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UNITED STATES DEPARTMENT OF AGRICULTURE + + + + + NATIONAL ORGANIC STANDARDS BOARD MEETING + + + + + TUESDAY, OCTOBER 28, 2014 + + + + + The National Organic StandardsBoard met in Grand Ballroom B, Galt HouseHotel, 140 N. 4th Street, Louisville,Kentucky, at 8:34 a.m, Jean Richardson,Chairperson, presiding.PRESENTJEAN RICHARDSON, ChairpersonJOHN FOSTER, Vice ChairpersonMAC STONE, SecretaryHAROLD AUSTINCARMELA BECKCOLEHOUR BONDERAJOE DICKSONTRACY FAVREJAY FELDMANWENDY FULWIDERNICK MARAVELLZEA SONNABENDJENNIFER TAYLORFRANCIS THICKEC. REUBEN WALKER


STAFF

MICHELLE ARSENAULT, Advisory Committee SpecialistREX BARNES, Agricultural Marketing Service Associate Deputy AdministratorLISA BRINES, NOP National List ManagerEMILY BROWN ROSEN, AMS NOP Specialist, Standards DivisionMILES McEVOY, AMS NOP Deputy AdministratorBETSY RAKOLA, USDA Organic Policy AdvisorCARRIE RICCI, Office of General CounselSAM JONES, Public Affairs


C-O-N-T-E-N-T-S

Call to Order. . . . . . . . . . . . . . . . . 5 Miles McEvoy Deputy Administrator Agricultural Marketing Service Designated Federal Officer National Organic Standards BoardOpening Remarks. . . . . . . . . . . . . . . . 5 Rex Barnes Associate Deputy Administrator Agricultural Marketing Service Jean Richardson. . . . . . . . . . . . . 6 ChairIntroduction of NOP Staff. . . . . . . . . . . 6 Miles McEvoy Deputy Administrator Agricultural Marketing Service Designated Federal Officer National Organic Standards BoardIntroduction of NOSB Members . . . . . . . . . 9Secretary's Report . . . . . . . . . . . . . .27 Mac Stone Secretary of NOSB Approval of Minutes of San Antonio . . .27 MeetingNOP Report . . . . . . . . . . . . . . . . . .27 Miles McEvoy Deputy Administrator Agricultural Marketing Service Designated Federal Officer National Organic Standards Board Questions and Comments . . . . . . . . . . .69


C-O-N-T-E-N-T-S (CONTINUED)

USDA Organic Action Plan . . . . . . . . . . .76 Betsy Rakola USDA Organic Policy Advisor Questions and Comments . . . . . . . . . . 111 Materials Update . . . . . . . . . . . . . . 115 Lisa Brines NOP National List Manager Comments from the NOSB Chair . . . . . . . . 128 Jean Richardson Chair Comments from NOSB Members . . . . . . . . . 138 Mac Stone Secretary of NOSB Public Comments. . . . . . . . . . . . . . . 139 Declarations of Interest . . . . . . . . . . 437 Comments from the NOSB Chair Jean Richardson Chair Materials Subcommittee . . . . . . . . . . . 441 Calvin Walker Chair of the Subcommittee Topics: Proposal: Fall 2014 Research Priorities . . . . . . . . . . . . . . 442 Discussion Document: Excluded Methods Terminology. . . . . . . . . . 459 Discussion . . . . . . . . . . . . . . . 467


1 P-R-O-C-E-E-D-I-N-G-S2 8:34 a.m.3 MR. McEVOY: I am going to4 introduce Rex Barnes, who is the Associate5 Deputy Administrator at the Agricultural6 Marketing Service.7 MR. BARNES: Welcome, everybody,8 to the Organic Standards Board meeting.9 This is my first meeting that I10 have been to. I have been around AMS for11 many, many years, way longer than the National12 Organic Program has been around AMS, but this13 is the first time I have got an opportunity to14 come to a meeting. And it is an honor to be15 here and see everybody here. I have met a lot16 of people and hope to meet some more during17 the day today. I will be here for today, and18 then, I have got to go back this evening.19 But welcome. I am looking forward20 to the meeting. I went through the briefing. 21 You have got a lot of very technical issues22 and stuff to go through. So, let's get it


1 going, and I will turn everything over to2 Jean. She can get the meeting started, so we3 can get moving.4 Thank you very much.5 CHAIR RICHARDSON: Thank you very6 much, Rex.7 It is a pleasure to be here this8 morning. I would like to turn the meeting9 over to Deputy Administrator McEvoy for a few10 minutes, so that he can introduce the members11 of the NOP staff that are here today.12 MR. McEVOY: Great. It is great13 to be here in Louisville. We tried to get14 here a year ago, but we had a little problem15 with -- well, a little problem for all the16 federal government for a while there. So, it17 is really great to be here in Louisville and18 with the National Organic Standards Board.19 And we are here with a number of20 people from USDA:21 Myself, Deputy Administrator of22 the National Organic Program and Designated


1 Federal Officer for the National Organic2 Standards Board.3 We have Michelle Arsenault who4 provides all the support for the National5 Organic Standards Board. She does a yeoman's6 job at keeping everything running, keeping the7 Board informed, handling all the Subcommittee8 meetings, all the logistics. She really does9 an amazing job to keep the trains on the track10 with the National Organic Standards Board. 11 So, she deserves a lot of appreciation for12 what she does for the organic community and13 for this Board. So, that's Michelle. Give14 her your thanks.15 (Applause.)16 We also have Emily Brown Rosen,17 who is the primary technical support for the18 National Organic Standards Board. She sits on19 just about all the Subcommittee meetings and20 provides them with technical support in a21 whole variety of different ways of providing22 that information that they need to be able to


1 do their work in the Subcommittees. So, thank2 you, Emily, for your work.3 (Applause.)4 At the back table here, we have5 Lisa Brines, who is with the NOP Standards6 Division. She is our National List Manager. 7 So, she does all the work on the amendments to8 the National List, supports the work on9 technical reports. That is her primary there10 in the Standards Division, is to manage that11 National List, which takes quite a bit of12 effort for the National Organic Program.13 She also does a lot of other14 standards-related activities as well. For15 instance, she sits on or attends the CODEX16 meetings on labeling. She just got back from17 Rome, where she represented the National18 Organic Program on Organic Labeling Issues at19 CODEX. So, thank you, Lisa, for that service20 in Rome.21 We also have Carrie Ricci from the22 Office of General Counsel here, who is here


1 for the first time to observe the activities2 of the National Organic Standards Board to3 support us.4 Then, at the front table we have5 Betsy Rakola, who is the new USDA Organic6 Policy Advisor. She will be giving a7 presentation on all the activities at USDA8 regarding organic agriculture later this9 morning.10 And then, we have, next to her,11 Sam Jones, who is with the AMS Public Affairs12 Office. So, any questions from the media or13 others, Sam can help you out there. So, he is14 the person to go to. He has a lot of great15 information.16 And I think that's it. So,17 thanks, Jean.18 CHAIR RICHARDSON: So, I will19 introduce myself last. But the next thing I20 would like to do is to just quickly go around21 the Board and have each of them say a couple22 of words about themselves. So that you all


1 know who is up here on the NOSB. And I would2 like to start with Colehour.3 MEMBER BONDERA: Okay, thank you.4 My name is Colehour Bondera. I am5 a small-scale farmer, organic farmer, in the6 State of Hawaii. I wasn't really thinking7 very hard through what I might say to you all8 at the get-go here.9 But good morning. And I think,10 realistically, my approach to this whole topic11 is we are all part of the same family and we12 all need to work together.13 So, thank you.14 MEMBER MARAVELL: Nick Maravell,15 organic farmer from Maryland. Started out in16 vegetables. Now I'm crop and livestock.17 CHAIR RICHARDSON: And you should18 read the overheads as well, because you see he19 featured on Dr. Oz last year.20 (Laughter.)21 MEMBER WALKER: Good morning.22 My name is Calvin Reuben Walker.


