Growing Organic Markets

One component of the USDA’s recently announced Organic Transition Initiative is up to $100 million in funding for pinpointed organic market development. NOC staff and Members took part in a November 15 listening session on this topic and submitted written comments to USDA with multiple recommendations for growing organic markets.

From an overall perspective, it is critical that USDA take great caution to ensure that the Organic Transition Initiative is not used to incentivize more organic production in markets experiencing over supply, such as organic dairy.

Key recommendations included:

Organic Dairy

  • Since $25 million of the organic market development funds are slated for organic product procurement, USDA should prioritize organic milk in the procurement plan.

  • USDA should provide access to organic milk through existing USDA nutrition programs, such as the SNAP Healthy Fluid Milk Incentive, WIC, and the Food Distribution Program on Indian Reservations (FDPIR) programs.

  • Market development grants should be used to help existing organic dairy farmers, and to expand and diversify those markets by providing funding to:

  • Diversify processing infrastructure and create small-scale on-farm processing.

  • Reduce organic feed costs for organic dairy producers. One approach is to provide grants or low-interest loans to build small regional pelletizing operations for organic alfalfa to help lower the cost of transporting alfalfa hay. 

Meat and Poultry Processing

  • Market development funding should be used to help existing meat and poultry processing facilities add organic processing. Organic meat and poultry is one of the least developed subsets of the organic market, due in part to processing constraints.

On-farm Processing

  • Market development funding should be used to help support small-scale, on-farm processing to give farmers the ability to capture a greater percent of the consumer dollar. 

Organic Grain Storage Facilities

  • The program could also be used to fund on-farm, or near farm, organic grain storage facilities so that organic grain farmers can sell their crops at a time when the price is more advantageous.

Domestic organic seed production

  • Data show that organic farmers still struggle to get access to the organic seed they need. USDA should explore ways to use the OTI market development assistance to help expand domestic production of organic seed. 

Read NOC’s full comments to USDA.





Abby Youngblood