Notice2024-14022
Notice of Funds Availability (NOFA) for the Food Safety Certification for Specialty Crops Program
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Published
June 26, 2024
Issuing agencies
Agriculture DepartmentFarm Service Agency
Abstract
The Farm Service Agency (FSA) is announcing the availability of $19 million through the new Food Safety Certification for Specialty Crops Program (FSCSC) for specialty crop operations that incur eligible on-farm food safety program expenses to obtain or renew a food safety certification in calendar years 2024 and 2025. To be eligible for assistance with expenses related to a 2024 food safety certification, the certification must have been issued on or after June 26, 2024. Specialty crop operations incur significant costs to comply with regulatory requirements and market-driven food safety certification requirements each year with little opportunity to recover the increased costs. In this document, FSA is providing the eligibility requirements, application process, and payment calculation for FSCSC.
Full Text
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<title>Federal Register, Volume 89 Issue 123 (Wednesday, June 26, 2024)</title>
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[Federal Register Volume 89, Number 123 (Wednesday, June 26, 2024)]
[Notices]
[Pages 53382-53386]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-14022]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
[Docket ID FSA-2024-0002]
Notice of Funds Availability (NOFA) for the Food Safety
Certification for Specialty Crops Program
AGENCY: Commodity Credit Corporation and Farm Service Agency,
Department of Agriculture (USDA).
ACTION: Notification of fund availability.
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SUMMARY: The Farm Service Agency (FSA) is announcing the availability
of $19 million through the new Food Safety Certification for Specialty
Crops Program (FSCSC) for specialty crop operations that incur eligible
on-farm food safety program expenses to obtain or renew a food safety
certification in calendar years 2024 and 2025. To be eligible for
assistance with expenses
[[Page 53383]]
related to a 2024 food safety certification, the certification must
have been issued on or after June 26, 2024. Specialty crop operations
incur significant costs to comply with regulatory requirements and
market-driven food safety certification requirements each year with
little opportunity to recover the increased costs. In this document,
FSA is providing the eligibility requirements, application process, and
payment calculation for FSCSC.
DATES: Funding availability: Implementation will begin June 26, 2024.
FOR FURTHER INFORMATION CONTACT: Kathy Sayers; telephone: (202) 720-
6870; email: <a href="/cdn-cgi/l/email-protection#8ac1ebfee2f3a4f9ebf3eff8f9cafff9eeeba4ede5fc"><span class="__cf_email__" data-cfemail="2a614b5e425304594b534f58596a5f594e4b044d455c">[email protected]</span></a>. Individuals with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice and text telephone TTY) or dial
711 for Telecommunications Relay Service (both voice and text telephone
users can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Background
FSA, on behalf of Commodity Credit Corporation (CCC), is announcing
the availability of FSCSC to assist specialty crop operations that
incurred eligible on-farm food safety certification and related
expenses in order to obtain or renew a:
<bullet> 2024 food safety certification issued between June 26,
2024 and December 31, 2024; or
<bullet> 2025 food safety certification issued at any time during
the 2025 calendar year.
For each year, FSCSC will cover a portion of the specialty crop
operation's cost of obtaining or renewing their certification, as well
as a portion of their related costs as described in this NOFA.
FSA will administer FSCSC for 2024 and 2025 in a similar manner as
the previous FSCSC NOFA for 2022 and 2023 published on June 21, 2022
(87 FR 36816-36820); however, FSA has made changes to FSCSC as noted in
this NOFA, including revising the definition of ``small business'' for
2024 and 2025 to mean an applicant that had an average annual monetary
value of specialty crops sold during the applicable 3-year period not
to exceed $500,000. FSA is adding eligibility for medium size business,
by adding the definition of ``medium size business'' which means the
average annual monetary value of specialty crops sold during the
applicable 3-year period from $500,001 to $1,000,000. Medium size
businesses are included as eligible in order to allow broader
participation of diverse specialty crop operations that can qualify for
FSCSC. FSA has also increased the maximum payment amounts for
maintaining or updating a Food Safety Plan and Training due to
additional certification compliance requirements included in the
Standards for the Growing, Harvesting, Packing, and holding of Produce
for Human Consumption Relating to Agricultural Water final rule, which
was published on May 6, 2024 (89 FR 37448-37519). Based on feedback
following the publication of the 2022 FSCSC NOFA, all payment
categories will be paid at a higher rate due to the program being
beneficial to the applicant.
