwan to be sold as organic in either market. It also protects access for American organic farmers, ranchers, and businesses to this significant export market by removing continued on page 21
STAY CONNECTED, VISIT: paorganic.org
Box 361, 119 Hamilton Place Penn Yan, NY 14527 315-531-1038
Certified Organic Feed, Seed & Livestock Products from Northeast organic farmers for Northeast organic farmers ❖ www.lakevieworganicgrain.com
event Calendar
JULY July 20-August 9
Virtual NOFA Summer Conference nofasummerconference.org
AUGUST August 4
Direct Farm Conference — Virtual Conference For Your Farm Business 10:00 am–6:00 pm EDT directfarmconference.com
August 5
Pasa Sustainable Agriculture Equipment Demo & Farm Incubator Tour Lehigh Valley — 3–5:30 pm Pittsburgh — 5:30–7:30 pm pasafarming.org 814-349-9856 x709
August 13
Pasa Sustainable Agriculture Forest Farming: Goldenseal 9:00 am-4:00 pm EDT Lundale Farm — Pottstown, PA pasafarming.org 814-349-9856 x709
August 25–26
Acres USA Healthy Soil Summit — virtual events.acresusa.com
August 29
Forest Farming: Ginseng 9:00 am–4:00 pm EDT Quiet Creek Herb Farm — Brookville, PA pasafarming.org 814-349-9856 x709
SEPTEMBER September 9
Pasa Sustainable Agriculture Cover Crop Strategies for Vegetable Farms 3:00–5:30 pm EDT pasafarming.org 814-349-9856 x709
September 15
Savanna Institute Silvopasture Food Safety Webinar 7:00 pm EDT savannainstitute.org/events
September 17
Rodale Institute Webinar: Soil Health as Affected by Management on Row Crop, Vegetable and Pastured Livestock Farms in PA 2:00–3:00 pm EDT rodaleinstitute.org 610-683-1400
September 21–22
Acres USA/Rodale Institute Organic No-Till Intensive Kutztown, PA events.acresusa.com
OCTOBER October 5
Acres USA Advancing Industrial Hemp 8:30 am–6:00 pm Greenley, CO events.acresusa.com
October 8
Rodale Institute Webinar: Manure and Pasture Management to Reduce Swine Parasites in Organic Pastured Pork 2:00–3:00 pm EDT rodaleinstitute.org 610-683-1400
October 27–29
National Organic Standards Board Meeting Cedar Rapids, IA ams.usda.gov/rulesregulations/organic/nosb/ meetings
Organic Updates — Standards and Policy
continued from page 19
previous barriers for exporting, providing an opportunity for U.S. organic products to gain a greater share in the Taiwanese marketplace.
Taiwan is estimated to be the fifth largest organic export market for U.S. producers. Taiwan’s imports of U.S. organic products have increased sharply in the past few years, with imports totaling over $90 million in 2019, and are forecast to grow by almost 50 percent over the next five years.
The American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States signed and exchanged letters on behalf of the U.S. and Taiwan to establish the new organic equivalence arrangement. The arrangement covers certified organic products grown, produced, or with final processing in the U.S. or Taiwan and eliminates the need for organic producers and processors to have separate organic certification to the U.S. and Taiwan standards, avoiding a double set of fees, inspections, and paperwork.
For additional information on the U.S.-Taiwan Equivalence Arrangement, access: • Press Release (ams.usda.gov/press-release/us-taiwanaittecro-equivalence-arrangement-expands-organicexport-opportunities) • USDA, National Organic Program, Taiwan International
Trade Policies web page ( ams.usda.gov/services/organiccertification/international-trade/Taiwan) The above documents and information are also available in hard copy by contacting the PCO office.
