UNIVERSITYOFCALIFORNIA,SANTACRUZ TheImpactofOrganicCertificationontheEconomicViabilityofSmallFarms inCaliforniasCentralCoastRegion ASeniorThesissubmittedinpartialsatisfaction oftherequirementsforthedegreeof BACHELOROFARTS in ENVIRONMENTALSTUDIES by WesleyMills March2010

ABSTRACT:Theobjectiveofthisstudyistodetermineorganiccertificationsimpact ontheeconomicviabilityofsmallfarmsinCaliforniasCentralCoastregion.Eleven smallfarmerswereinterviewedregardingtheirmarketingpracticesandviewsof organiccertification.Althoughallparticipatingfarmersusedorganicpractices,five ofelevenparticipantswerenotcertifiedorganicbyathirdpartycertification agency.Thedataobtainedthroughinterviewsrevealedthatuncertifiedorganic farmsexploitdifferentmarketsthancertifiedorganicfarms.Uncertifiedorganic farmsplacedaheavierfocusondirectmarketingandconsumertrust.Certified organicfarmshadanadvantageinwholesalemarkets.Mostparticipatingfarms reportedhavingqualmswithfederalorganicstandardsortheirthirdparty certifierspractices.Thisdataiscomparedagainstthebroaderliteratureregarding organiccertificationandpractices.Halfofcertifiedorganicparticipantsbelieved thatcertificationdidnotyieldthemanetbenefit.Thedatasuggeststhatforcertain smallfarmsitispossibletoachieveanorganicpricepremiumwithoutparticipating inorganiccertification. KEYWORDS:OrganicCertification,CentralCoast,DirectMarketing,FarmPolicy, SustainableAgriculture,NOP,SmallFarms

Introduction
Objective Theobjectiveofthisstudyistodetermineiforganiccertificationiseconomically beneficialforsmallfarmsinCaliforniascentralcoastregion.Thisisaddressed throughcasestudyresearchoflocalfarms.Thisresearchissituatedwithinthe broaderliteratureonagriculturalsustainability,and,theinsightsgainedthroughthe casestudiesareusedtocontributetobroaderdebatesofsustainability,social justice,andgovernmentinterventionintoagriculturalmarketsinadditiontobeing situatedwithinthebroaderliterature. OriginsofOrganicFarmingandOrganicCertificationinCalifornia OrganicfarmingforprofitinCaliforniawasborninthelate1960soutofgrowing concernforhealthandenvironmentalimpactscausedbyGreenRevolution chemicals.Duringthistimethemeaninganduseofthetermorganicwasnot regulated.Inadditiontofarmingpracticesavoidingtheuseofsyntheticchemicals, thetermembodiedmanydifferentcharacteristicstomanypeople.These characteristicsincludedlocality,freshness,sustainability,diversity,socialjustice, health,andindependencefromofffarminputs.Thewidevarietyofideologies surroundingorganicagricultureandthelackofregulationoforganicproduction claimsledtoconfusionamongstproducersandconsumersconcerningthe legitimacyofproductsbeinglabeledorganic.

InresponsetothisgrowingconfusionagroupknownasCaliforniaCertifiedOrganic Farmers(CCOF)wasformedin1973.CCOFwasafarmerscollectivethatinspected andvouchedforparticipantsfarmsandtheintegrityoftheirorganicpractices. CCOFwasformedtosetaqualitystandardfororganicagriculturethatwouldclearly differentiateorganicandnonorganicpractices.ParticipantsinCCOFcertification stoodtobenefitthroughpricepremiumspaidforlegitimateorganicfoods.These pricepremiumsallowedorganicfarmerstoproducefoodinaninherentlymore expensiveway,incorporatingsustainability,health,andsocialjustice.Thestandards setforthbyCCOFservedtostandardizethedefinitionoforganicthuslessening consumerandproducerconfusion.Certificationunderastandardizeddefinitionalso allowedproducersavehicleforprovingthattheywerenotmarketingfraudulent organicproduce.Thismarkedthebirthofthethirdpartycertificationsystemthat wouldcometocharacterizeorganiccertificationinAmerica.Californiahasatleast8 thirdpartycertifierscurrentlycertifyingtoUSDAorganicstandards.(Guthman 2004) TheCaliforniaOrganicFoodsActof1979(COFA)wasthefirstpieceoflegislation aimedatassuringtheauthenticityoforganicfoods.Theactestablishedthebasic requirementsthatCalifornianorganicfarmsmustmeettolegallyrefertotheir produceasorganic.Thestandardsintheactwerelargelybasedonthestandards thatCCOFwascertifyingtoatthetime.TheCOFArequiresorganicproducersto registerwiththestatebutitdoesnotverifyproducersorganicpracticesandhasno budgetaryallowanceforenforcement.Furthermore,registrationintheCOFA programdoesnotmandatethirdpartyinspection.Casesofcheatinghadtobe 3

broughttothecourtsbythirdparties.Thefirstsuchcasewasbroughtagainst PacificOrganicsin1988byCCOFandtheCaliforniaDepartmentofHealthServices (CCOFTimeline2003).Afterthe1988caseagainstPacificOrganicsitbecameclear thatthestatemustdevelopaninfrastructureforenforcingorganicstandards.In 1990CaliforniapassedanotherOrganicFoodsActcreatingthisinfrastructure.This billcreatedasysteminwhichenforcementoforganicstandardsisfundedthrough mandatoryfeesattachedtoenrollmentintheCOFAprogram. TheRiseofFederalOrganicStandards Alsopassedin1990wasthefederalOrganicFoodProductionAct(OFPA).TheOFPA createdtheNationalOrganicStandardsBoard(NOSB)thatwaschargedwith creationoforganicstandardstobeenforcedonthenationallevel.Themembersof theNOSB,whowerefirstappointedin1992,consistoffourfarmers,oneretailer,2 handler/processors,onescientist,threeconsumerandpublicinterestadvocates, threeenvironmentalists,andathirdpartycertifier.ThemembersoftheNOSB collaboratedtoprovidealistofrecommendationstotheUSDAin1996.After reviewingtheNOSBrecommendationstheUSDAreleaseditsproposedrulein1997 andgranteda4monthcommentperiodinwhichanyoneconcernedwithorganic certificationcouldwriteintovoicetheirconcerns.1
1Informationregardingthehistoryoforganiccertificationcanbefoundat: Fetter,T.R.andJ.A.Caswell(2002).VariationinOrganicStandardsPriortotheNationalOrganicProgram.ResearchReport Series,UniversityofConnecticutDepartmentofAgriculturalandResourceEconomics. Fisher,B.E.(1999)."Organic:What'sinaName?"EnvironmentalHealthPerspectives107(3):A150A153.

TheUSDAreceived275,000commentsduringthisfourmonthperiod(Fisher1999). ThemajorityofthesecommentshighlightedthedisparitybetweentheNOSB recommendations,whichweregenerallywellreceived,andtheUSDAproposedrule. OfparticularconcernwastheBig3.TheBig3referredtotheallowanceof irradiation(theuseofradiationtokillmicroorganisms),theallowanceofGMOcrop varieties,andtheallowanceofsewagesludgeasfertilizer(Fisher1999).Another seriouspointofcontentionwasthefocusoninputsubstitutionratherthanprocess orientedfarmingpractices2.Farmerswhoenteredintoorganiccultivationfor ideologicalreasonssawtheBig3andinputsubstitutionasaclearindicationthat theUSDAwasfacilitatingthetakeoveroforganicagriculturebyagribusiness. Inresponsetotheuproar,theUSDAdecidedtorewritetheproposedrule.Thenew proposedrule,releasedin1999eliminatedtheBig3andmadementionofaprocess orientedsystembutmaintainedseverallesssensationalizedpointsofcontention. Thenewproposedrulewaspublishedasthefinalruleinlate2000.Therulewent intoeffectinApril2001andwasfullyimplementedbyOctober2002.Thismarks thebeginningoftheNationalOrganicProgram(NOP).Upontheimplementationof thefinalrule,thetermorganicwasnowunderfederalcontrol.Organicstandards previouslyestablishedbyindividualstateprogramsaresupersededbytheNOP.All