1 I serve as Chair of the Department of2 Agricultural Sciences and Urban Forestry at3 Southern University.4 And for those of you who do not5 know, Southern University is one of 19 HBCU6 universities, Historically-Black Land Grant7 Universities. It was created by the second8 Morrill Act. Oregon State is what we call it,9 1862.10 So, Dr. Tucker and I are part of11 the 1890 institutions. We were created 3212 years later to do agricultural teaching,13 research, and extension. And next year will14 mark the 125th anniversary of the 1890s, and15 we appreciate and hope that stakeholders will16 look at these 1890 and '62's in terms of17 agricultural research, teaching, and we are18 trying to move along with organics.19 And I would like to say an20 appreciation to Ms. Liana Hoodes. She will be21 moving on from the National Organic Coalition.22 I am on the Board to represent the


1 consumer interests.2 And we would also like to say a3 prayer for Mr. Dave Will. He mentioned to me4 that his wife was ill; he would probably not5 be able to make this meeting. So, we have Mr.6 Dave Will's wife in our prayers.7 And also, I would just like to say8 that we appreciate Secretary Vilsack. I know9 that I do because he believes in diversity. 10 And personally, from what I see, I think he is11 doing a yeoman's job. I just hope that we12 will do all we can to support the Secretary as13 well as the NOP.14 And also, I just happen to serve15 as the Materials Subcommittee Chair.16 C'est tout.17 MEMBER SONNABEND: Hi. I'm Zea18 Sonnabend, a small farmer from Fruitilicious19 Farm in Watsonville, California. I hold the20 scientist's seat on the Board, largely because21 a majority of my career spent in writing22 organic standards with CCOF nationally and


1 working with OMRI on materials review.2 MEMBER FULWIDER: I'm Wendy3 Fulwider, and I serve as a producer on the4 Board. And I own an organic family farm in5 Wisconsin. My son Cody is currently the6 fourth generation operating on that farm. He7 has a 60-cow organic dairy where the milk goes8 to Organic Valley. We have 200 acres that are9 organic, and we just added another 100 acres10 to put in transition. We have been very11 fortunate; people want their land to be12 managed organically. So, they do come to us13 and ask us to run their land. The transition14 acres we usually do in direct marketing, and15 that supports our grass-finished beef and16 pastured pork.17 And as you know, I have a PhD in18 animal behavior that I earned with Temple19 Grandin. And so, that has allowed me to work20 as a Farm Animal Care Specialist at Global21 Animal Partnership and previously with Organic22 Valley.


1 MEMBER AUSTIN: Good morning.2 My name is Harold Austin. I am3 with Zirkle Fruit Company out of the State of4 Washington. We are a producer/handler of5 organic apples, cherries, blueberries, and6 wine grapes.7 I was born and raised on an apple8 farm in the Pacific Northwest. I spent a lot9 of time on my grandfather's dairy farm.10 For Zirkle, I manage all of our11 organic compliance from the production side of12 it and the handling side of it as well. I13 have been a Certified Test Consultant for in14 excess of 35 years. At this juncture, I am15 very involved in integrated pest management16 and, also, organic production as well, for a17 number of years with a lot of different18 growers that I helped move into that arena.19 I serve on the Crops Subcommittee,20 the CACS Committee, and then, I chair the21 Handling Subcommittee.22 For me, it is honor to sit on this


1 Board with my colleagues. We come from a very2 broad spectrum of what we believe in,3 representing a lot of different organic4 stakeholders out of the organic community. We5 may not always agree on the issues, but we6 have some very robust conversations along the7 way. And at the end of the day, there is not8 a one of us that sits up here at this table9 that doesn't have the best of the organic10 industry and the organic community in their11 hearts and in their desires.12 And I applaud the energy, the13 passion, and the camaraderie, but most of all14 the dedication. There is a lot of time and15 energy that goes into serving on this Board. 16 We are a volunteer Board appointed by17 Secretary Vilsack.18 And I am not sure if some of you19 understand the time commitment that does come20 with sitting on this Board. It is a lot, but21 I am glad I am here. And hopefully, at the22 end of the day we have done a lot of good for


1 the organic community.2 Thank you.3 MEMBER FELDMAN: Good morning.4 I am Jay Feldman. I sit on one of5 the environmentalist slots on the Board. I6 got involved with pesticides back in the7 seventies, collaborating with EPA. Traveled8 across the country and met with farm workers9 and small farmers talking about their adverse10 reactions to pesticides, which led to the11 creation of the worker protection standard at12 EPA.13 But it became obvious at that time14 that, unless we were advancing alternatives,15 that we would be on this treadmill. And so,16 I got very heavily involved in the writing of17 the Organic Farming Act and, then, the18 Agricultural Productivity Act, which started19 the LISA Program, the Low Input Sustainable20 Act Program, at USDA, which, then, became21 SARE, as you all know.22 And then, of course, with many of


1 the folks in this room, we all wrote the2 Organic Foods Production Act, which to this3 day retains the highest, I believe, core4 environmental public health/food safety values5 of any statute perhaps in the world.6 So, this is a very meaningful, as7 Harold has said, this is a meaningful endeavor8 for all of us in this room. And I have been9 honored to serve on the Board with all my10 colleagues up here for the past five years,11 and we will talk more about that later in the12 meeting.13 Thank you.14 MEMBER STONE: Good morning.15 My name is Mac Stone. I am the16 certifier rep to the Board. A shoutout to17 certifiers. Those of you that have not gone18 through the certification process or continue19 to be part of the certification process, the20 due diligence that certifiers do on behalf of21 the seal that we all represent here is just a22 tremendous amount of work.


1 And frankly, as an organic farmer,2 and with my wife and her family farm about3 hour east of here, we have about 150 acres4 certified organic. Do vegetables, beef,5 poultry for the direct market in the Lexington6 area, and we are now moving into the7 Louisville area.8 So, I want to welcome you all to9 Louisville. As your host, the Chamber of10 Commerce always has really nice weather when11 you get here, and then, it gets really crappy,12 so you will leave at the end of the meeting.13 (Laughter.)14 But welcome. If there is anything15 I can do or help assist you in moving around16 Louisville the next few days, let me know.17 Thanks.18 VICE CHAIR FOSTER: Good morning.19 My name is John Foster. I'm one20 of the two handling representatives on the21 Board. This is my last public meeting of an22 almost five-year term now.


1 I currently serve as the Vice2 Chair. I have served as the Chair of both the3 Crops and the Handling Committees over the4 years.5 My day job is Director of6 Compliance at Earthbound Farm. I have been7 there a little over seven years. The group8 that I am responsible for maintains the9 integrity around organic issues, food safety10 issues, and quality issues of our supply11 chain. And we actively monitor roughly 45012 suppliers that feed into our organization.13 In the past I have been an14 environment studies and literature major,15 horticulture crop production.16 I have done a little painting over17 the years. Thank you, Jean, for including18 that.19 (Laughter.)20 And one of my favorite professions21 I have had over the years is being an organic22 inspector, somewhere, give or take, around


1 1,000 inspections over 12 years. And that was2 really where I got to know a lot of you,3 actually, in the gallery.4 And it remains one of my favorite. 5 One of the most meaningful things I have ever6 done is being the boots on the ground and7 seeing the hard work that goes in to grow all8 the crops, to get them to market, to sell the9 crops. It takes a whole chain to do it, an10 unbelievable amount of work and an11 unbelievable amount of cooperation. So, I12 have been very honored to be part of this13 evolving system that we have.14 Thank you.15 MEMBER DICKSON: Good morning.16 My name is Joe Dickson. I am the17 lonely one retail representative on the18 National Organic Standards Board. A shoutout19 to all the retailers out there.20 I have worked continuously as a21 grocery retailer since my parents made me go22 out and get a summer job when I was 14 years


