[Federal Register: April 27, 2006 (Volume 71, Number 81)]
[Proposed Rules]
[Page 24820-24824]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27ap06-11]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 24820]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 205
[Docket Number TM-06-06-PR]
RIN 0581-AC60
National Organic Program--Revisions to Livestock Standards Based
on Court Order (Harvey v. Johanns) and 2005 Amendment to the Organic
Foods Production Act of 1990 (OFPA)
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule amends the National Organic Program (NOP)
regulations to comply with the final judgment in the case of Harvey v.
Johanns (Harvey) issued on June 9, 2005, by the U.S. District Court,
District of Maine, and to address the November 10, 2005, amendment made
to the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq., the
OFPA), concerning the transition of dairy livestock into organic
production.
Further, this proposed rule amends the NOP regulations to clarify
that only nonorganically produced agricultural products listed in the
NOP regulations may be used as ingredients in or on processed products
labeled as ``organic'' or ``made with organic (specified ingredients or
food group(s)).'' In accordance with the final judgment in Harvey, the
revision emphasizes that only the nonorganically produced agricultural
ingredients listed in the NOP regulations can be used in accordance
with any specified restrictions and when the product is not
commercially available in organic form.
To comply with the court order in Harvey, USDA is required to
publish final revisions to the NOP regulations within 360 days of the
court order, or by June 4, 2006.
Accordingly, this proposed rule amends the NOP regulations to
eliminate the use of up to 20 percent nonorganically produced feed
during the first 9 months of the conversion of a whole dairy herd from
conventional to organic production. This proposed rule also addresses
the amendment made to the OFPA concerning the transition of dairy
livestock into organic production by allowing crops and forage from
land included in the organic system plan of a dairy farm that is in the
third year of organic management to be consumed by the dairy animals of
the farm during the 12-month period immediately prior to the sale of
organic milk and milk products.
DATES: Comments on this proposed rule must be submitted on or before
May 12, 2006.
FOR FURTHER INFORMATION CONTACT: Mark Bradley, Associate Deputy
Administrator, Transportation & Marketing Programs, National Organic
Program, 1400 Independence Ave., SW., Room 4008--So., Ag Stop 0268,
Washington, DC 20250. Telephone: (202) 720-3252; Fax: (202) 205-7808.
SUPPLEMENTARY INFORMATION:
I. Background
In 1990, Congress passed the OFPA, which required the U.S.
Department of Agriculture (USDA) to develop national standards for
organically produced agricultural products to assure consumers that
agricultural products marketed as organic meet consistent, uniform
standards. Based on the requirements of the OFPA, USDA established the
National Organic Program (NOP) to develop national organic standards,
including a National List of substances approved for and prohibited
from use in organic production and handling, that would require
agricultural products labeled as organic to originate from farms or
handling operations certified by a State or private entity that has
been accredited by USDA. On December 21, 2000 USDA published the final
rule for the NOP in the Federal Register (7 CFR part 205). On October
21, 2002, the NOP regulations became fully implemented by USDA as the
uniform standard of production and handling for organic agricultural
products in the United States.
In October 2003, Arthur Harvey filed a complaint under the
Administrative Procedure Act in the U.S. District Court, District of
Maine. Mr. Harvey alleged that several subsections of the NOP
regulations violated OFPA, were arbitrary, and not in accordance with
law.
On January 26, 2005, the U.S. Court of Appeals for the First
Circuit issued a decision in the case. The court upheld the NOP
regulations in general, but remanded the case to the U.S. District
Court, District of Maine, for, among other things, the entry of a
declaratory judgment that stated 7 CFR 205.606 does not establish a
blanket exemption to the National List requirements specified in 7
U.S.C. 6517, permitting the use of nonorganic agricultural products in
or on processed organic products when their organic form is not
commercially available. The district court ordered the Secretary to
make publicly known within 30 days--through notice in the Federal
Register to all certifying agents and interested parties--that 7 CFR
205.606 shall be interpreted to permit only the use of a nonorganically
produced agricultural product that has been listed in 7 CFR 205.606
pursuant to National List procedures, and when a certifying agent has
determined that the organic form of the agricultural product is not
commercially available. USDA complied with this order on July 1, 2005
(70 FR 38090).
