US Agriculture Secretary Tom Vilsack has announced details of the US Department of Agriculture’s (USDA) $300 million investment in an Organic Transition Initiative which he said will help build new and better markets and streams of income for farmers and producers.
USDA has said that organic production allows producers to hold a unique position in the marketplace enabling farmers to take home a greater share of the food dollar.
According to the USDA National Agricultural Statistics Service, the number of non-certified organic farms actively transitioning to organic production dropped by nearly 71% since 2008.
Through the support provided by this initiative, USDA said it hopes to reverse this trend, opening opportunities for new and beginning farmers and expanding direct consumer access to organic foods through increased production.
USDA Organic Transition Initiative
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 Programme
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.
It’s understood that AMS will build partnership networks in six regions across the US with trusted local organisations serving direct farmer training, education, and outreach activities.
The organisations 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.
The field days will cover topics including the following:
- Organic production practices;
- Certification;
- Conservation planning;
- Business development (including navigating the supply chain);
- Regulations;
- 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 programme.
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 modelled 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 centres.
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.
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 said it will invest up to $100 million to help improve organic supply chains in pinpointed markets.