1 old. I bagged groceries that summer, and I2 have since that year worked in some form at a3 grocery store.4 I have developed a very deep5 interest in the power that food labels have in6 the marketplace, how food is sold and marketed7 to consumers, and how standards like the one8 that we are working on here can allow people9 to express their beliefs and their ethics10 through the food they buy.11 I work currently as the Senior12 Global Quality Standards Coordinator at Whole13 Foods Market. I lead a small team there that14 is responsible for developing standards and15 policies that determine what products we sell16 in our stores.17 I also oversee our status as a18 Certified Organic Retailer, which includes the19 inspection and certification of over 390 of20 our stores in North America.21 I serve on the Texas Department of22 Agriculture's Organic Industry Advisory


1 Committee. And as of this year, I own a small2 family farm in Bastrop County, Texas.3 I serve on the Handling,4 Livestock, and CACC Subcommittees.5 And it is a pretty much6 indescribable honor to sit at this table with7 this group of thoughtful and amazing people8 and to be in this room with this organic9 community. And I am very grateful to be here.10 MEMBER FAVRE: Good morning.11 My name is Tracy Favre. I sit in12 one of the environmentalist positions on the13 Board.14 I am from the great State of Texas15 and have a small family diversified farm in16 north central Texas, just southwest of Fort17 Worth, and including livestock and crops.18 I previously cut my teeth in19 sustainable agriculture, working for holistic20 Management International out of Albuquerque,21 training farmers and ranchers on sustainable22 farm and ranch management.


1 I have recently completed IOIA2 training to become an Organic Livestock3 Inspector.4 And I am happy to be here. Thank5 you.6 MEMBER BONDERA: Good morning,7 everyone.8 I am kind of in the back. I am9 from Watsonville, California. I work for10 Driscoll Strawberry Associates. We are an11 international distributor of conventional and12 organic strawberries, raspberries,13 blackberries, and blueberries. I have been14 with the company a little over seven-and-a-15 half years and manage the Organic Compliance16 Program. So, I work with upwards of 8017 organic growers in the U.S., Mexico, and18 Chile. It is from our nursery certification19 to our grower certification and to our20 handlers.21 I think it is really important to22 note that we work with independent family


1 farmers, and I feel blessed to say that I know2 all of our farmers and have personal3 relationships with them. And that makes me4 happy. That makes me happy to do this work.5 And similar to my other colleagues6 here, I find it, I call it a blessing to be a7 part of this. It is challenging, but it is8 also very rewarding. And I am grateful to the9 community of people who have come year after10 year to these meetings to improve the organic11 standard.12 Okay, thank you.13 MEMBER THICKE: I am Francis14 Thicke. I am an organic, grass-based dairy15 farmer in southeast Iowa. I am in an16 environmentalist position here, actually.17 I began farming organically in18 1975, actually, and then, took a little detour19 and became a dirt scientist and worked for U20 USDA for a while. And now, I am a born-again21 farmer.22 CHAIR RICHARDSON: And you should


1 notice he is a trumpet player and he might do2 that sometime when we are having a meeting. 3 So, don't be surprised.4 (Laughter.)5 MEMBER TAYLOR: Good morning.6 I am Jennifer Taylor. I am from7 Florida A&M University in Tallahassee.8 I want you to know that this is a9 great honor to serve as a member of the10 National Organic Standards Board. And on the11 Board, my role is to serve as an advocate for12 the consumer and for public interest.13 We appreciate your written14 comments and your public comments. We need15 your strong comments and interactions to help16 keep organic standards strong, to ensure the17 integrity of organic farms, organic produce,18 organic products, and the actual organic food19 on your table.20 Thank you so much for this21 opportunity.22 CHAIR RICHARDSON: Thank you.


1 And then, back to me as Chair. I2 am Jean Richardson. I am a Professor Emerita3 of environmental studies and environmental law4 from the University of Vermont.5 I live in Vermont. I help my kids6 on their organic maple syrup production7 enterprise. Being from Vermont, that is8 pretty much what you have to do. Every tree9 in Vermont is tapped. It is a sugar maple. 10 You should know that.11 Let's see, I have done inspections12 for the last 14 days, probably done about13 1,000 inspections also, like John, in every14 aspect of inspection from processing to cows15 to zucchini.16 And let's see. Oh, yes, one of17 the things that I am going to be trying to do18 is to encourage all the Board members, well19 those that are not leaving, to be sure that20 they have, in fact, shadowed, been on a few21 inspections. And I am going to be asking the22 new people coming in if they would also go


1 shadow some inspections, so they could2 understand boots on the ground what it is like3 when we make some of the decisions that we do4 on the NOSB.5 Okay. So, that is all the Board. 6 So now, the next item on the agenda is to take7 the Secretary's report. I will turn that over8 to Mac, please.9 MEMBER STONE: And we are to10 approve the minutes from the meeting that was11 in San Antonio in the spring. Those were sent12 to everyone on the Board. Are there any13 changes or anything we need to address, as14 they were submitted?15 (No response.)16 Seeing none, Madam Chair, I ask17 for a vote to approve.18 CHAIR RICHARDSON: Any objections?19 (No response.)20 So approved.21 The next item on the agenda will22 be a presentation by Deputy Administrator


1 McEvoy abut the updates to the National2 Organic Program.3 MR. McEVOY: Okay. Good morning.4 So, this is what we do at every5 NOSB meeting, give a report of all things6 happening at the National Organic Program, and7 there are many things that we are up to. So,8 I am going to give you a little tour of some9 of the activities that we are up at the10 National Organic Program.11 Next slide. Oh, I have control12 here. Let's see. Okay.13 So, the mission of the National14 Organic Program is to ensure the integrity of15 USDA organic products in the United States and16 throughout the world. It is a global program. 17 So, we are certifying operations under the18 USDA organic standards in more than 10019 countries, 133 countries I think. So, there20 are a lot of activities that we do throughout21 the world to ensure that integrity of the22 system from the farm to the market.


1 Our vision is organic integrity2 from farm to table. Consumers trust the3 organic label. So, those standards are4 important to verify at all levels of the5 production and distribution. And our core6 role is to implement the Organic Foods7 Production Act and the USDA organic8 regulations.9 So, the USDA organic regulations10 are very comprehensive. They include11 standards for crops, livestock handling, wild12 crops, labeling requirements, certification13 requirements, accreditation, and the National14 List. So, it is a very comprehensive list of15 regulations, and this National Organic16 Standards Board looks at those things and17 provides us with recommendations around those18 standards. A lot of focus on the National19 List, but there is a lot more to organic20 production and handling than just the National21 List, and those are very important components22 of this whole system that we also need to pay


1 close attention to.2 Accreditation and oversight is the3 other very important component of our work. 4 There are over 80 authorized certifying agents5 worldwide, from the very small in particular6 counties in California to certifiers that are7 certifying in more than 50 countries and8 thousands of operations. It is over 25,0009 certified organization operations in the10 world, over 18,000 in the U.S. and the rest11 overseas.12 Compliance and enforcement is a13 very critical part of our work. So, we handle14 complaints, do investigations, impose civil15 penalties, and deal with the appeals process.16 And then, of course, our support17 for the National Organic Standards Board,18 supporting their work, looking at their19 recommendations, and implementing them as20 appropriate.21 So, some quick facts about the22 National Organic Program. We are up to 43


1 employees now. If you have been following2 along for the last -- when I got here five3 years ago, I started with 14 employees. So,4 there has been significant growth in the5 staffing at the National Organic Program. 6 There are three Divisions and the Office of7 the Deputy Administrator.8 Some of the new staff that we9 brought on this year with our increased10 funding was a Chief of Staff, who handles a11 lot of the administrative aspects of the12 National Organic Program, and the people that13 provide administrative support.14 We have a new Cost-Share Manager15 with the reauthorization of the Cost-Share16 Program. We have three new Compliance17 Officers that help out with compliance and18 enforcement.19 We have three new Accreditation20 Managers that are doing audits and dealing21 with all the oversight of accredited22 certifiers.


