[Federal Register Volume 88, Number 100 (Wednesday, May 24, 2023)]
[Notices]
[Pages 33562-33566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11030]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

Farm Service Agency

[Docket ID FSA-2023-0004]


Notice of Funds Availability (NOFA) for the Organic Dairy 
Marketing Assistance Program

AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.

ACTION: Notice.

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SUMMARY: The Farm Service Agency (FSA), on behalf of the Commodity 
Credit Corporation (CCC), is announcing the availability of marketing 
assistance funding to organic dairy operations in the United States. 
Eligible Organic Dairy Marketing Assistance Program (ODMAP) 
participants will receive a one-time payment to assist with projected 
marketing costs for 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 supported by documentation), not to exceed 5 
million pounds per operation to target smaller organic dairy 
operations. ODMAP payments will assist organic dairy producers in 
expanding the market for organic dairy and increasing the consumption 
of organic dairy, through the continued marketing of organic dairy, as 
these operations face a variety of marketing challenges and input cost 
increases and supply chain-related shortages.

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DATES: Applications Due Date: We will accept applications through July 
26, 2023.

FOR FURTHER INFORMATION CONTACT: Douglas Kilgore, (202) 748-2434, 
[email protected]. Persons with disabilities who require 
alternative means for communication should contact the USDA Target 
Center at (202) 720-2600 (voice).

SUPPLEMENTARY INFORMATION: 

Background

    Over the past several years, organic dairy farms have faced--and 
continue to face--a variety of challenges, and many are struggling to 
remain in business. Notably, organic dairy operations have limited 
ability to pass along cost increases to retailers or consumers without 
a decrease in domestic consumption of organic dairy and the cost 
increases have, in many cases, eliminated profit margins, especially 
among smaller operations that do not have the ability to take advantage 
of economies of scale. Marketing and operational challenges may result 
in decisions to cease operations entirely without intervention, which 
will reduce the organic dairy market. Organic grain and forage 
commodities have traditionally been relatively small markets where the 
domestic U.S. demand for organic feed has outstripped supply, resulting 
in the need for imports. Input costs and availability, especially feed, 
have seen several years of sustained increases and volatility due to a 
variety of factors including drought in major forage production regions 
in the United States, and transportation and trade challenges both in 
general post-pandemic and specific to the disruptions caused by the 
invasion of Ukraine, which has traditionally been one of the major 
organic global feed suppliers.
    In addition to these input costs and challenges, organic dairy 
farmers also have seen higher delivery and marketing costs, especially 
those related to transportation and hauling. As part of the system 
through which all dairy farmers provide milk and dairy products to 
consumers, dairies bear the costs of milk hauling and other marketing 
costs. These marketing costs for organic dairies, however, can be 
significantly greater than the conventional market. In addition, 
participants in the organic dairy sector must take additional steps to 
keep the organic milk separated and its status as organic clearly 
preserved. In some cases, these requirements necessitate longer and 
more costly hauling routes, including the costs of finding truck 
drivers willing to cover longer routes with multiple stops. The recent 
shortage of truck drivers in general and specifically those with the 
experience and training to operate tanker trucks exacerbates these 
challenges further.
    Organic dairy operations also tend to be smaller farms than 
conventional dairy operations, which means they often have less 
production to spread the various fixed costs over or have higher per 
unit costs. Therefore, they may not benefit from the same economies of 
scale as conventional dairies. In particular, milk pick-up and hauling 
costs may be a challenge due to the need to have dedicated organic 
pick-up routes that need to stop at multiple farms or use smaller 
tankers.
    ODMAP will provide assistance to organic dairy operations that 
produce milk from cows as well as organic dairy operations that produce 
milk from goat and sheep. All three types of organic dairy operations 
are eligible, since all three types of operations face the same 
challenges related to organic marketing and generally follow similar 
business and marketing models such as pooling milk through cooperatives 
or selling directly to milk processors that make dairy products such as 
cheese. While there are fewer, and therefore less data available on, 
organic dairy operations that produce milk from goats and sheep 
compared to cows, the impact of increased marketing costs to the 
consumption of organic dairy remains constant across all three.
    Data to estimate the marketing costs for all species relies on 
conventional cow milk estimates, since more specific national organic 
cow, sheep, or goat estimates are not available. Given the unique 
marketing challenges and strategies for organic dairy operations 
discussed above, these conventional estimates are likely to be 
conservative and do not reflect the full marketing costs for organic 
production.
    Through ODMAP, USDA is assisting organic dairy operations by 
providing payments to assist with their projected marketing costs in 
2023. The CCC Charter Act (15 U.S.C. 714c(e)) includes authority for 
CCC to use its general powers and funding to increase the domestic 
consumption of agricultural commodities (other than tobacco) by 
expanding or aiding in the expansion of domestic markets or by 
developing or aiding in the development of new and additional markets, 
marketing facilities, and uses for such commodities. USDA is providing 
this marketing assistance to organic dairy producers to help keep these 
small organic dairies in operation by aiding in the expansion of the 
domestic market for organic dairy, which will increase domestic 
consumption of organic dairy, in order to counteract the currently 
projected reduction in this market. Without the assistance, it is 
projected that organic dairies, and particularly small organic dairies, 
may cease or decrease organic dairy production and reduce the domestic 
supply and consumption of organic milk.
    FSA designed ODMAP to leverage a simplified, streamlined 
application process to expedite assistance to certified organic dairy 
operations that produce organic milk from dairy cows, dairy goats, or 
dairy sheep. ODMAP provides one-time assistance for a cost share of 
projected marketing costs for eligible organic dairies for 2023, not to 
exceed 5 million pounds per operation to target smaller organic dairy 
operations, in order to provide support to aid or expand the market for 
organic dairy operations during 2023. All organic dairy operations that 
apply for ODMAP will be required to provide their USDA certification of 
organic status, confirming their operation as an organic dairy 
operation at the time of application. In order to calculate projected 
marketing costs for 2023, the streamlined process will have operations 
certify to their organic milk production for the 2022 calendar year, 
that was marketed directly as organic milk or indirectly through 
organic dairy products or a projection of pounds of organic milk 
marketed in 2023 if warranted due to changes in circumstances between 
2022 and 2023 supported by documentation as discussed further below. 
While production documentation for 2022 production is not required at 
the time of application, operations should retain supporting 
documentation and calculations for 3 years should they be selected for 
a spot check.
    FSA will administer ODMAP on behalf of CCC, using CCC funds. The 
payment may be issued in 2 parts.
    There is $104 million from CCC funds available for ODMAP 
assistance. ODMAP payments will be subject to availability of funding. 
FSA will make an initial payment to eligible applicants factored by 75 
percent. If sufficient available funding remains at the conclusion of 
the application period, an additional payment of up to the remaining 25 
percent may be made to each eligible applicant if USDA determines that 
additional assistance is still needed.
    The funds announced in this NOFA are not subject to sequestration.

