California Ag Network

Tag: ODMAP

  • USDA Offers $58 Million to Help Organic Dairy Producers

    The U.S. Department of Agriculture (USDA) announced $58 million available for marketing assistance to eligible organic dairy producers through the Organic Dairy Marketing Assistance Program (ODMAP) 2024 to help expand the market for organic dairy and increase the consumption of organic dairy.

    “The Organic Dairy Marketing Assistance Program continues USDA’s commitment to keep the market for organic dairies sustainable as they weather challenges outside of their control,” said USDA’s Farm Service Agency (FSA) Administrator Zach Ducheneaux. “In preparation for the launch of ODMAP 2024, we met often with organic milk industry leaders and their constituents to ensure that the assistance we provide addresses their expressed needs. Through this proactive engagement, we identified the need for and are pleased to offer increased payment rates and an increased production level eligible for marketing cost-share assistance.”

    ODMAP 2024 helps mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. Specifically, through ODMAP 2024, FSA is assisting organic dairy operations with projected marketing costs in 2024 calculated using their marketing costs in 2023. FSA began accepting ODMAP 2024 applications on Sept. 30. Eligible producers include certified organic dairy operations that produce milk from cows, goats, and sheep.

    ODMAP 2024 Program Improvements 

    Dairy producers who participate in ODMAP 2024 will benefit from improvements to provisions outlined in the program. Specifically, ODMAP 2024 provides for an increase in the payment rate to $1.68 per hundredweight compared to the previous $1.10 per cwt. Additionally, the production level eligible for marketing cost-share assistance has increased to nine million pounds compared to the previous five million pounds.

    How ODMAP 2024 Works  

    ODMAP 2024 provides a one-time cost-share payment based on marketing costs on pounds of organic milk marketed in the 2023 calendar year or estimated 2024 marketing costs for organic dairy operations that have increased milk production or entered the organic dairy market. The assistance provided by ODMAP 2024 and the original ODMAP 2023 is provided through previously unused Commodity Credit Corporation funds remaining from earlier pandemic assistance programs.

    ODMAP 2024 provides financial assistance that immediately supports certified organic dairy marketing during 2024 keeping the organic dairy market sustainable until markets return to more normal conditions.

    How to Apply  

    FSA is accepting applications from Sept. 30 to Nov. 29. To apply, producers should contact FSA at their local USDA Service Center. To complete the ODMAP 2024 application, producers must certify to pounds of 2023 milk production, show documentation of their organic certification, and submit a completed application form.

    Organic dairy operations are required to provide their USDA certification of organic status confirming operation as an organic dairy in 2024 and 2023 along with the certification of 2023 milk production or estimated 2024 milk production in hundredweight.

    ODMAP 2024 complements other assistance available to dairy producers, including Dairy Margin Coverage (DMC), with more than $36 million in benefits paid for the 2024 program year to date.  Learn more on the FSA Dairy Programs webpage.

    More Information

    To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other farm records data and customer information by logging into their farmers.gov account. If you don’t have an account, sign up today.

    FSA helps America’s farmers, ranchers and forest landowners invest in, improve, protect and expand their agricultural operations through the delivery of agricultural programs for all Americans. FSA implements agricultural policy, administers credit and loan programs, and manages conservation, commodity, disaster recovery and marketing programs through a national network of state and county offices and locally elected county committees. For more information, visit fsa.usda.gov.

  • Second Round of USDA Payments to Help Organic Dairy Producers Cover Increased Costs

    The U.S. Department of Agriculture (USDA) is announcing a second round of payments for dairy producers through the Organic Dairy Marketing Assistance Program (ODMAP), providing an additional $5 million to help dairy producers mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. USDA’s Farm Service Agency (FSA) has already paid out $15 million in the first round of payments for eligible producers, bringing total ODMAP payments to $20 million.

    “This program is critical to keeping small, organic dairies sustainable as they continue to weather a combination of challenges outside of their control,” said FSA Administrator Zach Ducheneaux. “In total, the Farm Service Agency is providing $20 million to give organic dairy producers additional economic support to stay in operation until markets return to more favorable conditions.”

    How ODMAP Works

    FSA accepted ODMAP applications from May 24 to August 11.

    Eligible producers for ODMAP included certified organic dairy operations that produce milk from cows, goats and sheep.

