Domestic Organic Investment Act of 2025
- Sponsor
- Sen. Baldwin, Tammy [D-WI]
- Committees
- Agriculture, Nutrition, and Forestry Committee (primary)
- Last action
- Dec 10, 2025
Bottom line
The bill seeks to bolster the U.S. organic agriculture sector by providing financial and technical assistance to domestic organic producers and businesses, with the goal of reducing reliance on imports and fostering market growth.
What it actually does
This bill establishes the Domestic Organic Investment Program within the Agricultural Marketing Act of 1946. The program provides grants and technical assistance to eligible domestic organic entities, including producers, handlers, and Tribal governments, to expand capacity, modernize operations, improve regulatory compliance, and facilitate market development for certified organic products. It aims to reduce reliance on organic imports and strengthen the U.S. organic supply chain.
Proponents argue
Supporters argue that the bill will significantly strengthen the domestic organic supply chain, enhance food security by reducing dependence on foreign organic imports, and create new economic opportunities for American organic farmers and businesses. They contend that targeted investments will modernize infrastructure, improve efficiency, and help new and veteran farmers enter and succeed in the organic market.
Opponents contend
No specific organized opposition to this bill has been identified. Potential general concerns might include the overall cost to taxpayers, the efficiency of government grant programs versus private sector investment, or the potential for market distortions if not carefully administered.
The bill is relatively short and clearly structured, allowing for a quick and comprehensive understanding of its provisions within a reasonable timeframe.
Section 2, adding Section 210B(b) to the Agricultural Marketing Act of 1946
Establishment and Purpose of Domestic Organic Investment Program
This provision mandates the Secretary of Agriculture to establish the 'Domestic Organic Investment Program.' The program's core purpose is to increase the capacity of the domestic organic product supply chain, modernize manufacturing and tracking systems, improve compliance with regulatory standards, expand storage and processing capabilities, facilitate market development for U.S.-produced organic goods, and address other identified bottlenecks in the supply chain.
Supporters argue
Proponents argue that establishing this program is crucial for fostering a resilient domestic organic sector, reducing reliance on potentially unstable foreign supply chains, and meeting growing consumer demand for organic products with American-made goods.
Critics contend
No specific opposition is typically raised against the general establishment of programs aimed at strengthening domestic agricultural sectors, though concerns may arise regarding the scope or funding levels.
Tradeoffs
The provision balances the need for federal intervention to address market gaps and supply chain vulnerabilities with the desire to allow market forces to drive growth. It aims to stimulate investment where private capital might be insufficient or hesitant.
Section 2, adding Section 210B(a)(2) to the Agricultural Marketing Act of 1946
Definition of Eligible Entity
This section defines which entities are eligible to receive grants under the program. To be eligible, an entity must be owned and operated within the U.S. (including territories, D.C., or Indian Tribe jurisdictions) and either be certified organic or actively transitioning to certification. Eligible entities include producers, cooperatives, other commercial entities, and Tribal governments. Entities with suspended or revoked organic certifications are explicitly excluded.
Section 2, adding Section 210B(c), (d), (e), (f), (g), (h) to the Agricultural Marketing Act of 1946
Grant Program Structure and Requirements
This provision outlines the mechanics of the grant program. It establishes a competitive application process, allows for simplified applications for 'equipment-only' projects, and permits the Secretary to set annual priorities based on factors like trade imbalance or supply chain bottlenecks. It sets maximum grant amounts ($2 million for capacity expansion, $100,000 for equipment-only) and requires matching funds (50% for capacity, 25% for equipment), with waivers available for beginning farmers, ranchers, and veterans. Grants are generally limited to a 3-year term.
Section 2, adding Section 210B(i), (j) to the Agricultural Marketing Act of 1946
Technical Assistance and Authorization of Appropriations
This provision authorizes the Secretary of Agriculture to provide technical assistance to eligible entities, either directly or through cooperative agreements, to help them succeed in their projects. Crucially, it also authorizes appropriations for the program for fiscal years 2026 through 2030, stating that 'such sums as are necessary' are authorized to be appropriated and will remain available until expended.
This clause explicitly excludes any entity whose organic certification operations are suspended or revoked under federal regulations from being considered an 'eligible entity' for the Domestic Organic Investment Program.
Section 2, adding Section 210B(a)(2)(C) to the Agricultural Marketing Act of 1946
Why it matters:This is standard legislative practice to include comprehensive eligibility and exclusion criteria within the definitions section to ensure program integrity and prevent fraud.
Case for: Supporters argue this exclusion is essential for maintaining the integrity of the organic label and ensuring that federal funds are not directed to entities that have failed to comply with established organic standards, thereby protecting consumer trust and the reputation of the organic industry.
Case against: No specific case against this provision is typically raised, as it is a common-sense safeguard against misuse of public funds and a measure to uphold regulatory compliance.
Estimated impact: This provision prevents the potential misuse of an unspecified amount of federal grant funds by non-compliant entities and helps to uphold the credibility of the organic certification system.