Notice2021-24384
Notice of Funds Availability (NOFA) for the Organic and Transitional Education and Certification Program (OTECP)
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Published
November 5, 2021
Issuing agencies
Agriculture DepartmentFarm Service Agency
Abstract
The Farm Service Agency (FSA) is announcing the availability of $20 million through the new Organic and Transitional Education and Certification Program (OTECP) for certified operations and transitional operations that incurred eligible expenses in fiscal years (FY) 2020, 2021, and 2022. Producers and handlers incur significant costs to obtain or renew USDA organic certification each year, and the economic challenges due to the COVID-19 pandemic have made obtaining and renewing USDA organic certification financially challenging for many operations. In this document, FSA is providing the eligibility requirements, application process, and payment calculation for OTECP.
Full Text
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<title>Federal Register, Volume 86 Issue 212 (Friday, November 5, 2021)</title>
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[Federal Register Volume 86, Number 212 (Friday, November 5, 2021)]
[Notices]
[Pages 61113-61116]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24384]
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Notices
Federal Register
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Federal Register / Vol. 86, No. 212 / Friday, November 5, 2021 /
Notices
[[Page 61113]]
DEPARTMENT OF AGRICULTURE
Farm Service Agency
[Docket ID FSA-2021-0010]
Notice of Funds Availability (NOFA) for the Organic and
Transitional Education and Certification Program (OTECP)
AGENCY: Farm Service Agency, Department of Agriculture (USDA).
ACTION: Notification of funds availability.
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SUMMARY: The Farm Service Agency (FSA) is announcing the availability
of $20 million through the new Organic and Transitional Education and
Certification Program (OTECP) for certified operations and transitional
operations that incurred eligible expenses in fiscal years (FY) 2020,
2021, and 2022. Producers and handlers incur significant costs to
obtain or renew USDA organic certification each year, and the economic
challenges due to the COVID-19 pandemic have made obtaining and
renewing USDA organic certification financially challenging for many
operations. In this document, FSA is providing the eligibility
requirements, application process, and payment calculation for OTECP.
DATES: Funding availability: Implementation will begin November 8,
2021.
Comment date: We will consider comments on the Paperwork Reduction
Act that we receive by: January 4, 2022.
ADDRESSES: We invite you to submit comments on the information
collection request. You may submit comments by the following methods,
although FSA prefers that you submit comments electronically through
the Federal eRulemaking Portal:
<bullet> Federal eRulemaking Portal: Go to: <a href="http://www.regulations.gov">www.regulations.gov</a> and
search for Docket ID FSA-2021-0010. Follow the online instructions for
submitting comments.
<bullet> Mail, Hand-Delivery, or Courier: Director, Safety Net
Division, FSA, USDA, 1400 Independence Avenue SW, Stop 0510,
Washington, DC 20250- 0522. In your comment, specify the docket ID FSA-
2021-0010.
You may also send comments to the Desk Officer for Agriculture,
Office of Information and Regulatory Affairs, Office of Management and
Budget, Washington, DC 20503.
All comments received will be posted and publicly available on
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. Copies of the information collection may
be requested by contacting the above address.
FOR FURTHER INFORMATION CONTACT: Kimberly Graham, telephone: (202) 720-
7641; or by email: <a href="/cdn-cgi/l/email-protection#4f2426222d2a3d233661283d2e272e220f3a3c2b2e61282039"><span class="__cf_email__" data-cfemail="a4cfcdc9c6c1d6c8dd8ac3d6c5ccc5c9e4d1d7c0c58ac3cbd2">[email protected]</span></a>. Persons with disabilities
who require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice).
SUPPLEMENTARY INFORMATION:
Background
Producers and handlers of agricultural products that are organic
operations are those that have obtained USDA organic certification
under the USDA Agricultural Marketing Service (AMS) National Organic
Program (NOP) established under the Organic Foods Production Act of
1990 (7 U.S.C. 6501-6524) and the USDA organic regulations in 7 CFR
part 205. Organic operations are also required to receive continuation
of certification to the USDA organic regulations. Farming operations
(crop and livestock producers) that are transitioning to organic
production methods prior to obtaining USDA organic certification are
referred to in this document as transitional operations.
As part of the assistance that USDA is providing through the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act; Division
B, Title I, Pub. L. 116-136), FSA is announcing the availability of $20
million through the new OTECP for certified operations and transitional
operations that incurred eligible expenses in FY 2020, 2021, and 2022.