    ODMAP provides financial assistance for a producer’s projected marketing costs in 2023, calculated based on a cost share of marketing costs on the pounds of organic milk marketed for the 2022 calendar year (or a projection of 2023 pounds of organic milk marketed if warranted in certain situations), not to exceed 5 million pounds. For ODMAP applicants, the first payment was factored by 75%. USDA has determined that additional assistance is still needed and sufficient funding remains available so the second round of payments will provide the remaining 25% of requested assistance to each eligible applicant.

    The second ODMAP payment is automatic. Participating producers do not need to take any additional action.

    More Information

    ODMAP complements other assistance available to dairy producers, including Dairy Margin Coverage (DMC) and Supplemental DMC, with more than $1 billion in benefits paid for the 2023 program year to date.

    Additionally, FSA recently announced the Milk Loss Program for eligible dairy operations. The program covers milk that was dumped or removed, without compensation, from the commercial milk market due to qualifying weather events and the consequences of those weather events that inhibited delivery or storage of milk (e.g., power outages, impassable roads, infrastructure losses, etc.) during calendar years 2020, 2021 and 2022. Learn more on the FSA Dairy Programs webpage.

    To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other farm records data and customer information by logging into their farmers.gov account. If you don’t have an account, sign up today.

  • Assistance to Help Organic Dairy Producers Cover Increased Costs

    The U.S. Department of Agriculture (USDA) announces assistance for dairy producers with the new Organic Dairy Marketing Assistance Program (ODMAP). ODMAP is established to help mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. Specifically, under the ODMAP, USDA’s Farm Service Agency (FSA) is making $104 million available to organic dairy operations to assist with projected marketing costs in 2023, calculated using their marketing costs in 2022.

    “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,” said FSA Administrator Zach Ducheneaux. “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. This program will keep our small organic dairies in operation as they continue to weather a combination of challenges outside of their control.”

    FSA will begin accepting applications for ODMAP on May 24, 2023. Eligible producers include certified organic dairy operations that produce milk from cows, goats and sheep.

    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: “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.”

    Britt Lundgren, Senior Director of Sustainability and Government Affairs at Stonyfield, said: “The costs facing organic dairy today are uncommon and putting serious strain on operations. USDA is right to step in and offer support, and this is a good first step. The alternative is we lose family farmers. We look forward to working with USDA to cover more of the actual costs organic dairies are facing.”

    Lia Sieler, Executive Director of Western Organic Dairy Producers Alliance, said: “We welcome the monetary resources allocated to dairy farmers through ODMAP with much anticipation. Input costs have been at an unprecedented high with no foreseeable changes and farmers are struggling to keep up with these high costs at their current pay price for the specialty products they produce. Farmers are struggling to continue producing a quality, safe and nutritious product with the current costs of doing business. We thank USDA with the help of many members of Congress for stepping in, hearing our voices and working diligently to get money pushed out as quick as possible to help alleviate some of this pain. Our work is not done, but this is a major win for our industry in a time of such uncertainty.”

    Chris Adamo, Vice President of Public Affairs and Regenerative Agriculture Policy with Danone North America, said: “Recent increases to cost of feed and overall inputs have significantly impacted organic dairy farms, and on behalf of Horizon Organic, we are grateful for USDA’s thoughtful work and strong support for the farms that supply our customers’ milk.”

    How ODMAP Works

    FSA is providing financial assistance for a producer’s projected marketing costs in 2023 based on their 2022 costs. ODMAP provides a one-time cost-share payment based on marketing costs on pounds of organic milk marketed in the 2022 calendar year.

    ODMAP provides financial assistance that will immediately support certified organic dairy operations during 2023 keeping organic dairy operations sustainable until markets return to more normal conditions.

    How to Apply

    FSA is accepting applications from May 24 to July 24, 2023. To apply, producers should contact FSA at their local USDA Service Center. To complete the ODMAP application, producers must certify to pounds of 2022 milk production, show documentation of their organic certification, and submit a completed application form.

    Organic dairy operations are required to provide their USDA certification of organic status confirming operation as an organic dairy in 2023 and 2022 along with the certification of 2022 milk production in hundredweight.

    ODMAP complements other assistance available to dairy producers, including Dairy Margin Coverage (DMC) and Supplemental DMC, with more than $300 million in benefits paid for the 2023 program year to date.  Learn more on the FSA Dairy Programs webpage

    More Information

    To learn more about USDA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and other programs by logging into their farmers.gov account. If you don’t have an account, sign up today.