1 We have a new Assistant Director2 of the Accreditation and International3 Activities Division, and we have some new4 administrative staff.5 We are adding additional staff as6 well. So, by the time we report in the7 spring, we should be up to about 50 staff8 within the National Organic Program.9 (Applause.)10 Okay, great.11 Hiring at the federal government12 is a very slow process, but we have really13 brought on some really excellent staff to help14 out with the mission of the program.15 Our budget has changed in the last16 few years. We were about $7 million in fiscal17 year 2012, went down a little bit with the18 sequestration for '13, and then, up to $919 million for last year's fiscal year budget. 20 We are currently working under a Continuing21 Resolution through December 11th, but that is22 at basically the same level as the fiscal year


1 2014 numbers.2 Our Strategic Plan focuses on four3 primary areas: clear standards, consumer4 protection, market access, and information5 technology.6 So, the next number of slides I am7 going to focus on those two parts, on clear8 standards and consumer protection, which are9 some of the core parts of our Strategic Plan.10 So, we have what we call the 1011 points of organic integrity. They include12 clear enforceable standards; communication13 about those standards, so people know what14 those standards are and where there are15 changes to the standards; transparency in16 terms of the process, trying to provide as17 much information about the standards and the18 process to change the standards; certification19 as a core part of organic integrity, kind of20 the heart and soul of the whole system; a21 complaint system that is effective; a penalty22 system that has real penalties for serious


1 violations to the standards; market2 surveillance, so we can see how the labels are3 being used in the marketplace; unannounced4 inspections, so that there are times when a5 certified operation does not know that they6 are going to get inspected. So, that is part7 of the process. Periodic residue testing as8 a part of the overall system, and then, a core9 organic value of continual improvement. We10 are always looking at, okay, how is the system11 working; how could we make improvements. So,12 for each of these points, I am going to go13 into a little more detail and talk about some14 of our current activities.15 For clear and enforceable16 standards, we want to publish clear standards,17 so people understand what the rules are. If18 they understand what the requirements are, it19 is much easier for producers and handlers to20 comply. We want to address those gray areas,21 and we have quite a number of gray areas under22 the organic regulations, so we have to provide


1 clarity and consistency there, and continue to2 collaborate with the National Organic3 Standards Board on addressing those gray areas4 and providing clear standards to the organic5 community, and also, implementing the NOSB6 recommendations, which is very important.7 Some of the things that we have8 done over the last year on clear and9 enforceable standards:10 We have worked very closely with11 FDA on their proposed produce food safety12 rules and how they interplay with organic13 standards. And so, FDA came out with their14 new proposed produce food safety rules fairly15 recently. And I think a lot of people can see16 that they are much more reasonable for the17 organic producers. And there's a lot of18 people in this room that did a lot of work to19 work with FDA, but you can know that at USDA20 we also work with FDA to get them the input21 they needed to come out with a new proposed22 food safety rule.


1 We also put out an instruction on2 the use of brand or company names containing3 the word "organic". This is the policy that4 the Compliance and Enforcement Division has5 been using for a number of years in terms of6 the use of the word "organic" in brand or7 company names.8 So, this provides clarification to9 the industry of what is expected in terms of10 the use of organic on labels; provides11 instructions to certifiers on how they need to12 evaluate labels that they are approving, so13 that there is a consistency in terms of the14 use of the word "organic" on organic, 10015 percent organic, and made with organic,16 certified organic products.17 We also put out final guidance on18 made with organic labeling. So, that provides19 more specificity, more information about the20 appropriate labeling for the product category21 of made with organic ingredients or specified22 food groups.


1 So, some of our priorities for2 2015. We have some things in clearance. The3 process of getting a rule to publication is a4 very long and twisted route. I like to break5 it up into four basic steps.6 The first step is for the program7 or the agency to draft the rules. The second8 step is for those rules to be reviewed by the9 Office of General Counsel and get cleared by10 the Office of General Counsels. The third11 step is departmental clearance where it goes12 through the halls of USDA and gets approved by13 a variety of different offices at USDA. And14 then, the fourth step, if it is a significant15 rule, is to get reviewed and cleared by the16 OMB, the Office of Management and Budget. So,17 it is a long process. Each of those steps can18 take many, many months.19 So, I am happy to report on origin20 of livestock. For that proposed rule, it is21 in departmental clearance, and we are hoping22 to get that off to the Office of Management


1 and Budget later this year. So, Office of2 Management and Budget is about a 90-day review3 cycle, sometimes longer. So, we are really4 hoping that the origin of livestock proposed5 rule will be published sometime in the early6 spring of next year.7 The aquaculture proposed rule is a8 little bit further behind. It is still in9 that second step of OGC review or Office of10 General Counsel review. So, it has to11 complete that review, and then, it will start12 departmental clearance.13 The pet food proposed rule is also14 under review by the Office of General Counsel.15 So, those still have quite a ways16 to go, but we are hoping to get those, both of17 those proposed rules published in 2015.18 Other rules that are in progress,19 meaning that they are not quite as far along20 in the process, are a proposed rule on sodium21 nitrate, which is taking a recommendation from22 the National Organic Standards Board from


1 2011, '10 possibly. So, that one has been a2 little bit difficult for us, but we are hoping3 to get a proposed rule out on that this coming4 year.5 Animal welfare, where we put a6 whole team together that is working on animal7 welfare. We are making a lot of progress on8 that.9 Any proposed rule has a number of10 different sections. There is the background11 section, the regulator impact section, and the12 regulatory text section. So, there's actually13 more sections than that, but that is just an14 oversimplification of some of those sections.15 And so, we have made a lot of16 progress on the regulatory section and the17 background section. We are still working on18 the regulatory impact section, but we hope to19 have that all completed and off to the Office20 of General Counsel by the end of the year. 21 So, we are putting a lot of focus on animal22 welfare to, hopefully, move that out and get


1 that published next year.2 Aquaculture is also in progress. 3 That rule has been written and potentially4 could get published next year.5 Other standards projects that we6 are working on:7 We will have Final Guidance on8 classification of materials. The Draft9 Guidance on that came out a while ago, as well10 as the materials for organic crop production. 11 So, both of those should go into final12 guidance sometime potentially by the end of13 the year or early next year.14 And then, post-harvest handling,15 the Final Guidance on that should be out16 within the next six months.17 We are working on a number of18 Draft Guidances and policy. We are working on19 a Draft Guidance for responding to pesticide20 drift. With the residue testing requirements21 now that certifiers have to do, there are some22 questions on what happens when drift occurs on


1 a certified organic farm. So, we want to2 provide more guidance and consistency in terms3 of how that works.4 Nanotechnology was a5 recommendation from the National Organic6 Standards Board from a few years back. We7 have a policy memo clarification that is8 currently in clearance. That should be9 published sometime within the next six months,10 I should say.11 I hear Melissa's voice in my head12 of, "Don't say things are going to be13 published right away, even though they might14 be."15 So, nanotechnology, in terms of16 that, nanotechnology materials are considered17 synthetic materials. So, they are not allowed18 under the USDA organic regulations. We are in19 the process of clarifying that in a policy20 memo that should be out within the next six21 months.22 We continue to work on material


1 clarifications, when we have one certifier and2 another certifier or material review3 organization that have different4 interpretations of the rules in terms of what5 is allowed under the organic standards. So,6 we have that process that we continue to7 provide more clarification to certifiers and8 the organic industry about the allowances.9 We have put out, for instance,10 clarifications on electrolyzed water and,11 let's see, a couple of other things. Emily12 would remember.13 We are also looking at publishing14 Draft Guidance on materials for organic15 livestock production sometime in the16 relatively-near future.17 So, lots of different standards-18 related projects that we are working on.19 In terms of communication, there's20 a lot of things that we do to communicate21 about the activities at the National Organic22 Program and really organic things in general


1 at USDA.2 We have the Organic Literacy3 Initiative that Betsy Rakola will talk more4 about, which a lot of USDA staff have taken5 that literacy initiative.6 We have the Organic Integrity7 Newsletter. We have the NOP Organic Insider8 to try to keep people informed of the9 activities at USDA around organics. And we10 also can at times provide information about11 other activities in organics through the NOP12 Organic Insider.13 We have a number of fact sheets on14 GMOs, which is a very popular labeling at15 farmers' markets and sunset. So, there's a16 lot of fact sheets that we provide, and we17 will continue to expand on those fact sheets.18 We have done a number of NOP19 website improvements. There is actually a20 major effort to change the website. So,21 within the next few months, you will see that22 the NOP website will be quite a bit different.


