USDA announces new steps to enhance organic markets and support producers

USDA
USDA
(Image courtesy USDA)

Agriculture Secretary Tom Vilsack says that the USDA is taking steps as part of its commitment to strengthen the market for domestically grown organic goods and to support producers seeking organic certification. 

These funding opportunities are part of the USDA’s Organic Transition Initiative, launched in fall 2022, which is a suite of offerings to help existing organic farmers and those transitioning to organic production and processing, according to a news release.

“As USDA works to help make our nation’s food system more resilient and create more options for producers and consumers, we recognize the important role the organic industry can play in expanding opportunities for value-added agriculture, strengthening supply chains and generating revenue for farmers,” Vilsack said in the release. “For many farmers, the transition period before attaining organic certification can be cost-prohibitive, so USDA is also helping mitigate the risk involved for farmers who want to be able to grow and market organic crops.”

Consumer demand for organically produced goods surpassed $67 billion in 2022, and multiyear trends of strong growth in the sector provide market incentives for U.S. farmers across a broad range of products, the release said. However, through public comment and listening sessions, USDA has heard that producers may be less willing to commit to the three-year transition to organic certification because of risks related to inadequate organic processing, storage and handling capacity; cost barriers due to limited markets for rotational crops; a lack of certainty about market access; and insufficient supply of certain organic ingredients, the agency said. 

Organic Market Development Grants Program

Through the new Organic Market Development Grant Program, USDA’s Agricultural Marketing Service will issue up to $75 million in competitive grants. Eligible entities include business entities who produce or handle organic foods, nonprofit organizations, tribal governments, and state and local government entities to fund projects designed to expand and improve markets for domestically produced organic products, the release said.

OMDG is intended to increase the consumption of domestic agricultural commodities by aiding in the expansion of markets or development of new markets, marketing facilities and uses for such commodities. For example, applicants may seek funding to develop and launch new consumer products using rotational grains, or invest in infrastructure like processing equipment to give producers better access to markets, the USDA said.

Through OMDG, AMS encourages applications that serve smaller farms and ranches, new and beginning farmers and ranchers, underserved producers, veteran producers and underserved communities, the agency said.

AMS is accepting applications for the program now through July 11, 2023.

Cost share for organic certification

As part of USDA’s broader effort to support organic producers and in response to stakeholder feedback, this year the Farm Service Agency increased the cost share amount under the Organic Certification Cost Share Program (OCCSP), which helps organic producers cover organic certification costs to the maximum amount allowed by statute, the release said.

Specifically, FSA will cover up to 75% of costs associated with organic certification, up to $750 for crops, wild crops, livestock, processing/handling and state organic program fees (California only). OCCSP will cover costs incurred from Oct. 1, 2022, through Sept. 30, 2023, according to the release.

More information about these initiatives and more can be found at the USDA Organic Transition Initiative website.

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