Notice2024-22346
Notice of Funds Availability (NOFA); Organic Dairy Marketing Assistance Program 2024 (ODMAP 2024)
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Published
September 30, 2024
Issuing agencies
Agriculture DepartmentCommodity Credit CorporationFarm Service Agency
Abstract
The Farm Service Agency (FSA) is announcing the availability of marketing assistance funding to organic dairy operations in the United States. The organic dairy farms have faced--and still continue to face--a variety of challenges, and many are struggling to remain organic dairy operations, which is why FSA is issuing this notice to provide marketing assistance payments to eligible organic dairy operations to help expand the market for organic dairy and increase the consumption of organic dairy. ODMAP 2024 will provide payments to assist organic dairy operations with projected marketing costs for 2024.
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<title>Federal Register, Volume 89 Issue 189 (Monday, September 30, 2024)</title>
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[Federal Register Volume 89, Number 189 (Monday, September 30, 2024)]
[Notices]
[Pages 79505-79509]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-22346]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Farm Service Agency
[Docket ID FSA-2024-009]
Notice of Funds Availability (NOFA); Organic Dairy Marketing
Assistance Program 2024 (ODMAP 2024)
AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.
ACTION: Notification of funds availability.
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SUMMARY: The Farm Service Agency (FSA) is announcing the availability
of marketing assistance funding to organic dairy operations in the
United States. The organic dairy farms have faced--and still continue
to face--a variety of challenges, and many are struggling to remain
organic dairy operations, which is why FSA is issuing this notice to
provide marketing assistance payments to eligible organic dairy
operations to help expand the market for organic dairy and increase the
consumption of organic dairy. ODMAP 2024 will provide payments to
assist organic dairy operations with projected marketing costs for
2024.
DATES: Applications Due Date: We will accept applications from
September 30, 2024 through November 29, 2024.
FOR FURTHER INFORMATION CONTACT: Douglas Kilgore, (717) 887-0963,
<a href="/cdn-cgi/l/email-protection#6d0902180a010c1e4308430604010a021f082d181e090c430a021b"><span class="__cf_email__" data-cfemail="7f1b100a18131e0c511a5114161318100d1a3f0a0c1b1e51181009">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
Over the past several years, organic dairy farms have faced--and
continue to face--a variety of challenges, and many are struggling to
remain in business. Notably, organic dairy operations have limited
ability to pass along cost increases to retailers or consumers without
leading to a decrease in domestic consumption of organic dairy. The
cost increases have, in many cases, eliminated profit margins,
especially among operations that do not have the ability to take
advantage of economies of scale. Without intervention, marketing and
operational challenges may result in decisions to cease organic dairy
operations entirely, which will reduce the organic dairy market.
The organic dairy market is closely linked to the domestic organic
feed market. Reduction in organic dairy numbers would consequently
result in reduction in organic feed demand. Organic grain and forage
commodities have traditionally been relatively small markets where the
domestic U.S. demand for organic feed has outstripped supply, resulting
in the need for imports. Input costs and availability, especially feed,
have seen several years of sustained increases and volatility due to a
variety of factors that has impacted increased costs of production. In
2023, drought conditions affected many areas in which organic dairies
operate. Many of these operations rely on grazing and therefore
required the purchase of forage from a distressed and limited market.
Contraction of the organic industry, including availability of organic
forage operators, also continues to affect the availability of major
organic feed and forage commodities for organic dairy operations.
In addition to these input costs and challenges, organic dairy
farmers also have seen higher delivery and marketing costs as in prior
years, especially those related to transportation and hauling. As part
of the system through which all dairy farmers provide milk and dairy
products to consumers, dairies bear the costs of milk hauling and other
marketing costs. These marketing costs for organic dairies, however,
can be significantly greater than the conventional market because of
the unique and limited marketing system structure within the United
States. In addition, participants in the organic dairy sector must take
additional steps to keep the organic milk separated and its status as
organic clearly preserved. In some cases, these requirements
necessitate longer and more costly hauling routes, including the costs
of finding truck drivers willing to cover
[[Page 79506]]
longer routes with multiple stops. Finding truckers with the experience
and training to operate tanker trucks and irregular scheduling for milk
hauling, exacerbates these challenges further.