2Inputsubstitutionreferstomodelingorganicfarmsaroundaconventionalsystem,substitutingsyntheticfertilizersand pesticidesfororganicversions.Processorientedfarming,popularamongstfarmersideologicallydedicatedtoorganic agriculture,focusesonredesigningfarmingsystemstotakeadvantageofnaturalinteractionsbetweencropsandthe environment.

organiccertificationagenciesmustnowbeaccreditedbyandcertifytothe standardsoftheNOP. OrganicStandards Thestandardscreatedbythefinalrulereachedmuchfurtherthroughthesupply chainthanstateandthirdpartycertificationhad.Thefinalrulestatesthatany producer,processor,orhandlerinvolvedinanyproductslabeledasorganicmustbe certified.Thecertificationofhandlersandprocessorsismeantverifythatprocessed goodslabeledasorganictrulycontainorganicfoodsandtoassurethatorganicfoods arenotbeingcontaminatedthroughtheuseofhandlingequipmentsharedwith nonorganicfoods.3 Farmsandproducerswithlessthan$5000inyearlysalesareexemptfrom certification.Despitetheirexemptstatus,theymustregisterwithboththestateand federalorganicprogramsandfollowthesamerulesoutlinedforlargerfarms.Foods producedbytheseexemptfarmsandprocessorsarenotallowedtobeusedas ingredientsinprocessedfoodslabeledasorganic.Retailfoodestablishmentssuch asrestaurantsandgrocerystoresarealsoexemptfromcertification. Allentitiesbeingcertifiedmustkeeprecordssufficientenoughtobereadily understoodandauditedbytheircertifier.Recordsfromthepast5yearsmustbe

3AcompletelistofFederalorganicstandardscanbefoundat<http://ecfr.gpoaccess.gov/cgi/t/text/text idx?type=simple;c=ecfr;cc=ecfr;sid=c48aaecafb5b5fd317a0e40929562e36;region=DIV1;q1=national%20organic%20program ;rgn=div5;view=text;idno=7;node=7%3A3.1.1.9.31>

madeavailabletoanyfederal,state,orthirdpartycomponentofthecertification processduringallnormalbusinesshours. Anorganicsystemplanisarguablythemostcomprehensiverequirementoforganic certification.Allpracticesandproceduresassociatedwiththeentitybeingcertified mustbelistedalongwiththefrequencythatthesepracticesandproceduresare expectedtohappen.Allsubstances,suchasfertilizers,pesticides,andseeds,mustbe documented.Thisdocumentationincludeschemicalcomposition,source,and locationwhereitwillbeused.Ifnonorganicfoodsarebeinggrownorprocessed alongsideorganicfoodsthefarmerorproducersmustprovidedocumentation describingthepracticesusedtopreventcomingling. Allfarmlandbeingusedtoproduceorganicfoodsmusthavedocumentationproving thatnononorganicmaterialshavebeenappliedtoitduringthepreviousthree years.Farmsusingorganicpracticesonfarmlandthatdoesnotmeetthis requirementmaylabeltheirfoodastransitionalorganic. Thereareavarietyofrulesaimedatfertilityandsoilqualitymanagement.Thefinal rulesstatesthatfarmsmustchoosesoilmanagementpracticesthatimprovesoil conditionandreduceerosion.Thisistobeachievedthroughtheuseofunspecified tillagepracticesandtheapplicationofmanures,covercrops,andcompost.The applicationandprocessingofmanuresandcompostsarestrictlyregulated.Manures mustbeincorporatedinthesoil90120dayspriortoharvestdependingonthe proximityoftheharvestableportionoftheplanttothesoil.Compostsmustmeet specificcarbontonitrogenratiosandbecompostedatorabove131degrees. 7

Dependingonthecompostingmethodtheperiodatorabove131degreesmustlast from315daysandmayrequireupto5turningsofthecompostpile. Leewayisgiveninregardstoseeds,seedlings,andplantingstock.Organicseeds, seedlings,andperennialplantingstockshouldbeafarmersfirstchoice.Whenno organicoptionisavailablenonorganicoptionscanbeused.Perennialplanting stock,suchastrees,mustbegrownunderorganicconditionsfor1yearpriortobe certifiedorganic. Pests,weeds,anddiseasesaretobecontrolledusingavarietyofnonsynthetic chemicalmeans.Theseincluderotationpractices,introductionofbeneficialinsects, traps,repellants,plantingofbeneficialplants,mulching(includingplasticmulch), grazing,andsimilarlybenignmethods.Onlywhenthesepracticesareinsufficientto controlthepest,weed,ordiseasedoesthefarmerhavetheoptiontouseaproduct approvedfororganicproductionthatissimilartothecommonconceptionofa pesticide.Theneedforsuchproductsmustbedocumentedintheorganicsystem plan. Theuseofthetermorganicisrestrictedtoproducers,handlers,andprocessorswho areregisteredwithstateandfederalorganicprogramsinadditiontobeingcertified byanaccreditedorganiccertificationagency. Roadmaptotherestofthispaper Thenextsectionisamethodssectionthatdetailsthemultistageprocessthatwas conductedtoobtainthedataforthisstudy.Theresultssectionpresentsthedata

obtainedin11interviewswithfarmersintheCentralCoast.Themarketing methods,therelationshipbetweencertifiersandfarmers,thecorrelationbetween certificationandmarketaccess,andproblemswithorganiccertificationidentified byparticipatingfarmersarehighlightedinthissection.Thediscussionsection relatesthefindingsofthisstudytobroaderissuesrelatingtosmallfarms.The intersectionoforganiccertification,farmsize,farmingstyle,andsocialjusticeis exploredthroughtherelationshipbetweenfarmworkersandvarioustypesof farms.Thediscussionsectionthengoesontodetailhowvariouspartiesbenefit fromorganiccertification.Thissectiondiscussescertifiers,landowners,retailers wholesalers,customers,andtheenvironment.Thediscussionsectionendswitha criticalevaluationoforganiccertificationsimplicationforsmallfarmsintheCentral Coastregion.

Methods
ThePurposeofOrganicCertification Organicfarmingisappealingforsmallfarmsforavarietyofreasonsrangingfrom landstewardshiptoincreasedprofits.Itisassumedthatorganiccertification legitimizesorganicfoodintheeyesofconsumers,holdsfarmerstoastandardthat promotessustainability,andprovidesaccountabilityandtransparencythroughthe useofsetstandardsandverificationprocedures.Ideally,organiccertificationshould

servetorewardthosemostcommittedtoproducingfoodinanenvironmentally friendlymanner. Thedataforthisstudywasobtainedduring11interviewswithfarmersin CaliforniasCentralCoastregionbetweenNovember14,2009andJanuary7,2010. SelectionofParticipants Farmsparticipatinginthestudyhadtomeetseveralcriteria.Acutoffpointof $250,000inyearlysaleswasestablishedbasedontheUSDAsuppersaleslimitfor smallfarms.Allofthefarmshadtobeusingorganicmanagementpractices.Forthe sakeofthisstudythebaselinerequirementtobeclassifiedasorganicisthe avoidanceofsyntheticnutrientsandpesticides.Farmstargetedincludedcertified organic,uncertifiedorganic,andfarmsconsideringalternativecertifiers.Oncertain occasionsitbecameclearthatafarminthestudydidnotmeetthesecriteria.The datafromthesefarmshasbeenomitted. Thefirstroundoffarmswerecontacteddirectlythroughfarmersmarketsor throughcontactinformationleftonLocalHarvest.org.Thesearchtermsorganic andSantaCruzCountywereusedtoidentifypotentialparticipantson LocalHarvest.org.Thesecondroundoffarmswaschosenbasedon recommendationsreceivedfromfirstroundparticipants. Thefarmswerecontactedthroughemail,phone,orinperson.Uponcontactingthe farmabriefexplanationofthestudyandaninterviewrequestweregiven.All intervieweeswerefarmmanagersorowners.Interviewswithcertifiedfarmswere