1 It might take a little while to get used to,2 but, hopefully, it will be a lot more3 accessible to find information through the4 changes to the website.5 We do a number of presentations6 and conferences.7 And on to transparency. So, we8 have a list of certified operations. It now9 includes an updated list of suspended and10 revoked operations that is incorporated into11 the list. That is a new feature for this12 year. So, that is something.13 We have been posting fraudulent14 certificates for a period of time, especially15 for foreign operations where we don't have the16 same kind of enforcement authority as we have17 in the U.S.18 We publish certifiers' audits and19 Corrective Action Reports. We publish all the20 NOSB Subcommittee notes. And for this fiscal21 year, we plan to post adverse actions. Those22 are all our cease and desist notices, our


1 settlements, and all those different types of2 compliance actions. So, that is on our plan3 to provide more information about the4 activities at the National Organic Program.5 In terms of certification, again,6 that is the core business of -- the core7 verification system is done through8 certification under the organic regulations. 9 So, we have to make sure that certification is10 done in a quality manner, that there is a11 quality system, quality inspectors, quality12 reviewers; that the process works from start13 to finish.14 So, that includes organic system15 plans, that they are thorough and complete;16 that inspections include audits in terms of17 reconciliation audits of sales and yields;18 that they include feed audits at an organic19 livestock operation; that the inspections20 include inspections of non-organic areas of an21 operation. If it is a split operation, that22 is a component of certification.


1 That there is timely followup by2 the certifier, if they have findings during3 the inspection, and that there is some time of4 continual monitoring of the certified5 operations. So, lots of things that6 certifiers are required to do. We have to7 make sure that that is actually occurring on8 all the certifiers that are operating around9 the world.10 The Accreditation and11 International Activities Division, they12 oversee the work of more than 80 certifying13 agents around the world. They are conducting14 audits. Each certifier is audited at least15 twice in a five-year period of time. Those16 audits are about a week long. It kind of17 depends upon the scope of that certifier of18 how long the audit is. A certifier that is19 operating in multiple countries has a much20 longer audit than ones that are operating in21 a smaller geographical area.22 So, there are audit reports.


1 There is the review of those reports. There2 is Notices of Non-Compliance that go out after3 those reports are received in the office in4 D.C. And then, we have to review the5 corrective actions that the certifiers are6 taking to correct the findings from those7 audits.8 Through all those audits that we9 do, there's thousands of criteria that are10 evaluated on a yearly basis. Certifiers are11 complying with more than 95 percent of all the12 accreditation criteria. So, they are doing an13 excellent job. There is always room for14 improvement, but it is really important that15 we do those audits to make sure that they are16 continuing to meet the requirements.17 Moving on to complaints, the18 complaint pie has changed over the last few19 years. If you recall, it used to be about a20 split of 50/50 between complaints for21 certified versus uncertified operations. Now22 we have two-thirds of the complaints that we


1 receive are for uncertified operations. It2 looks like 20 percent are for allegations of3 labeling violations or fraud. And then, 144 percent for complaints about the use of5 prohibited substances or methods.6 In last fiscal year, which ended7 on September 30th, we closed 285 complaint8 investigations. So, it is very important for9 us to do these investigations and both find10 violations or confirm violations and take11 enforcement actions. It is also very12 important that for a number of complaints13 there is no violation. So, it sort of clears14 the air, that there can be an allegation, but15 we have to determine whether or not there is16 actually any violation.17 We did receive a record number of18 complaints last year, over 400 complaints,19 which is a new record. That is almost three20 times the amount of complaints that we got21 when I first started five years ago. So, the22 number of complaints is increasing. I think


1 that is a good thing. That means that people2 are out there. They know that there is this3 method to file a complaint for potential4 violations of the standards, but it is a lot5 more work for us to do.6 We initiated 162 initial7 enforcement actions, 66 Notices of Warning, 298 Notices to Cease and Desist, and 549 investigation referrals. So, there is a lot10 of work involved in compliance and11 enforcement.12 On to penalties, in last fiscal13 year we levied nine civil penalties for14 $81,000. We also had a significant ruling by15 an administrative law judge. So, this does16 not occur very often. But in the process17 there is a long compliance and appeals process18 that is possible to occur.19 So, the first step is a certifier20 to take action. The certifier is proposing21 suspension or revocation. That can be22 appealed. Then, there is an appeal decision


1 made by the Administrator's Office. That2 Administrator's decision on that appeal can be3 appealed. And that appeal, then, requires us4 to file a complaint. And that complaint,5 then, goes to an administrative law judge at6 USDA, that then handles that hearing.7 We have only had two8 administrative hearings in the history of the9 National Organic Program. The first one was10 Promiseland back in -- well, that took a few11 years. And this is our second one. This12 upheld the AMS decision to revoke the organic13 certification of a Pennsylvania operation.14 Now this is just still part of the15 process. This operation has the opportunity16 to appeal to the judicial officer and, after17 that, potentially go to District Court. So,18 these types of compliance actions do take a19 significant amount of our resources and time20 to go through that process, to provide people21 with the due process for our compliance22 actions.


1 Market surveillance is something2 that we would like to do more of, that we have3 not done a lot of, but we think is very, very4 important. In 2011, we did residue testing of5 six organic commodities. The results of that6 are on our website, of what we found.7 We found that, for the most part,8 these six organic commodities, I think about9 half of them had residues, but those residues10 were less than 5 percent of the EPA tolerance11 level and not violative residues. There were12 some problems that were identified.13 We are doing some followup work on14 that to, again, look at residues on organic15 products, just to make sure that all organic16 products meet organic systems. I think market17 surveillance is really important for us to18 expand our activities in this particular area.19 Unannounced inspection, this is an20 NOSB recommendation from 2011 for unannounced21 inspections. We implemented that in, I think,22 2013, where under Instruction 2609,


1 unannounced inspections are now required by2 certifiers, that at least 5 percent of the3 certified operation have unannounced4 inspection. So, this is where we are5 implementing the NOSB recommendation. It has6 been a requirement by certifiers since 2013.7 Periodic residue testing, the8 final rule was implemented in 2013. Again, it9 is now a requirement for certifiers to do 510 percent of the operations that are tested each11 year. It has led to enforcement actions for12 violations of the organic standard. So, when13 they are doing this sampling, for the most14 part, things are in good standing, but,15 occasionally, they do find residues that16 require the certifier, then, to take17 appropriate enforcement action.18 And we have provided instructions19 and training on responding to positive20 residues on selecting labs and provided21 targeted prohibited pesticides list for the22 certifiers to utilize.


