USDA to Invest up to $300 million in New Organic Transition Initiative

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WASHINGTON – Agriculture Secretary Tom Vilsack announced details this week of the U.S. Department of Agriculture’s (USDA) $300 million investment, including with American Rescue Plan funds, in a new Organic Transition Initiative that will help build new and better markets and streams of income for farmers and producers.

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

According to the USDA National Agricultural Statistics Service, the number of non-certified organic farms actively transitioning to organic production dropped by nearly 71% since 2008. Through the comprehensive support provided by this initiative, USDA hopes to reverse this trend, opening opportunities for new and beginning farmers and expanding direct consumer access to organic foods through increased production.

The initiative will deliver wrap-around technical assistance, including farmer-to-farmer mentoring; provide direct support through conservation financial assistance and additional crop insurance assistance, and support market development projects in targeted markets.

“Farmers face challenging technical, cultural, and market shifts while transitioning to organic production, and even during the first years after successful organic certification,” said Vilsack. “Through this multi-phased, multi-agency initiative, we are expanding USDA’s support of organic farmers to help them with every step of their transition as they work to become certified and secure markets for their products.”

USDA’s Agricultural Marketing Service (AMS), Risk Management Agency (RMA) and Natural Resources Conservation Service (NRCS) are the primary agencies supporting the Initiative, which will focus on three areas.

Transition to Organic Partnership Program

Through this initiative, USDA aims to ensure that farmers transitioning to organic have the support they need to navigate that transition, including a full supply chain to American consumers who demand organic choices in their supermarkets daily.

Direct Farmer Assistance

NRCS will develop a new Organic Management conservation practice standard and offer financial and technical assistance to producers who implement the practice. Payments will be modeled on those already available to producers meeting the existing nutrient and pest management conservation practice standards. USDA will provide $75 million for this effort.

Organic Pinpointed Market Development Support

Stakeholders have shared that specific organic markets have market development risks due to inadequate organic processing capacity and infrastructure, a lack of certainty about market access, and insufficient supply of certain organic ingredients. This AMS initiative will focus on key organic markets where the need for domestic supply is high, or where additional processing and distribution capacity is needed for more robust organic supply chains.

USDA Organic Initiative