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                                                      PRINTER'S NO. 3401

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2347 Session of 2008


        INTRODUCED BY KESSLER, HANNA, SAYLOR, SHAPIRO, BELFANTI,
           BENNINGTON, BISHOP, BRENNAN, CALTAGIRONE, CLYMER, CREIGHTON,
           D. EVANS, EVERETT, FAIRCHILD, FRANKEL, FREEMAN, GALLOWAY,
           GEORGE, GOODMAN, HARHAI, HENNESSEY, JOSEPHS, KULA, LEACH,
           MAHONEY, MANDERINO, MANTZ, MARSHALL, McCALL, McILHATTAN,
           McILVAINE SMITH, MELIO, MOYER, MYERS, M. O'BRIEN, PETRONE,
           PRESTON, ROSS, SAMUELSON, SCHRODER, SEIP, SIPTROTH, K. SMITH,
           STURLA, J. TAYLOR, VITALI, WANSACZ AND YOUNGBLOOD,
           MARCH 12, 2008

        REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
           MARCH 12, 2008

                                     AN ACT

     1  Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
     2     Statutes, providing for an organic farming transition
     3     program; and establishing the Organic Agriculture Development
     4     Fund.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Title 3 of the Pennsylvania Consolidated Statutes
     8  is amended by adding a chapter to read:
     9                             CHAPTER 49
    10                        ORGANIC AGRICULTURE
    11  Sec.
    12  4901.  Short title of chapter.
    13  4902.  Purpose of chapter.
    14  4903.  Definitions.
    15  4904.  Duties of department.

