New Opportunities in ORGANIC, both domestic and abroad.

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1 Winter Policy Conference Feb Washington, D.C. New Opportunities in ORGANIC, both domestic and abroad. Presented by: Laura Batcha, OTA CEO and Executive Director

2 Organic Trade Association OTA is the leading voice for the organic trade in the U.S., representing over 8,500 businesses across 50 states. OTA is the LEADING VOICE for the organic trade in the U.S., representing businesses Our members growers, acrossinclude 50 states. shippers, processors, certifiers, farmers' associations, distributors, Our MEMBERS include growers, shippers, importers, exporters, consultants, processors, certifiers, farmers' associations, distributors, retailers andimporters, more. exporters, consultants, retailers and more. OTA s Board of Directors is OTA s Board of Directors is democratically democratically elected by our elected by our members. members. OTA's mission is to PROMOTE and PROTECT OTA's mission is to promote ORGANIC with a unifying voice thatand serves with a unifying andprotect engagesorganic its diverse members from farm voice thattoserves and engages its marketplace. diverse members from farm to marketplace.

3 Consumers Demand Changes to Food System

4 Household Penetration for Organic Purchases Pacific 86% Mountain 82% West North Central 71% East North Central 76% Middle Atlantic 80% New England 87% West South Central 75% East South Central 68% South Atlantic 79% SPINS Consumer insights powered by IRI Shopper Network for year ending 12/28/2014, UPC coded items only.

5 Non-stop New Entrants to the Marketplace

6 Key Insights on Global Trade A report on the trade flow of organic food across the borders of the United States reveals new lucrative markets for U.S. organic producers but also provides strong evidence that American farmers are losing out on valuable opportunities by not growing more organic. A follow-on report found that organic equivalency arrangements collectively increased annual U.S. organic exports by 58 percent during over what exports would have been without any agreements in place.

7 Concentrations of Organic Operations Create ECONOMIC HOT SPOTS OTA is the leading voice for the organic trade in the U.S., representing over 8,500 businesses across 50 states. Our members include growers, shippers, processors, certifiers, farmers' associations, distributors, importers, exporters, consultants, retailers and more. OTA s Board of Directors is democratically elected by our members. OTA's mission is to promote and protect ORGANIC with a unifying voice that serves and engages its diverse members from farm to marketplace.

8 Organic Still Less Than 1% of Total Acreage

9 The Supply Chain Needs More Organic Production A TRANSITIONAL CERTIFICATION has the potential to support producers through the significant task of transitioning their farms to organic by providing exposure to the certification process and organic regulations, access to USDA support programs for producers, and, potentially, premiums for their certified transitional crops.

10 Exemption From Commodity Check-offs OTA is the leading voice for the organic trade in the U.S., representing over 8,500 businesses across 50 states. Fulfilling a provision in the 2014 Farm Bill, USDA has finalized a rule allowing organic farmers and handlers to choose whether to pay into conventional commodity checkoff programs or opt out to decide where to spend their dollars. Our members include growers, shippers, processors, certifiers, farmers' associations, distributors, importers, exporters, consultants, retailers and more. Includes a variety of commodities OTA s Board of Directors is democratically elected by our members. Potential for an organic check-off No risk of double assessment Credit for those paying in to state orders OTA's mission is to promote and protect ORGANIC with a unifying voice that serves and engages its diverse members from farm to marketplace.

11 Organic Check-Off GROorganic.net A Check-off Program for the Organic Community Educate consumers about the benefits of organic Distinguish organic from unregulated seals like natural Confirm environmental and conservation benefits of organic Research on-the-farm problems like weed control, invasive pests, etc. Bring new farmers into organic through technical assistance OTA submitted a proposal for GRO Organic in Spring USDA is expected to publish a proposed rule in the Federal Register in This will be followed by a public comment period.

12 Proposal to Amend Federal Milk Marketing Orders

13 Proposal to Amend Federal Milk Marketing Orders

14 FSMA and Manure/Compost Planning OTA is the leading voice for the organic trade in the U.S., PRODUCE SAFETY RULE representing over 8,500 FDAbusinesses said in its announcement of the final across 50 states. rule that adherence to the organic regulations is a prudent step to minimizing Our members include growers, the likelihood of contamination. shippers, processors, certifiers, FDAfarmers' also intends to do research over the associations, distributors, nextimporters, five years toexporters, set the waitconsultants, time for biological soil and amendments. retailers more. USDA PLANNING GRANT OTA s Board of Directors is of soil Assessment to characterize the use democratically elected by safety our best amendments and microbial food members. practices in organic agriculture via listening sessions and stakeholder workshops. OTA's mission is to promote and protect ORGANIC with a unifying voice that serves and engages its diverse members from farm to marketplace.

15 AC21 Evolves Charter on OTACo-existence is the leading voice for the organic trade in the U.S., representing over 8,500 businesses across 50 states. USDA s Advisory Committee on Biotechnology and 21st Century Our members include growers, Agriculture has a new charter and charge to develop a set of certifiers, shippers, processors, recommendations in 2016 for joint cofarmers' associations, distributors, existence plansexporters, among different importers, consultants, agricultural retailers production and more.systems supported and incentivized at the state and local level. OTA s Board of Directors is by our Wedemocratically are also chargedelected with providing members. recommendations on how USDA can facilitate this. OTA's mission is to promote and protect ORGANIC with a unifying voice that serves and engages its diverse members from farm to marketplace.

16 Organic Annex Included in TPP OTA is the leading voice for the organic trade in the U.S., representing over 8,500 businesses across 50 states. For the first time in a trade agreement, the Trans Pacific Partnership includes an ORGANIC ANNEX that encourages information exchange and cooperation in recognizing organic equivalencies. Our members include growers, shippers, processors, certifiers, farmers' associations, distributors, importers, exporters, consultants, retailers and more. The authority to evaluate and determine organic equivalency arrangements remains under the control of the U.S. National Organic Program. OTA s Board of Directors is democratically elected by our members. OTA's mission is to promote and protect ORGANIC with a unifying voice that serves and engages its diverse members from farm to marketplace.

17 Organic Equivalence Arrangements Arrangements eliminate the need for organic operators to have separate organic certifications for each country, which avoids a double set of fees, inspections and paperwork. U.S. organic farmers and businesses now have streamlined access to over $35 billion in international organic markets. The U.S. is currently discussing organic equivalency arrangements with MEXICO and TAIWAN.