1 In terms of continual improvement,2 accreditation audits are part of that. As3 part of the audits that we do as certifiers,4 we evaluate all the auditors on a yearly basis5 that are conducting the audits of the6 certifiers. We also now have a system where7 the certifiers can provide feedback to the8 audits that are conducted. And then, every9 year we review all the accreditation audits10 that we conduct to look at what are the11 trends; what are the parts of the organic12 regulations that we are finding the most13 problems with that we can provide more14 training or assistance to certifiers.15 We also conduct an internal audit16 at the National Organic Program that is part17 of our quality system. We do a management18 review at the National Organic Program as part19 of our quality system.20 And then, we do peer review. Peer21 review is required under the Organic Foods22 Production Act, under 2117. The NOSB has made


1 particular recommendations about peer review.2 We have the National Institute of3 Standards and Technology that conducted peer4 review in 2011. We have the American National5 Standards Institute that completed peer review6 in 2014. We just published the results of7 that peer review within the last few weeks.8 And we are in the process of9 drafting a peer review process that addresses10 the NOSB recommendations and we are planning11 on collaborating with the NOSB. So, this is12 a topic that we hope to put on the NOSB agenda13 for discussion for the spring meeting, is peer14 review and how we are going to fully15 implemented the peer review requirements.16 Okay. So, that was a lot of17 stuff, but now we are moving on.18 The next parts are not quite as19 long as that part on clear standards and20 consumer protection. But, in terms of21 strategic plan, we also are very interested in22 market access. When we talk about market


1 access, it is not just international market2 access; it is also market access for producers3 and handlers to get into their local and4 regional markets as well.5 Certification, we don't want6 certification to be a barrier to success. We7 want it to verify that the standards are being8 met, but we want to make sure that9 certification is not barrier to people getting10 into organic production and handling.11 In terms of international, we have12 trade arrangements with several nationals to13 facilitate the exchange of organic products14 and provide market opportunities for organic15 producers. We have a number of equivalency16 arrangements. The first one was set up with17 Canada in 2009 and is working quite well. The18 second one was with the European Union, which19 was launched in June of 2012.20 And then, we had two equivalency21 arrangements that became effective this year. 22 The first one was with Japan, effective in


1 January, and then, with South Korea, effective2 in July. So, a lot of work goes into these3 equivalency agreements.4 We also have recognition5 agreements where we recognize the governments6 in India, Israel, and New Zealand to accredit7 the certifiers operating in those countries. 8 So, for instance, in New Zealand it is the New9 Zealand Government that accredits the10 certifiers operating in New Zealand. Those11 certifiers operating in New Zealand are12 certifying to the U.S. standards.13 So, it is different than an14 equivalency agreement where we are accepting15 the foreign country's standard. In a16 recognition agreement, the certifier is17 certifying to the U.S. standard.18 So, we work very closely with the19 Foreign Ag Service and the U.S. Trade20 Representative's Office on all of these21 various agreements and arrangements. These22 agreements are continually monitored. So, it


1 is similar to our oversight of accredited2 certifiers, where we are doing assessments of3 these foreign government systems every two to4 three years. So, the same kind of review5 cycle where we are looking at their6 accreditation system and their ability to7 comply with the terms of those agreements.8 In terms of market access for9 people getting into local and regional10 marketing, we have an initiative on sound and11 sensible, where we want to ensure organic12 integrity, but that it is done in a sound and13 sensible manner, what we call certification14 that is affordable, accessible, and attainable15 for all operations, affordable meaning16 reasonable fees and reasonable compliance17 costs; accessible meaning that there are18 certifiers and technical assistance that is19 available throughout the U.S. And that is20 really, I think, a key in certain areas. 21 There is great resources available. And then,22 other parts of the country there is not as


1 many resources available for not just2 certification but those technical resources to3 be success in organic production and handling.4 And then, also, attainable, so that the5 standards are understandable, that they are6 written in plain English, and with reasonable7 recordkeeping requirements.8 So, we have a number of projects9 that we have started to fund at the end of10 last fiscal year. Our purpose for the sound11 and sensible certification projects was to12 encourage the initiation and rollout of new13 organic certification approaches, training,14 and technical assistance to help with that15 certification process. So, these projects16 will help USDA and all certifiers develop and17 implement sound and sensible processes and18 provide training modules.19 So, these projects are now in the20 process of being implemented. Once they are21 completed, the results of those projects will22 be available to everybody.


1 So, we made 14 awards to 132 organizations, a million and a half dollars3 through these various sound and sensible4 projects. They are available throughout the5 U.S. There is a lot of diversity in terms of6 the types of projects that have been funded: 7 certification tools; training and outreach8 tools; technology development; technical9 assistance, and inspector mentoring.10 The projects will be completed11 over the next year, by September of next year. 12 So, we should be able to provide more13 specificity about the results of these14 projects at the fall 2015 meeting.15 Here is just a brief list of the16 projects that were awarded to a variety of17 certifiers and other organizations to do a18 variety of these different projects. So, this19 presentation will be available on our website20 later, so you can look at this and the21 specific projects.22 Okay. Moving on to information


1 technology, one of our popular tools that2 people use is our list of certified organic3 operations. This list is updated only once a4 year by data that is provided by certifying5 agents. It is out of date as soon as we6 publish it. It is a flat spreadsheet format7 with really poorly-structured, validated data8 elements.9 This is a big improvement from10 five years ago when there was really no list,11 but it still needs a lot of work. So, there12 are a lot of constraints to our current13 system. It is variable data on Excel sheets14 from 80-plus certifiers. So, the information15 we get from the various certifiers does not16 come in in the same format. There's lots of17 challenges with our current system.18 So, we are in the process of19 developing this organic integrity database. 20 This is part of the 2014 farm bill, provided21 $5 million in funding for technology22 investments.


1 And what we have done so far --2 and this project is really just getting3 started, we have hired a full-time IT Project4 manager to start the process. She started in5 August. We have convened a certifier user6 group to be engaged throughout the development7 period because certifiers are going to be key8 to the success of this. There have to be9 portals that work, so that certifiers can10 provide that information on the data that they11 have on the certified operations to this12 master database. And then, we are in the13 process of developing a list of key14 requirements, project timeline, and15 contracting strategy.16 What we are planning to have in17 this new system is to capture all the elements18 in the current system; be able to track19 operations and changes in their certification20 status over time; enable the certifying agents21 to update the data manually in batch uploads22 or in real time. So, we have a lot of


1 different types of certifiers out there that2 have different technology capabilities, and we3 need to provide a way for them to update that4 information through different methodologies.5 We have to have some kind of6 permissions management to allow various levels7 of viewing of the data; standard structured8 fields for commodities; mapping capabilities9 to locate operations; reporting capabilities10 to support trend analysis and supply chain11 research. And we are looking at an optional12 way of having certificates generated from this13 database.14 So, we are in the very preliminary15 stages of this. We are very excited about16 this project. So, stay tuned as we continue17 to develop this.18 Moving on to the farm bill, and19 Betsy Rakola will give more details on the20 farm bill, but I will cover some of the NOP-21 specific areas. We have, under the 2014 farm22 bill, improved enforcement authority for NOP


1 to conduct investigations. We have already2 used our subpoena authority under that new3 authority that we have under the 2014 farm4 bill.5 We have the $5 million upgrade for6 technology and, then, for cost-share the7 National Organic Certification Cost-Share8 Program has been reauthorized. So, we have9 gotten that program up and running. We just10 recently sent direct mail to all the U.S.11 certified organic operations. I heard this12 morning that we might have had a little13 challenge with some of the addresses, but we14 will try to work that one out.15 Okay. And then, on to the16 National Organic Standards Board, I just17 briefly wanted to make a couple of comments18 about the National Organic Standards Board19 and, then, I will wrap it up.20 So, we had a listening session on21 October 16th, where we held a telephone and22 online listening session about the National


1 Organic Standards Board. I opened that2 session with a presentation about the National3 Organic Standards Board. I specifically4 requested input on what parts of the NOSB5 process is working well and specific ideas on6 how we could make further improvements to the7 process.8 We set up the call to allow each9 commenter to provide three minutes of10 comments. We expected lots of commenters. 11 So, that is why we had limited it to three12 minutes and wanted to provide time for many13 voices to be heard.14 We had approximately 60 community15 members that listened to the call and we16 received 10 comments. Eight of the comments17 expressed disapproval of the changes to the18 sunset process and changes to the way that we 19 have been working with the National Organic20 Standards Board. One commenter supported the21 sunset changes and one commenter had questions22 about certification.


