Common Barriers to Organic Production and Processing
Organic farmers and processors of organic foods the same food safety and inspection requirements required of conventional foods. In additional, organic foods must meet additional standards to be labeled as organic. These additional requirements may create unique barriers to farming and processing organic products.
Barriers to Farming Organically
- Marketing. One of the most common concerns of farmers considering switching to organic production is how and where to market their crops and livestock. Finding reliable buyers for organic production can be difficult. For tips on direct marketing or selling bulk commodities to a buyer, see our Marketing section.
- Weed control. Perhaps of even more concern to established as well as new organic farmers is weed control. Each farmer will have to develop his/her own methods, but there is growing research which will help find new and more effective methods to give crops the advantage over weeds. Check out our section on Weed Control for more tips and information.
- Cost of certification. The cost of certification will vary from company to company and farm to farm. The 2008 Farm Bill allocated $22 million for the National Organic Certification Cost Share Program. This program of the USDA is administered by the North Dakota Department of Agriculture and provides a cost share of 3/4's of a producer's or handler's certification cost up to a maximum of $500. Check with your certifier or the ND Department of Agriculture for details.
- Social pressure to farm conventionally. Many producers are reluctant to switch to organic agriculture for fear of being out of step with their community. It is important to find like-minded producers who can provide support and information.
- Lenders' pressure to farm conventionally. Lenders may be wary of practices which seem untested and outside of conventional ways of doing things. As organic production has become more common and information about yields and weed control is more available, lenders seem to have fewer concerns. Good record keeping can help make the case for financial viability. The North Dakota Farm and Ranch Business Management Association offers training in farm and ranch accounting and management.
- Lack of knowledge about organic production. There are more and more sources of information available to help farmers to farm organically. For a brief list see our Links page. The best source of information applicable to your location may be fellow farmers.
Barriers to Organic Processing
- Shortage of organically certified processing facilities. Livestock producers wanting to market their meat directly to consumers, grocers or restaurants often have difficulty finding certified and federal or state inspected slaughter and processing plants near them.
- Development of labels and/or nutritional content. Organic labels must not only meet FDA and possibly USDA regulations regarding nutritional content and ingredient listing, but must also comply with the National Organic Standards. The Small Business Administration's Small Business Development Center may be able to help.
- Finding consistent, adequate and reliable sources of raw products. Because organic production is relatively small scale, finding sources of consistent raw materials may be difficult. Supplies my be abundant one year and scarce the next. Developing long-term relationships between growers, handlers and processors is essential to being successful.
- Sourcing affordable and allowable processing aids and ingredients. Finding sources of approved substances can be difficult. Sometimes even knowing if a particular product is allowed by the NOP is difficult. The Organic Materials Review Institute (OMRI) reviews products for use in organic production, processing and handling. The OMRI Products List is a directory of all products they have reviewed against the USDA National Organic Program Rule and have determined they meet those standards.
- Lack of distribution infrastructure for organic products. While there are a limited number of distributors which handle strictly organic products, more and more regular distributors are handling organic lines of products.
- Securing shelf space in retail outlets. There is help available for developing marketing plans for value-added agricuture products. See the Pride of Dakota web site.
- Financing. As with any new business, good financial records and a sound business plan are essential.
|