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conductedwiththemanager/ownerwhohandlesthemostcertificationrelated work. InterviewProcess Allparticipantsweregiventheoptiontochoosethetimeandlocationoftheir interview.Themajorityofinterviewstookplaceonfarm.2interviewswere conductedatfarmersmarketstandsand2interviewswereconductedvia telephone. Priortotheinterview,participantsweremadeawarethattheyandtheirfarms wouldnotbeidentifiedinthestudy.Thiswasdonetoeaseconcernsaboutpotential negativerepercussionsfromcertifiers,peersinthefarmingcommunity,andthe NOP. Therewere3standardsetsofquestionsbroughtintoeachinterview.Thefirstsetof questionswasusedtocreateaprofileofthefarm.Thisfirstsetincludedquestions regardingwhatthefarmgrows,whatmarketsitparticipatesin,yearlysales, certificationstatus,etc.Thesecondsetofquestionswasdesignedforfarmerswho arecurrentlycertified.Thesequestionswereintendedtodeterminethe participantsexperienceswithcertification,positiveandnegativecomponentsof certificationfromtheirviewpoint,andwhetherornottheythoughtthecertification processwasbeneficialfortheirfarm.Thethirdsetofquestionswasdesignedfor farmerswhowerenotcertified.Thesequestionswereintendedtodeterminepast experienceswithcertification,whytheyhavechosentonotpursuecertification,and howalackofcertificationimpactstheirabilitytomarkettheirproduce.Followup 11

questionswereaskedbasedonanswersgiventothesecondandthirdsetsof questions.Allinterviewswereendedbyaskingparticipantstoprovidefinal thoughtsonorganiccertification.Thisquestionwasusedtoallowparticipantsto highlightthoughtsandconcernsthattheydidnotarticulateinresponsetomore directquestions. DataCollectionandRecording Datawascollectedusingdetailedwrittennotesduringthecourseoftheinterviews. Thesenotesweretranscribedintoacomputerusingacodedformattoprotectthe identitiesofparticipants. Anexcelspreadsheetwascreatedtoputthedatainaformatthatcanbemore readilyanalyzed.Datawasenteredintothespreadsheetusingyes/noanswers, numberedscales,orshortanswersdependingonthenatureofthequestion. Dataunsuitableforthespreadsheetformat,suchasstories,wasorganizedina separateworddocument.

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Results
Ofthe11participantsinthisstudy5wereuncertifiedwhile6werecertified.

CertificationStatusofParticipatingFarms Figure1.Thetotalnumberofparticipantsbycertificationstatus Theonlyuncertifiedparticipanttoclaimthatthetermorganicwasanimportant marketingtoolwasregisteredasorganicbutexemptfromcertificationduetothe $5000rule.Allotheruncertifiedparticipantsfeltthattheuseofthetermorganic wasnotanimportantmarketingtoolfortheirfarms.Theresponsefromcertified farmswassplit.

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 ImportanceofOrganicasaMarketingTool Figure1.Percentageofcertifiedanduncertifiedfarmersclaimingthattheterm organicisanimportantmarketingtoolfortheirfarm. Farmersmarkets,farmstands,CSAs,wholesaling,anddirectrestaurantsaleswere identifiedasthemarketingmethodsusedbysmallfarms.Certifiedanduncertified farmshadsimilarparticipationratesinCSA,directrestaurantsales,andwholesale markets.Farmstandswereprefferedtofarmersmarketsforuncertifiedfarms.The oppositewastrueforcertifiedfarms.

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 MarketingMethodsbyCertificationStatus Figure2.Percentageoffarmsbycertificationstatuspursuing5commonmarketing methods. Wholesaling 67%ofcertifiedfarmsand60%ofuncertifiedfarmsutilizedwholesalemarkets. Despitethisapparentsimilarity,thewholesalingmarketsbeingutilizedbycertified anduncertifiedfarmswerequitedifferent. Certifiedorganicwholesalingfarmsoperatedexclusivelyinwholesalemarkets whereorganiccertificationwasarequirement.Thesewholesalemarketsincluded specialtygrocerystoresandaFarmtoCollegeprogram.Specialtygrocerystoresin 15

thearea,suchasNewLeafandWholeFoods,mustpurchasefoodthatiscertified organiciftheywishtomarketitasorganicintheirstores.TheFarmtoCollege programlinkslocalfarmstotheUniversityofCaliforniadiningsystem.Similarlyto specialtygrocerystores,thisfoodsystemlabelsfoodasorganicandistherefore requiredtopurchasecertifiedorganicproduce. Uncertifiedorganicwholesalingfarmssoldinwholesalemarketsthatdidnotrelyon theclaimoforganic.Twoofthethreeuncertifiedwholesalingfarmssoldfoodto localschools.Theseschools,presumablyoutofgrowingconcernforhealthand nutrition,createdpilotprogramsaimedatintegratingfreshandlocalproduceinto schoollunches.Inthesewholesalemarketslocality,freshness,andoverallquality surpassedtheimportanceoforganiclabeling.Thethirdwholesalinguncertified organicfarmsoldflowersandfloralarraignmentsforweddings.Organic certificationwasnotnecessaryforaccesstothiswholesalemarketbecause,asthe farmmanagerstated,Peopledonteatflowers. Farmstandsvs.FarmersMarkets FarmstandsandFarmersMarketsserveanearlyidenticalfunction.Theyallow farmstomarketdirectlytocustomers.Thisformofdirectmarketingallowsfarmsto capturefullretailpricefortheirproduceanddeveloprelationshipswithcustomers. 67%ofcertifiedfarmsparticipatedinfarmersmarketsand17%hadfarmstands. Thereareseveralpotentialexplanationsforcertifiedfarmspreferenceforfarmers markets.Someparticipantsinthestudyclaimedthatbeingcertifiedallowedthem easieraccesstocrowdedfarmersmarkets.Farmersmarketsmaybepreferred 16

becausetheyallowfarmstomarketlargeamountofproduceinarelativelyshort amountoftime.Thiscanrequiresignificantlylesstimeandeffortthanmaintaininga dailyfarmstand.Theircertifiedorganicplacardsallowthemtomarkettheirorganic produceatfarmersmarketswithnoquestionsasked.Oneparticipantstatedthat certificationstreamlineshisfarmersmarketsalesbylimitingtheamountof questionshereceivesfromcustomers.Heclaimsthisisvaluablewhenyouhave limitedtimetosellasmuchproduceaspossible. 60%ofuncertifiedfarmshadafarmstand.Theonlyuncertifiedfarmtoutilize farmersmarketssoldflowers.Alackoforganiccertificationmayactasabarrier limitinguncertifiedfarmsaccesstofarmersmarkets.Afarmstandallows uncertifiedfarmstoavoidquestionsofcredibilityinregardstotheirfarming practicesbecausecustomerscanseethefarmasthepurchasetheirproduce.All5 uncertifiedfarmsclaimedthatcustomertrustwasanimportantcomponentoftheir marketing.Participantswithfarmstandsexpressedprideintheleveloftrustthat theirfarmstandsaffordedthem.Itmaybedifficulttodevelopthisleveloftrustina farmersmarketsettinginwhichthecustomeroftenhastheoptiontobuyfroma competingsellerwithcertification.Farmstandsaleseliminatetheimmediate presenceofcompetitorsandallowfarmersandcustomerstointeractinawaythat fosterstrust.Thistrustonlyneedstobedevelopedonce.Theconstantlyrotating poolofcustomersatfarmersmarketsmaymakecultivatingtheserelationships difficult.

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CSA Communitysupportedagriculture(CSA)isamarketingsysteminwhichconsumers payasetfeeperperiodoftime,typicallyaweek,andinreturnreceiveaboxof produce.Customerspickuptheproduceatthefarmorotherspecifiedlocationand interactdirectlywiththeproducers.AllparticipantsrunningaCSAsystem,certified anduncertified,reportedthattheyencourageCSAcustomerstovisitthefarm.The CSAsystemisparticularlyfavorableforuncertifiedfarmsbecauseitallowsthemto sidesteptheirinabilitytomarkettheirproduceasorganic. Restaurants Participantsinthestudyoftencitedrestaurantsalestobethemostdifficult marketingtechnique.Thisisbecauserestaurantsordersmallquantitiesofwide varietiesofproduce.Taking,preparing,anddeliveringordersrequiresconstant effort.Participationinmarketingtorestaurantswasmorecommonforuncertified farms.Thismaybebecausecertifiedfarmsusetheirincreasedaccesstoother marketstoavoidrestaurantsales.Organiclabelinginrestaurantsisnotascommon asitisingrocerystores.Participantsreportedthatrestaurantsweremostly concernedwithquality,freshness,locality,andvariety.Thesecriteriaallow uncertifiedfarmstoaccessthismarketinlieuoffarmersmarketsandspecialty storewholesaling.