New Faces
PCO WELCOMES NEW CERTIFICATION SPECIALISTS
Dara Raidel
Dara joined the PCO team as a Certification Specialist in June 2020. Dara is originally from Columbus, Ohio, and grew up spending weekends on her dad’s conventional farm where she learned about running tractors and growing quality forage crops. She earned a B.S. in Agricultural Sciences from Cornell University and after graduation spent 5 years working on a four-season organic vegetable farm just outside her hometown. Dara and her husband Luke are dedicated members of their church community and enjoy spending time with friends and family, visiting national parks, and working in the garden. continued on page 22
Marketplace
CROPS
PCO-certified organic baleage. Individually wrapped. 4 x 4 mixed hay. First cutting, $50/bale. Dry first cutting, $30/bale. Jim Hepp. Bradford County. Certified Organic Meadow Grass hay. Large square bales (3x7), clean, dry, and stored indoors. RFV 85. Great for horses or dry cows. $75.00 per bale. Call or text: Cindy 717-476-1220. York County.
EQUIPMENT
Farm cultivators for sale. Four and six rows; John Deere and IH, ready to go to work (both rebuilt). Contact Carl
Modica for prices: 814-267-5640. Somerset County.
SERVICES
Ag plastic recycling — I can use black and white bunker covers, bale wrap, plastic twine, clear stretch film, greenhouse covers, flats, and pots. Call for details. Franklin
County, PA. Struggling with Performance? Grow a stronger, more resilient Bird. We help farmers thrive in an antibiotic-free environment. Decrease Mortality. Improve Weight Gain.
Increase Profits. www.southlandorganics.com
LAND FOR SALE/RENT
Large amount of certified organic dairy farm for rent or sale. 70+ acres of pasture. Please contact 570-721-3605.
Sullivan County.
Organic Updates — New Faces
continued from page 21
Katie Poppiti
Katie joined PCO in June 2020 as a Certification Specialist. She has a B.S. From Penn State University, College of Agricultural Sciences and M.S. in Sustainable Food Systems from Green Mountain College. Katie previously worked for Penn State Extension, specializing in both producer and consumer education within the mushroom farm community in southeastern Pennsylvania. Prior to joining PCO, Katie worked as a flock supervisor for a commercial turkey company and coordinated animal welfare and organic certifications for contract growers. Katie is passionate about all things equestrian, gardening, cooking with her Italian American family, and traveling.
Compliance for Livestock Farms
continued from page 5
aster reduced the grazing capacity of your farm, you may qualify for what’s called a temporary variance. Proactive tracking and understanding options available to you could help you avoid compliance issues around grazing.
And a final note on recordkeeping, which is a big topic and generally where we see the most growing pains for new operations in terms of both adjusting to the requirements and finding a system that works for them. Even when an operation is compliant with the production and handling requirements, if they are not documenting their practices according to their Organic System Plan (OSP), with sufficient detail, or retaining those records for at least 5 years — they’re not compliant with NOP requirements. Your recordkeeping system can be adapted to your needs and your preferences, but it needs to meet the standard. Issues that we see include leaving some practices out of your recordkeeping system thinking that they may not be important; keeping records in a way that doesn’t provide enough detail for auditing; or keeping records, but either not organizing them, so at inspection you can’t find the information, or putting away records from the previous year so they aren’t available for inspection.
ADDRESSING COMPLIANCE ISSUES
For operations that are not yet ready to submit an application, assistance with writing your OSP and advice for recordkeeping and planning is available through Rodale Institute’s farm consulting program, which is currently free for PA and Midwest farmers. Rodale offers onsite consultations and provides technical assistance on a range of topics, including agronomy and animal husbandry. Operations looking for strategies to correct issues can get advice and additional resources through one of Rodale’s Organic Crop Consultants. Other organizations that offer technical assistance include Natural Resources Conservation Service (NRCS) and your local extension service (e.g. Penn State Extension); be sure to discuss with these groups that you’re certified organic while discussing potential solutions.
Staying in communication with your certifier — including reading the certification and compliance related correspondence or returning phone calls and emails — is the first step to understanding certification expectations and preventing the escalation of a noncompliance. If you are equipped with an understanding of the regulations, you can also better advocate for yourself and understand the justification needed to address or rebut a noncompliance notification. Update your OSP, ask questions about policy and guidance documents, and be proactive with your certification.