The court also ruled in favor of Mr. Harvey with respect to 7 CFR
205.605(b) of the NOP regulations, concerning the use of synthetic
substances in or on processed products which contain a minimum of 95
percent organic content and are eligible to bear the USDA seal (7 CFR
205.605(b)). The court found Sec. 205.605(b) contrary to the OFPA and
in excess of the Secretary's rulemaking authority.
In addition, the court found in favor of Mr. Harvey with respect to
7 CFR 205.236(a)(2)(i) of the NOP regulations. This section creates an
exception to the general requirements for the conversion of whole dairy
herds to organic production. The court found the provisions at 7 CFR
205.236(a)(2)(i) contrary to the OFPA and in excess of the Secretary's
rulemaking authority.
On June 9, 2005, the district court issued its final judgment and
order in the case. A copy of the final judgment and order may be found
at https://www.ams.usda.gov/nop.
Congressional Amendment to the OFPA
After the court issued its final judgment and order, Congress
amended
[[Page 24821]]
the OFPA. On November 10, 2005, Congress amended the OFPA by permitting
the addition of synthetic substances appearing on the National List for
use in products labeled ``organic.'' The amendment restores the NOP
regulation for organic processed products containing at least 95
percent organic ingredients on the National List and their ability to
carry the USDA seal. Therefore, USDA will not have to revise the NOP
regulations to prohibit the use of synthetic ingredients in processed
products labeled as organic nor restrict these products' eligibility to
carry the USDA seal.
Congress also amended the OFPA to allow a special provision for
transitioning dairy livestock to organic production. The NOP
regulations currently provide that when an entire, distinct herd is
converted to organic production, the producer may, for the first 9
months of the year, provide a minimum of 80-percent feed that is either
organic or raised from land included in the organic system plan and
managed in compliance with organic crop requirements. The circuit court
found these provisions to be contrary to the OFPA and in excess of the
Secretary's rulemaking authority.
In the amendments to OFPA, Congress provided a new provision to
allow crops and forage from land included in the organic system plan of
a farm that is in the third year of organic management to be consumed
by the dairy animals of the farm during the 12-month period immediately
prior to the sale of organic milk and milk products. USDA is proposing
to revise Sec. 205.236(a)(2) to reflect this amendment to the OFPA in
this rulemaking.
II. Overview of Amendments
The following provides an overview of the amendments to designated
sections of the NOP regulations, based on the order of the U.S.
District Court, District of Maine and a Congressional amendment to the
OFPA: Origin of Livestock (section 205.236).
The circuit court declared that 7 CFR 205.236(a)(2)(i) is contrary
to the OFPA and in excess of the Secretary's rulemaking authority. 7
CFR 205.236(a)(2)(i) and (ii) provide that ``When an entire, distinct
herd is converted to organic production, the producer may: (i) For the
first 9 months of the year, provide a minimum of 80-percent feed that
is either organic or raised from land included in the organic system
plan and managed in compliance with organic crop requirements; and (ii)
Provide feed in compliance with Sec. 205.237 for the final 3 months.''
The circuit court pointed to the OFPA requirement that dairy
animals be fed 100 percent organic feed for twelve full months prior to
the sale of their products as organic and stated that the OFPA does not
authorize the Secretary to create an exception permitting a more
lenient phased conversion process for dairy animals. On remand, the
district court ordered the Secretary to revise the NOP regulations
accordingly.
