Provisions in the FY 2006 Agriculture Appropriations bill overturned a court ruling that said products bearing the seal could not contain nonorganic substances. The bill also directed USDA to study the impact on the organic industry and report back in 90 days.
The Organic Trade Association argued that the nonorganic substances involved were necessary in processing and that the court ruling would force substantial changes for larger organic manufacturers and drive smaller operations out of business. Although organic food is a small part of the food industry, its sales and popularity are rising quickly, accounting for an estimated $14.5 billion in 2005.