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 CompetitionwithIndustrialOrganic Figure3.Percentageoffarmersreportingthattheyareincompetitionwith industrialorganicfarms. LackofCompetitionAmongstCertifiers EverycertifiedfarminthestudywascertifiedbyCCOF.Theoneuncertifiedfarm thatwillbepursuingcertificationnextyearhasidentifiedCCOFastheirfirstchoice. TheheavyrepresentationofCCOFcertifiedfarmsistheresultoftheirdominancein thesmallfarmcommunityofthecentralcoastagriculturalregion.Thereareatleast 7otherorganiccertifiersandahandfulofalternativenonorganiccertifierscapable ofcertifyingintheCentralCoastregion. Whenparticipantswereaskedtheprimaryreasontheychosetheirspecificcertifier 4of6saidthatCCOFwastheonlycertifierintheregionwhentheywerecertifiedor thatCCOFwastheonlycertifiertheyhadheardofatthetime,1chosethembecause 19

theywerelocal,and1chosethembecausetheybelievedthattheywerethemost reputablecertifier.Whileonlyoneparticipantcitedlocalityastheprimaryreason forchoosingCCOF,allparticipantsmentionedthelocalityofCCOFasareasonfor choosingCCOFcertification.Perhapsthisisduetothekeepitlocalsentiment presentamongstthoseideologicallycommittedtoorganicagriculture.Most certifiedparticipantsalsoagreedthatCCOFheldahigherstandardthanother certifiers.Whileallcertifiersmustcertifytothesamefederalstandardsthereisa grayarearegardinghowstringentyearlyinspectionmustbe.Choosingacertifier thatisperceivedtobethestrictestmaybesymbolicofsmallfarmsperceptionof themselvesasmoreorganic.Participantsoftenclaimedthatlargerfarmschose certifiersotherthanCCOFbecausethesecertifiersallowedlargefarmstousethe leastsustainablepracticesallowedbyfederalstandards. Nocertifiedparticipantswereactivelyconsideringswitchingtoanothercertifier thatcertifiedtoUSDAorganicstandards. RelationshipbetweenCertificationStatusandMarketAccess Ashighlightedintheprevioussections,certificationstatusdoesappeartohavean impactonafarmsmarketingmethods.Allparticipantsfromuncertifiedfarms claimedthatalackofcertificationdidnoteffecttheirabilitytomarketproduce. Uncertifiedorganicparticipantslackofpresenceincertainmarketsmayimply otherwise.Certifiedorganicparticipantslackofpresenceincertainmarketsseemed tobeoftheirownchoosingbecausetherearenobarrierspreventingcertifiedfarms frompursuingthesamemarketingstrategyasuncertifiedfarms. 20

RelationshipBetweenCertifiersandFarmers Whenaskedtodescribetheirrelationshipwiththeircertificationagency, participantsreportedanswersrangingfromexcellenttouncomfortableatbest. Twoparticipantsreportedtherelationshipasbetterthanneutral,tworeported worsethanneutral,andonereportedaneutralrelationship.Participantswhorated therelationshipasbetterthanneutralreportedthattheybelievedthatCCOFwas lenientinregardstosmallmistakes.Thetwoparticipantsratingtherelationshipas worsethanneutralreportedthatCCOFnitpicksthemandthattheyfearlosingtheir certificationforarbitraryreasons. Acommoncomplaint,regardlessofrelationshipquality,wasCCOFsslownessin respondingtoquestionsregardingallowedandbannedmaterials.Immediate interventionisnecessarytoquellpestanddiseaseproblems.Duetothenatureof thefarmplanandtheconstantlyupdatingOMRIlistitishardforfarmersto determinewhatpestanddiseasecontrolproductstheyarepermittedtouseina givensituation.Farmersmaysubmitaformaskingtouseaproductthatthey believeisorganicbutisnotlisted.Participantsreportednotreceivingreliable answersregardingwhatproductstheymayuseuntilseveraldaysaftercontacting CCOF. Participantsreportedavarietyofwaysthattheyrespondtothisslowresponse.One participantreportedthathissolutiontothisproblemwastostopinteractingwith CCOF.Thisparticipantusesanyproducthebelievesisorganic,OMRIlistedornot, anddoesnotreportitsuseduringhisannualinspection.Whenbeinginspectedhe 21

tellshiscertifierthathedoesnotuseanyproductstoquellpestsanddisease.He feelsthatthisapproachcutsdownonhispaperwork,hourlyinspectionfeesfor certificationrenewal,andliklihoodoflosingcertificationforanissuethathe considerstobearbitrary. Anotherparticipantreportedactuallylosingcropsduetoslowassistance.This participantisafarmmanagerdespitehavingverylittlefarmingexperience.They finditsuchahassletodealwithsubmittingformsandwaitingforresponsesto questionsthattheyhavedecidedtostopusingproductsthattheydonthaveprior approvalfor.Whentheseproductsfailtomanageagivenproblemthisfarmerculls affectedplantsratherthantryingnewproducts.Theybelievethattheywouldlose theplantsinthetimethatittookfortheircertifiertorespondwithpermissionto useacertainproductsothereisnopointinaskingforpermissionatall. Oneparticipantreportedreceivingassistancefromhiscertifierthatendedupbeing incorrect.Thisparticipantwantedtopurchaseuncertifiedtuberstoproducean annualflowercrop.WhenhecontactedCCOFhewasinformedthathecouldnot marketflowersproducedbythesetubersasorganicuntiltheyhadbeengrown underorganicpracticesfor1year.Hecalledhistubersuppliertoinformhimofthis andthetubersupplierclaimedthatthisinformationwasincorrect.Aftercontacting CCOFagaintheparticipantwasinformedthathecouldmarketflowersgrownfrom thesetubersasorganicimmediately.Thisconfusionresultedfromthecertifiers misunderstandingoftherulesregardingthedifferencebetweenannualand

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perennialplantingstockandseed.Ifthisparticipanthadnotbeenaggressiveinhis followuphemayhavelostprofitsassociatedwiththisflowercrop. ABetterOption? Everyparticipantfromacertifiedfarmreportedthattheywereunawareofa certifierthatdidabetterjobthanCCOF.SomeparticipantssaidthatOregonTilth maybeanequal.Despiteproblemswithslowresponsetimeandpricing, participantsunanimouslyagreedthatCCOFissuperiortoothercertifiersoperating intheregion. Cheating Tenofelevenparticipantsinthisstudyclaimedthattheybelievethatitwouldbe easyorveryeasytocheattheorganicstandardswithoutbeingcaught.One participantclaimedthatnoonewouldevercheatthestandardsandrefusedto commentonhowdifficultitwouldbe. Theoretically,certificationverifiesthatparticipatingfarmsupholdthestandardsset forthbytheUSDA.Ifcertificationdoesnotguaranteethatafarmisorganicitis effectivelyuseless.Onecertifiedparticipantclaimedthattheonlypeoplewhoget caughtcheatinggetcaughtbecausetheyturnthemselvesinbylistinganonorganic productassomethingtheyusedinthepreviousyear.Thishappensnotbecausethe farmerwastryingtocheatbutbecausetheywereunawarethattheproductthey usedwasnotorganic.Farmerswhocheatonpurposearelikelytobesavvierabout theirrecordkeepingprocedures.