     1  4905.  Establishment of fund.
     2  4906.  Transition program.
     3  § 4901.  Short title of chapter.
     4     This chapter shall be known and may be cited as the Organic
     5  Agriculture Development Act.
     6  § 4902.  Purpose of chapter.
     7     The purposes of this chapter are as follows:
     8         (1)  To encourage producers to make a long-term
     9     commitment to organic agriculture.
    10         (2)  To encourage further development of the organic
    11     agriculture industry by including organic agriculture in any
    12     and all promotional and other economic development programs
    13     which are made available to other industry sectors.
    14         (3)  To promote the development and adoption of
    15     economically and ecologically sound organic agriculture
    16     methods, harvesting and irrigation techniques through:
    17             (i)  The control of pests and diseases of
    18         agricultural importance through alternatives that
    19         eliminate the use of pesticides and petrochemicals.
    20             (ii)  The production, processing and distribution of
    21         food and fiber in ways that consider the interactions
    22         among soils, plants, water, air, animals, tillage,
    23         machinery, labor, energy and transportation to enhance
    24         the viability of agricultural soils, public health and
    25         resource conservation.
    26             (iii)  The expansion of marketing opportunities and
    27         promotion of products produced through the practice of
    28         organic agriculture which will encourage the purchase of
    29         Pennsylvania-grown foods and promote regional food
    30         security.
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     1             (iv)  The coordination of research and educational
     2         activities on organic agriculture among private and
     3         public agencies and organizations and individuals within
     4         this Commonwealth.
     5  § 4903.  Definitions.
     6     The following words and phrases when used in this chapter
     7  shall have the meanings given to them in this section unless the
     8  context clearly indicates otherwise:
     9     "Fund."  The Organic Agriculture Development Fund established
    10  in section 4905 (relating to establishment of fund).
    11     "Operating revenues."  The total gross operating earnings of
    12  a producer in a given year determined by adding the revenue for
    13  each of the producer's agricultural products.
    14     "Organic system plan."  An organic plan submitted under
    15  section 2114(a) of the Organic Foods Production Act of 1990
    16  (Public Law 101-624, 104 Stat. 3935) and agreed to by the
    17  producer and a certifying agent under that section.
    18     "Producer."  A person engaged within this Commonwealth or a
    19  production area within this Commonwealth in the business of
    20  producing agricultural commodities or causing agricultural
    21  commodities to be produced.
    22     "Revenue."  The amount determined by multiplying the market
    23  price paid to a producer for an agricultural product by the
    24  producer's actual yield for that agricultural product.
    25     "Revenue loss."  The amount equal to the difference between
    26  the average of the producer's operating revenues for the three
    27  years prior to the first year of transition and the operating
    28  revenue for a year of transition to organic production.
    29     "Task force."  The Pennsylvania Organic Advisory Task Force
    30  under section 4904(c) (relating to duties of department).
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     1     "Technical and educational assistance."  The conveyance of
     2  information and counsel regarding economic and business
     3  planning, marketing and organic practices, such as entomological
     4  practices and pest and weed control and prevention, that satisfy
     5  organic practices.
     6  § 4904.  Duties of department.
     7     (a)  Promotion of opportunities for organic agriculture.--In
     8  order to promote opportunities for organic agriculture in this
     9  Commonwealth, the department shall:
    10         (1)  Survey producers and support services and
    11     organizations to determine information and research needs in
    12     the area of organic agriculture practices.
    13         (2)  Work with The Pennsylvania State University and
    14     Pennsylvania-based nonprofit organic and sustainable
    15     agriculture research institutions to demonstrate the on-farm
    16     applicability of organic agriculture practices to conditions
    17     in this Commonwealth.
    18         (3)  Administer the programs of the department so as to
    19     work toward the promotion of organic agriculture in this
    20     Commonwealth.
    21         (4)  Inform agencies of how Federal or State programs
    22     could utilize and support organic agriculture practices.
    23         (5)  Work closely with producers, The Pennsylvania State
    24     University and Pennsylvania-based nonprofit organic and
    25     sustainable agriculture research institutions, and other
    26     appropriate organizations to identify opportunities and needs
    27     as well as to ensure coordination and avoid duplication of
    28     State agency efforts regarding research, teaching, marketing
    29     and extension work relating to organic agriculture.
    30         (6)  Collect the annual organic inspection reports for
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     1     each producer receiving payment under this chapter for a
     2     minimum of ten years from the first year of transition to
     3     organic methods of agriculture.
     4     (b)  Report.--By November 15 of each even-numbered year, the
     5  department, in conjunction with the task force created under
     6  subsection (c), shall report on the status of organic
     7  agriculture in this Commonwealth to the committees in each house
     8  of the General Assembly with jurisdiction over agriculture. The
     9  report shall include:
    10         (1)  A description of current Federal or State programs
    11     directed toward organic agriculture including significant
    12     results and experiences of those programs.
    13         (2)  A description of specific actions the department is
    14     taking in the area of organic agriculture, including the
    15     proportion of the department's budget spent on organic
    16     agriculture.
    17         (3)  A description of current and future research needs
    18     at all levels in the area of organic agriculture.
    19         (4)  Suggestions for changes in existing programs or
    20     policies or enactment of new programs or policies that will
    21     affect organic agriculture.
    22         (5)  A description of market trends and potential for
    23     organic products.
    24         (6)  Available information, using currently reliable
    25     data, on the price received, yield and profitability of
    26     organic farms, and a comparison with data on conventional
    27     farms.
    28         (7)  Available information, using currently reliable
    29     data, on the positive and negative impacts of organic
    30     production on the environment and human health.
    20080H2347B3401                  - 5 -     

