USDA Announces Funding to Develop New Organic Markets
USDA has announced $9.75 million in grants to 10 grant projects through the Organic Market Development Grant (OMDG) program. The funded projects will support the development and expansion of new and existing organic markets to increase the consumption of domestic organic agricultural products.
“The recipients of this funding will be spearheading unprecedented efforts to expand and open new revenue streams for the nation’s organic industry, building more value-added agricultural opportunities for farmers across rural America,” said USDA Under Secretary for Marketing and Regulatory Programs Jenny Lester Moffitt.
In May 2023, USDA announced approximately $75 million available through OMDG to increase the availability and demand for domestically produced organic agricultural products and to address the critical need for additional market paths. USDA is awarding this first set of grants in California, Colorado, Connecticut, Maine, Montana, Oregon, Pennsylvania, Texas, Vermont, and Washington. USDA will announce additional awards at a later date.
NOC congratulates the NOC Members and Network Affiliates who are recipients of grant awards or part of funded projects: CCOF, CT NOFA, MOFGA and NOFA-VT:
CCOF, a NOC Network Affiliate, will addresses two key obstacles restricting growth in organic sales: the lack of consumer clarity on what organic means and a perceived lack of consumer confidence in the seal. In addition, CCOF will create market paths for small and underserved organic producers by linking them with buyers actively looking to source their products.
CT NOFA, a NOC Member, is part of a project led by the Connecticut Department of Agriculture focused on increasing market access for certified organic producers, producers transitioning to organic farming, and certified organic handlers in Connecticut by coordinating with Transition to Organic Partnership (TOPP) partners. The goal of this project is to strengthen new and emerging markets, strengthen farm to institution market channels, increase producer and handler knowledge and skills to market their organic products, and foster consumer education to increase demand for organic products.
The Maine Organic Farmers and Gardeners Association (MOFGA), a NOC Member, will implement a project focused on increasing opportunities in the organic dairy sector, working closely with the Northeast Organic Family Farm Partnership. MOFGA will strengthen demand for organic dairy products produced in the Northeast by expanding farm-to-institution, increasing the number of retailers promoting organic dairy, and implementing targeted consumer marketing to boost demand for Northeast dairy products.
NOFA-VT, a NOC Member, will work in partnership with Vermont Way Foods (VWF) and Food Connects (FC), to grow, and develop markets for Vermont’s organic producers in by expanding access to large retailers and other wholesale buyers with consumer bases that are validated by market research to value and support the qualities inherent in Vermont organic food. In addition, NOFA-VT will develop new dairy, maple, and other Vermont organic wholesale products to be branded and marketed under the VWF brand and distributed regionally by FC.
A full list of awarded projects is available on the here.
USDA gave priority consideration to projects addressing specific pinpointed market needs for organic grains and livestock feed, organic dairy, organic fibers, organic legumes and other rotational crops, and organic ingredients currently unavailable in organic form.
This grant program is part of the USDA Organic Transition Initiative, launched in fall 2022, which offers a suite of programs and resources to help existing organic farmers and those transitioning to organic production and processing. Other efforts under OTI include USDA’s Natural Resources Conservation Service conservation assistance for transitioning producers, including a new organic management practice standard and plans to leverage partnerships to expand relationships within the organic community, and AMS’ Transition to Organic Partnership Program, which builds mentorship relationships between transitioning and existing organic farmers to provide technical assistance and wrap-around support. Additionally, USDA’s Risk Management Agency provided direct support for crop insurance in 2023. More information about these initiatives and more can be found at farmers.gov/organic-transition-initiative.