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Cheatingiseasyforavarietyofreasons.Itisveryrareforacertifiertotakeasoilor plantsampleforchemicaltesting.Noparticipantsinthestudyreportedhaving materialfromtheirfarmbeingtestedforbannedchemicals.Unannounced inspectionsaresimilarlyrare.Allparticipantsinthisstudyscheduletheiryearly inspectionwellinadvance,allowingthemampletimetoconcealbannedchemicals andassociatedequipmentiftheychosetodoso.Another,potentiallyunavoidable, problemisthatfarmsdonothavetoprovewhattheydidntuse.Recordsmustbe providedtoconfirmpurchasesofseeds,fertilizers,composts,andsoon.Thereisno similarmethodforfarmerstoprovewhattheyhavenotused. Whenasked,Howmuchconfidencedoyouhavethatfoodcertifiedbyyourcertifier meetsorganicstandards?5of6certifiedparticipantsrespondedthattheywere confident.All5oftheseparticipantsreportedthattheywereconfidentbecausethey trusttheirfellowfarmers,notbecausethecertificationsystemisfoolproof.1of6 certifiedparticipantsreportedthathewasnotconfidentatallincertifiedfoods authenticityunlessheknewthefarmerwhogrewit.Thisdatacorrelateswith participantsclaimthatknowingyourfarmerissuperiortorelyingoncertification labels. CertificationCosts Certifiedparticipantsreportedthatcertificationtypicallycostthembetween.2% and5%oftheiryearlysales.Thefederalgovernmentcanrebateaportionof certificationcostsiffarmerschoosetosubmitthenecessarypaperwork.Halfof

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certifiedparticipantsbelievedthatcertificationwasarelativelysmallexpense.The otherhalfofcertifiedparticipantsbelievedthatthiswasarelativelylargeexpense. Relativecertificationcostsincreasedwithsmallnessandcomplexityoffarms.One participantreportedthatthehugevarietyofcropsthathegrowsincreasesthe amountoftimethathiscertifiermustspendinspectinghisrecordsthusincreasing hiscertificationcosts.Thetwoparticipantswiththelowestsalespaidthehighest relativecertificationfees.Farmsspecializingingreenhouseworkpaidalower relativecertificationfeecomparedtofarmswithsimilarsalesspecializinginfood production.Thisislikelytheresultofthesmallacreageofgreenhouseoperationsin comparisontotheirsales.Suchsmallacreagerequireslesstimetoinspect, decreasinghourlyinspectionfees. Anotherexpenseassociatedwithcertificationisthetimespentinteractingwith certifiersandpreparingrecordsthatwouldbeunnecessaryoutsideofthe certificationprocess.Certifiedparticipantsreportedspendinganywherefrom10 hourstoafullweekayearpreparingforannualinspections.Theamountoftime spentoncertificationpreparationseemedtobedependentonthesizeand complexityofthefarm.Allbut1certifiedparticipantclaimedthattheamountof timetheyspentpreparingforcertificationwasexcessive. ComplaintsRegardingCertificationCosts Participantsexpressedconcernastowhattheywereactuallypayingfor.Halfofthe certifiedparticipantsstated,withoutbeingquestionedonthetopic,thatthey believedthatCCOFwasspendingmoneyitreceivedforcertificationtofundservices 25

andactivitiesthatdonotbenefittheirfarms.Participantsspecificallymentioned marketingassistance,guestlecturesatUCSC,andadvocacyasbeingawasteoftheir money.Thethreeofsixparticipantsexpressingtheseconcernsbelievedthatthe pricetheypaidforcertificationwasinflatedduetotheseactivities.Theyalso believedthattheseserviceswerebetterlefttofarmersassociationsindependentof certificationagencies. DropOutsandNewEnrollees Halfofthecertifiedparticipantsstatedthatthebenefitsoforganiccertificationdo notjustifythetimeandcostsassociatedwithit.Theseparticipantscitedreasons suchasanestablishedcustomerbase,alackoforganicasanimportantmarketing termfortheirfarm,disagreementsregardingorganicstandards,certificationcosts, andunwillingness/inabilitytopreparepaperworkasreasonstodropoutoforganic certification. Whileuncertifiedparticipantsunanimouslyagreedthatalackofcertificationdoes notimpacttheirabilitytomarketproducetheyalsounanimouslyagreedthatthey mayneedtopursuecertificationiftheywishtoexpandtheirfarms.Thisisbasedon thenecessityoforganiccertificationtoachievepricepremiumsinthemajorityof wholesalemarkets. PrevalenceofSmallFarms Smallfarmsareadyingbreed,evenintheorganicmarket.ResearchbyGetzetal. (2008)showsthatfarmseligibletoparticipateinthisstudy(having$250,000or

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lessinyearlysales)decreasedfrom25%totalmarketshareto16%totalmarket sharebetween1996and2005.Theportionofsalescomingfromfarmsnoteligible forthisstudyincreasedfrom75%to86%ofmarketshareoverthesametime period(Getzetal.2008).Inadditiontodecreasingmarketsharethepercentageof farmsbelowthe$250,000salesmarkhasdecreasedfrom94%to88%oftotal numberoforganicfarmsinCaliforniaoverthistimeperiod(Getzetal.2008).Its likelythattheportionofcommercialsmallfarmsismuchlowerthanthisbecause thesefiguresincludenoncommercialfarmsclassifiedasfarmsfortaxpurposes.

LiteratureReview&Discussion
SmallFarmsAreMoreSustainable Ifsustainabilityisagoaloforganiccertificationitisimportanttofostera certificationsystemthatbenefitssmallfarms.Smallfarmsholdahigherstandardof sustainabilityandlandstewardshipthantheirlargercounterparts.Researchhas shownthatsmallfarmsharbormorenoncropbiodiversitythanlargefarms(Marini etal.2009).Thisbiodiversityincludesinsects,plants,andvertebrates.Thereason forthisiscurrentlyunclear.Itspossiblethathedgerowsbetweensmallfarmsactas corridorsforvariousspeciestosafelytravelin.Anotherexplanationisthatthe increasedcropdiversityyoufindinapatchworkofsmallfarmsmaysupportmore naturalfloraandfaunathanlargeexpansesofmonoculture.Usingafarmingsystem

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thatprotectsbiodiversityisimportantbecausehabitatlosstofarmingactivitiesisa majorcomponentofglobalbiodiversityloss(Marinietal.2009). Largefarmsarelesscommittedtosustainabilitythansmallfarms.Asarguedby McCannetal.,largefarmsaremoreconcernedaboutshorttermfinancialgain (1997).Themostsustainablepracticesrequirelossesintheshortterm.Fallowing, covercropping,andothermethodsofonsitefertilityproductionrequireportionsof fieldtogounusedthusdecreasingshorttermprofits.Thisisparticularlyrelevant onthecentralcoastbecausetheclimateismildenoughtosupportyearround productionofavarietyofcrops.Astrongconcernforshorttermfinancialgain leaveslittleincentiveformaintainingthelandslongtermabilitytoproducequality food.TheresearchbyMcCannetal.suggeststhatsmallfarmsaremorewillingto riskthelossofimmediateprofitstousepracticesthatpromotethelongterm sustainabilityoftheirfarmstoproduce(1997). Themarketingpracticesofsmallfarmsencouragesustainablepractices.Smallfarms aremuchmorelikelythanlargefarmstodirectmarkettheirproduce.Direct marketinghasbeenshowncorrelatewithincreasesincropandcultivardiversity (Bjorklund2009).CropdiversityhasbeensteadilydecliningsincetheGreen Revolution.Rarecultivarsarelostaswholesalerspushforamorestandardized offering.Promotingcultivardiversityisessentialbecauseitpreservesgenetictraits thatprovidepestanddiseaseresistance.Pestanddiseaseresistanceareparticularly importantinorganicsystemsduetoalackofpotentpesticidesandfungicides. Increasedcropdiversityisimportantbecauseitpromotessustainability.Cropspull

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nutrientsandwaterfromthegroundatdifferentrates.Intercroppingandrotating assurethatthesesoilresourcescanbereplenished(Gliessman2007).Growing monoculturesyearafteryear,typicaloflargefarms,diminishessoilqualityand requiresincreasedofffarminputstomaintainsoilfertility. SocialJustice Recentstudieshavesuggestedthatworkersonorganicfarmsmaynotbebetteroff thantheircounterpartsonconventionalfarms.Despitetheimageofthesmallfamily farmastheprimaryunitoforganicproductionthemajorityoforganicfoodsare producedonlargefarmssellingoveronemilliondollarsoforganicproduceperyear (Getzetal.2008).Thegrowthintheorganicfoodindustryhasbeenlargelyfueled onthesamemigrantworkforcethatfuelsconventionalagriculture(Getzetal. 2008).Whileworkersonorganicfarmsarenotexposedtoharmfulagrochemicals, theyaresubjectedtoincreasedphysicallabor.Suchphysicallaboraccountsfora higherproportiononfarmworkerinjuriesthanchemicalexposure(Getzetal. 2008).Onefactorcontributingtotheincreasedphysicallaborinorganicagriculture isthehandweedingnecessitatedbytheinabilitytouseherbicides.Farmworkers mustmovethroughfieldsinastoopedpositioncullingweedsforextendingperiod oftime,whichcontributestodebilitatingspinalinjuries(Getzetal.2008). PhysicalLabor In2002,CaliforniaSenateBill534wasintroducedtolimittheamountandnatureof stoopedlaborinagriculture.Despitetheadditionofexceptionsfororganic agriculture,theorganicindustrystronglyopposedthebill.Aspeechgiventothe 29