Specialty crops intended for human consumption are subject to
concerns about safety, particularly since specialty crops sold as raw
agricultural commodities do not undergo a ``kill step'' like cooking,
canning, or pasteurizing used for other agricultural commodities such
as meat or dairy products. As a result, specialty crop operations face
increasing demand from grocery stores, schools, and other institutional
buyers and retailers to obtain certification through programs that
address the safe growing, harvesting, packing, and holding of their
crops. The need to develop, implement, and maintain on-farm food safety
programs has resulted in additional costs for many specialty crop
operations that seek alternate markets for their products due to
changes in demand from traditional markets such as restaurants and food
service. As they identify new markets, many specialty crop operations
also find they need to undergo food safety audits and absorb the
additional costs to achieve food safety certification through a private
or government-based certification program in order to meet buyers'
requirements to sell their products.
FSCSC funding of $19 million is provided through the CCC Charter
Act, which authorizes CCC to increase the domestic consumption of
agricultural commodities (other than tobacco) by expanding or aiding in
the expansion of domestic markets or by developing or aiding in the
development of new and additional markets, marketing facilities, and
uses for such commodities (15 U.S.C. 714c(e)). FSCSC will aid in the
expansion of domestic markets and development of new and additional
markets by assisting specialty crop operations with costs that they
incur to obtain or renew food safety certifications in order to comply
with government and retail buyers' demands for food safety
certification, ultimately expanding the markets available to those
operations and increasing domestic consumption of specialty crops. To
that end, only producers that successfully obtain or renew a food
safety certification after publication of this notice are eligible to
be compensated for a portion of the cost of that certification, as
explained further below.
Definitions
The following definitions apply to this notice:
Certification upload fee means the fee paid by a specialty crop
operation to upload reports and other documentation to a commercial
database.
Certifier means either a private entity accredited for the purpose
of providing food safety certification or a government-based certifier.
Deputy Administrator means the FSA Deputy Administrator for Farm
Programs.
Food safety certification means certification that a specialty crop
operation meets regulatory or market-driven food safety standards.
Food safety management system means a documented system developed
by a group of specialty crop operations to obtain food safety
certification, also referred to as a ``quality management system.''
FSMA means the FDA Food Safety Modernization Act (Pub. L. 111-353).
Food safety plan means a documented plan implemented by a specialty
crop operation to obtain food safety certification.
Medium size business means an applicant that had an average annual
monetary value of specialty crops the applicant sold during the 3-year
period preceding the program year of at least $500,001 but not more
than $1,000,000.
Produce Safety Rule means the final rule titled ``Standards for the
Growing, Harvesting, Packing, and Holding of Produce for Human
Consumption'' published on November 27, 2015 (80 FR 74354-74568).
Program year means the calendar year in which the applicant's food
safety certification is issued (that is, 2024 or 2025).
Raw agricultural commodity means any food in its raw or natural
state, including all fruits that are washed, colored, or otherwise
treated in their unpeeled natural form prior to marketing.
Small business means an applicant that had an average annual
monetary value of specialty crops the applicant sold during the 3-year
period preceding the program year of not more than $500,000.
[[Page 53384]]
Specialty crop means any fruit or vegetable (including mixes of
intact fruits and vegetables) and includes mushrooms, sprouts
(irrespective of seed source), tree nuts, and herbs. A fruit is the
edible reproductive body of a seed plant or tree nut (such as apple,
orange, and almond) such that fruit means the harvestable or harvested
part of a plant developed from a flower. A vegetable is the edible part
of an herbaceous plant (such as cabbage or potato) or fleshy fruiting
body of a fungus (such as white button or shiitake) grown for an edible
part such that vegetable means the harvestable or harvested part of any
plant or fungus whose fruit, fleshy fruiting bodies, seeds, roots,
tubers, bulbs, stems, leaves, or flower parts are used as food and
includes mushrooms, sprouts, and herbs (such as basil or cilantro).
