The “No Organic Checkoff” coalition has amassed a petition of 755 signatories, representing 6,000 farmers, to oppose the proposed organic checkoff tax, reports New America’s Food & Power. The Organic Trade Association (OTA) pitched the checkoff in May 2015 to the USDA, saying a commission would use the funds to promote organic products. But petitioners fear that the checkoff will go the way of others before it, funneling money toward industry giants and away from small producers.
“In contrast to other checkoffs, which are limited to a single commodity, the organic checkoff tax would apply to all organic producers, processors, and handlers. This sweeping categorization is unprecedented for a checkoff program,” says New America. The U.S. has more than 20 checkoffs, responsible for such ad campaigns as “Got Milk?” and “The Incredible Edible Egg.”
According to the OTA proposal, companies and farmers that make over $250,000 a year would be taxed one-tenth of one percent of net sales, bringing in roughly $30 million annually. Farmers who make less could opt into the program, a rule OTA says is meant to help protect small producers unable to afford the tax. But opponents of the plan fear that the tax is set up to stop small producers from having a voice in how the money is used. Even voting on the initial referendum requires participation in the program, since anyone who seeks to vote will be required to pay for the checkoff tax assessment for seven years.
“It’s just an undemocratic way to carry on,” says Ed Maltby of the Northeast Organic Dairy Producers Alliance. “And it definitely isn’t in keeping with the spirit of the organic movement.”
Major organic organizations have joined the coalition and signed the petition, including the Northeast Organic Dairy Producers Alliance, the Northeast Organic Farming Association, Food & Water Watch, and the Cornucopia Institute.