RAFI-USA
e-Bulletin #30
December 2005
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  • What Can Be Done Now to Protect the Integrity of the Organic Foods Protection Act
  • Meeting Outcomes: A Conference to Reinvigorate Public Breeding of Seeds and Animals for a Healthy 21st Century Agriculture
  • Senator Grassley to Introduce Fair Contracts for Growers Act
  • Protecting Contract Farmers' Rights in the 2007 Farm Bill
  • RAFI-USA Defends Farmers’ Rights to Due Process

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What Can Be Done Now to Protect the Integrity of the Organic Food Production Act

Who and What Initiated the Changes to the Organic Food Production Act:
In late October 2005, the Organic Trade Association (OTA) successfully lobbied for a significant change to the Organic Foods Productions Act (OFPA). OTA took this action after a U.S. Court of Appeals ruled in agreement with a lawsuit filed by Arthur Harvey, an organic blueberry grower, that the USDA organic regulations were inconsistent with the Organic Foods Production Act on several counts. Specifically, the court ruled that the OFPA does not permit synthetic substances in processed foods labeled organic, that all non-organic agricultural ingredients used because of commercial availability issues must appear on the National List, and that dairy farms must feed their cows organic feed for a minimum of 12 months prior to the sale of organic milk.

OTA’s decision to seek amendments to the Organic Foods Productions Act was taken without consultation with vital stakeholders in the organic community, including many of their own members.

Despite an active attempt by public interest, consumer and retail sector groups to hold discussions and find common ground with the Organic Trade Association, after a few initial meetings, OTA, through its legal counsel, refused to discuss any positions other than legal changes, and then refused to discuss the content of proposed law changes. After OTA sent its OFPA changes to Congress, OTA refused to discuss any compromise language, including a version drafted by Senator Harkin, ranking Democrat on the Senate Agriculture Committee. Finding no alternative, the public interest sector activated its membership and Congress received over 320,000 calls and letters from consumers, farmers and businesses opposing OTA’ s amendment.

In November, behind closed doors and without a single debate, the Organic Foods Production Act was amended at the behest of the large food processors (members of the OTA pushing this amendment) and without the benefit of the organic community reaching a compromise.

What These Changes Mean:
As passed, the amendment sponsored by the Organic Trade Association allows:

  1. Numerous synthetic food additives and processing aids, including more than 500 Food Contact Substances, may be allowed to be used in foods labeled organic without public review
  2. Young dairy cows to continue to be treated with antibiotics and fed genetically engineered feed prior to being converted to organic production
  3. Loopholes by which non-organic agricultural ingredients could be substituted for organic ingredients without any notification of the public based on emergency decrees.

In short these changes have not strengthened or improved the Organic Foods Production Act in any way. They have only retained the allowance for synthetics that previously existed in the regulation, created a potential loophole for non-organic ingredients, added ambiguity on the issue of processing aids, removed authority from the National Organic Standards Board (NOSB), and failed to strengthen dairy standards.


Where To Go From Here:
The OTA-sponsored law change will require USDA to promulgate new organic regulations to bring the current organic rule into line with OTA’s changes into law. We will need to create collaborative public pressure to maintain strong standards at the regulatory level and to require that all substances used in or on processed organic products to be subject to NOSB review. This public and scientific review, along with additional regulatory boundaries as to what criteria and categories of synthetics can be reviewed (similar to what is required for materials on the crops and livestock materials allowed on the National List) will help to protect the integrity of the organic label. Please go the National Campaign for Sustainable Agriculture’s website http://www.sustainableagriculture.net/Organic.php and sign-on to a letter supporting this continued public pressure and diligence.

For more questions about this sign-on letter or the new amendment changes contact either Michael Sligh at msligh@rafiusa.org, 919-641-9341 or Liana Hoodes at the National Campaign for Sustainable Agriculture at Liana@hvc.rr.com or 845-744-2304.

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Meeting Outcomes: A Conference to Reinvigorate Public Breeding of Seeds and Animals for a Healthy 21st Century Agriculture

September 12-15 2005 - Ames, Iowa

For centuries, farmers have contributed to the health of their communities through breeding optimal plant and animal varieties. Today this practice is being threatened by lack of funding for these traditional-breeding initiatives. The result of private companies' focus on genetic engineering, which is often a quicker alternative less adaptable to local environments, is that this practice has begun to overshadow traditional ones.

Unfortunately, private companies' profit-drive often clouds their view, occluding a holistic vision of the factors that must be incorporated into sustainable agriculture. To share views and devise productive solutions for this dilemma, diverse stakeholders convened for the second "Seeds and Breeds" Conference on September 12-15, 2005.

The 2005 Conference, built upon the first Seeds and Breeds Summit in 2003, engaged an increased array of actors who discussed the current state of breeding practices and strategies for achieving ideal conditions. Specifically, this conference strove to provide a forum for groups and people interested in increasing public funding for seed and animal breeding in the 2007 Farm Bill, as well as to develop strategies for communicating their message to policymakers. Government preparation for this bill is anticipated to begin as early as spring of 2006; therefore, those interested in influencing policy agreed on the need to organize and prepare materials as soon as possible.

