Getting Clear on Marketing Regulations

Written by Tanya Murray and Ben Bowell from Oregon Tilth

Organic Hazelnut growers operate under two different sets of marketing regulations – USDA Marketing Order 982 and the National Organic Program. Both programs apply to “handlers”, however, the way handler is defined in each of the two programs is slightly different. This write-up is intended to clarify what it means to be a handler in each of these programs.

“Handler” under the USDA Marketing Order

USDA Marketing Order 982 went into effect in 1949 and authorizes quality regulations, surveys, research, promotion, education, volume control, and other programs for hazelnuts grown in Oregon and Washington. Under the Hazelnut Marketing Order, a handler is anyone that “handles” hazelnuts with handling defined as follows:

“To sell, consign, transport or ship (except as a common carrier of hazelnuts owned by another person), or in any other way to put hazelnuts, inshell or shelled, into the channels of trade either within the area of production or from such area to points outside thereof: Provided, That sales or deliveries by growers to handlers within the area of production or authorized disposition of restricted hazelnuts and substandard hazelnuts shall not be considered as handling.”

What does this mean for Oregon Organic Hazelnut Growers?

This means that hazelnut growers that sell their own nuts are considered handlers under the Hazelnut Marketing Order. There is an exemption for growers that sell direct to consumer, however, this exemption ONLY applies to sales to the end consumer from the grower’s farm stand OR at a certified farmers market. Other sales, including website/mail order sales and sales to retailers, restaurants and bakers are not exempt from the Marketing Order. The table below shows three scenarios to help clarify who is considered a handler under the Hazelnut Marketing Order.

What is required of handlers under the Hazelnut Marketing Order?

The Hazelnut Marketing Order requires that all hazelnut “handlers” have hazelnuts inspected and certified to verify that they meet the authorized quality standards. Handlers also pay an assessment fee that supports the activities provided for under the Marketing Order. For more information about what “handlers” need to do to be in compliance see the Hazelnut Marketing Order or contact Colleen Nihen, Executive Director of the Hazelnut Marketing Board, at colleen@OregonHazelnuts.org or 503-582-8420.

“Handler” under the National Organic Program

Organic hazelnut growers also operate under the National Organic Program (NOP), a federal regulatory program created by the 1990 Organic Foods Act that develops and enforces consistent national standards for organically produced agricultural products sold in the United States. The NOP accredits third-party organizations to certify that farmers and businesses meet the national organic standard. Under the National Organic Program, a handler is any person that “handles” agricultural products, except final retailers of agricultural products that do not process agricultural products with handling defined as follows:

“To sell, process, or package agricultural products, including but not limited to trading, facilitating sale or trade on behalf of a seller or oneself, importing to the United States, exporting for sale in the United States, combining, aggregating, culling, conditioning, treating, packing, containerizing, repackaging, labeling, storing, receiving, or loading.” You can review the federal code HERE.

What does this mean for Oregon Organic Hazelnut Growers?

At first glance this definition seems to suggest that hazelnut growers that sell their own nuts would be considered handlers under the National Organic Program. Here the larger context of the use of this term is important. Under the NOP, hazelnut growers are categorized as “producers”, meaning: a person who engages in the business of growing or producing food, fiber, feed, and other agricultural-based consumer products. The term “handler” is meant to capture non-producers that handle agricultural products they did not produce themselves. Therefore, a producer that only handles their own agricultural products is just a producer. The table below shows four scenarios to help clarify who is considered a handler under the National Organic Program. Under each scenario listed below the grower must be certified organic as a crop producer.  

  *if any ingredients (other than water and salt) are added, a handler certification is required.

What is required of handlers under the National Organic Program?

The National Organic Program requires that all hazelnut “handlers” are certified as Handling operations. 

In contrast, producers are required to be certified as either crop or livestock operations. In either case, except for exempt operations, each operation or portion of an operation that produces or handles agricultural products intended to be sold, labeled, or represented as “100 percent organic,” “organic,” or “made with organic (specified ingredients or food group(s))” must be certified according to the provisions of subpart E of this part and must meet all other applicable requirements of this part.

Except for the exempt operations described in § 205.101, each operation or portion of an operation that produces or handles agricultural products intended to be sold, labeled, or represented as “100 percent organic,” “organic,” or “made with organic (specified ingredients or food group(s))” must be certified according to the provisions of subpart E of this part and must meet all other applicable requirements of this part.

Information on what both producers and handlers need to do to be in compliance with the National Organic Program is available HERE.