The full “Common Livestock Noncompliances and How to Avoid Them” webinar is available for viewing on the Rodale Institute website: https://rodaleinstitute.org/education/webinars/archive.
New Members PCO Welcomes 2nd Quarter New Members!
Newly CertiFied OrgaNiC
Adam Rusweiler
Shelburne, NY
Barry Sones Rheems, PA
Caleb Rich Moss, TN
Carl Spade Mount Joy, PA
Chris and Erin Orben
Kutztown, PA
Daniel and Clara Wengerd
Doylesburg, PA
David Stoltzfus
Loganton, PA
Devon Yoder Morrisville, NY
Elias Hoover Penn Yan, NY
Ephraim A. Hertzler
Mechanicsville, MD
Gary L. and Yolonda R. Horst
Allentown, PA
Good Crop Inc.
Malvern, PA
Henry J. Glick Spring Mills, PA
Hudson Valley Biomass LLC Warwick , NY
Iyasa Holistics LLC Mechanicsburg, PA
Jeff Snyder
Fredericksburg, PA
Joe Friesen Lewisburg, PA
John Ivan and Suetta Zimmerman
Narvon, PA
Jonas S. Fisher
Ronks, PA
JWM Poultry Solutions, LLC
Mount Joy, PA
Leon Newswanger
Little Falls, NY
Linda Grove New Oxford, PA
Lloyd Huyard Honey Brook, PA
Matthew Nolt Myerstown, PA
MCT (USA), Inc.
Norwood, NJ
Michael Long
Fredericksburg, PA
Pasqualichio Brothers
Jessup, PA
Peaceful Ridge Farm LLC
Gordonville, PA
Ray Weaver Annville, PA
Sam K Fisher
Loganton, PA
Thessalian Orchards, Inc.
Slatington, PA
Wilson Newswanger
Greenwich, OH
OrgaNiC PluS truSt CertiFied
Andrew S. Young
Evans Mills, NY
Devon Yoder Cazenovia, NY
Finnerty Farm Gouverneur, NY
Leon Newswanger
Little Falls, NY
Rolling Pastures
Lykens, PA
advOCate
Betty Harper
State College, PA
Charles Miller
East Earl, PA
Ed Stepler
Monroeville, NJ
BuSiNeSS
Advancing Eco Agriculture
Middlefield, OH
Applied Bio-Minerals
Lancaster, PA
Best Veterinary Solutions
Ellsworth, IA
Chemstation Philadelphia
Downingtown, PA
Eastern Technologies
Morgantown, PA
Homestead Nutrition Inc
New Holland, PA
Pall Corporation
Port Washington, NY
Tyson Hill Excavating Inc
Mifflintown, PA
USA Gypsum
Denver, PA
York Ag Products
York, PA
STAY CONNECTED, VISIT: paorganic.org
Advertise in Organic Matters
Organic Matters is the quarterly newsletter of Pennsylvania Certified Organic, a non-profit organization serving growers, processors and handlers of organic products. Issues contain articles on the latest news and research in the organic industry, often highlighting our certified members. Approximately 1,500 copies of each publication are distributed directly to members and those requesting information about organic agriculture, and made available to the public at conferences, exhibits and educational programs in the Mid-Atlantic region.
Ad size
PRICING Single 4 Issue Sub. Dimensions (in)
Back cover (in color) $572 na 8.5 µ 9
Full Page $362.50 $1,232 8 µ 10
Half Page $242.50 $824 7 µ 4.5 3.25 µ 8.75
(horizontal) (vertical)
Quarter Page $152.50 $518 3.25 µ 4.5
(vertical)
Eighth Page $112.50 $382 3.25 µ 2.25
(horizontal)
The above rates refer to a single-issue ad placement and a subscription for ad placement in four consecutive issues. A 15% discount is granted for the purchase of the 4-issue subscription. For more information, please contact newsletter@paorganic.org or call the PCO Office at 814-422-0251.
106 School Street, Suite 201 Spring Mills, PA 16875