On November 10, 2005, Congress amended the dairy livestock
provisions in the OFPA to provide a more lenient conversion process for
dairy animals. Specifically, the amended OFPA language regarding dairy
livestock transition reads that ``Crops and forage from land included
in the organic system plan of a dairy farm that is in the third year of
organic management to be consumed by the dairy animals of the farm
during the 12-month period immediately prior to the sale of organic
milk and milk products'' (7 U.S.C. 6509(e)(2)(B)).
Therefore, taking the court judgment and order in consideration
with the OFPA amendment for dairy livestock transition, this proposed
rule revises 7 CFR 205.236(a)(2) to read: ``Milk or milk products must
be from animals that have been under continuous organic management
beginning no later than 1 year prior to the production of the milk or
milk products that are to be sold, labeled, or represented as organic,
Except, That, crops and forage from land included in the organic system
plan of a dairy farm that is in the third year of organic management
may be consumed by the dairy animals of the farm during the 12-month
period immediately prior to the sale of organic milk and milk
products.'' Subparagraph Sec. 205.236(a)(2)(iii) is renumbered
(a)(2)(i). This paragraph was not addressed by the Harvey final
judgment and order or by the subsequent statutory amendments, and thus
the application of this subparagraph to dairy herd conversion remains
unchanged.
Nonorganically produced agricultural products allowed as
ingredients in or on processed products labeled as organic or made with
organic ingredients (section 205.606).
In the final judgment, the district court ordered the Secretary to
declare that 7 CFR 205.606 shall not be interpreted to create a blanket
exemption to the National List requirements specified in 7 U.S.C. 6517,
permitting the use of nonorganic agricultural products in or on
processed organic products when their organic form is not commercially
available. The court further ordered the Secretary to declare that 7
CFR 205.606 shall be interpreted to permit only the use of a
nonorganically produced agricultural product that has been listed in
Sec. 205.606 pursuant to National List procedures, and when a
certifying agent has determined that the organic form of the
agricultural product is not commercially available.
Consistent with the court's final judgment, this proposed rule
revises 7 CFR 205.606 to clarify that the section shall be interpreted
to permit the use of a nonorganically produced agricultural product
only when the product has been listed in Sec. 205.606 pursuant to
National List procedures, and when an accredited certifying agent has
determined that the organic form of the agricultural product is not
commercially available. The revised section now reads: ``Only the
following nonorganically produced agricultural products may be used as
ingredients in or on processed products labeled as `organic' or `made
with organic (specified ingredients or food group(s)),' only in
accordance with any restrictions specified in this section, and only
when the product is not commercially available in organic form:
cornstarch (native); gums--water extracted only (arabic, guar, locust
bean, carob bean); kelp--for use only as a thickener and dietary
supplement; lecithin--unbleached; pectin (high-methoxy).''
III. Related Documents
Documents related to this proposed rule include the OFPA, as
amended, (7 U.S.C. 6501 et seq.), its implementing regulations (7 CFR
part 205), and a Federal Register notice publishing the final judgment
and order in the case of Harvey v. Johanns (70 FR 38090).
A. Executive Order 12866
This action has been determined non significant for purposes of
Executive Order 12866, and therefore, does not have to be reviewed by
the Office of Management and Budget.
B. Executive Order 12988
Executive Order 12988 instructs each executive agency to adhere to
certain requirements in the development of new and revised regulations
in order to avoid unduly burdening the court system. This proposed rule
is not intended to have a retroactive effect.
States and local jurisdictions are preempted under section 2115 of
the OFPA (7 U.S.C. 6514) from creating programs of accreditation for
private persons or State officials who want to become certifying agents
of organic farms or handling operations. A
[[Page 24822]]
governing State official would have to apply to USDA to be accredited
as a certifying agent, as described in section 2115(b) of the OFPA (7
U.S.C. 6514(b)). States are also preempted under section 2104 through
2108 of the OFPA (7 U.S.C. 6503 through 6507) from creating
certification programs to certify organic farms or handling operations
unless the State programs have been submitted to, and approved by, the
Secretary as meeting the requirements of the OFPA.