The idea of forming a coalition of a broad array of stakeholders, including those who are not traditionally included, was a recurrent theme. To leverage the strongest impact on the Farm Bill, the broadest possible coalition should be formed to demonstrate the diverse support behind the movement for increased public funding. Teams of breeders, buyers, consumers, universities, and NGOs currently collaborate on these issues, while new allies and those who could be targeted for increased involvement may include media, groups advocating for a healthy society, retired breeders, marketers and distributors, among others. In forming this coalition, it is important to draw on sustainable agriculture networks that already exist, as well as state crop-improvement bodies and seed certification organizations. The international context for organic agriculture and breeding practices was also discussed, reminding participants of allies and similar campaigns throughout the world.

It was suggested that the coalition be realistic in its demands, presenting accurate values for the amount of money necessary to implement crucial programs, despite discouraging recent cuts to agriculture funding due to increased allocation to other efforts like Katrina relief and Iraq. The total amount authorized by Farm Bills is rarely met by subsequent allocations, but it is necessary to have the potential to realize envisioned initiatives. Likewise, by stressing the positive economic impact of the organic farming industry, policymakers may be persuaded to consider alternate options to the current industrialized, privatized model.

Creating non-traditional alliances will increase the weight of coalition recommendations, but it also means dedicating even more effort to developing a coherent vision. One of the principle conclusions of the conference was that stakeholders need to craft a vision statement in a timely manner so that their voice will be heard clearly by policymakers. In addition to contributing ideas to the overall vision, participants were encouraged to participate in ongoing dialogue with the US Department of Agriculture via virtual interfaces accessible on the Internet at http://www.usda.gov/wps/portal/usdahome .

A number of specific policy proposals were vetted, such as the establishment of a national-level plant breeding institute or initiative, and a summary of those will be published in a separate document of recommendations. Recommendations addressed a wide assortment of issues ranging from alternatives to intellectual property rights, solutions to infrastructure deficiencies, ways to increase farmer participation, and mechanisms to define and tackle funding issues. At the conclusion, the door was left open to the possibility of a third Seeds and Breeds summit, once Farm Bill preparations have begun in earnest, if such a meeting could further the cause. You can find more information on the 2005 conference proceedings at the Seeds and Breeds website: http://www.agron.iastate.edu/seedsandbreeds/ . Additional presentations, and meeting summaries will be forthwith coming.

This conference was sponsored by RAFI-USA, The Raymond F. Baker Center for Plant Breeding, and The Leopold Center for Sustainable Agriculture.

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Senator Grassley and Feingold Introduce Fair Contracts for Growers Act

Senator Charles Grassley (R-IA) and Senator Russ Feingold (D-WI) have introduced legislation in the Senate to prohibit binding mandatory arbitration in livestock and poultry contracts. Original co-sponsors also include Senators Tom Harkin (D-IA) and Chuck Hagel (R-NE). This legislation, called the Fair Contracts for Growers Act (S. 2131), provides for greater fairness in livestock and poultry contracts. The bill ensures that the decision to arbitrate is truly voluntary, that farmers are not coerced into waiving their rights. It specifies that if a livestock or poultry contract provides for use of arbitration to resolve disputes, arbitration may be used to settle a dispute only if, after the dispute arises, both parties agree in writing to use arbitration.

This legislation is critical to protecting farmers’ rights as binding mandatory arbitration has become embedded in an increasing number of agricultural contracts. Farmers can be forced to sign mandatory arbitration clauses as part of a take-it-or-leave-it, non-negotiable contract with large agricultural processing companies. By signing a binding mandatory arbitration clause a farmer is signing away his/her right to a trial by jury. This is a problem for a farmer because

  • Arbitration can be very expensive and beyond the means of most farmers. A grower in Texas was recently billed over $20,000 for her portion of the initial costs, with payment due before the arbitration process could begin. In comparison, court filing fees run around $200.
  • It is more difficult for a farmer to prove his/her case in arbitration since basic legal processes such as discovery can be waived.
  • Arbitration is governed by procedures and rules chosen by the company that wrote the contract.
    Since a farmer signs a contract before any dispute arises, it allows the companies to use practices that are abusive without fear of the farmer bringing them to court or having a record of their wrong doings. Arbitration can be a useful tool if it is a mutually agreed upon method of settling a dispute. But the law should not permit large companies to use arbitration to deny family farmers’ access to justice.

A bill similar to the Fair Contract for Growers Act that provided voluntary arbitration in contracts between car dealers and car manufacturers is now law.

In the months ahead, we will be looking for your help to build support for this bill. If you would like to learn more about the Fair Contract for Growers Act please contact Becky Ceartas at RAFI-USA at 919-542-1396 ext. 209, becky@rafiusa.org .

