Contact:

Sam Jones-Ellard

(202) 720-8998

WASHINGTON, March 18, 2010 – AMS Administrator Rayne Pegg released the following statement today in reference to the findings of the Office of the Inspector General (OIG) audit report of the National Organic Program (NOP):

“This review provides valuable information as we work to continue improving how USDA administers the National Organic Program and ultimately to ensure the integrity of organic agricultural products. Since the Obama Administration came into office we have taken numerous steps to improve the integrity of the program. The NOP has streamlined internal programs and procedures; enhanced oversight and enforcement in the marketplace by increasing staff; and established a complaint database. The Inspector General’s report underscores the necessity for the reforms we have enacted and those currently underway. To address the inadequate funding for oversight and enforcement, $3.1 million has been proposed in the NOP budget for 2011.

The OIG initiated the latest review to assess the effectiveness of AMS’ response to an audit conducted in 2005 and as a result of the growth of the organic industry and corresponding public interest in organic agricultural products. Over the past decade the organic industry grew 14 to 21 percent annually with recorded sales of $24.6 billion in 2008.

The integrity of the organic label depends largely upon effective enforcement and oversight of the many accredited certifying agents responsible for reviewing organic operations. To further strengthen the network of certifying agents, the NOP is developing more specific guidelines for the application of the organic standards and is expanding the training of certifying agents. Increased funding in the 2010 budget is allowing the NOP to increase its staff and resources to implement a number of improvements to the program. The NOP will audit more international operations and devote additional resources to enhance the accountability and enforcement of the organic standards.”