Certification
Both the United States and the EU have organic certification standards that
reduce transaction costs and facilitate information transfer. However, the EU regulations are not uniform across member countries. Each country is responsible for interpretation and implementation of rules, enforcement, monitoring, and inspection. Thus, certifications are not uniformly recognized by each member. European Union organic producers must sign (usually five-year contracts with a government agency. Each contract commits a farmer to specific farming practices perceived as beneficial to the environment in return for government payments. In the United States, the USDA has several certification procedures that
enforce national standards as defined by the National Organic Program (U.S. Department of Agricultural, Agricultural Marketing Service). All organic farmers and handlers must conform to the same standards. The transition from conventional to organic production usually takes three years (Brester, Grant, & Boland, 2009).