  • USDA Announces Additional Assistance for Dairy Farmers

    The U.S. Department of Agriculture (USDA) recently announced the details of additional assistance for dairy producers, including a second round of payments through the Pandemic Market Volatility Assistance Program (PMVAP) and a new Organic Dairy Marketing Assistance Program (ODMAP). The update to PMVAP and the new ODMAP will enable USDA to better support small- and medium-sized dairy operations who weathered the pandemic and now face other challenges.

    “This funding was urgently needed by dairy farms in California and throughout the Western United States.  Our years of drought and low farmer pay price have already pushed many organic dairies out of the market.  We need to find better long-term solutions to keep farms out of crisis, and hope Congress will prioritize better longtime solutions in the 2023 farm bill,” says  Zach Cahill, Cahill Organic Dairy in Ferndale, California and President of Western Organic Dairy Producers Alliance (WODPA).

    The Organic Trade Association (OTA) also welcomes the creation of a new ODMAP to help small- and medium-sized dairy operations. OTA shared, “Unprecedented shocks to global trade necessitate action and this action is critically necessary to ensure the livelihood of many organic dairy farmers. Organic dairy farmers are facing catastrophic economic challenges as the availability of organic feedstuffs has declined dramatically, resulting in costs climbing significantly over the past 18 months. OTA and its members have spearheaded a drive in Congress to bring this urgent issue to the attention of USDA, and we thank USDA for urgently recognizing the unique needs of organic producers.

    “While losses due to the combination of unforeseen market circumstances and an inadequate Class I pricing system have not been fully remedied, USDA and congressional efforts will aid thousands of dairy producers who otherwise would have absorbed losses created by policies that didn’t work for them,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “It’s not every day that lawmakers step up and resolve a problem that could have been left to lie. We never gave up, and we’re pleased that others didn’t either.”

    “The Biden administration continues to fulfill its commitments to fill gaps in pandemic assistance for producers. USDA is announcing a second set of payments of nearly $100 million to close-out the $350 million commitment under PMVAP through partnerships with dairy handlers and cooperatives to deliver the payments.,” said USDA Under Secretary for Marketing and Regulatory Programs Jenny Lester Moffitt. “USDA is also announcing new assistance targeted to small to medium size organic dairy farmers to help with anticipated marketing costs as they face a variety of challenges from weather to supply-chain challenges.”

    Pandemic Market Volatility Assistance Program

    PMVAP assists producers who received a lower value due to market abnormalities caused by the pandemic and ensuing Federal policies. As a result of the production cap increase, USDA’s Agricultural Marketing Service (AMS) will make PMVAP payments to eligible dairy farmers for fluid milk sales between 5 million and 9 million pounds from July through December 2020. This level of production was not eligible for payment under the first round of the PMVAP.  Payment rates will be identical to the first round of payments, 80 percent of the revenue different per month, on fluid milk sales from 5 million to 9 million pounds from July through December 2020.  USDA will again distribute monies through agreements with independent handlers and cooperatives, with reimbursement to handlers for allowed administrative costs. USDA will contact handlers with eligible producers to notify them of the opportunity to participate.

    As part of the first round, PMVAP paid eligible dairy farmers on up to 5 million pounds of fluid milk sales from July through December 2020. The first round of payments distributed over $250 million in payments to over 25,000 eligible dairy farmers. These dairy farmers received the full allowable reimbursement on fluid milk sales up to 5 million pounds.

    More information about the PMVAP production cap increase is available at www.ams.usda.gov/pmvap.

    Organic Dairy Marketing Assistance Program

    The new ODMAP, to be administered by USDA’s Farm Service Agency (FSA), is intended to help smaller organic dairy farms that have faced a unique set of challenges and higher costs over the past several years that have been compounded by the ongoing pandemic and drought conditions across the country. Many small organic dairy operations are now struggling to stay in business and FSA plans to provide payments to cover a portion of their estimated marketing costs for 2023. Final spending will depend on enrollment and each producers projected production, but ODMAP has been allocated up to $100 million.

    The assistance provided by ODMAP will be provided through unused Commodity Credit Corporation funds remaining from earlier pandemic assistance programs. The assistance will help eligible organic dairy producers with up to 75 percent of their future projected marketing costs in 2023, based on national estimates of marketing costs. This assistance will be provided through a streamlined application process based on a national per hundredweight payment. The payments will be capped at the first five million pounds of anticipated production, in alignment with preexisting dairy programs that target assistance to those smaller dairies that are most vulnerable to marketing challenges. This program is still in development.

    Details about the Organic Dairy Marketing Assistance Program will be available and updated at www.farmers.gov as more details are released in a Notice of Funds Availability later this year.