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Protecting Contract Farmers' Rights in the 2007 Farm Bill

Contract farmers and others who care about fairness for farmers have an easy opportunity to influence the USDA's recommendations for the new Farm Bill by submitting comments on line by December 30, 2005.
Please go to the USDA site link (at the bottom of this article) to enter your comments on how you think the 2007 Farm Bill should be shaped. You can help to ensure fair and competitive markets for America’s farmers and ranchers. Below are some sample comments you can use directly as a reference as you write up your thoughts.

Sample Comments:

In order for U.S. agriculture to remain able to supply and respond to changing global and domestic markets, farm policy should be designed to enhance competitive domestic markets. During the 2002 Farm Bill debates, public testimony provided clear and compelling evidence of the need for free market competition and fairness for America's farmers and ranchers. Since that time these concerns have become even more urgent and prominent in the public eye. The role of government should be to facilitate properly operating markets and to bring balance to the economic relationships among farmers/ranchers, consumers and food companies.

Therefore, I urge the United States Department of Agriculture to include the following provisions in its recommendations for the 2007 Farm Bill:

Producer Protection Act: This proposal is designed to set minimum standards for contract fairness in agriculture. It addresses the worst abuses contained in processor-drafted boilerplate contracts. It includes: clear disclosure of producer risks; prohibition on confidentiality clauses; prohibition of binding mandatory arbitration in contracts of adhesion; recapture of capital investment (so that contracts that require a significant capital investment by the producer cannot be capriciously canceled without compensation); and a ban on unfair trade practices including "tournament" or "ranking system" payment.

Closing Poultry Loopholes in the Packers & Stockyards (P&S) Act: USDA does not have the authority to bring enforcement actions against poultry dealers. The P&S Act omits this authority even as USDA can enforce the law against packers and livestock dealers. We seek to clarify that USDA's authority over poultry applies not only to broiler operations, but also to growers raising pullets or breeder hens. These loopholes should be closed.

Bargaining Rights for Contract Farmers: Loopholes should be closed in the Agricultural Fair Practices Act of 1967 (AFPA), and processors should be required to bargain in good faith with producer organizations. The AFPA was enacted to ensure that livestock and poultry producers could join associations and market their products collectively without fear of retribution by processors. These goals have not been attained due to loopholes in that act. Retaliation by processors is commonplace in some sectors. Legislation should be passed to promote bargaining rights and prevent processor retaliation.

After you have gone to the Farm Bill site, please email Becky Ceartas, becky@rafiusa.org or call her at 919-542-1396, ext. 209 so we can keep track of the number of comments submitted.

Go to:
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1UH?navid=FARM_BILL_COMM

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RAFI-USA Defends Farmers’ Rights to Due Process

In the last issue of the e-bulletin (e-bulletin #29), we provided an update on the Gatlin v. Sanderson Farms Inc. case and the upcoming appeal process. The Rural Advancement Foundation International (RAFI-USA) has been asking organizations to sign-on as amicus curiae (friend of the court) to a brief in support of the plaintiffs on their appeal of Gatlin V. Sanderson Farms, Inc. The filing period for the brief is extended, and the last day to sign on is January 9th, 2006. Regardless of whether you are a member of an organization that can sign on or not, this is an important case to follow.

The result of this appeal will affect several important issues relevant to all farmers and their contractual relationship with integrators, processors, manufacturers, and packers. Sanderson Farms, Inc. terminated the Gatlins’ contract, alleging they had violated Mississippi law. The Gatlin’s contract was terminated just one year into their second- fifteen-year contract, shortly after the couple had taken out extensive loans to build new poultry houses to the company’s specifications.

Sanderson Farms terminated the Gatlins’ contract based on their accusation that the growers had violated Mississippi Code concerning disposal of poultry. The Gatlins’ denied the charge and asked the Mississippi Board of Animal Health to investigate. The board found no sign that the Gatlins’ had violated any of their codes. Despite being cleared of charges, the Gatlins’ were unable to regain their contract with Sanderson Farms or find work with any other poultry company. The Gatlins’ were left with massive debt and no means of making a living.

The case is now in the hands of the court. The court can uphold farmers’ rights by ruling that companies cannot determine whether a contract grower is complying with a state or federal regulation. Such a judgment would protect farmers’ access to fair administrative hearings in similar cases. And a favorable ruling could establish a much-needed legal precedent to support farmers’ rights and barring future inequitable contract terminations of this type.

A link to the full description of the case is at http://www.rafiusa.org/programs/CONTRACTAG/CONTRAG.html. If your organization is interested in signing on or if you have any questions about this case, please contact Becky at RAFI-USA at becky@rafiusa.org or 919-542-1396 (ext. 209).

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The RAFI-USA e-Bulletin is produced by Rural Advancement Foundation International-USA

Edited by Nancy Hunt

To subscribe to the e-bulletin send an email to Nancy Hunt at communicator@rafiusa.org.

For back issues of the bulletin, see the RAFI- USA e-Bulletins page or call (919) 542-1396.

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