USDA provides additional $5 million for organic dairy producers

DES MOINES — The U.S. Department of Agriculture is announcing a second round of payments for dairy producers through the Organic Dairy Marketing Assistance Program.

The additional $5 million will 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 has already paid out $15 million in the first round of payments for eligible producers, bringing total 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 Matt Russell, FSA State Executive Director in Iowa.

“The funding from ODMAP will give organic dairy producers additional economic support to stay in operation until markets return to more favorable conditions.”

Farm Service accepted applications from May 24 to August 11. Eligible producers included certified organic dairy operations that produce milk from cows, goats and sheep.

The program 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.

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

For more information about USDA programs, producers can contact their local USDA Service Centers.