Organic dairy operations also tend to be smaller farms than
conventional dairy operations, which means they often have less
production to spread the various fixed costs over or have higher per
unit costs. Additionally, marketing costs that include cooperative
dues, capital retains, and mandated advertising and promotional
assessments influence the bottom line of organic dairy operations,
especially small and mid-size operations. Therefore, organic dairy
operations often do not benefit from the same economies of scale as
conventional dairies. In particular, milk pick-up and hauling costs may
be a challenge due to the need to have dedicated organic pick-up routes
that need to stop at multiple farms or use smaller tankers.
FSA will administer ODMAP 2024 in a similar manner as the previous
ODMAP NOFA for 2023 published on May 24, 2023 (87 FR 33563-33564);
however, FSA has made changes to improve the operation of ODMAP, as
explained in this NOFA, including a revision of the marketing
assistance payment calculation by using organic milk pricing instead of
commercial milk pricing.
ODMAP 2024 will provide payments to eligible organic dairy
operations that produce milk from cows as well as organic dairy
operations that produce milk from goats and sheep. All three types of
organic dairy operations are eligible since all three types of
operations face the same challenges related to organic marketing and
generally follow similar business and marketing models, such as pooling
milk through cooperatives or selling directly to milk processors that
make dairy products such as cheese. While there are fewer, and,
therefore, less data available on, organic dairy operations that
produce milk from goats and sheep compared to cows, based on the fact
that all three operations face the same challenges and have the same
business and marketing models, the impact of increased marketing costs
to the market for, and therefore consumption of, organic dairy is
understood to remain constant across all three.
Data to estimate the marketing costs for all species relies on
conventional cow milk estimates, since more specific national organic
cow, sheep, or goat estimates are not available. Given the unique
marketing challenges and strategies for organic dairy operations
discussed above, these conventional estimates are likely to be
conservative and do not reflect the full marketing costs for organic
production.
Through ODMAP 2024, USDA is assisting organic dairy operations by
providing payments to assist with their projected marketing costs in
2024. The Commodity Credit Corporation (CCC) Charter Act (15 U.S.C.
714c(e)) includes authority for CCC to use its general powers and
funding 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. USDA is providing this marketing assistance
to organic dairy producers to help keep organic dairies in operation by
aiding in the expansion of the domestic market for organic dairy, which
will increase domestic consumption of organic dairy, in order to
counteract the currently projected reduction in this market. According
to USDA's Organic Integrity Database, from 2021 through 2024, 19
percent of certified organic dairy operations have gone out of
business. Without the ODMAP 2024 marketing assistance, it is projected
that organic dairies, and particularly small organic dairies, may cease
or decrease organic dairy production and reduce the domestic supply and
consumption of organic milk.
FSA designed ODMAP 2024 to provide marketing assistance to
certified organic dairy operations that produce organic milk from dairy
cows, dairy goats, or dairy sheep. ODMAP 2024 provides one-time payment
for a cost share of projected marketing costs for eligible organic
dairies for 2024, not to exceed 9 million pounds of organic milk
marketed per operation. FSA has increased the production level eligible
for cost share assistance to 9 million pounds from the 5 million used
in the 2023 version of ODMAP in order to make additional assistance
available to organic dairy operations that are vulnerable due to narrow
margins and at risk of going out of business. For ODMAP in 2023,
eligible organic dairy operations were limited to cost-share assistance
on their first 5 million pounds of production. Upon further review, FSA
determined that increasing the production level eligible for cost-share
assistance in ODMAP 2024 from 5 million pounds to 9 million pounds \1\
would broaden the level of support provided by this program to provide
a greater impact on the market for organic dairy. While all eligible
organic dairy operations may receive cost-share assistance on up to 9
million pounds of production, this increased production level for cost-
share will provide a greater impact on the marketing of small and mid-
sized organic dairy operations who are most vulnerable to market
impacts because of higher input costs from lacking the economies of
scale of larger operations and for whom this higher production level
represents a greater proportion of these dairies' overall production.
This increased production level eligible for cost-share is intended to
further increase consumption of organic dairy by providing greater
assistance to producers to market their organic dairy products and
thereby expand the availability of marketed organic dairy products.