1 Given the comments that we2 received at the spring meeting, I was3 surprised that we received so few comments at4 this listening session. Now there could be a5 lot of reasons why we received so few6 comments. We got the notice out about a week7 before the listening session. But,8 nevertheless, we got only 10 comments. We had9 reserved two hours for the listening session,10 but we ended the call after 45 minutes because11 there were no additional commenters.12 So, my takeaway on the listening13 session is that there is strong opposition to14 the changes to the sunset process. Some15 organizations believe that the changes do not16 align with the Organic Foods Production Act17 and are not in the best interest of consumers18 or the organic community. In addition, some19 expressed concern about the authority or the20 independence of the National Organic Standards21 Board.22 I would also say that in my


1 travels, my communication with people in the2 organic community over the last year, that I3 have heard that a number of people are not4 willing to speak out about some of the5 controversial organic topics. There is a6 climate of intimidation, where individuals7 fear that they might be attacked for8 expressing certain opinions.9 I have spoken to many organic10 community members that agree with the changes11 that we have made to the sunset process and12 what we are doing at the National Organic13 Standards Board, but they are not willing to14 speak up about it.15 Many organic community members are16 busy farming and marketing. Most of their17 concerns in terms of when I talk to them are18 about weed control, soil management, and19 livestock health. They are dealing with some20 very difficult issues around drought and other21 environmental stresses. I hear a lot about22 GMO contamination and consistency about the


1 certification process and rules.2 So, we have a lot of work to do. 3 There are hundreds of thousands of people that4 work in organic agriculture and trade in the5 U.S. alone. There are millions of consumers6 that buy organic products and have confidence7 in the USDA organic seal.8 We are a very passionate bunch9 from a diversity of backgrounds and10 experience. I hope we can embrace our11 collective diversity, continue to have12 spirited debates about organic standards and13 policy, and celebrate organics from the small14 farm to the large corporation, from the local15 markets to international trade, all efforts16 that help to make the planet more sustainable17 for people and the environment.18 So, I think we need to have these19 deep discussions and debates. And at the end20 of the day, hopefully, we can all remember21 that we are all part of the same movement, the22 same organic community, to try to make the


1 world better for organic agriculture.2 And with that, I want to thank the3 service of a few of the National Organic4 Standards Board members which this is their5 last meeting. Joe Dickson, Jay Feldman, John6 Foster, and Wendy Fulwider, thank you so much.7 I brought up a picture of our8 discussions about five years ago about corn9 steep liquor. I just thought you would just10 want to relive that moment.11 (Laughter.)12 Yes, so we still have some very13 good debates. Five years ago it was corn14 steep liquor, and now I don't know; we will15 see at this meeting what will be the big issue16 for this meeting.17 (Laughter.)18 But that was a lot of fun. It is19 kind of interesting to see the setup there in20 that photo where we are a lot more, I guess,21 technologically sophisticated now than we were22 five years ago. But that is Wisconsin five


1 years ago.2 So, thank you, all four of you,3 for your service. It is really an incredible4 honor for me to work with each of you. You5 have provided so much to the organic6 community, the countless hours that you7 dedicate to developing proposals, listening8 and reading public comment, and coming up with9 the recommendations. You really deserve a lot10 of respect, and thank you.11 (Applause.)12 Okay. So, thank you, Madam Chair.13 CHAIR RICHARDSON: Thank you,14 Miles.15 Before we go on to our next16 presentation, I would like to ask the members17 of the Board, do you have any questions of18 Miles on his report here this morning? 19 Anything that is missing that you wanted to20 hear about, any questions or concerns?21 Yes, Francis?22 MEMBER THICKE: Miles, what is


1 your feeling on international integrity,2 especially in countries where we don't have3 agreements, like China and such?4 MR. McEVOY: Yes, well, there's a5 lot of countries that have organic production6 and are providing organic products to the U.S. 7 There's a lot of countries that their internal8 organic market is also growing, that we are9 exporting organic markets to.10 The organic certification system11 is the same here in the U.S. and in those12 foreign countries under the direct13 accreditation route that we have. So, for14 instance, you mentioned China. There are15 primarily four certifiers that operate in16 China that certify to the U.S. organic17 standards. So, they are complying with the18 same requirements. They are audited by our19 staff.20 We have actually sent a couple of21 teams. We sent a team on a month-long audit22 in 2010 that we followed four products from


1 the farm to the port. And then, we did a2 followup in 2012.3 So, we see that it is not really4 any different there than in any other country5 where you find some minor problems that need6 to be addressed, as in any audit, but it is7 the same certification system there as in the8 U.S. or in countries that we have equivalency9 arrangements with. But we need to continue to10 monitor and ensure that that stays true.11 CHAIR RICHARDSON: Harold?12 MEMBER AUSTIN: Miles, you know,13 you mentioned the kind of dismal turnout for14 the last listening session. Any thoughts,15 looking ahead to future listening sessions,16 and some potential ways to get some of those17 other organic stakeholders, the producers, the18 handlers, to participate in future calls?19 MR. McEVOY: Well, we are going to20 be doing a number of webinar listening21 sessions on a number of other topics over the22 next six months. And Betsy Rakola, the USDA


1 Organic Policy Advisor, will talk about that.2 I think that what we need to do is3 probably earlier notification, make it well-4 known that we are doing these sessions earlier5 on, that that could help. And, yes, we have6 to think about that to see how we could get7 better, more participation. That would be8 great.9 CHAIR RICHARDSON: Jay?10 MEMBER FELDMAN: Miles, thank you11 for your presentation.12 I would like to explore a little13 bit just on this use of the word14 "intimidation" because that is a pretty strong15 word, and any thoughts you would have on how16 to address that within the organic community.17 Obviously, given the diversity of18 knowledge around the table here and in the19 audience and among the participants in20 meetings like this, you have different21 viewpoints. Everybody is encouraged to22 express those viewpoints.


1 Some may perceive the expression2 of a viewpoint as intimidation, especially3 when it may come from the consumer side, where4 there might be an apparent threat that, you5 know, if certain standards or expectations6 aren't met, as written in the Policies and7 Procedures Manual, we could lose market or we8 could damage the seal, the USDA seal. Nobody9 wants that.10 And so, since you threw that word11 out there, I am curious if you have any ideas12 beyond the earlier notice of listening13 sessions, and so forth, of how this community,14 all the dedicated people in this room can feel15 that they are expressing themselves without it16 being characterized or being felt or received17 as intimidation.18 MR. McEVOY: Yes, well, I think19 that people should -- I think it is really20 important for us to recognize that there is21 within the organic community those that are22 feeling less willing to speak out. So, I


1 think that should be a discussion that we2 have. Why? Why is that happening?3 But I think, on the other hand,4 that the people that are not should speak up5 and have their opinion heard. I think it is6 really, really important for this community to7 thrive, to have a robust and full discussion8 with all the viewpoints expressed. So, I am9 encouraging those that are feeling unwilling10 to speak up to speak up. It is really11 important that their voices are heard.12 CHAIR RICHARDSON: Calvin?13 MEMBER WALKER: Miles, I had this14 question I believe answered at the training15 session, but I think it will be good to share16 with the audience.17 At universities we have what we18 call program income. Any monies that we19 collect goes back into the program. Could you20 explain to us again monies from enforcement,21 like the $81,000, you all are not able to use22 that for NOP purposes?