``Specialty crop'' does not include peanuts or food grains, meaning the
small, hard fruits or seeds of arable crops, or the crops bearing these
fruits or seeds, which are primarily grown and processed for use as
meal, flour, baked goods, cereals, and oils rather than for direct
consumption as small, hard fruits or seeds (including cereal grains,
pseudo cereals, oilseeds, and other plants used in the same fashion).
Examples of food grains include barley, dent- or flint-corn, sorghum,
oats, rice, rye, wheat, amaranth, quinoa, buckwheat, and oilseeds (for
example, cotton seed, flax seed, rapeseed, soybean, and sunflower
seed).
Specialty crop operation means a farming operation that produces
specialty crops that are raw agricultural commodities. It includes both
individuals and legal entities.
Eligible Applicants
To be eligible for FSCSC, the applicant must meet all of the
following:
<bullet> Be a specialty crop operation;
<bullet> Be a small business or medium size business;
<bullet> Have obtained or renewed a:
[cir] 2024 food safety certification that was issued between June
26, 2024 and December 31, 2024; or
[cir] 2025 food safety certification issued during the 2025
calendar year; and
<bullet> Have paid eligible expenses as described in the following.
FSCSC is available to specialty crop 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 Expenses
FSCSC provides assistance for eligible expenses that the applicant
both incurs and pays in order to obtain or renew a 2024 or 2025 food
safety certification. Expenses that have been incurred by an applicant
who does not ultimately obtain a 2024 or 2025 food safety certification
are not eligible for assistance through FSCSC.
Some specialty crop operations obtain food safety certification
through a group model, which enables multiple producers to form a group
that develops a food safety management system and is audited and
certified as one unit. This approach enables group members to pool
resources to implement food safety training programs and share the cost
of certification. Specialty crop operations that obtain certification
through a group model are eligible to apply for assistance for their
share of eligible expenses paid by the group, in addition to any
eligible expenses they incur individually.
Specialty crop operations may receive assistance for the costs that
are described in the following six items, including any associated
postage costs.
Developing a food safety plan for first-time food safety
certification. A food safety plan is a requirement for any specialty
crop operation or group undergoing formal food safety certification,
and the majority of costs associated with food safety plan development
occur the first year an operation undergoes food safety certification.
There are 2 general approaches to plan development--the specialty crop
operation may develop its own plan, hire a consultant, or a combination
of both. FSCSC will cover a percentage of the costs of seminars and
tools used by specialty crop operations to create a food safety plan.
FSCSC will also cover a percentage of the consulting fees and other
associated expenses incurred if the specialty crop operation hires a
consultant to develop a food safety plan. For specialty crop operations
certified through a group, this category of expenses will cover a
percentage of their share of the cost for developing a food safety or
quality management system for the group.
Maintaining or updating an existing food safety plan. Certification
programs typically require an annual review of the food safety plan to
ensure it is current and addresses any new audit or regulatory
requirements, as well as incorporates any new hazards. FSCSC will cover
a percentage of the costs of maintaining and updating existing food
safety plans. For specialty crop operations certified through a group,
this category of expenses will cover a percentage of their share of the
cost for maintaining or updating an existing food safety management
system for the group.
Food safety certification. FSCSC will cover a percentage of the
cost of obtaining food safety certification issued by a certifier,
including application fees, inspection costs, inspection fees
(including travel costs and per diem for certifiers), and user fees or
certifier sales assessments.
Certification upload fees. FSCSC will cover a percentage of the
cost to upload audit reports and certification documentation into
commercial audit databases, which may be required by buyers of
specialty crops.