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\1\ FSA's increase to 9 million pounds aligns with a change made
in 2023 in the Pandemic Market Volatility Assistance Program
administered by the Agricultural Marketing Service (AMS) for organic
dairy farmers to increase the eligibility cap for payments in that
program from 5 million to 9 million pounds, an increase intended to
provide additional support to medium-sized organic dairy farmers.
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All organic dairy operations that apply for ODMAP 2024 will be
required to provide their USDA certification of organic status,
confirming their operation as an organic dairy operation at the time of
application. In order to calculate projected marketing costs for 2024,
the streamlined process will have operations certify to their organic
milk production for the 2023 calendar year, that was marketed directly
as organic milk or indirectly through organic dairy products or a
projection of pounds of organic milk marketed in 2024 if warranted due
to changes in circumstances between 2023 and 2024 supported by
documentation as discussed further below. While production
documentation for 2023 production is not required at the time of
application, operations should retain supporting documentation and
calculations for 3 years should they be selected for a spot check.
FSA will administer ODMAP 2024 on behalf of CCC, using CCC funds.
The ODMAP 2024 payment may be issued in 2 parts.
There is $58 million from CCC funds available for ODMAP 2024
marketing assistance. ODMAP 2024 payments will be subject to
availability of funding. FSA will make an initial payment to eligible
applicants factored by 75 percent. If sufficient available funding
remains at the conclusion of the application period, an additional
payment of up to the remaining 25 percent may be made to each eligible
[[Page 79507]]
applicant if USDA determines that additional marketing assistance is
still needed.
The funds announced in this NOFA are not subject to sequestration.
Average Milk Marketing Cost
The only available estimates to calculate an average milk marketing
cost are from milk marketed through the Federal Milk Marketing Orders
(FMMO), which is primarily conventional cow milk. There are no
national-level data sets on milk marketing and hauling costs specific
to organic sheep or goat operations. While an estimated average milk
marketing cost from FMMO is likely conservative given the likely higher
per unit costs for smaller operations that are more common for organic
production, and the unique marketing challenges facing organic dairy
operations, the similarities in marketing options and costs between
conventional and organic make it the best proxy available. This is
particularly true after FSA adjusts the estimated average milk
marketing cost from the FMMO by using the 2021 NASS All-Milk price for
organic milk, which better takes into account the increased price for
organic milk as compared to the conventional price of milk used under
ODMAP for 2023.
To develop the ODMAP 2024 payment rate, FSA worked with the
Agricultural Marketing Service (AMS) to determine an average marketing
cost per hundredweight, using the AMS data from the FMMO regional model
documentation (<a href="https://www.ams.usda.gov/sites/default/files/media/FinalDecisionEconometricModelDocumentation.pdf">https://www.ams.usda.gov/sites/default/files/media/FinalDecisionEconometricModelDocumentation.pdf</a>), which estimates the
relationship between each FMMO uniform milk price and the National
Agriculture Statistics Service (NASS) all-milk price. To take into
account the price difference between conventional milk and organic
milk, the 2021 NASS All-Milk price for organic milk is used to
determine an average marketing cost per hundredweight instead of the
2020 All-Milk price for conventional milk used for ODMAP.
Through this comparison using the 2021 NASS All-Milk price for
organic milk, the model estimates the milk marketing and hauling fees
that are deducted in the net producer milk marketing statements
(producers' paychecks).
Averaging these estimates of milk marketing costs among orders
results in an average of $1.68 per hundredweight for 2023, which will
be used as the average milk marketing cost to calculate the ODMAP 2024
payment.
Eligibility
To be eligible for ODMAP, the organic dairy operation must produce
and market organic milk from cows, goats, or sheep at the time of
application, provide their USDA Certification of organic status for
2024, and have documentation to support any certified projection of
2024 pounds of organic milk marketed.
To be eligible for ODMAP 2024 marketing assistance each applicant
must:
(1) Submit a FSA-630-1 application and any additional required
documentation as specified in the Application Process section below;
and
(2) Comply with all provisions of this NOFA and comply with the
following regulations:
<bullet> 7 CFR part 12--Highly Erodible Land and Wetland
Conservation;
<bullet> 7 CFR 718.6, Controlled Substance; and
<bullet> 7 CFR part 707--Payments Due Persons Who Have Died,
Disappeared, or Have Been declared Incompetent, if applicable.
