Certified Organic - Shelling out the Beans

The last four posts have been about the organic certification process: who’s responsible for making sure the rules are followed, what the application requires of a farmer, and how an inspection goes. Another piece of the puzzle is, of course, how much it all costs.

Let’s take the Midwest Organic Services Association as an example (Riverbend Farm has been certified through MOSA since 1994). Their cost of certification includes Base Certification, Inspection, and User Fees. The base fee for a first year crop certification is $200, and for an update, $150. The inspection fee starts with a $200 deposit, and the final cost is the inspector’s fee for service, mileage, and lodging. The user fee is a percentage of sales, with a minimum of $200 per year. For annual gross organic sales of a producer (versus a handler or processor) between $0 and $200,000, MOSA takes 0.75%. For over $200,000, it drops to 0.1%, and is capped at $7,500.

How does this compare with other agencies? Let’s take a look at the Minnesota Crop Improvement Association. MCIA charges a membership/application fee as well as a base fee, an inspection fee, and final fees. The application fee for the MCIA is $50. The base fee for a first-timer is $375, and for an update, $325. Inspection charges are listed as $75/hr; Cornercopia’s inspection fee is usually around $600-$700. The final fee is 0.5% of total organic revenue for the first $500,000, 0.25% for $500,001 to $750,000, and 0.1% for $750,001 and up. So the more you make, the less you pay (percentage-wise).

And, of course, there are all sorts of additional fees and charges Joe Organic could rack up: late fees, additional inspections, adding products or services at another time, etc. Barring those extras and assuming $30,000 in sales, an initial certification could cost between $625 and $1,175. Is it worth it? Depends on the farmer and his market.

Next up: why certification is important for Mhonpaj’s Garden.