Microbiological testing. FSCSC will cover a percentage of the cost
of microbiological testing for products, soil amendments, and water as
specified by a food safety plan or food safety management system. The
FSMA Produce Safety Rule requires covered farms to test their
agricultural water, and commercial food safety standards may require
additional testing to determine if water meets the microbial
requirements of the Environmental Protection Agency's drinking water
standard (40 CFR part 141). Retail, food service, and institutional
buyers are also increasingly requiring microbiological testing of
finished products. Testing of soil amendments, particularly amendments
of animal origin (composting), is also required by many food safety
audit programs.
Training. FSCSC will cover the cost of food safety training for the
specialty crop operation. The FSMA requires all covered operations to
take a training course annually. Additionally, most certification
programs require training as well.
Ineligible Expenses
Any expenses not listed above are not covered by FSCSC. The
following expenses are examples of costs that are not eligible for cost
share under FSCSC:
<bullet> Infrastructure improvements (such as improvements to
buildings, cold storage, flooring, restrooms, and handwashing
stations);
<bullet> Equipment (such as grading or packing lines and sanitation
equipment);
<bullet> Supplies (such as sanitation and cleaning supplies and
personal protective equipment);
<bullet> Salaries and benefits of employees or other costs for
labor, except for expenses for consultants described above; and
<bullet> Fees or penalties for late payment.
[[Page 53385]]
Application Process
The application periods will be:
<bullet> for 2024, the application period will begin at a date to
be announced by the Deputy Administrator for Farm Programs and go
through January 31, 2025; and
<bullet> for 2025, January 1, 2025, through January 31, 2026.
Applicants may apply for FSCSC at any USDA Service Center.\1\ Each
applicant must submit Form FSA-888-1, Food Safety Certification for
Specialty Crops Program (FSCSC) For Program Years 2024 and 2025, by the
application deadline. Applications may be submitted in person or by
mail, email, facsimile, or other methods announced by FSA. Applicants
must also submit the following forms if not already on file with FSA:
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\1\ 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 AD-2047, Customer Data Worksheet; and
<bullet> Form SF-3881, ACH Vendor/Miscellaneous Payment Enrollment
Form.\2\
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\2\ Applicants who are unable to receive payment through direct
deposit are still eligible to participate in FSCSC. Those applicants
should contact their local FSA county office for further
information.
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Eligible expenses are based on the applicant's certification and
are subject to spot check. Applicants may be required to provide
additional documentation to FSA, if requested by FSA, to verify
eligibility or issue payment. Specialty crop operations certified as
part of a group under a food safety management system must provide
documentation of the applicant's portion of the group's expenses from
the entity responsible for maintaining the group's certification if
requested by FSA. Additional documentation must be received within 30
days of the request or the application will not be processed.
Payments
FSCSC payments are calculated separately for each category of
eligible costs based on the percentages and maximum payment amounts in
the following table. An applicant may receive the specified percentage
of their eligible costs, up to the maximum per category, for each
program year.
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Payment amount of eligible
Category of eligible expenses costs
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Food safety certification.................. 75 percent, up to a maximum
of $2,000.
Development of a food safety plan for first- 75 percent (no maximum).
time certification.
Maintaining or updating a food safety plan. 75 percent, up to a maximum
of $675.
Certification upload fees.................. 75 percent, up to a maximum
of $375.
Microbiological testing--products.......... 75 percent, up to 5 tests.
Microbiological testing--soil amendments... 75 percent, up to 5 tests.
Microbiological testing--water............. 75 percent, up to 5 tests.
Training................................... 100 percent, up to a
maximum of $500.
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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, if
applicable. An applicant must report any previous cost share assistance
received from any source for the expenses included on their
application. The amount of the applicant's FSCSC payment plus the
reported additional cost share assistance cannot exceed the total
amount of eligible expenses for each category. If the amount of the
additional cost share plus the calculated FSCSC payment exceed the
total amount of eligible expenses for a category, the FSCSC payment for
that category will be equal to the total amount of eligible expenses
minus the additional reported cost share assistance.
FSA will issue payments for the 2024 program year as applications
are processed and approved. Due to the limited amount of funding, FSA
will issue 50 percent of the calculated amount for 2025 program year
payments as applications are processed and approved, and an additional
payment after the end of the 2025 application period. If total
calculated payments exceed the amount of available funding for 2025,
the additional 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 FSCSC 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.