Producers and handlers incur significant costs to obtain or renew USDA
organic certification each year, and the economic challenges due to the
COVID-19 pandemic have made obtaining and renewing USDA organic
certification financially challenging for many operations. In this
document, FSA is providing the eligibility requirements, application
process, and payment calculation for OTECP.
OTECP will provide assistance to certified operations, as well as
operations that are transitioning to organic production methods in
anticipation of obtaining USDA organic certification. During the COVID-
19 pandemic, these operations faced challenges due to loss of markets,
increased costs, and labor shortages, in addition to costs related to
obtaining or renewing their USDA organic certification, which producers
and handlers of conventionally produced commodities do not incur.
Transitional operations also faced the financial challenge of
implementing practices required to obtain USDA organic certification
without being able to obtain the premium prices associated with
certified organic commodities. Further, for organic operations
requesting an addition or update to their existing certification, the
new land or facility must quickly move through the certification
process, which typically includes an on-site inspection. Certified
organic products must also meet very specific packaging and labeling
requirements. Overall, this leads to reduced flexibility and unique
supply chain challenges for organic businesses and farms when on-site
inspections are not possible, as has often been the case during the
COVID-19 pandemic.
Certified operations and transitional operations may apply for
OTECP for eligible expenses paid during FY 2020, 2021, and 2022. OTECP
covers 25 percent of a certified operation's eligible certification
costs, up to $250 per certification category (crop, livestock, wild
crop, handling, and State Organic Program fee).\1\ It also covers 75
percent
[[Page 61114]]
of a transitional operation's eligible costs, up to $750, for each
year. For both certified operations and transitional operations, OTECP
covers 75 percent, up to $200, per year for registration fees for
educational events that include content related to organic production
and handling in order to assist operations in increasing their
knowledge of production and marketing practices that can improve their
operations, increase resilience, and expand available marketing
opportunities. For both certified operations and transitional
operations, OTECP also covers 75 percent, up to $100, of the cost of
soil testing required under the NOP to document micronutrient
deficiency.
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\1\ The USDA organic regulations recognize four separate
categories that must be individually inspected for USDA organic
certification: crop, livestock, wild crop, and handling (that is,
processing). For the purpose of OTECP, State organic program fees
are recognized as an additional category; these fees may be required
by States that have established a State organic program according to
7 CFR 205.620 through 205.622, and are in addition to the costs of
USDA organic certification under the four categories of USDA organic
certification. A single operation may be certified under multiple
categories. For example, a certified organic vegetable farm that
also has certified organic chickens and produces certified organic
jams would be required to be certified for three categories: crop,
livestock, and handling.
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Definitions
For this NOFA, the following definitions apply:
Certified operation means a crop or livestock production, wild crop
harvesting, or handling operation, or portion of such operation, that
is certified by an accredited certifying agent as utilizing a system of
organic production or handling as described by the Organic Foods
Production Act of 1990, as amended (7 U.S.C. 6501-6524) and the
regulations in 7 CFR part 205.
Educational event means an event, such as a conference, training
program, or workshop, that provides educational content addressing
topics related to organic production and handling, such as farming and
production methods, NOP requirements, and marketing. It includes both
in-person and remote events.
Soil testing means soil tests to document micronutrient deficiency
as required by 7 CFR 205.601(j)(7).
Transitional operation means a crop or livestock production
operation that is transitioning to organic production in anticipation
of obtaining USDA organic certification, and that has an organic system
plan or written documentation from a certifying agent accredited by the
National Organic Program.
USDA organic certification means a determination made by a
certifying agent that a production or handling operation is in
compliance with the Organic Foods Production Act of 1990 (7 U.S.C.
6501-6524) and the regulations in 7 CFR part 205, which is documented
by a certificate of organic operation.
The following definitions in 7 CFR 205.2 also apply to this NOFA:
``certification or certified,'' ``certifying agent,'' ``crop,''
``handler,'' ``inspection,'' ``inspector,'' ``labeling,''
``livestock,'' ``National Organic Program (NOP),'' ``organic,''
``organic production,'' ``organic system plan,'' ``processing,''
``producer,'' ``State organic program,'' and ``wild crop.''
Eligible Applicants
To be eligible for OTECP, an applicant must have paid eligible
costs during FY 2020, 2021, or 2022 and, at the time of application, be
either a certified operation or a transitional operation.