CaliforniaSenatebyarepresentativeofCCOFiscitedasputtingthenailinthecoffin forSB534(Getzetal.2008). Themajorityofsmallfarmswhoparticipatedinthisstudyareextremelydependent onthetypeoflaborthatSB534wasintendedtolimit.Thenecessityofincreased physicallaborisaninescapablerealityoforganicagriculture.Smalldiversefarms mayactuallybemoredependentonthistypeoflaborbecausetheylackthe equipmentandcroppingpatternsthatlargerorganicfarmsrelyonformechanical controlofweeds.However,itshouldbenotedthatsmallorganicfarmslackof mechanicalweedingandherbicideuserequiresthemtohiremoreworkersperacre thanotherfarms.Thepresenceofthesejobsincreasessocialjusticebyassuringthat moneyisdirectedintothehandsofworkersratherthanchemicalandmachinery manufacturers. AccordingtoGuthman,themodernorganicmovementpromotestheimageofsocial justiceonsmallfamilyfarms(Shrecketal2006).Recentresearchintothelabor practicesoforganicfarmsinCaliforniahascalledthisimageintoquestion(Getzet al.2008,Shrecketal2006).ResearchbyShrecketal.(2006)hasshownthatonly 24.5%ofcertifiedfarmersinCaliforniasupporttheincorporationoflaborstandards intoorganiccertificationFarmerscontendthatlaborstandards,includingincreased wages,benefits,etc.forfarmworkers,wouldraiseproductioncostshighenoughto renderorganicagricultureunviable(Shrecketal2006). 30

LaborConditionsonParticipatingFarms ParticipantsinthisstudydidnotfitthemodelpresentedbytheGetzetal.and Shreckatal.studies.Theworkingconditionsinallparticipantfarms,certifiedor uncertified,wasveryhighbyagriculturalindustrystandards.Whilemany participantsstatedthattheydidnotbelievethatlaborstandardsshouldbea componentoforganiccertificationtheyallexpressedaconcernforlaborstandards ontheirownfarm.Oneparticipant,whowasthefarmowner,reportedthatshe makesonly$2anhourbutstrivestopayherworkersafairwage.Despitethis concern,smallfarmsabilitytoprovidesociallyjustconditionsforworkersislargely dependentonthemarket,inwhichtheyareatadisadvantage. ThesefarmswerealsouniqueinthesensethatMexicanmigrantlaborwasnotthe primaryworkforceonmostofthefarms.Whileparticipantswerenotexplicitly questionedonthesourceoftheirlaborIvisited7of11participantfarmsandthe obviousmajorityofworkerswereyoungandwhite.Conversationswithworkers revealedthatmosthadcomefrommiddleclassbackgroundsandmanyhadcollege ortradeschooleducationinsustainableagriculture.Thisseemstoindicatethatthe farmsparticipatinginthisstudyoccupyaseparatenicheandarelargelyoutliersin theCentralCoastregion.Thismayalsoindicateyoungpeoplesgrowingperception ofsmallorganicfarmingasalegitimatecareeroption.Itisunlikelythatlarge organicfarmsandconventionalfarmsintheareaareexperiencingthesame participationratesofthesetypeofworkers.Iftheparticipationofthewhitemiddle

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classinacareercanbeusedasalitmustestforsocialjustness,itisclearthat participantfarmsareholdingthemselvestoahigherstandard. WagesandBenefits ResearchbyGuthmanhasshownthatlargefarmsprovidebetterwagesandbenefits forworkers(2004).ResearchbyShrecketal.hasshownthatfarmswithsales between$150,000and$999,999werenearly50%morelikelytoprovidetheir workerswithmedicalbenefits(Shrecketal.2006).Guthmansresearchhasshown thatlargeorganicfarmswithhighlydiversifiedcropsthatdirectmarketaremost likelytoprovidetheirworkerswithhigherthanaveragewagesandbenefits. Itislikelythatthebetterworkingconditionsprovidedbylargefarmsareadirect resultoftheirlargeness.ThefarmsidentifiedbyGuthmanasprovidingthebest workingconditionstakeadvantageofpricepremiumsassociatedwithorganic certificationanddirectmarketinginadditiontoeconomiesofscale.Asaresult, thesefarmsareachievinghigherreturnsperacrethansmallfarms,thusallowing themtoprovidetheirworkerswithbetterconditions.Itisimportanttopointout thatthefarmsidentifiedbyGuthmanareinnowayrepresentativeoflargeorganic farmsinCalifornia.AsConstanceetal.haspointedoutinotherarticles, conventionalization,asopposedtodiversityanddirectmarketing,characterizes mostlargeorganicfarms(2008).Thesefarmsarenotnoticeablydifferentthan conventionalfarmsotherthantheirlackofchemicalusage.

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TheImpactofConventionalizationonWages Conventionalizationoforganicagriculturereferstothegrowingsimilaritybetween largeorganicfarmsandlargeconventionalfarms(Constanceetal.2008). Conventionalizationincludestheuseofmonocultures,inputsubstitution, mechanization,andincreasesinfarmsize.Thepracticesassociatedwith conventionalizationandincreasesinfarmsizemayservetounderminethe sustainabilitycomponentoforganicagriculture(Guthman2004). Conventionalizationallowslargefarmstoproducefoodinamorefinancially efficient,althoughlessenvironmentallyefficient,manner.Theabilityoflarge conventionalizedfarmstoproduceandsellfoodforlessmayunderminetheability ofsmallerideologicallycommittedfarmstousemoresustainablepractices.Small sustainablefarms,beinglesseconomicallyefficient,areforcedtocompetewiththe pricesoflessenvironmentallyefficientlargefarms. Thelargestfarmsmaylimittheabilityofsmallfarmstoprovidebetterwagesand benefitsfortheirworkers.80%ofparticipantsreportedthattheyareincompetition withlargeorganicfarms.Themostcommontypeofcompetitioncitedby participantswastheabilityoflargefarmstosetlowerprices.Smallfarmsmust matchthesepricestobecompetitiveatmarket.Thelowpricesthatsmallfarms mustacceptleaveslimitedmoneytopassontoworkers.Inthissense,thenegative impactsonworkingconditionsandwagesacrossallsmallfarmscreatedbylarge farmsthroughpricesettingmayoutweighthebenefitsreceivedbylargefarms

33

workers.Ifsmallfarmswerecapableofreceivingthesamereturnsperacrethat largefarmstheymaybeabletoprovidethesamewagesandbenefitsaslargefarms. SmallFarmsAttempttoIncreaseSocialJustice Despitetheirinabilitytoprovideworkerswithincreasedwagesandbenefits,small farmscreateimprovedworkingconditionsthroughothermeasures.Thediversityof cropsassociatedwithsmalldirectmarketingfarmsinthisstudycreatesaless tediousworkday.Thereareavarietyoftasksthatmustbecompleteddaily,thus preventingworkersfromsufferingtheconsequencesofrepetitivetaskssuchas thosedescribedwithhandweeding.Mostofthefarmsinthestudyproducedcrops yearround.Thiseliminatestheseasonalitytypicallyassociatedwithfarmlabor. Twofarmsinthestudy,oneagreenhousebasedoperationandonearowcrop basedfarm,oftenrotatedsomeoftheirworkersbasedontheseasonalneedoftheir differentfarmingpractices.Thesetwofarmsareknownfortheirhigherthan averagewagesandworkingconditions.Effortssuchastheseallowworkerstoearn ayearroundlivingwage,somethingthatmaynotbethecaseonlargerfarms specializinginoneortwocrops. MeasuringSocialJustice ThisstudyimpliesthatthemethodfordeterminingsocialjustnessusedbyGetzet al.,Shrecketal.,andGuthmanmaybetoosimpleandtoobroadtodescribecertain farmingcommunities.Wages,benefits,workingconditions,andlengthof employmentcannotbeconsideredseparatelybecausetheyallcombinetocreatea pictureofsocialjustness.Themeasureofwagesandbenefitsusedbythesestudies 34