Applicants have a right to a decision in response to their
application. 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.
Requests to waive or modify program provisions, including requests
to waive the deadline, are at the discretion of the Deputy
Administrator. The Deputy Administrator has the authority to waive or
modify application deadlines and other requirements or program
provisions not specified in law, in cases where the Deputy
Administrator determines it is:
(1) equitable to do so; and
(2) where the lateness or failure to meet such other requirements
or program provisions do not adversely affect the operation of FSCSC.
Applicants who request to waive or modify FSCSC provisions do not
have a right to a decision on those requests, and the Deputy
Administrator's refusal to exercise discretion on requests to waive or
modify FSCSC provisions 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 FSCSC. 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 do not 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 FSCSC will be made without regard to questions of
title under State law and without regard to any claim or lien. The
regulations
[[Page 53386]]
governing offsets in 7 CFR part 3 apply to FSCSC payments.
If an FSCSC payment resulted from erroneous information provided by
a participant, or any person acting on their behalf, the payment will
be recalculated and the participant must refund any excess payment with
interest calculated from the date of the disbursement of the payment.
If FSA determines that the applicant intentionally misrepresented
information provided on their application, the application will be
disapproved and the applicant must refund the full payment to FSA with
interest from the date of disbursement.
In either applying for or participating in FSCSC, or both, the
applicant is subject to laws against perjury (including but not limited
to 18 U.S.C. 1621). If the applicant willfully makes and represents as
true any verbal or written declaration, certification, statement, or
verification that the applicant knows or believes not to be true, in
the course of either applying for or participating in FSCSC, or both,
then the applicant may be found to be guilty of perjury. Except as
otherwise provided by law, if guilty of perjury the applicant may be
fined, imprisoned for not more than 5 years, or both, regardless of
whether the applicant makes such verbal or written declaration,
certification, statement, or verification within or outside the United
States.
For the purposes of the effect of a lien on eligibility for Federal
programs (28 U.S.C. 3201(e)), USDA waives the restriction on receipt of
funds under FSCSC but only as to beneficiaries who, as a condition of
the waiver, agree to apply the FSCSC payments to reduce the amount of
the judgment lien.
In addition to any other Federal laws that apply to FSCSC, the
following laws apply: 18 U.S.C. 286, 287, 371, and 1001.
Paperwork Reduction Act Requirements
In compliance with the Paperwork Reduction Act (44 U.S.C. 3501-
3520), there are no changes to the approved information collection
under OMB control number of 0560-0311.
Environmental Review
The environmental impacts of this notice 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 FSCSC is to provide assistance to specialty crop
operations for eligible costs related to food safety certification. 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 notice 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.
Federal Assistance Programs
The title and number of the Federal assistance program, as found in
the Assistance Listings, to which this document applies are 10.142,
Food Safety Certification for Specialty Crops (FSCSC) Program.
USDA Non-Discrimination Policy
In accordance with Federal civil rights law and U.S. Department of
Agriculture (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.
Individuals 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
the USDA TARGET Center at (202) 720-2600 (voice and text telephone
(TTY)) or dial 711 for Telecommunications Relay Service (both voice and
text telephone users can initiate this call from any telephone).
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: (1) mail to: U.S. Department of Agriculture,
Office of the Assistant Secretary for Civil Rights, 1400 Independence
Avenue SW, Washington, DC 20250-9410; (2) fax: (202) 690-7442; or (3)
email: <a href="/cdn-cgi/l/email-protection#c6b6b4a9a1b4a7abe8afa8b2a7ada386b3b5a2a7e8a1a9b0"><span class="__cf_email__" data-cfemail="5323213c3421323e7d3a3d2732383613262037327d343c25">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
Zach Ducheneaux,
Administrator, Farm Service Agency, and Executive Vice President,
Commodity Credit Corporation.
[FR Doc. 2024-14022 Filed 6-25-24; 8:45 am]
BILLING CODE 3410-E2-P
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