     1     (c)  Task force.--
     2         (1)  The secretary shall appoint a Pennsylvania organic
     3     advisory task force to advise the secretary on policies and
     4     practices to improve organic agriculture in this
     5     Commonwealth. The task force shall consist of the following
     6     residents of this Commonwealth:
     7             (i)  Three farmers using organic agriculture methods.
     8             (ii)  Two organic food wholesalers, retailers or
     9         distributors.
    10             (iii)  One accredited organic certification agent.
    11             (iv)  Two organic food processors.
    12             (v)  One representative from The Pennsylvania State
    13         University Agriculture Extension Service.
    14             (vi)  One representative from a Pennsylvania
    15         postsecondary research institution.
    16             (vii)  One representative from a nonprofit
    17         organization representing producers.
    18             (viii)  One at-large member.
    19             (ix)  One representative from the United States
    20         Department of Agriculture.
    21             (x)  One organic consumer representative.
    22         (2)  The task force shall meet at least twice each year.
    23         (3)  The terms of members shall be determined by the
    24     secretary.
    25         (4)  Task force members shall be entitled to actual
    26     expenses incurred while engaged in performing duties of the
    27     task force.
    28         (5)  This subsection shall expire December 30, 2016.
    29     (d)  Registration of State organic production and handling
    30  operations.--The secretary may facilitate the registration of
    20080H2347B3401                  - 6 -     

     1  State organic production and handling operations, including
     2  those exempt from organic certification according to 7 CFR
     3  205.101 (relating to exemptions and exclusion from
     4  certification), and certification agents operating within this
     5  Commonwealth.
     6  § 4905.  Establishment of fund.
     7     (a)  Establishment.--There is hereby established within the
     8  State Treasury, the Organic Agriculture Development Fund, which
     9  shall be an interest-bearing restricted revenue account, in
    10  which shall be deposited such moneys as are appropriated, given,
    11  granted or donated for purposes of this chapter by the Federal
    12  Government, the Commonwealth or any other governmental or
    13  private agency or person.
    14     (b)  Purpose.--Moneys deposited in the fund and interest
    15  earned on moneys deposited in the fund shall be used solely for
    16  the purpose of carrying out the provisions of this chapter.
    17  § 4906.  Transition program.
    18     (a)  Intent.--It is the intent of the General Assembly that
    19  farmers be offered an incentive to use organic agriculture best
    20  management practices as an approved farm management plan to
    21  accomplish the following:
    22         (1)  To improve the profitability of Commonwealth farms,
    23     increase self-employment opportunities for farmers,
    24     revitalize local and regional food systems and encourage
    25     innovation in farming.
    26         (2)  To restore nutrients to soils and to avoid the use
    27     of synthetic fertilizers, herbicides and pesticides on farm
    28     fields as a means of preventing chemicals from entering
    29     surface water and groundwater.
    30         (3)  To sequester carbon in the soil as a means of
    20080H2347B3401                  - 7 -     

     1     reducing greenhouse gases in the atmosphere.
     2     (b)  Establishment.--The department shall establish an
     3  organic farming transition program, a cost-sharing and an
     4  incentive program for fiscal years 2008 through 2014 to
     5  reimburse producers of agricultural products for the costs of
     6  transition to organic production and to provide financial
     7  assistance to producers of agricultural products for losses in
     8  yields during the transition to organic production.
     9     (c)  Administration of program.--
    10         (1)  The department shall use the moneys appropriated to
    11     the fund to assist producers to develop and implement
    12     infrastructure and practices necessary to transition land and
    13     animals to meet the requirements of the Organic Foods
    14     Production Act of 1990 (Public Law 101-624, 104 Stat. 3935)
    15     and to provide financial assistance to producers for losses
    16     in yields during transition to organic production.
    17         (2)  The department may only pay a producer under this
    18     section if the producer:
    19             (i)  Submits to the department an organic transition
    20         plan that contains the following:
    21                 (A)  An organic system plan approved by an
    22             accredited organic certification agent.
    23                 (B)  The expected costs for infrastructure and
    24             practices.
    25                 (C)  The environmental and economic benefits
    26             derived from the infrastructure or implementing
    27             organic practice standards.
    28                 (D)  A demonstration of the existence of a market
    29             or the reasonable expectation of a future market for
    30             the products to be produced.
    20080H2347B3401                  - 8 -     