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Average Milk Marketing Cost

    The only available estimates to calculate an average milk marketing 
cost are from milk marketed through the Federal Milk Marketing Orders 
(FMMO), which is primarily conventional cow milk. There are no 
national-level data sets on milk marketing and hauling costs specific 
to organic sheep or goat operations. While an estimated average milk 
marketing cost from FMMO is likely conservative given the likely higher 
per unit costs for smaller operations that are more common for organic 
production, and the unique marketing challenges facing organic dairy 
operations, the similarities in marketing options and costs between 
conventional and organic make it the best proxy available.
    To develop the ODMAP payment rate, FSA worked with the Agricultural 
Marketing Service (AMS) to determine an average marketing cost per 
hundredweight, using the AMS data from the FMMO regional model 
documentation (https://www.ams.usda.gov/sites/default/files/media/FinalDecisionEconometricModelDocumentation.pdf), which estimates the 
relationship between each FMMO uniform milk price and the National 
Agriculture Statistics Service (NASS) all-milk price.
    Through this comparison of the milk prices, the model estimates the 
milk marketing and hauling fees that are deducted in the net producer 
milk marketing statements (producer paychecks).
    Averaging these estimates of milk marketing costs among orders 
results in an average of $1.10 per hundredweight for 2022, which will 
be used as the ODMAP average milk marketing cost to calculate 
assistance.

Eligibility

    To be an eligible ODMAP applicant, the organic dairy operation must 
produce and market organic milk from cows, goats, or sheep at the time 
of application, provide their USDA Certification of organic status for 
2023, and have documentation to support any certified projection of 
2023 pounds of organic milk marketed.
    To be eligible for ODMAP assistance each applicant must:
    (1) Submit a FSA-630 application and any additional required 
documentation as specified in the Application Process section below; 
and
    (2) Comply with all provisions of this NOFA and comply with the 
following regulations:
     7 CFR part 12--Highly Erodible Land and Wetland 
Conservation;
     7 CFR 718.6, Controlled Substance; and
     7 CFR part 707--Payments Due Persons Who Have Died, 
Disappeared, or Have Been declared Incompetent, if applicable.
    In addition, consistent with other FSA assistance programs, a 
producer must be a:
     Citizen of the United States;
     Resident alien, which for purposes of ODMAP means ``lawful 
alien'' as defined in 7 CFR 1400.3;
     Partnership consisting solely of citizens of the United 
States or resident aliens; or
     Corporation, limited liability company, or other 
organizational structure organized under State law consisting solely of 
citizens of the United States or resident aliens.
    Federal, State, and local governments are not eligible for ODMAP 
payments.