Operations with suspended, revoked, denied, or withdrawn USDA
organic certifications at the time of application are ineligible for
OTECP. OTECP is open to certified operations and transitional
operations located in the 50 United States, the District of Columbia,
the Commonwealth of Puerto Rico, Guam, American Samoa, the U.S. Virgin
Islands, and the Commonwealth of the Northern Mariana Islands.
Eligible and Ineligible Expenses
OTECP provides assistance for eligible expenses paid by the
applicant during:
<bullet> FY 2020 (October 1, 2019, through September 30, 2020),
<bullet> FY 2021 (October 1, 2020, through September 30, 2021), and
<bullet> FY 2022 (October 2, 2021 through September 30, 2022).
Expenses that have been incurred by the applicant, but have not
been paid, are not eligible for assistance through OTECP.
Certified operations may receive assistance for the following costs
for obtaining or renewing their USDA organic certification for the
crop, livestock, wild crop, handling, and State organic program
categories:
<bullet> Application fees;
<bullet> Inspection fees, including travel costs and per diem for
organic inspectors;
<bullet> USDA organic certification costs, including certification
fees necessary to access international markets with which AMS has
equivalency agreements or arrangements;
<bullet> State organic program fees;
<bullet> User fees or certifier sales assessments; and
<bullet> Postage.
For transitional crop and livestock operations, eligible expenses
include fees charged by a certifying agent or consultant for pre-
certification inspections and development of an organic system plan.
Operations that incur eligible costs prior to USDA organic
certification but became certified prior to the end of the fiscal year
may not receive cost share for the same expense as both a certified and
a transitional operation.
For both certified operations and transitional operations, soil
testing and educational event registration fees are also eligible
expenses.
The following expenses are not eligible for cost share under OTECP:
<bullet> Inspections due to violations of USDA organic regulations,
or State organic program requirements;
<bullet> Costs related to non-USDA organic certifications;
<bullet> Costs related to any other labeling program;
<bullet> Materials, supplies, & equipment;
<bullet> Late fees;
<bullet> Membership fees;
<bullet> Consultant fees, except as described above for
transitional operations;
<bullet> Costs related to educational event attendance other than
registration fees; and
<bullet> Costs for tests other than soil testing as defined in this
NOFA.
Application Process
The application period for 2020 and 2021 begins on November 8,
2021, and ends on January 7, 2022. The application period for 2022 will
be announced next year. Applicants may apply for OTECP at any USDA
Service Center.\2\ Each applicant must submit a complete application in
person or by mail, email, facsimile, or other methods announced by FSA.
A complete application includes the following documentation:
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\2\ USDA Service Center locations and contact information are
available at <a href="https://offices.sc.egov.usda.gov/locator/app">https://offices.sc.egov.usda.gov/locator/app</a>.
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<bullet> Form FSA-883, Organic and Transitional Education and
Certification Program (OTECP), which includes a certification of the
applicant's status as a certified operation or transitional operation
and their eligible expenses;
<bullet> AD-2047, Customer Data Worksheet, if not already on file
with FSA; and
<bullet> SF-3881, ACH Vendor/Miscellaneous Payment Enrollment Form,
if not already on file with FSA.
Applicants may be required to provide additional documentation to
FSA, if necessary, to verify eligibility or issue payment. Eligible
expenses are based on applicant certification and are subject to spot
check. In the event that an application must be verified, certified
operations that previously applied for the Organic Certification Cost
Share Program (OCCSP) through an FSA local office and provided
documentation of eligible expenses are not required to resubmit that
documentation to FSA; however, those applicants must submit
documentation of any additional eligible expenses included on their
OTECP application that were not previously included in
[[Page 61115]]
their OCCSP application. Certified operations that previously applied
for OCCSP through a participating State Agency must submit the required
documentation of their eligible expenses if requested by FSA.
Payments
OTECP payments are calculated separately for each category of
eligible costs based on the percentage and maximum payment amounts in
the following table.
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Payment amount
Category of eligible of eligible
Eligible applicants expenses costs per
category
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Certified operations.......... Organic certification-- 25 percent, up
crops. to $250.
Organic certification-- 25 percent, up
livestock. to $250.
Organic certification-- 25 percent, up
wild crop. to $250.
Organic certification-- 25 percent, up
handling. to $250.
State Organic Program 25 percent, up
fees. to $250.
Transitional operations....... Eligible transitional 75 percent, up
expenses. to $750.
Certified operations and Educational event 75 percent, up
transitional operations. registration fees. to $200.