alsofailstoaddresstheoverallconcentrationofwealth.Severalsmallfarmsina marketdistributesalesacrossseveralsmallfarmhouseholds.Onelargefarmmay taketheplaceofseveralsmallfarms,thusconcentratingtheincomeintothehands ofthatsinglefarmhousehold.Itshouldalsobenotedthatlargefarmsarelesslikely tobeassociatedwithahouseholdthusleadingtoconcentrationsofwealthin farmingcorporations. WhoBenefitsFromOrganicCertification? OrganicCertifiers Organiccertifiersareanobviousbeneficiaryoforganiccertification.Priortothe implementationoftheUSDAprogramitwasnotmandatoryforfarmstoparticipate inthirdpartycertification.AftertheimplementationoftheUSDAorganicprogram thenecessityofthirdpartycertifierswascementedinlaw.Severalparticipants questionedhowimpartialthirdpartycertifierscanbeconsideringthattheymakea livingbygrantingcertification,notdenyingit.AsGuthmanpointsout,certifiershave shownunwillingnesstooffendmembergrowersbyadoptingstandardsperceived tobeagainsttheirinterest(1998).Itsimportanttoconsiderwhichgrowersare mostvaluabletocertifiers.Certifierstypicallychargeafeebasedonthesalesofa farminadditiontoanhourlyinspectionrate.Thismeansthatlargefarmsaremore valuablecustomersthansmallfarms.Sinceallorganiccertifiersmustcertifytothe sameNOPstandardstheonlysourceofcompetitionamongstcertifiersmaybe convenienceandprice(Guthman1998).OnceparticipantreportedthataCCOF representativetoldhimthatCCOFwasmostinterestedinrecruitingthelargest 35

farms.Ideologicallycommittedproducersandconsumersshouldbeverywaryofa certificationsysteminwhichaprimarysourceofcompetitionismakingitaseasyas possibleforthelargestandleastideologicallycommittedfarmstobecomecertified. Landowners Landownersarealessobviousbeneficiaryoforganiccertification.Agriculturalland pricesaretypicallypricedinrelationtothevalueofthecropthatthelandissuitable forfarming(Guthman2004).Forafarmtobecertifiedorganicthelandthatituses musthavebeenfreefromnonorganicmaterialsfortheprevious3years.Onceland hasgonethroughthistransitionperioditbecomesmorevaluablebecauseorganic farmsachievemorereturnperacrethanconventionalfarms.Throughthis phenomenon,landownersarecapableofcapturingpricepremiumsassociatedwith certifiedorganicfoodsthroughlittletonoeffortoftheirown.Guthmanreferstothis situationasmonopolyrent(2004).Oneparticipantfarmhadrecentlyacquired severalacresoflandthathadbeenpreviouslyusedforconventionalfarming.This participantstatedthatbeginningorganiccertificationonthislandwouldbefruitless becausetheywouldbeforcedtouseatransitionalorganiclabelforthefirst3 years.Farmstypicallyoperateatalossduringthistransitionperiodbecausethey experiencedecreasedyieldsrelatedtoorganicmanagementwithoutreceivingand organicpricepremium(Guthman2004)Thistransitionalorganiclabelwouldbe lessdesirablethananorganiclabeltherefore,thewholesalepricetheycouldreceive forfoodsproducedonthislandwouldbediminished.Duetothislowerprice,the rentthatthelandownercanchargethefarmerbeforemakingthelandunprofitable

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forthefarmerwaslowerthanthatofcertifiableland.Thisdataillustratesthat Guthmansideaofmonopolyrentdoesholdtrueinthisregion. Retailers Organicfoodretailersbenefitfromorganiccertificationaswell.Asthedistance betweenfarmersandconsumersgrowsthetrustthatconsumershaveforthe integrityofaproducersorganicintegritydecreases.Inthesesituationsorganic certificationservestoquelltheconsumersmistrust(Kuepper2002).Thisallows grocerystorestoreceiveapricepremiumfortheirorganicproducewithouthaving torelyontrustthewaythatuncertifiedorganicfarmersmust.Somegrocerystores, suchasWholeFoodsandNewLeaf,havebuiltentirebusinessmodelsuponthe publicswillingnesstotrustorganiclabeling.Farmersmarketshavealso appropriatedaportionofpricepremiumsassociatedwithorganicagriculture. Peopleshopatfarmersmarketsbecausetheybelievethatthisvenueprovidesthem withaccesstofoodsthataresubstantiallydifferentthanthoseavailableingrocery stores.Organicfoodsfromlocalproducersareclearlyacomponentofthis substantialdifference.Farmersmarketscapturepricepremiumspaidfororganic producebychargingfarmersafeeorpercentageofsalesfortherighttosellatthe market. Wholesaling CertifiedorganicfarmswhowholesalebenefitfromtheNOPbecauseitfacilitates thelengtheningofsupplychainsbyhelpingconsumersplacefaithinalabelrather thanfarmerconsumerinteraction(Kuepper2002).Certifiedorganicfarmsthat 37

dependonwholesalemarketstendtobelargefarms.Inthissense,organic certificationbenefitslargeorganicfarmsmoresothansmallorganicfarms.Organic certificationalsolendslegitimacytotheselargeconventionalizedorganicfarms.The publicsconceptionoforganicfarmingdoesnotconsistofgiantmonocropsrelying onmigrantlaborandinputsubstitution.Ifitwerenotfororganiccertificationthe publicmayrejectthesefarmsclaimsoforganicproduction.Allowingsuchpractices mayultimatelyunderminethelegitimacyoftheorganiclabel(Lohr1998). Constanceclaimsthatorganiccertificationallowsthesefarmstoachievetheprice premiumsthepubliciswillingtopayfororganicproducewithoutpayingthehigh costsassociatedwithsustainability(2008).Furtheringthispoint,largefarmscheap productionoflesssustainablefoodmaymakeitharderforsmallfarmstousemore expensivesustainablepractices(Guthman2004).Theselargefarmsalsobenefit throughadecreaseinproductrecallsandproductcomplaintsbyusingorganic certificationasaqualityassuranceprogram(Albersmeier2009).Thisallowslarge farmstoshifttheresponsibilityforcontaminatedfoodfromthemselvestotheNOP becausetheyaresubstitutingtheirownknowledgefortheNOPrecipe. Customers Itisunclearwhetherornotorganiccertificationbenefitscustomers.Organic certificationsetsastandardfororganicfoodsthatguaranteesthatconsumersare gettingaproductthatissignificantlydifferentthanconventionallyproducedfood. Withoutorganiccertification,consumerswhopurchaseorganicfoodsthatarenot directlymarketedwouldbeforcedtodosoonblindfaith.Ontheotherhand,

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organiccertificationlendslegitimacytofarmsthatdonotfittheaverageconsumers perceptionofwhatanorganicfarmis.Severalparticipantsmadetheclaimthat organiccertificationdumbsdownfoodchoicesforconsumers.Consumerssee organiclabelsandtheimmediatelyassumethatthisproductisproducedinaway thatisharmoniouswiththeenvironment.Ifconsumerschosetointeractwith farmersratherthanplacecompletefaithinorganiclabelstheymaygetaproduct thatmorecloselyconformstotheirpriorities. Environment Anationalorganicstandardhasmixedimplicationsfortheenvironment.TheNOP standardspreventaracetothebottomapproachforunscrupulousthirdparty certifierstryingtogainthebusinessofthelargestandleastideologicallydedicated farms.Thisassuresthatfarmerswhowishtogainorganicpricepremiumsmust meetastandardthatishigherthanthatinconventionalfarming.Nationalorganic standardfacilitateinterstatecommerce,thusencouraginglargefarmstoconvertto organicpracticestocapturepricepremiumsatthewholesalelevel(Guthman2004). Theconversionoftheselargefarmstoorganicpracticesdoeshavetangible environmentalbenefitseveniftheselargefarmsdonotusethemostsustainable organicpractices.Despitethis,thereisseriousquestionastowhetherornotthe NOPstandardsareashighasthepreNOPregionalstandards.Fetterclaimsthat NOPstandardsarelessstringentinitsgoalsofsustainabilitythanthestandardsset bypreNOPcertifierssuchasCCOF(2002).Theverynatureofthecertification processcausesfarmerstopayincreasedcertificationfeesforincreasingcrop

