Notice of Funds Availability (NOFA); Organic Dairy Marketing Assistance Program 2024 (ODMAP 2024), 79505-79509 [2024-22346]

Agencies

• DEPARTMENT OF AGRICULTURE
• Commodity Credit Corporation
• Farm Service Agency

[Federal Register Volume 89, Number 189 (Monday, September 30, 2024)]
[Notices]
[Pages 79505-79509]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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, 
[email protected].

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 (https://www.ams.usda.gov/sites/default/files/media/FinalDecisionEconometricModelDocumentation.pdf), 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:
     7 CFR part 12--Highly Erodible Land and Wetland 
Conservation;
     7 CFR 718.6, Controlled Substance; and
     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:
     Citizen of the United States;
     Resident alien, which for purposes of ODMAP 2024 means 
``lawful alien'' as defined in 7 CFR 1400.3;
     Partnership consisting solely of citizens of the United 
States or resident aliens; or
     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:
     Form FSA-630-1, ODMAP 2024 Application;
     Manual Form CCC-902-I, Farm Operating Plan for an 
Individual, as applicable;
     Manual Form CCC-902E, Farm Operating Plan for an Entity, 
as applicable;
     CCC-901, Member Information for Legal Entities (if 
applicable);
     AD-1026, Highly Erodible Land Conservation (HELC) and 
Wetland Conservation (WC) Certification; and
     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 https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint 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: [email protected].
    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