Pursuant to section 2108(b)(2) of the OFPA (7 U.S.C. 6507(b)(2)), a
State organic certification program may contain additional requirements
for the production and handling of organically produced agricultural
products that are produced in the State and for the certification of
organic farm and handling operations located within the State under
certain circumstances. Such additional requirements must: (a) Further
the purposes of the OFPA, (b) not be inconsistent with the OFPA, (c)
not be discriminatory toward agricultural commodities organically
produced in other States, and (d) not be effective until approved by
the Secretary.
Pursuant to section 2120(f) of the OFPA (7 U.S.C. 6519(f)), this
proposed rule would not alter the authority of the Secretary under the
Federal Meat Inspection Act (21 U.S.C. 601 et seq.), the Poultry
Products Inspections Act (21 U.S.C. 451 et seq.), or the Egg Products
Inspection Act (21 U.S.C. 1031 et seq.), concerning meat, poultry, and
egg products, nor any of the authorities of the Secretary of Health and
Human Services under the Federal Food, Drug and Cosmetic Act (21 U.S.C.
301 et seq.), nor the authority of the Administrator of the
Environmental Protection Agency (EPA) under the Federal Insecticide,
Fungicide and Rodenticide Act (7 U.S.C. 136 et seq.).
Section 2121 of the OFPA (7 U.S.C. 6520) provides for the Secretary
to establish an expedited administrative appeals procedure under which
persons may appeal an action of the Secretary, the applicable governing
State official, or a certifying agent under this title that adversely
affects such person or is inconsistent with the organic certification
program established under this title. The OFPA also provides that the
U.S. District Court for the district in which a person is located has
jurisdiction to review the Secretary's decision.
C. Regulatory Flexibility Act and Paperwork Reduction Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
requires agencies to consider the economic impact of each rule on small
entities and evaluate alternatives that would accomplish the objectives
of the rule without unduly burdening small entities or erecting
barriers that would restrict their ability to compete in the market.
The purpose is to fit regulatory actions to the scale of businesses
subject to the action. Section 605 of the RFA allows an agency to
certify a rule, in lieu of preparing an analysis, if the rulemaking is
not expected to have a significant economic impact on a substantial
number of small entities.
Pursuant to the requirements set forth in the RFA, the Agricultural
Marketing Service (AMS) performed an economic impact analysis on small
entities in the final rule published in the Federal Register on
December 21, 2000 (65 FR 80548). AMS has also considered the economic
impact of this action on small entities and has determined that this
proposed rule would have an impact on a substantial number of small
entities.
Small agricultural service firms, which include producers,
handlers, and accredited certifying agents, have been defined by the
Small Business Administration (SBA) (13 CFR 121.201) as those having
annual receipts of less than $6,500,000 and small agricultural
producers are defined as those having annual receipts of less than
$750,000. This proposed rule would have an impact on a substantial
number of small entities.
The U.S. organic industry at the end of 2001 included nearly 6,949
certified organic crop and livestock operations. These operations
reported certified acreage totaling just over 2 million acres of
organic farm production. Data on the numbers of certified organic
handling operations (any operation that transforms raw product into
processed products using organic ingredients) were not available at the
time of survey in 2001; but they were estimated to be in the thousands.
Based on 2003 data, certified organic acreage had increased to 2.2
million acres. By the end of 2004, the number of certified organic
crop, livestock, and handling operations totaled nearly 11,400
operations, based on reports by certifying agents to NOP as part of
their annual reporting requirements. AMS believes that most of these
entities would be considered small entities under the criteria
established by the SBA.