Soil testing.......... 75 percent, up
to $100.
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Payments will be equal to the applicant's eligible expenses
multiplied by the percentage for the applicable category in the table
above, not to exceed the maximum payment amount for the category. An
applicant must report any previous cost share assistance, excluding
OCCSP payments, received for the expenses included on their
application. For each crop, livestock, wild crop, handling, and State
organic program fees category, the OTECP payment plus the additional
cost share assistance, excluding OCCSP, cannot exceed the portion of
the costs not covered by OCCSP.\3\ For transitional expenses, soil
testing, and educational event registration fees, the amount of the
applicant's OTECP payment plus the reported additional cost share
assistance cannot exceed 100 percent of the total amount of eligible
expenses, as determined by FSA.
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\3\ OCCSP provides up to 75 percent of the costs incurred by a
certified operation in obtaining USDA organic certification, up to a
maximum of $750 (7 U.S.C. 6523), per category for crop, livestock,
wild crop, handling, and State organic program fees. On August 10,
2020, FSA announced that the maximum OCCSP payment for FY 2020
through FY 2023 would be 50 percent of the certified organic
operation's eligible costs, up to a maximum of $500 per
certification category, due to the limited amount of funding
available (85 FR 48149-48150). OTECP provides assistance for the
portion of eligible USDA organic certification costs that is not
covered by OCCSP. Prior participation in OCCSP is not required for
certified operations to be eligible for OTECP. Certified operations
that did not apply for OCCSP prior to the applicable program
deadline may contact their local FSA office for information on how
to submit a late-filed OCCSP application.
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FSA will issue payments after the end of the application period for
each fiscal year. If calculated payments exceed the amount of available
funding, payments will be prorated.
Other Provisions
Participants are required to retain documentation in support of
their application for 3 years after the date of approval. Participants
receiving OTECP payments or any other person who furnishes such
information to USDA must permit authorized representatives of USDA or
the Government Accountability Office, during regular business hours, to
enter the operation and to inspect, examine, and to allow
representatives to make copies of books, records, or other items for
the purpose of confirming the accuracy of the information provided by
the participant.
If an applicant files an application with an FSA county office
after the application deadline, the application will be considered a
request to waive the deadline. The FSA Deputy Administrator for Farm
Programs (Deputy Administrator) has the discretion and authority to
consider the application and waive or modify application deadlines and
other requirements or OTECP provisions not specified in law, in cases
where the Deputy Administrator determines it is equitable to do so and
where the Deputy Administrator finds that the lateness or failure to
meet such other requirements or OTECP provisions do not adversely
affect the operation of OTECP. Although applicants have a right to a
decision on whether they filed applications by the deadline or not,
applicants have no right to a decision in response to a request to
waive or modify deadlines or program provisions. The Deputy
Administrator's refusal to exercise discretion to consider the request
will not be considered an adverse decision and is, by itself, not
appealable.
Equitable relief and finality provisions specified in 7 CFR part
718, subpart D, apply to determinations under OTECP. Persons and legal
entities who file an application with FSA have the right to an
administrative review of any FSA adverse decision with respect to the
application under the appeals procedures at 7 CFR parts 780 and 11. The
determination of matters of general applicability that are not in
response to, or result from, an individual set of facts in an
individual participant's application for payment are not matters that
can be appealed. Such matters of general applicability include, but are
not limited to, the determination of eligible categories of expenses
and payment rates.
Any payment under OTECP will be made without regard to questions of
title under State law and without regard to any claim or lien. The
regulations governing offsets in 7 CFR part 3 do not apply to payments
made under this part.
In either applying for or participating in OTECP, or both, the
applicant is subject to laws against perjury and any penalties and
prosecution resulting therefrom, with such laws including but not
limited to 18 U.S.C. 1621.
For the purposes of the effect of a lien on eligibility for Federal
grants, loans, or programs (28 U.S.C. 3201(e)), USDA waives the
restriction on receipt of funds under OTECP, but only as to
beneficiaries who, as a condition of the waiver, agree to apply the
OTECP payments to reduce the amount of the judgment lien.
In addition to any other Federal laws that apply to OTECP, the
following laws apply: 18 U.S.C. 286, 287, 371, and 1001.
