USDA Announces Almost $10 million in Organic Market Development Grants, Resulting in $85 million Invested to Expand Markets for U.S. Organic Products

WASHINGTON, Aug. 26, 2024 -- The U.S. Department of Agriculture's (USDA) Agricultural Marketing Service (AMS) today awarded an additional $9.7 million for 13 grant projects through the Organic Market Development Grant (OMDG) program, bringing the total amount awarded through the program to $85 million. These projects will support the development of new and existing organic markets to increase the consumption of domestic organic agricultural products. The projects funded through this program, are anticipated to benefit over 119 million producers, buyers, and consumers.<_o3a_p>

"This final round of awards through the Organic Market Development Grant program marks an unprecedented investment into our nation's organic industry and we will see the impacts of this funding for years to come," said USDA Under Secretary for Marketing and Regulatory Programs Jenny Lester Moffitt. "The projects awarded through this program are making great strides in expanding market opportunities for organic businesses and ensuring producers and processors have the infrastructure to meet the growing consumer demand for organic products."<_o3a_p>

Consumer demand for organically produced goods surpassed $69 billion in the U.S. in 2023, accounting for about 4% of total U.S. food sales. The Biden-Harris Administration recognizes how crucial the organic agricultural industry is to the nation's economy and the investments needed to meet this incredible consumer demand. There are more than 27,800 organic farms and businesses across the nation producing and handling delicious organic food and products of all kinds. There are more than 47,000 such businesses around the world, providing vital ingredients and fresh foods not produced in the U.S. With this final award announcement, AMS has now awarded nearly $85 million to 106 projects in 36 states across the nation and the District of Columbia through the Organic Market Development Grant program, supporting these organic farmers and investing in the capacity of this growing sector. AMS previously announced awards through this program in January, March, and May 2024. This final round of awards and all OMDG grants, which are supporting development of new and existing organic markets, is made available through the Commodity Credit Corporation (CCC).<_o3a_p>

This round of awards includes projects for the market development and promotion, simplified equipment-only, and processing capacity expansion project types. The funded projects will increase the availability and demand for domestically produced organic agricultural products and address the need for additional market paths. <_o3a_p>

Recipients of this funding include:<_o3a_p>

• Tuscarora Grain Co. in Mohrsville, Pa., will use grant funding to purchase a pellet mill to increase local capacity for pelletizing. The project will build the organic livestock feed supply chain capacity and remove barriers to new organic market development.<_o3a_p>
• The Spicy Organics LLC, in Frisco, Texas, will purchase equipment to streamline and increase their processing capacity of organic spices, herbs, and grains. The equipment will help reduce manual labor, elevate processing efficiency, and increase productivity. This will result in facilitating entry into untapped markets, increasing the demand for premium organic products. <_o3a_p>
• The Turning Green, in Sausalito, Calif., will leverage the massive purchasing scale of the school food sector to grow the organic supply chain by bringing together school food networks, small underserved organic farmers, and local agricultural support organizations. The project will coordinate training and technical support to school food service teams and organic farmers to align planning, implementation, logistics, and metrics to grow the sale of organic products to schools within the state.<_o3a_p>

A full list of awarded projects is available on the OMDG webpage. One additional project is currently under environmental review with AMS.<_o3a_p>

AMS 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.<_o3a_p>

This grant program is part of the USDA Organic Transition Initiative (OTI), 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 www.farmers.gov/organic-transition-initiative.<_o3a_p>

AMS administers programs that create domestic and international marketing opportunities for U.S. producers of food, fiber, and specialty crops. AMS also provides the agriculture industry with valuable services to ensure the quality and availability of wholesome food for consumers across the country and globally. AMS services and its significant grant investments create opportunities by supporting American farmers, ranchers and businesses across the supply chain, and drive economic development in small towns and rural communities.

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USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America's food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

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