U.S. sales of organic food and beverages have grown from $1 billion
in 1990 to an estimated $12.2 billion in 2004. Organic food sales are
projected to reach nearly $15 billion for 2005. The organic industry is
viewed as the fastest growing sector of agriculture, representing 2
percent of overall food and beverage sales. Since 1990, organic retail
sales have historically demonstrated a growth rate between 20 to 24
percent each year. This growth rate is projected to decline and fall to
a rate of 5 to 10 percent in the future.
In addition, USDA has accredited 96 certifying agents who have
applied to USDA to be accredited in order to provide certification
services to producers and handlers. A complete list of names and
addresses of accredited certifying agents may be found on the AMS NOP
Web site, at http://www.ams.usda.gov/nop. AMS believes that most of
these entities would be considered small entities under the criteria
established by the SBA.
Impact of Lawsuit and Congressional Amendment on Dairy
The loss of the 80-20 feed exception can be measured depending on
various feed costs, for average farm sizes, and for the sector as a
whole using 2003 estimates of the number of certified dairy livestock
in the United States--the latest year for which numbers are
available.\1\ Generally, for organic dairy operations, feed and labor
are the most significant cost components, comprising upwards of 50
percent of the total variable costs of the operation.\2\ Organic feed
is significantly more expensive than conventional feed, and various
quotes for organic feed run as high as double the cost of conventional
or nonorganic feed rations. According to one study, higher feed cost
was the largest and most important difference between organic and
nonorganic dairy production, with the additional expense of feeding
organic dairy costs being 54 percent of the price differential received
for organic milk.\3\ In this study, for a 48-cow organic herd,
purchased feed cost $1,003 per cow, or $298 per cow more than for a
conventional dairy operation. For the entire year, the average farm
spent approximately $49,000 for purchased organic feed for the 48-cow
herd in this study.
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\1\ Greene, Catherine. Certified organic livestock, 2003,
numbers were obtained from the author on permission; forthcoming
from the Economic Research Service (ERS), U.S. Department of
Agriculture.
\2\ Dalton, Timothy J., Lisa A. Bragg, Rick Kersbergen, Robert
Parson, Glenn Rogers, Dennis Kauppila, Qingbin Wang. ``Cost and
Returns to Organic Dairy Farming in Maine and Vermont for 2004,''
University of Maine Department of Resource Economics and Policy
Staff Paper 555, November 23, 2005.
\3\ Ibid.
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A rough estimate of the loss of the 80-20 feed exception can be
determined using this study's farm cost numbers. Using the estimated
per-cow feed numbers, if a dairy farmer had to switch
[[Page 24823]]
from using 80 percent organic feed to 100 percent organic feed, and
purchased all of the organic feed, the additional cost to the dairy
farmer is $27 per month, or about 2.7 percent higher than using the 80-
20 feed exception.
For the sector, based on Economic Research Service's (ERS) latest
estimate of approximately 74,435 certified dairy cows in 2003, the loss
of the 80-20 feed provision using the above cost estimates would amount
to around $2 million. But this assumes that: (1) All of the dairy cows
in the sector are converted to organic in the same year; (2) all farm
operators use the 80-20 feed provision in that same year; and (3) all
organic feed was purchased. Because it is unlikely that all operations
exercise these options, the $2 million estimated for the sector likely
overstates the total cost of the loss of the 80-20 feed provision. This
cost estimate more likely represents an upper bound estimate based on
this farm study's feed cost estimate, as if all dairy cows were
converted to organic at a single point in time under the above
assumptions.
Table 1.--Cost of Losing 80-20 Feed Provision
[Based on Vermont-Maine Dairy Study Cost Estimates]
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Organic feed per cow........................ $1,003 per year or $84 per month.
Nonorganic feed per cow..................... $795 per year or $66 per month.
9 months: 20% nonorganic feed cost.......... (0.2)*($66)*(9) = $119.
80% organic feed costs.................. (0.8)*($84)*(9) = $605.
3 months: 100% organic feed................. (1.0)*($84)*(3) = $252.
