Aug 22, 2022

USDA devotes $300 million to ease transition to organic production

The U.S. Department of Agriculture is making a $300 million investment, the Organic Transition Initiative, to help new spur growth in the organic sector and fulfill consumer demand while opening revenue streams for growers.

Agriculture Secretary Tom Vilsack announced details of the initiative on Aug. 22. The USDA’s National Agricultural Statistics Service has charted a 71% drop since 2008 in the number farms that are undergoing the three-year transition process from conventional to organic. During that time, products grown cannot be marketed as organic, despite the often-higher cost of production.

The USDA aims to reverse the drop in farmers transitioning to organic.

The initiative will deliver 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,” Vilsack said. “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. AMS will build partnership networks in six regions across the U.S. with trusted local organizations serving direct farmer training, education and outreach activities. The organizations will connect transitioning farmers with mentors, building paid mentoring networks to share practical insights and advice. Each regional team will also provide community building, including train-the-mentor support; as well as technical assistance, workshops, and field days covering topics including organic production practices, certification, conservation planning, business development (including navigating the supply chain), regulations and marketing to help transitioning and recently transitioned producers overcome technical, cultural and financial shifts during and immediately following certification. USDA will provide up to $100 million for this program.

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. This will include an increase in organic expertise throughout its regions, creating organic experts at each of its regional technology support centers. These experts will train staff who provide direct services to USDA customers. These services include hosting hands-on organic training for state and field NRCS staff and fielding organic-related staff questions.

USDA will provide $25 million to RMA for the new Transitional and Organic Grower Assistance Program (TOGA) which will support transitioning and certain certified organic producers’ participation in crop insurance, including coverage of a portion of their insurance premium.

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. Examples of markets seeking support include organic grain and feed; legumes and other edible rotational crops; and livestock and dairy. USDA will invest up to $100 million to help improve organic supply chains in pinpointed markets. The USDA will seek stakeholder input on these pinpointed initiatives beginning in September, resulting in an announcement of specific policy initiatives later this year.

Other USDA Organic Assistance

This USDA initiative complements existing assistance for organic producers, including FSA’s Organic Certification Cost Share Program (OCCSP) and Organic and Transitional Education and Certification Program (OTECP). OCCSP helps producers obtain or renew their organic certification, and OTECP provides additional funding to certified and transitioning producers during the pandemic.

NRCS offers conservation programs, such as the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP), which can provide assistance to help with managing weeds and pests, and establishing high tunnels, improving soil health, and implementing other practices key to organic operations. RMA also administers federal crop insurance options available to organic producers, including Whole Farm Revenue Protection and Micro Farm.

The National Organic Program (NOP) is a federal regulatory program, administered by AMS, that develops and enforces consistent national standards for organically produced agricultural products sold in the United States.