Paperwork Reduction Act Requirements
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), FSA is requesting comments from interested individuals and
organizations on the information collection request associated with
OTECP. The OTECP information collection request is for the producer and
handler to provide FSA the information of their status of either a
certified operation or transitional operation and their eligible
expenses to qualify for the payments. FSA submitted
[[Page 61116]]
the emergency approval request that covers OTECP information collection
activities to OMB for a 6-month approval. After the 60-day comment
period ends, the information collection request will be submitted to
OMB for a 3-year OMB approval.
Title: Organic and Transitional Education and Certification Program
(OTECP).
OMB Control Number: 0560-New.
Type of Request: New Collection.
Abstract: The information collection request is required for the
producers and handlers to provide their status as either a certified
operation or transitional operation and their eligible expenses to get
the OTECP payments. The forms for the producers and handlers to
complete for the OTECP payments and the payment calculations are
described in this document.
For the following estimated total annual burden on respondents, the
formula used to calculate the total burden hour is the estimated
average time per response multiplied by the estimated total annual
responses. Public reporting burden for this information collection is
estimated to include the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed and
completing and reviewing the collections of information.
Type of Respondents: Producer and handler.
Estimated Annual Number or Respondents: 13,250.
Estimated Number of Responses per Respondent: 1.69.
Estimated Total Annual Responses: 22,450.
Estimated Average Time per Response: 1 hour.
Estimated Total Annual Burden on Respondents: 22,450.
FSA is requesting comments on all aspects of this information
collection to help us to:
(1) Evaluate whether the collection of information is necessary for
the proper performance of the functions of FSA, including whether the
information will have practical utility;
(2) Evaluate the accuracy of the FSA's estimate of burden including
the validity of the methodology and assumptions used;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the collection of information on those
who are to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology.
All comments received in response to this document, including names
and addresses when provided, will be a matter of public record.
Comments will be summarized and included in the submission for Office
of Management and Budget approval.
Environmental Review
The environmental impacts of this final rule have been considered
in a manner consistent with the provisions of the National
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations
of the Council on Environmental Quality (40 CFR parts 1500-1508), and
the FSA regulations for compliance with NEPA (7 CFR part 799).
The purpose of OTECP is to provide assistance to certified
operations and transitional operations for the costs of obtaining and
renewing USDA organic certification, and for eligible precertification
and education costs, as well as soil testing. The Categorical
Exclusions in 7 CFR 799.31 apply, specifically 7 CFR 799.31(b)(6)(iii)
(that is, financial assistance to supplement income. . .). No
Extraordinary Circumstances (7 CFR 799.33) exist. FSA has determined
that this final rule does not constitute a major Federal action that
would significantly affect the quality of the human environment,
individually or cumulatively. Therefore, FSA will not prepare an
environmental assessment or environmental impact statement for this
regulatory action.
Catalog of Federal Domestic Assistance
The title and number of the Federal assistance program in the
Catalog of Federal Domestic Assistance to which this NOFA applies is
10.139, Organic and Transitional Education and Certification Program
(OTECP).
USDA Non-Discrimination Policy
In accordance with Federal civil rights law and USDA civil rights
regulations and policies, USDA, its Agencies, offices, and employees,
and institutions participating in or administering USDA programs are
prohibited from discriminating based on race, color, national origin,
religion, sex, gender identity (including gender expression), sexual
orientation, disability, age, marital status, family or parental
status, income derived from a public assistance program, political
beliefs, or reprisal or retaliation for prior civil rights activity, in
any program or activity conducted or funded by USDA (not all bases
apply to all programs). Remedies and complaint filing deadlines vary by
program or incident.
Persons with disabilities who require alternative means of
communication for program information (for example, braille, large
print, audiotape, American Sign Language, etc.) should contact the
responsible Agency or USDA TARGET Center at (202) 720-2600 (voice and
TTY) or contact USDA through the Federal Relay Service at (800) 877-
8339. Additionally, program information may be made available in
languages other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at <a href="https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint">https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint</a> and
at any USDA office or write a letter addressed to USDA and provide in
the letter all the information requested in the form. To request a copy
of the complaint form, call (866) 632-9992. Submit your completed form
or letter to USDA by mail to: U.S. Department of Agriculture, Office of
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW,
Washington, DC 20250-9410 or email: <a href="/cdn-cgi/l/email-protection#eba4aaa8ab9e988f8ac58c849d"><span class="__cf_email__" data-cfemail="2f606e6c6f5a5c4b4e01484059">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
Zach Ducheneaux,
Administrator, Farm Service Agency.
[FR Doc. 2021-24384 Filed 11-4-21; 8:45 am]
BILLING CODE 3410-05-P
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