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Total Feed Using 80-20.................. $976
12 months using organic feed only........... 12 months*$84/cow = $1,003.
Difference (loss) of 80-20, 48-cow herd..... 12 mo*$27/cow loss = $1,296.
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Instead, an alternative estimate could be derived for a growing
industry that is adding new dairy cows to the industry. According to
ERS, in 2000, there were just over 38,000 certified dairy livestock,
increasing to nearly 49,000 by 2001, and 67,000 in 2002. With reports
of rising milk prices and shortages in the U.S. organic dairy market in
2005, continued growth in organic dairy livestock numbers could be
expected.
Therefore, an alternative estimate of the loss is to calculate the
number of dairy cows added to the sector each year and assume they were
all added to the sector by being converted using the 80-20 feed
transition provision. Using the ERS numbers above, between 2000 and
2001, 11,000 certified dairy cows were added. Another 18,000 cows were
added by 2002, and 7,435 in 2003. On average, 12,145 dairy cows were
added each year since 2000. Based on these numbers from ERS and the
additional cost of $27 per cow from the study above, using the 80-20
feed provision, the loss of the 80-20 provision would have cost dairy
farmers approximately $327,915 per year, or nearly $1 million over the
3-year period.
Different estimates were obtained from discussions with Western
state industry experts in dairy feed and nutrition, and budgets
developed by certifying agents who work with certified dairy
operations.\4\ These estimates resulted in higher costs due to the loss
of the 80-20 feed provision, of as much as $416 per cow annually, or
assuming an addition of approximately 12,000 cows per year to the
sector, a loss of nearly $5 million per year to the sector.
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\4\ Information provided in conversations with Pacific
Nutrition-Consulting (PNC) based on USDA-ACA budgets for estimating
the cost of the transition year for dairy farmers using the 80-20
feed provision.
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Depending on location, climate, size, and purchased feed, costs may
vary considerably. The west, for example, tends to be a feed-deficit
region where farmers purchase more feed and rely less on feed from on-
farm or nearby sources. The farther the distance a farmer has to go to
obtain feed, the more costly the feed will be, all other things being
equal, making it likely that costs would vary by region or climate.
With higher milk prices, more farmers might be attracted to enter
organic dairy farming. In the short run, this would add to pressure
(due to more competition) on feed supplies. With the loss of the 80-20
feed provision, this could drive up the cost of feed; in the short run,
therefore, there could be additional upward pressure on these cost
estimates.
Regardless, these additional costs would have to be absorbed
somewhere. They must either be passed forward to consumers in the form
of higher fluid milk and dairy product prices--already at high premiums
relative to conventional dairy product prices--or they would have to be
absorbed by farmers.
However, Congress did amend OFPA for transitioning dairy farmers,
by permitting such dairy farmers to graze dairy livestock on land being
converted to organic production during its 3rd year of transition.
Thus, the loss of the 80-20 feed exception is mitigated in part by the
action that Congress took. In effect, a farm transitioning its dairy
cows to organic could put its cows on that farm's pasture being
converted to organic and the milk from those cows would be organic at
the same time as crops being harvested from that land--at the end of
the third year that the land completed organic management.
Contrary to many reports since Congress amended the OFPA, this does
not mean that dairy cows can be fed prohibited substances or
genetically modified organisms (GMOs). The land on which the dairy cows
are being managed could not have any prohibited substances applied to
it for 3 years prior to crops being harvested from that land; if the
dairy cow grazes on that land, she is not consuming ``conventional''
feed. At the end of the 12 months of organic management on that land,
the milk from that dairy cow is analogous to the crops harvested from
that same field at the end of that third year--both are eligible to be
sold as organic, provided all other requirements of the regulations are
met.
Congress leveled the playing field for dairy farmers when they
amended OFPA in this area by removing any penalties that dairy farmers
faced with the so-called ``4th year''--``i.e., the additional
transition year that dairy cows underwent due to lactation cycles. And
Congress did not change the basic requirement of OFPA. Dairy cows must
be organically managed for at least 12 months; after these 12 months of
organic management, only her milk and milk products may be represented
as organic.
