USDA Announces New Steps to Enhance Organic Markets and Support Producers

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Agriculture Secretary Tom Vilsack has announced that the U.S. Department of Agriculture (USDA) is taking additional 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 U.S. Department of Agriculture’s (USDA) 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.

USDA organics
Official portrait of Secretary Thomas J. Vilsack.
USDA photo by Tom Witham

“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. “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 multi-year trends of strong growth in the sector provide market incentives for U.S. farmers across a broad range of products.

Organic Market Development Grants Program

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

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.

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.

FSA begins accepting applications for OCCSP Monday, May 15. Applications are due Oct. 31, 2023.

USDA organics