In addition, consistent with other FSA assistance programs, a
producer must be a:
<bullet> Citizen of the United States;
<bullet> Resident alien, which for purposes of ODMAP 2024 means
``lawful alien'' as defined in 7 CFR 1400.3;
<bullet> Partnership consisting solely of citizens of the United
States or resident aliens; or
<bullet> Corporation, limited liability company, or other
organizational structure organized under State law consisting solely of
citizens of the United States or resident aliens.
Federal, State, and local governments are not eligible for ODMAP
2024 payments.
Payment Rates and Calculations
The ODMAP 2024 initial payment will be calculated by using the
producer-certified pounds of organic milk projected to be marketed in
2024, multiplied by the $1.68 per cwt ODMAP 2024 payment rate,
multiplied by a factor of 75 percent. The pounds of organic milk
projected to be marketed in 2024 will be:
(i) the self-certified organic milk production marketed directly by
the operation in 2023 or used as inputs in related-organic dairy
products marketed in 2023, that can be supported by documentation
maintained in the ordinary course of business, or
(ii) if approved by the Deputy Administrator, an operation-specific
certified estimate of organic milk projected to be marketed in 2024
that is supported by documentation maintained in the ordinary course of
business from the applicant.
Operations that (a) transitioned to organic in 2023 or 2024, (b)
are new organic operations in 2023 or 2024, or (c) have increased
organic milk production capacity by 15 percent or greater in 2024 as
compared to 2023, may request to use a certified estimate of their
operation's reasonably projected organic milk to be marketed in 2024
based on average daily organic production of current herd that can be
supported by documentation maintained in the ordinary course of
business, including, but not limited to milk marketing statements,
active base milk production records, contemporaneous records, or
similar supporting documentation, as may be requested by the Deputy
Administrator. These operations must provide an explanation of the
basis for their monthly projections on the form FSA-630-1 and how those
projections are supported by the supporting documentation they submit
with the application. All organic dairy operations making such a
request must submit with their application all available 2024 milk
marketing statements, in addition to all other documentation necessary
to support their certification. Organic dairy operations should contact
their local FSA Service Center if they have questions regarding their
particular circumstances and the documentation necessary to support
such a request. The request will be evaluated by the Deputy
Administrator at the Deputy Administrator's discretion to assess
whether the estimate is adequately supported by documentation and
reasonable based on the documented average daily production of current
organic herd.
The ODMAP 2024 initial payments factored at 75 percent will be made
to eligible applicants on a rolling basis as applications are submitted
and approved. If funds remain at the conclusion of the application
period, a second payment to eligible applicants of up to the remaining
25 percent may be issued subject to available funding and a
determination by FSA of the need for additional marketing assistance
based on discussions with USDA experts and economists, industry, and
stakeholders regarding impact of initial marketing assistance on
domestic consumption of organic dairy.
Organic dairy operations are only eligible for payment on up to 9
million pounds of organic milk.
Application Process
FSA will make available to organic dairy operations form FSA-630-1
to
[[Page 79508]]
apply for assistance for 2023 milk production or 2024 estimated milk
production for dairy operations that provide supporting documentation
demonstrating increased estimated 2024 milk production in comparison to
2023 milk production. FSA will accept applications from September 30,
2024 through November 29, 2024. To apply for ODMAP 2024 marketing
assistance, all applicants must submit a completed form FSA-630-1 and
all other required documentations to their administrative FSA county
office by November 29, 2024.
Applicants must submit the following forms, if not already on file,
in person or by mail, email, facsimile:
<bullet> Form FSA-630-1, ODMAP 2024 Application;
<bullet> Manual Form CCC-902-I, Farm Operating Plan for an
Individual, as applicable;
<bullet> Manual Form CCC-902E, Farm Operating Plan for an Entity,
as applicable;
<bullet> CCC-901, Member Information for Legal Entities (if
applicable);
<bullet> AD-1026, Highly Erodible Land Conservation (HELC) and
Wetland Conservation (WC) Certification; and
<bullet> AD-2047, Customer Data Worksheet.
The Deputy Administrator has the discretion and authority to waive
or modify filing deadlines and other requirements or program 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
program provisions do not adversely affect the operation of ODMAP 2024.
Although producers have a right to a decision on whether they filed
applications by the deadline or not, producers 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 on requests to waive or modify ODMAP 2024 provisions will
not be considered an adverse decision and is, by itself, not
appealable.