1 MR. McEVOY: Right. Money that is2 collected on civil penalties just goes into3 the Federal General Fund. That does not go4 into the NOP or AMS budget, no.5 CHAIR RICHARDSON: Well, if I may6 ask a question, I get a lot of questions from7 around the country when I go around wanting to8 know, we all worked so hard for the farm bill;9 what happened to the budget? And they want10 more details and more information on the NOP11 budget, how the money is distributed between12 the various pieces of what you do.13 And again, it is, in part, I would14 like more information on that because there15 are also people in the broader community that16 express concern that there isn't that much17 interest in organics at the USDA, and they18 want to really know how is that money being19 spent.20 And I don't expect you to come up21 with an answer at today's meeting. But I am22 wondering if it would be possible for you to


1 provide us all with some greater detail. You2 know, you throw out little snippets of money3 now and then, which is good. But I am really4 interested in a broader understanding of how5 our tax dollars are being spent on organics6 through the NOP.7 MR. McEVOY: So, yes, we can8 certainly provide additional information about9 how the NOP budget is being utilized, and we10 can prepare additional information to share at11 the spring meeting, if that would work.12 CHAIR RICHARDSON: Other questions13 from Board members?14 (No response.)15 So, our next presentation -- thank16 you, Miles -- presentation is Betsy Rakola.17 Yes, you come up to the podium. 18 Great.19 MS. RAKOLA: Good morning,20 everyone. Thank you for allowing me the time21 to speak.22 I have been with the USDA for


1 about four-and-a-half years now, but this is2 the first time I have been to an NOSB meeting. 3 So, it is nice to put a lot of faces with the4 names that I have only seen over email and in5 writing for all these years.6 Wait just a moment for the7 presentation to come up.8 Well, I will just start giving an9 overview of the topics I am going to talk10 about.11 So, I am the USDA Organic Policy12 Advisor.13 Great, here we go. Whoops. 14 Sorry, I hit the wrong button there. Let me15 go back. All right.16 So, I just wanted to give an17 overview of what that means, what my role is18 at the USDA, and talk a little bit about how19 we are updating our Organic Literacy20 Initiative, give you an overview of the work21 that the Organic Working Group does, and talk22 about our plans for stakeholder engagement.


1 And, Jean, by the time I am done,2 I hope you will be able to tell people that3 there is a lot of interest in organic at the4 USDA, and more specifically, what it is we are5 going about it.6 So, I am the second USDA Organic7 Policy Advisor. Many of you knew my8 predecessor Mark Lipson. Mark left the USDA9 last month at the end of his second appointed10 term.11 One of the changes with having me12 onboard is that I am now in a permanent staff13 position. While it is a bit of a14 technicality, I think it is important to know15 that that means that the Department has made16 a permanent commitment to having a Policy17 Advisor onboard to look at implementing the18 work of organic agriculture across the USDA19 for the long-term. And I think that is a20 really big deal. It is a very exciting thing,21 and it means that, regardless of who is22 sitting in any political chair, my position


1 will continue to exist, so that we always have2 a high level of leadership on organic at the3 Department.4 I do sit quite close to the Office5 of the Secretary. I have a weekly briefing6 with the Secretary's Deputy Chief of Staff to7 inform him about the work that we are doing. 8 So, there is a lot of interest and engagement9 on organic at the highest levels of the USDA10 leadership.11 One of the things that I do is to12 coordinate the USDA Organic Working Group. 13 This is a cross-departmental working group14 that has representation from every single15 agency at the USDA, participating to discuss16 how we can coordinate the work that we do on17 organic agriculture, how we can integrate it18 more deeply into the day-to-day work of19 agencies, regardless of whether or not they20 have a specific farm bill program that works21 on organic or if there are just ways that we22 can understand how their programs might be


1 tweaked or simply better explained, so that2 they can work to serve the needs of organic3 producers and handlers.4 We have over the last couple of5 years started to develop fiscal-year-specific6 action plans, so that we can look at really7 developing measurable impacts for the organic8 community.9 I am also responsible for10 implementing the USDA's 2013 Departmental11 Guidance on Organic Agriculture. So, I don't12 know if folks are aware of this, but in May of13 last year Secretary Vilsack issued guidance to14 the entire Department instructing all of our15 agencies to support the work of organic16 agriculture and, again, to integrate it into17 the day-to-day missions of their various18 agencies, which has really given us that high-19 level support that we need to have the20 justification to be asking all of these21 different groups to work with us on organic22 and to make sure that it has a seat at the


1 table and it is always a part of the2 conversation.3 I also participate on a number of4 other interagency initiatives. Organic is, by5 no means, the only one. So, I try to provide6 the perspective of organic on the different7 initiatives that the USDA has going on.8 So, this ranges from the work that9 Miles mentioned that we have been doing on the10 implementation of the Food Safety11 Modernization Act; coexistence, which is, of12 course, a hot topic with concerns about13 genetically-modified organisms, and it is an14 area where there is genuine interest at the15 USDA to try to find workable solutions for all16 producers.17 I sit on the leadership team of18 the Know Your Farmer, Know Your Food Task19 Force, and I also participate in the Climate20 Change Initiatives and Beginning Farmers and21 Ranchers. So, it is a lot of meetings, but22 folks are aware that organic is important, and


1 they are making sure to include us in the2 conversation, which, again, is a very positive3 thing.4 So, Miles mentioned the USDA's5 Organic Literacy Initiative. This is a series6 of training and outreach materials that we7 launched back in 2012, with the hope of trying8 to provide some plain language resources on9 what organic means and, also, a summary of how10 the USDA supports it.11 You can see those are some12 snapshots up on the screen of the various13 tools that we have. On the left are the14 webinars that we have. We have been calling15 them USDA Organic 101 and 201, our super-16 short, 15-minute overview, and then, our17 slightly-longer 30-minute, slightly more in-18 depth overview for those who are interested in19 more details on organic, as well as our20 brochure that summarizes the different21 programs and services that the USDA has, with22 the hopes of helping people answer the


1 question, is organic an option for me?2 And then, we have a very detailed3 Resource Guide that goes through all of our4 programs and provides information on how5 different agencies support organic, as well as6 websites, and names, phone numbers, and7 emails, because we know that what people often8 really want is just to talk to a human being,9 to get some answers to their questions.10 We are currently in the process of11 updating this initiative. These are just a12 few more details on each one of these13 resources.14 And we have had a lot of success15 so far. With our Organic 101 and 20116 trainings, we have focused on really get them17 out within the USDA, to make sure that our18 staff know what organic is, that the USDA19 supports it, and how to connect producers and20 handlers with resources.21 And it has been successful beyond22 my wildest dreams. We have had over 30,000


1 USDA employees complete this training online. 2 We have about 100,000 employees at the USDA. 3 So, you can do the math. It is a huge portion4 of our workforce. So, people are much more5 informed about organic than they were in the6 past, and we are having a much better starting7 point for our conversations of figuring out8 how different agencies can support organic9 producers and handlers.10 We are currently in the process of11 updating all of these materials to make sure12 that they reflect the current that we are13 doing and any changes that may have happened14 in the most recent farm bill.15 And we would really love feedback. 16 If folks in the room are using these tools, we17 would love to hear from you. Are they useful? 18 Do they hit the high points? Are there things19 that we are missing?20 We have gotten a lot of21 information out there, but we tend not to hear22 much about how they are used and whether or


1 not they are useful. So, if there are2 thoughts about how these could be tweaked or3 changed, we are in that process right now. 4 So, it would be a great time to let me know5 what you think.6 So, we do have a new farm bill7 finally. We are very excited about it. And8 organic did quite well in the most recent farm9 bill. So, several programs that had10 previously been funded have now, again, gotten11 funding. Some of those, like the Cost-Share12 Program, got a lot more money than they had in13 the past. The Cost-Share Program itself has14 about doubled the annual budget that it used15 to have.16 And there is a lot of work that17 has been going on to try to get the farm bill18 implemented and off the ground. Since we did19 get it midway through the year, it has been a20 bit of a scramble, but things are underway and21 we are getting, hopefully, back to normal with22 a lot of these programs.


1 The Organic Research and Extension2 Initiative is now funded again and has been3 tweaked a bit to include educational4 activities as a new category of eligible5 projects. Previously, it was only focused on6 research or extension. Now you can actually7 submit a proposal whose primary purpose is to8 do outreach and education.9 That is another thing I think is10 very exciting, and I hope that people11 recognize, because it does open the door to12 something that is really needed to provide,13 again, that one-on-one personal touch to work14 with our organic producers and handlers.15 The OREI awards for the past year16 were just announced at the end of September,17 and they expect that the new request for18 awards will be published very soon on the19 National Institute of Food and Agriculture's20 website. So, if you are an institution that21 would be interested in applying or if you know22 folks who may be, please tell them to stay


1 tuned.2 As Miles mentioned, we just did a3 big mailing to let people know about the Cost-4 Share Program. We understand folks

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