     1                 (E)  A schedule setting out sufficient
     2             information from which to determine operating
     3             revenues for that part of the producer's farming
     4             operations intended to be converted to organic for
     5             each of the three years preceding the date of the
     6             organic transition plan.
     7             (ii)  Agrees to adhere to the organic system plan
     8         approved by an accredited organic certification agent or
     9         an organic system plan as amended by an accredited
    10         organic certification agent for a period of at least ten
    11         successive years.
    12             (iii)  Agrees to receive technical and education
    13         assistance from the department, farm extension agents of
    14         The Pennsylvania State University, or from organizations,
    15         institutions and consultants with cooperative agreements
    16         with the department relating to the development and
    17         implementation of organic practice standards or other
    18         aspects of transition to organic production, including
    19         marketing, business and risk management plans.
    20             (iv)  Agrees to submit to annual verification by an
    21         accredited organic certification agent to determine
    22         compliance of the producer with organic certification
    23         requirements.
    24         (3)  The department shall only pay producers under this
    25     section for the costs of the following:
    26             (i)  Organic practices and activities during
    27         transition to certified organic production consistent
    28         with an approved plan to transition to certified organic
    29         production.
    30             (ii)  Farm infrastructure necessary to implement
    20080H2347B3401                  - 9 -     

     1         organic practice standards, so long as the infrastructure
     2         is consistent with an approved plan to transition to
     3         certified organic production.
     4             (iii)  Organic livestock welfare measures, so long as
     5         the infrastructure or practices and activities are
     6         necessary to implement an organic practice standard and
     7         are consistent with an approved plan to transition to
     8         certified organic production.
     9             (iv)  Advanced organic practices consistent with
    10         approved certified organic production.
    11             (v)  Technical assistance, including the costs of
    12         developing an approved transition plan under this
    13         section.
    14             (vi)  Other measures the department, after
    15         consultation with the task force, determines are
    16         appropriate.
    17         (4)  The department shall provide a producer with
    18     financial assistance in an amount equal to the revenue loss
    19     for that part of the producer's farming operations being
    20     converted to organic during a year of transition to organic
    21     production.
    22         (5)  The maximum amount paid to a producer for transition
    23     to organic production under this section, whether for payment
    24     of costs or revenue loss, or an aggregate of both, shall be
    25     $10,000 per fiscal year for a period of not more than four
    26     successive years, except:
    27             (i)  In the case of a producer who annually produces
    28         three or more specialty crops, the producer may not
    29         receive payments under this section that in the aggregate
    30         exceed $20,000 per year for a period of not more than
    20080H2347B3401                 - 10 -     

     1         four successive years.
     2             (ii)  In the case of a producer whose principal
     3         farming enterprise is livestock, the individual or entity
     4         may not receive payments under this section that in the
     5         aggregate exceed $20,000 per year for a period of not
     6         more than four successive years.
     7         (6)  A certified organic producer under the national
     8     organic production program shall be eligible for
     9     reimbursement and financial assistance under this section to
    10     make the transition to organic production for new lands and
    11     livestock.
    12     (d)  Schedule and manner of payment.--
    13         (1)  The department shall pay a producer the amount for
    14     which the producer qualifies under subsection (c) by February
    15     15 of each year of transition to organic production.
    16         (2)  By December 31 of the same year, the producer shall
    17     submit to the department a report of actual transition
    18     expenses paid and a report of operating revenues and revenue
    19     loss, if any, resulting from the producer's organic farming
    20     operations for that year.
    21         (3)  If the annual total of actual transition expenses
    22     and revenue loss is less than the amount paid under paragraph
    23     (1), the balance shall be deducted from the payment for the
    24     next year.
    25         (4)  The producer shall return to the department any
    26     balance on hand at the end of the fourth year of transition
    27     to organic production with the report for the fourth year.
    28     (e)  Termination of payments.--The department shall terminate
    29  payments under this section and shall require repayment in whole
    30  of payments already received if the department determines that
    20080H2347B3401                 - 11 -     

     1  the producer is not pursuing organic certification under the
     2  Organic Foods Production Act of 1990.
     3     Section 2.  This act shall take effect in 60 days.


















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