Organic Certification Cost Share


 Easing the transition to organic certification for producers and handlers

The process of becoming organically certified can be expensive, but it is an essential step for farmers wanting to meet the growing demand for certified organic food in the U.S.  Organic certification cost share assistance helps small and mid-sized organic farm businesses afford annual certification costs.  These farm businesses are a core part of the domestic organic supply chain, and without them, companies that use their product would be forced to source from abroad in order to meet demand for organic in the U.S.

USDA offers farmer two programs to help defray a portion of the annual costs associated with organic certification: the National Organic Certification Cost Share Program (NOCCSP) and the Agricultural Management Assistance Organic Certification Cost Share Program (AMA). Both programs are administered by the National Organic Program (NOP), part of USDA’s Agricultural Marketing Service (AMS).

Learn More About Organic Cost Share!

 

Program Basics

The National Organic Certification Cost Share Program (NOCCSP) and Agricultural Management Assistance Organic Certification Cost Share Program (AMA) are noncompetitive financial assistance programs that help defray the costs of organic certification for organic operators. These organic cost share programs provide reimbursements of up to 75 percent of annual certification costs, up to a maximum payment of $750 per year per farm. NOCCSP is available nationally, while AMA is available only in certain states in the northeast and west.

To receive certification cost share funds, a USDA-accredited certifying agent must certify the farmer or handler.  See the AMS website to locate a certifying agent. The annual certification process is a key part of being able to use the USDA organic label farmers need in order to access growing organic markets.  Each year, farmers and handlers can apply through their State Departments of Agriculture for certification cost share funds, regardless of whether the person is new to organic farming or has been farming organically for years.

The cost-share assistance is generally made available to producers (AMA) and producers and handlers (NOCCSP) through State Departments of Agriculture, particularly if the state has an accredited organic certifying program. In order to apply for reimbursement under these cost share programs, organic operators should contact their State Departments of Agriculture.

Eligibility

For both programs, recipients must be certified organic under the National Organic Program to receive cost-share assistance.

For NOCCSP, organic producers and handlers in all 50 States, the District of Columbia, the American Samoa, the Commonwealth of the Northern Marina Islands, the Commonwealth of Puerto Rico, Guam, and the U.S. Virgin Islands are eligible to participate.

For AMA, organic producers (but not handlers) in the 12 Northeast states (CT, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT, WV) plus Hawaii, Nevada, Utah, and Wyoming are eligible to participate.

While producers in AMA states are eligible for reimbursement under both NOCCSP and AMA, producers receiving reimbursement for certification costs under AMA are not eligible for reimbursement for the same certification costs under NOCCSP and vice versa.  Additionally, state agencies must exhaust AMA funds prior to using NOCCSP funds for organic producer reimbursements.

The Program in Action

Strong rates of participation in the USDA organic certification cost-share programs correlate with those states having high rates of organic sales or high numbers of organic farms. As NSAC noted in our blog post on organic and local agriculture in the 2012 Census of Agriculture, all of the top ten states in either the number of organic farms or organic sales had strong rates of participation in either NOCCSP or AMA or both. The top ten states for number of organic farms and total organic sales also accounted for 70 percent or more of the funds allocated for NOCCSP or AMA.

How to Apply and Program Resources

Every year, USDA invites states to submit their applications for their federal allocation of organic certification cost-share funds.  Once funds have been distributed to each state, organic producers and handlers can apply directly through their state contact – usually the State Department of Agriculture. Because states process applications on a first-come, first-serve basis, applicants are encouraged to apply as early as possible as funds may run out.

The popularity and success of organic certification cost share programs is evident in the near-depletion of the $22 million in funding provided for NOCCSP in the 2008 Farm Bill. Due to the delay in passing a new farm bill, no funds were available for Fiscal Year 2013. The 2014 Farm Bill rectified this problem, providing $11.5 million a year in mandatory funding for the program. The AMA organic cost share program continues to receive $1.5 million a year in mandatory funding.

For more information about NOCCSP and AMA and how to apply, please see the AMS website.

Find contacts on the State Agency points of contact list for NOCCSP and AMA.

Program History, Funding, and Farm Bill Changes

NSAC developed the original proposal for NOCCSP in 2001 and championed its passage as part of the 2002 Farm Bill.  The 2002 Farm Bill provided $5 million in mandatory funding to launch the NOCCSP over the five-year life of the bill.

Due to the success of the program and the continued growth of the organic sector, Congress reauthorized the program in the 2008 Farm Bill and increased total funding to $22 million through 2012, or approximately $4.4 million annually.  The 2008 Farm Bill also increased the maximum annual payment from $500 to $750 per operation and increased funding for certification cost share through AMA from $1.0 million to $1.5 million per year.  A reporting requirement was also added, requiring the Secretary to submit a report to Congress by March 1 of each year describing the requests by, disbursements to, and expenditures for each State under the program during the current and previous fiscal year, including the number of producers and handlers served by the program in the previous fiscal year.

NSAC advocated for restoring and increasing funding for NOCCSP in the 2014 Farm Bill, which

more than doubled funding to $11.5 million annually. Funding for AMA remained unchanged from 2008 Farm Bill levels.

Organic Certification Cost Share Program Annual Funding 

Fiscal Year Total Mandatory Funding Available
2014 NOCCSP: $11.5
AMA: $1.5 M
2015 NOCCSP: $11.5
AMA: $1.5 M
2016 NOCCSP: $11.5
AMA: $1.5 M
2017 NOCCSP: $11.5
AMA: $1.5 M
2018 NOCCSP: $11.5
AMA: $1.5 M
5 yr total NOCCSP:$57.5
AMA: $7.5

Authorizing Language

Section 10004 of the Agricultural Act of 2014 amends Section 10606(d) of the Farm Security and Rural Investment Act of 2002, to be codified at 7 U.S.C. Section 6523(d) authorized NOCCSP.

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Last updated in October 2014.