USDA Introduces Program to Aid Organic Dairy Producers in Overcoming Rising Costs

The U.S. Department of Agriculture (USDA) has announced the implementation of the Organic Dairy Marketing Assistance Program (ODMAP) to assist dairy producers in navigating market volatility and coping with increased input and transportation costs, as well as unstable feed supply and prices. The program aims to alleviate the unique hardships faced by the organic dairy industry.

Under ODMAP, the USDA's Farm Service Agency (FSA) has allocated $104 million to provide financial assistance to organic dairy operations, helping them cover projected marketing costs in 2023 based on their expenses in 2022. By offering this support, the USDA intends to maintain the sustainability of organic dairy operations until market conditions stabilize.

Julia A. Wickard, State Executive Director for FSA in Indiana, emphasized the challenges faced by organic dairy producers in the state, including significant increases in marketing costs, elevated feed and transportation expenses, and limited availability of organic grain and forage commodities. The program aims to prevent the closure of small organic dairies, ensuring a stable supply of organic milk and supporting rural communities across the country.

Eligible for assistance are certified organic dairy operations that produce milk from cows, goats, and sheep. The application period for ODMAP in Indiana is from May 24 to July 24, 2023. Interested producers are encouraged to contact their local USDA Service Center to initiate the application process. They will need to provide documentation of their organic certification, certify their 2022 milk production, and submit a completed application form.

ODMAP offers a one-time cost-share payment based on the marketing costs associated with the pounds of organic milk marketed during the 2022 calendar year. This assistance aims to immediately support certified organic dairy operations throughout 2023, ensuring their viability until market conditions normalize.

ODMAP works in conjunction with other assistance programs available to dairy producers, such as the Dairy Margin Coverage (DMC) and Supplemental DMC, which have already distributed over $300 million in benefits for the 2023 program year. For more information on USDA programs, producers can reach out to their local USDA Service Center or visit the FSA Dairy Programs webpage.

With ODMAP's financial support, organic dairy producers can better navigate the challenges posed by rising costs, reinforcing the stability of the organic dairy industry and the availability of organic milk in the market.

Photo Credit: istock-cagkansayin