On May 15, 2024, Agriculture Secretary Tom Vilsack announced several new initiatives aimed at expanding markets for organic products and supporting farmers transitioning to organic production. The USDA‘s announcement includes new programs, partnerships, and grant awards, along with an additional $10 million in funding.

These measures are designed to foster the development of new markets for domestic organic products, provide hands-on training for producers transitioning to organic farming, and alleviate the financial burden of obtaining organic certification.

Secretary Vilsack emphasized the significance of these initiatives by stating, “Offsetting the costs for organic transition helps more farmers realize higher margins sooner while giving consumers more access to high-demand organic products.”

He highlighted that the partnerships and technical support offered by the USDA will ease the transition for producers. Furthermore, the investments in grant projects aim to reduce the organic industry’s reliance on imports, lower cost barriers for businesses transitioning to organic, and address crucial infrastructure needs. Vilsack stressed that these resources will enable small and mid-sized producers to access new, profitable markets and reinforce the USDA’s commitment to maximizing American farmers’ share of the food dollar.

These announcements build on the USDA’s comprehensive approach to supporting local and regional food systems, expanding market access for more producers, and increasing the affordable food supply for Americans.

The USDA also aims to promote climate-smart agriculture and ensure equity for all producers. Recognizing the importance of smaller and mid-sized food and farm businesses in strengthening the food supply chain, the USDA launched the Organic Transition Initiative (OTI) in 2022. OTI offers a range of programs and resources to support existing organic farmers and those transitioning to organic production and processing.

One of the key efforts under OTI is the National Organic Program (NOP) Transition to Organic Partnership Program (TOPP). TOPP fosters mentorship relationships between transitioning and existing organic farmers, providing technical assistance and comprehensive support across six U.S. regions. Additionally, the USDA’s Risk Management Agency offers federal crop insurance products, including Whole Farm Revenue Protection and Micro Farm, which are beneficial for organic producers.

As part of its ongoing support for domestic organic producers, the USDA’s Agricultural Marketing Service (AMS) awarded approximately $24.8 million for 23 grant projects through the Organic Market Development Grant (OMDG) program on May 15. These projects are expected to enhance new and existing organic markets, increasing the consumption of domestic organic agricultural products. The projects funded through this program are anticipated to benefit over 49,000 producers and more than 118 million consumers by expanding organic market opportunities.

Since the inception of the OMDG program, AMS has awarded a total of $75.2 million to 93 projects nationwide, aimed at boosting the availability and demand for domestically produced organic agricultural products and addressing the need for additional market pathways. Previous awards under this program were announced in January and March 2024.

Moreover, the USDA has allocated an additional $10 million through the OMDG program, with awards for this funding to be selected from existing applicants and announced this summer. This round of awards focuses on market development and promotion, simplified equipment-only projects, and processing capacity expansion projects, funded by the Commodity Credit Corporation.

Notable recipients of this funding include North Country Smokehouse in Claremont, New Hampshire, which will introduce two new innovative organic pork products to the domestic market. With OMDG funds, North Country Smokehouse will procure and install new processing equipment, develop distinctive packaging designs, and coordinate retail merchandising to enhance product visibility. The project is expected to increase production capacity by 175,000 pounds of organic meat annually.

Another recipient, The DeLong Co., Inc., in Clinton, Wisconsin, will invest in critical infrastructure, equipment, and transportation capabilities to address storage capacity limitations, quality control measures, and transportation constraints. The project aims to create demand for over 36 million pounds of organic corn by increasing storage capacity by 140,000 bushels, implementing equipment to segregate organic corn from conventional corn, and adding railcars.

In Hawaii, the Wai’anae Community Re-Development Corporation will enhance processing capabilities at MA’O Organic Farms’ newly constructed wash-pack facility. The project will introduce product inventory management and food safety technologies, enabling MA’O to handle ten times more products and ensure the distribution of organic produce to a broader range of market segments.

According to the USDA press release, these initiatives and investments represent a significant step toward strengthening the organic sector, supporting American farmers, and meeting the growing demand for organic products.