The U.S. Department of Agriculture’s Farm Service Agency has $104 million available to organic dairy operations to help them with projected marketing costs in 2023.
The assistance for dairy producers will come under the new Organic Dairy Marketing Assistance Program, according to a May 19 news release. The help available to organic dairy operations will be calculated using 2022 marketing costs and will consist of a one-time cost-share payment.
“Organic dairy producers have faced significant and unique increases in their marketing costs, compounded by increases in feed and transportation costs and the limited availability of organic grain and forage commodities,” Farm Service Agency Administrator Zach Ducheneaux said in the release.
The help comes as the organic dairy industry is experiencing hardships because of “market volatility, higher input and transportation costs and unstable feed supply and prices,” the release said.
“Without assistance, many organic dairies, particularly small organic dairies, will cease production, which not only impacts the domestic supply and consumption of organic milk, but also the well-being of many rural communities across the country," Ducheneaux added, according to the release. "This program will keep our small organic dairies in operation as they continue to weather a combination of challenges outside of their control.”
Applications for the Organic Dairy Marketing Assistance Program will be accepted until July 26, the release reported. Producers can contact the Farm Service Agency at a local USDA Service Center. Applications will require certification of pounds of 2022 milk production, documentation of organic certification and a completed application form.
According to the release, certified organic dairy operations producing milk from cows, sheep and goats are eligible for the program.
“With unprecedented organic feed costs and inflationary pressures over the last couple of years, resources like ODMAP are really going to matter as farmers plan for the rest of this year,” Adam Warthesen, co-chair of the Organic Trade Association’s Organic Feedstuffs Relief Task Force and senior director of Government and Industry Affairs for Organic Valley, said in the release.