The status of the dairy cow is a different story. The dairy cow is
only organic if she was raised organically from the last third of the
mother's gestation. When a dairy cow is slaughtered, she cannot be sold
as
[[Page 24824]]
organic slaughter stock unless she was raised organically from the last
third of the mother's gestation, the same as other slaughter livestock
(except poultry, which must be raised organically beginning with the
second day of life). That remains the same in the NOP regulation.
In providing the transition language, entry in organic dairying may
become easier, which could ease current milk shortages in the organic
milk market at retail. Certainly it should help smaller dairy farmers
entering the organic industry who may be faced with having to purchase
higher priced organic feed, by allowing them to graze dairy livestock
on their land that is being transitioned to organic certification.
With respect to alternatives to this proposed rule, this proposed
rule merely implements language which Congress has enacted and complies
with the court's final judgment and order.
AMS is committed to compliance with the Government Paperwork
Elimination Act (GPEA), which requires Government agencies in general
to provide the public the option of submitting information or
transacting business electronically to the maximum extent possible.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
No additional collection or recordkeeping requirements are imposed
on the public by this proposed rule. Accordingly, OMB clearance is not
required by Sec. 350(h) of the Paperwork Reduction Act of 1995, 44
U.S.C. 3501, et seq., or OMB's implementing regulation at 5 CFR part
1320.
D. General Notice of Public Rulemaking
This proposed rule reflects amendments made by Congress to the OFPA
that were passed on November 10, 2005 and a court final order that
requires USDA to publish final revisions to the NOP regulations within
360 days of the court order, by June 4, 2006. Accordingly, AMS believes
that a 15-day period for interested persons to comment on this rule is
appropriate.
List of Subjects in 7 CFR Part 205
Administrative practice and procedure, Agriculture, Animals,
Archives and records, Imports, Labeling, Organically produced products,
Plants, Reporting and recordkeeping requirements, Seals and insignia,
Soil conservation.
For the reasons set forth in the preamble, 7 CFR part 205, is
proposed to be amended as follows:
PART 205--NATIONAL ORGANIC PROGRAM
The authority citation for 7 CFR part 205 continues to read as
follows:
1. Authority: 7 U.S.C. 6501-6522.
2. Section 205.236(a)(2) is revised to read as follows:
Sec. 205.236 Origin of livestock.
(a) * * *
(2) Dairy animals. Milk or milk products must be from animals that
have been under continuous organic management beginning no later than 1
year prior to the production of the milk or milk products that are to
be sold, labeled, or represented as organic, Except, That, crops and
forage from land included in the organic system plan of a dairy farm
that is in the third year of organic management may be consumed by the
dairy animals of the farm during the 12-month period immediately prior
to the sale of organic milk and milk products;
(i) Once an entire, distinct herd has been converted to organic
production, all dairy animals shall be under organic management from
the last third of gestation.
(ii) [Reserved]
* * * * *
3. Section 205.606 is revised to read as follows:
Sec. 205.606 Nonorganically produced agricultural products allowed as
ingredients in or on processed products labeled as organic or made with
organic ingredients.
Only the following nonorganically produced agricultural products
may be used as ingredients in or on processed products labeled as
``organic'' or ``made with organic (specified ingredients or food
group(s)),'' only in accordance with any restrictions specified in this
section, and only when the product is not commercially available in
organic form.
(a) Cornstarch (native)
(b) Gums--water extracted only (arabic, guar, locust bean, carob
bean)
(c) Kelp--for use only as a thickener and dietary supplement
(d) Lecithin--unbleached
(e) Pectin (high-methoxy)
Dated: April 24, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-4006 Filed 4-25-06; 10:52 am]
BILLING CODE 3410-02-P