Domestic Organic Investment Act of 2025

Bill Summary: Domestic Organic Investment Act of 2025 (H.R. 6593)

Overview

The Domestic Organic Investment Act of 2025 is a legislative proposal to amend the Agricultural Marketing Act of 1946. Its primary purpose is to establish the Domestic Organic Investment Program, a grant-based initiative designed to strengthen the United States' internal supply chain for certified organic products and reduce the nation's reliance on organic imports.

Main Purpose and Intent

The bill aims to modernize and expand the domestic organic infrastructure. By providing financial assistance to producers and handlers, the government intends to remove "bottlenecks" in the supply chain, modernize tracking and storage technology, and help domestic entities meet the regulatory standards necessary to compete in the organic market.

Key Provisions

1. Eligible Entities

To receive funding, an entity must be owned and operated within a U.S. State, the District of Columbia, a U.S. territory/possession, or an Indian Tribal jurisdiction. Eligible entities include:
* Producers, producer cooperatives, or commercial entities that handle certified organic products.
* Units of Tribal government.
* Entities currently certified organic or those in the process of transitioning to certification.
* Note: Entities with suspended or revoked organic certifications are ineligible.

2. Program Goals

The Secretary of Agriculture is tasked with using the program to:
* Increase capacity for storage, processing, aggregation, and distribution.
* Modernize information technology (IT) and tracking systems.
* Improve compliance with food safety and organic certification standards.
* Develop markets for domestic organic products that are currently being supplied by imports.

3. Grant Structure and Funding

The bill establishes two distinct types of projects with different funding caps and matching requirements:

• Special Consideration: The Secretary may waive or lower the matching fund requirements for veterans and beginning farmers and ranchers.
• Timeline: Grants generally have a term not to exceed 3 years.

Procedural Aspects and Timeline

• Application Process: The Secretary must use a competitive process and make evaluation criteria public. A "simplified process" must be created specifically for equipment-only grants.
• Prioritization: Priority may be given to projects addressing trade imbalances, recommendations from the National Organic Standards Board, or identified supply chain bottlenecks.
• Appropriations: The bill authorizes funding for each fiscal year from 2026 through 2030.
• Technical Assistance: The Secretary is authorized to provide technical support to applicants directly or through cooperative agreements.

Potential Impact

If enacted, this bill would provide significant capital to mid-sized and small-scale organic operations to upgrade their facilities. By lowering the barrier to entry for organic certification and processing, the bill seeks to increase the volume of organic food grown and processed within the U.S., potentially lowering costs for consumers and increasing revenue for domestic organic farmers.