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diversity.Nationalstandardsservetolimittheadaptabilitytocertainregionsand situations(Vogletal.2005).Thenecessityforcomposttobecertifiedillustratedthis pointformanyparticipantsinthisstudy.Theclosestsourceofcertifiedcompostto manyparticipantswas50milesfurtherawaythantheclosestsourceofuncertified compost.PriortotheNOPscompoststandards,certifierswouldbeabletousetheir discretiontoallowtheusenoncertifiedcomposttolimitfossilfueluseincompost transportation.Theincreasedlandrentsassociatedwiththecertifiabilityoftheland alsoservetodecreasesustainability.Sincelandcostsmorefarmersmustproduce moretooffsetthiscost.Inresponse,farmersmustlimittheiruseoffallowandcover cropcyclesbecausetheyneedasmuchlandtobeinproductionaspossible.The decreaseintheuseoffallowandcovercropcyclesleadsisanexampleofpoorsoil stewardship. SmallFarmsandCertification DirectMarketing Theresultsofthisstudyindicatethatsmallfarmsthatdirectmarkettheirproduce benefitverylittlefromorganiccertification.Theprimarydrawbacktoalackof organiccertificationforthesefarmsistheinitialeffortrequiredtodevelopa trustingrelationshipwiththeircustomers.Onceafarmhasestablisheditselfas reputablealackofcertificationmaybeanonissue.Thisisparticularlyrelevantin CSAandfarmstandmarketing.AllparticipantswithCSAsbutonestatedthat organiccertificationhadnoeffect,positiveornegative,ontheirabilitytomarket producethroughaCSA.Theoneparticipantthatbelievedthatorganiccertification 40

wasimportantforaCSAstatedthatitwasonlyimportantforstartupandthatonce acustomerbasehadbeenestablisheditwasnolongernecessary.Theusageofa completelydirectmarketingbasedsalesapproachmaybeaviableoptionfor certifiedparticipantswhoreportedthatthecostsoforganiccertificationaregreater thanthebenefits.ResearchbyConstanceetal.(2008)hasshownthatthistrust basedapproachhasworkedforfarmersinruralTexaswhodroppedoutof certificationinresponsetobeingdisillusionedbytheNOP. HardshipsCreatedbyCertification Certifiedorganicsmallfarmsfaceavarietyofhardshipsasadirectresultofthe certificationprocess.Thecostoforganiccertificationisthemostobviousofthese hardships.Organiccertifierstypicallychargeanapplicationfeepriortothefirst yearofcertification,anhourlyfeeforfarmandrecordinspections,andafeebased onapercentageofthefarmstotalsales.Californiasorganicfarmersarealso chargedafeetoenrollinthemandatorystateorganicprogram.Basedon participantsclaimsitappearsthatthesmallestfarmsintheCentralCoastregionpay thehighestrelativecertificationfees.Certificationcostsareadisproportionately largepenaltyforsmallfarms. Therecordkeepingprocesscanbeverytimeconsuming.Thelevelofrecordkeeping requiredfororganiccertificationisnotcommonpracticeinnonorganicfarming. Farmersatsmallfarmsoftenfinditdifficulttojuggletotheirtraditionaldutieswith theseextensiverecordkeepingpractices.Largefarmsareoftenabletohirefulltime

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employeesthatactasliaisonsbetweenthefarmandthecertifierthusavoiding paperworkfortheirfarmers. Smallfarms,aswithmanysmallbusinesses,thriveontheirabilitytobequickerand moreadaptablethantheirlargercompetitors.Therequiredfarmplanmayserveto decreasethisadvantage.Thefarmplanmandatesthatfarmersdeclarewhatthey willgrowandhowtheywillgrowitinadvanceoftheupcominggrowingseason. Farmsmustreceiveapprovalfromtheircertifierbeforedeviatingfromthefarm plan.Thiseliminatesfarmersabilitytotakeimmediatemeasuresinresponseto marketdemand,pests,andenvironmentalconditions. WhyDoFarmsMaintainCertification? Aninterestingpointtonoteisthatnoparticipantfarmtheacquiredcertificationhad everwillinglydroppedoutofcertification.Onparticipanthadlosscertificationdue toaninabilitytocompletepaperworkintimeduetofamilyemergencybutplanned toregaincertificationassoonaspossible.Thethreecertifiedparticipantsthatfelt thatorganiccertificationdidnotyieldthemanetbenefithadnoforeseeableplansto dropout. Ideology Itisunclearwhyfarmerswouldmaintaintheircertificationiftheybelievethatit doesnothelpthem.Itispossiblethatwhilehavingcertificationmaynothelpthem, nothavingcertificationmayhurtthem.Itmayberelatedtotheirideological dedicationtoorganicfarming.Somefarmerswhoreportednotbenefittingfrom

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organiccertificationhadbeencertifiedbeforetheNOP.Thesefarmersmaynotbe willingtogiveuporganiccertificationbecausetheyfeelthattheyaremembersof theoldguardoforganiccertification.Iftheyweretodropoutoforganic certification,leavingitonlytolessideologicallycommittedproducers,the legitimacyoforganiccertificationandorganicagricultureasawholemaycomeinto question.Inthissense,thesefarmersmaybemaintainingcertificationinattemptto promotetheidealsthatorganiccertificationwasfoundedon. RuleChanges Farmersmaintainingorganiccertificationmaydosowiththehopesthatorganic standardswillbechangedinawaythatbenefitssmallfarms.Whilemost participantsreportedthattheyexpectorganicstandardstobeweakened,many expressedthattheywerenotreadytosurrenderorganiccertificationtoless ideologicallycommittedfarms.Thissentimentharkensbacktotheformationofthe federalorganicstandardsinwhichideologicallycommittedfarmerswereableto overturntheBig34. Reputation

Participantsmaymaintaincertificationbecausetheyfeelthatdroppingoutmay implytocustomersandotherfarmersthattheynowholdthemselvestoalower standard.Thegeneralpublicdoesnotrecognizethecostandinconvenienceof certificationtobeamajorissuesotheymaynotunderstandthereasonsbehinda

TheBig3referstotheUSDAsproposedrulethatallowedirradiation,GMOcropvarieties,andsewagesludgetobeusedin organicagriculture.
4

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farmdroppingcertification.Oncecertified,farmsmaybelockedintorenewing certificationtomaintaintheirreputationintheorganicfoodcommunity. MarketAccess Maintainingcertificationallowsfarmstoexploitcertainmarketsthattheywould notbeabletowithoutcertification.Whileparticipantsthatfeelthatcertification doesnotbenefitthemrelyverylittleonthesemarkets,certificationdoesmaintain themasanoption.Smallfarmsoperatesonearthebreakingpointthattheyoften cantaffordtoshutthemselvesoutofcertificationrequiringmarkets. Conclusion Thisconclusionisindisagreementwithmanypeoplesperceptionoforganic certification.Manypointtothefactthatorganiccertificationactsasanichemarket thatsmallfarmerscanexploittoavoidcompetitionwithindustrialsizedfarms.In reality,mostorganicproductionisintheselargefarmsandsmallfarmsalmost unanimouslyreportedthattheyfeeltheeffectsofthiscompetition.Theprice premiumsachievedthroughorganicfarmingarebelievedtomakesmallfarmsmore viablebyincreasingreturnperacre.Atonepointthismayhavebeentrue,but organicpricepremiumsareincreasinglybeingappropriatedbylargefarms, landowners,andretailers(Guthman2004).Inadditiontocapturingasmallershare ofthepricepremium,smallerfarmssuffertheconsequencesofashrinkingoverall pricepremium.Thedecreasingpricepremiumisaresultlargefarmsadvantagein economiesofscalesinadditiontotheiroftenlesscostlyandlesssustainable

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practices.Theresultofthesefactorsisadecreaseinmarketshareandprofitfor smallfarms. 45

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