Evaluation and Approval of Payments
FSA will review each ODMAP 2024 application and supporting
documentation to determine eligibility. FSA, on behalf of CCC, will
approve applications for an ODMAP 2024 payment for eligible applicants
consistent with the terms specified in this document.
If requested by FSA, the applicant must provide additional
supporting documentation to verify the accuracy of information provided
on the application. If any supporting documentation is requested, the
documentation must be submitted to FSA within 30 calendar days from the
request or the application will be disapproved by FSA, and, if payment
has been made, full ODMAP 2024 payment will be required to be refunded
to FSA with interest from the date of disbursement. ODMAP 2024 is
subject to the availability of funding and will be funded in the order
in which applications are approved. If additional funding is allocated
to ODMAP 2024 after initial funding is depleted, additional
applications will be reviewed, approved, and funded, if the eligibility
criteria is met, in the order received during the application period,
subject to the availability of those additional funds.
An ODMAP 2024 initial payment will be issued after an application
is approved. At the end of the application period, a second payment may
be issued to eligible applicants.
Provisions Requiring Refund to FSA
In the event any ODMAP 2024 payment resulted from erroneous
information or a miscalculation, the payment will be recalculated, and
the participant must refund any excess payment to FSA with interest to
be calculated from the date of the disbursement to the participant. If,
for whatever reason, FSA determines that the applicant misrepresented
either the reported organic milk production or organic certification or
is otherwise ineligible for payment, the application will be
disapproved, and the full ODMAP 2024 payment will be required to be
refunded to FSA with interest from the date of disbursement. ODMAP 2024
applications, the form FSA-630-1, will be reviewed and spot-checked by
FSA for program eligibility and payment calculation purposes through
milk marketing statements or similar supporting documentation. ODMAP
2024 participants must retain all supporting documentation for 3 years.
The liability of anyone for any penalty or sanction resulting from
an ODMAP 2024 application, or for any refund to FSA, is in addition to
any other liability of such person under any civil or criminal fraud
statute or any other provision of law including, but not limited to: 18
U.S.C. 286, 287, 371, 641, 651, 1001, and 1014; 15 U.S.C. 714; and 31
U.S.C. 3729.
Miscellaneous Provisions
Appeal regulations specified in 7 CFR parts 11 and 780 apply. FSA
program requirements and determinations that are not in response to, or
result from, an individual disputable set of facts in an individual
participant's application for assistance are not matters that can be
appealed.
Paperwork Reduction Act Requirements
In compliance with the provisions of the Paperwork Reduction Act
(44 U.S.C. chapter 35), the information collection request has been
approved by OMB under the control number of 0503-0028. FSA will collect
the information from the organic dairy operations to qualify for the
ODMAP 2024 payment. ODMAP 2024 provides one-time payment to the
eligible organic dairy operations as described in this NOFA.
Environmental Review
The environmental impacts 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 ODMAP 2024 is to provide marketing assistance
funding to organic dairy operations in the United States to increase
the domestic consumption of organic milk and organic milk products by
aiding in the expansion of the organic milk market. The limited
discretionary aspects of ODMAP 2024 do not have the potential to impact
the human environment as they are administrative. Accordingly, these
discretionary aspects are covered by the categorical exclusions in 7
CFR 799.31(b)(6)(iii) that applies to price support programs, provided
no extraordinary circumstances are found to exist. As such, the
implementation of ODMAP 2024 and the participation in ODMAP 2024 do not
constitute major Federal actions 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 action and this document serves
as documentation of the programmatic environmental compliance decision
for this federal action.
Federal Assistance Programs
The title and number of the Federal assistance programs, as found
in the Assistance Listing, to which this document applies is 10.977,
Organic Dairy Marketing Assistance Program (ODMAP) 2024.
[[Page 79509]]
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
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#fe8e8c91998c9f93d097908a9f959bbe8b8d9a9fd0999188"><span class="__cf_email__" data-cfemail="4c3c3e232b3e2d21622522382d27290c393f282d622b233a">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
Steven Peterson,
Administrator, Farm Service Agency, and Executive Vice President,
Commodity Credit Corporation.
[FR Doc. 2024-22346 Filed 9-27-24; 8:45 am]
BILLING CODE 3411-E2-P
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