State Agriculture Department Authorized to Certify Kentucky Organic Producers

News Date February 03, 2006

        It's official. Kentucky organic producers can sign up with the Kentucky Department of Agriculture (KDA) to have their operations certified organic.
        The National Organic Program notified KDA in January that the department is authorized to perform certification duties on behalf of the USDA. The KDA is one of only 54 accredited certifying agents in the United States.
        "I want to thank Mac Stone and Jake Schmitz for their efforts to make the Department an accredited certifying agency," Kentucky Agriculture Commissioner Richie Farmer said. "Thanks to them, certified organic producers in Kentucky can identify their products to consumers as organic, and consumers can find certified organic products by looking for the 'USDA Organic' logo."
        Products with the "USDA Organic" logo are certified as having been produced according to the organic production rules of the National Organic Program.
        Having a Kentucky-based certifying agent will spur growth in organic production, said Schmitz, the KDA's organic program coordinator. As organic production in Kentucky grows, businesses will come to the Commonwealth to sell inputs to organic producers and to buy organic products.
        "Organic certification allows producers to reach into a more specialized marketplace that commands higher prices," Schmitz said.
        Organic certification from the state will benefit about 125 Kentucky producers immediately--including the research farms at the University of Kentucky, Western Kentucky University, Kentucky State University and Berea College. Schmitz expects that number to climb above 200 in the next three years.
        The organic industry is the fastest growing segment of U.S. agriculture with a growth rate of 20 percent a year, according to USDA. The U.S. market is expected to exceed $30 billion in 2007.
        Wholesale prices for certified organic products are 25 to 100 percent higher than those for conventionally produced products, Schmitz said. Organic tobacco sold at auction for $2.95 per pound in January while conventional tobacco brought about half that amount, he said. Organic Valley Family of Farms of LaFarge, Wisc., pays $23 per 100 pounds for organic milk compared with $15 per hundredweight for conventional milk, he said.
        In markets across the nation in late January, organic corn sold for $5-$7.25 per bushel, organic feed soybeans brought $14.25 per bushel, and organic wheat was $7 per bushel, according to the New Farm Organic Price Index.
        "Businesses that sell organic inputs are starting to settle in Kentucky because they expect a big boom of organic growers here," he said. That will reduce the shipping costs of inputs to Kentucky growers, he said.
        Organic Valley, the nation's largest organic dairy cooperative, and Horizon Organic of Boulder, Colo., the nation's leading marketer of organic milk, are among many organic food companies that are targeting Kentucky, Schmitz said. Other national companies have shown interest in buying organic blueberries and organic corn from Kentucky, he said.
        Kentucky organic producers can apply for certification through the KDA for a $125 certification fee instead of much higher fees charged by some independent certifiers, Schmitz said. KDA is sponsoring a certification cost-share program that will reimburse producers for 75 percent of their registration fees, leaving producers with a certification cost of $31.25.
        Producers with organic product sales under $5,000 a year must register for a $25 fee to market their products as organic. Registered producers must abide by the NOP organic standards and are subject to an inspection at anytime but are not required to be inspected and may not use the "USDA Organic" logo.
        Schmitz advised potential organic certification applicants to first review the national organic rules. The national standards are available on the Web at www.ams.usda.gov/nop/NOP/standards.html.
        To apply online for organic certification online, go to the Kentucky Department of Agriculture's Web site, http://www.kyagr.com, and click on Organic Programs on the pull-down menu. For more information on organic certification, go to the KDA's Organic Programs page or contact Jake Schmitz by phone at 502/564-4983 or by e-mail at jake.schmitz@ky.gov. (Contact: Bill Clary, 502/564-4696)