Payment Rates and Calculations

    The ODMAP initial payment will be calculated by using the producer-
certified pounds of organic milk projected to be marketed in 2023, 
multiplied by the $1.10 per cwt ODMAP payment rate, multiplied by a 
factor of 75 percent. The pounds of organic milk projected to be 
marketed in 2023 will be (i) the self-certified organic milk production 
marketed directly by the operation in 2022 or used as inputs in 
related-organic dairy products marketed in 2022, that can be supported 
by documentation maintained in the ordinary course of business, or (ii) 
if approved by the Deputy Administrator for Farm Programs (Deputy 
Administrator), an operation-specific certified estimate of organic 
milk projected to be marketed in 2023 that is supported by 
documentation maintained in the ordinary course of business from the 
applicant.
    Operations that (a) transitioned to organic in 2022 or 2023, (b) 
are new organic operations in 2022 or 2023, or (c) have increased 
organic milk production capacity by 15 percent or greater in 2023 as 
compared to 2022, may request to use a certified estimate of their 
operation's reasonably projected organic milk to be marketed in 2023 
based on average daily organic production of current herd that can be 
supported by documentation maintained in the ordinary course of 
business, including, but not limited to, milk marketing statements, 
milk production records, contemporaneous records, or similar supporting 
documentation, as may be requested by the Deputy Administrator. These 
operations must provide an explanation of the basis for their 2023 
projection on the FSA-630 and how those projections are supported by 
the supporting documentation they submit with the application. All 
organic dairy operations making such a request must submit with their 
application all available 2023 milk marketing statements, in addition 
to all other documentation necessary to support their certification. 
Organic dairy operations should contact their local FSA Service Center 
if they have questions regarding their particular circumstances and the 
documentation necessary to support such a request. The request will be 
evaluated by the Deputy Administrator at the Deputy Administrator's 
discretion to assess whether the estimate is adequately supported by 
documentation and reasonable based on the documented average daily 
production of the current organic herd.
    The initial payments will be made to eligible applicants on a 
rolling basis as applications are submitted and approved. If funds 
remain at the conclusion of the application period, a second payment to 
eligible applicants of up to the remaining 25 percent may be issued 
subject to available funding and a determination by FSA of the need for 
additional marketing assistance based on discussions with USDA experts 
and economists, industry, and stakeholders regarding impact of initial 
marketing assistance on domestic consumption of organic dairy.
    Organic dairy operations are only eligible for payment on up to 5 
million pounds of organic milk.

Application Process

    FSA will make available to organic dairy operations form FSA-630 to 
apply for assistance for pounds of organic milk projected to be 
marketed in 2023. FSA will accept applications from May 24, 2023, 
through July 26, 2023. To apply for ODMAP assistance, all applicants 
must submit a completed form FSA-630 and all other required 
documentation to their administrative FSA county office by July 26, 
2023.
    Applicants must submit the following forms, if not already on file, 
in person or by mail, email, facsimile:
     Form FSA-630, ODMAP Application;
     Manual Form CCC-902-I, Farm Operating Plan for an 
Individual, as applicable;
     Manual Form CCC-902E, Farm Operating Plan for an Entity, 
as applicable;
     CCC-901, Member Information for Legal Entities (if 
applicable);
     AD-1026, Highly Erodible Land Conservation (HELC) and 
Wetland Conservation (WC) Certification; and

[[Page 33565]]

     AD-2047, Customer Data Worksheet.
    The Deputy Administrator has the discretion and authority to waive 
or modify filing deadlines and other requirements or program provisions 
not specified in law, in cases where the Deputy Administrator 
determines it is equitable to do so and where the Deputy Administrator 
finds that the lateness or failure to meet such other requirements or 
program provisions do not adversely affect the operation of ODMAP. 
Although producers have a right to a decision on whether they filed 
applications by the deadline or not, producers have no right to a 
decision in response to a request to waive or modify deadlines or 
program provisions. The Deputy Administrator's refusal to exercise 
discretion on requests to waive or modify ODMAP provisions will not be 
considered an adverse decision and is, by itself, not appealable.

Evaluation and Approval of Payments

    FSA will review each ODMAP application and supporting documentation 
to determine eligibility. FSA, on behalf of CCC, will approve 
applications for an ODMAP payment for eligible applicants consistent 
with the terms specified in this document.
    If requested by FSA, the applicant must provide additional 
supporting documentation to verify the accuracy of information provided 
on the application. If any supporting documentation is requested, the 
documentation must be submitted to FSA within 30 calendar days from the 
request or the application will be disapproved by FSA, and, if payment 
has been made, full ODMAP payment will be required to be refunded to 
FSA with interest from the date of disbursement. ODMAP is subject to 
the availability of funding and will be funded in the order in which 
applications are approved. If additional funding is allocated to ODMAP 
after initial funding is depleted, additional applications will be 
reviewed, approved and funded, if the eligibility criteria is met, in 
the order received during the application period, subject to the 
availability of those additional funds.
    An initial ODMAP payment will be issued after an application is 
approved. At the conclusion of signup, a second payment may be issued 
to eligible applicants.

Provisions Requiring Refund to FSA

    In the event any ODMAP payment resulted from erroneous information 
or a miscalculation, the payment will be recalculated, and the 
participant must refund any excess payment to FSA with interest to be 
calculated from the date of the disbursement to the participant. If, 
for whatever reason, FSA determines that the applicant misrepresented 
either the reported organic milk production or organic certification or 
is otherwise ineligible for payment, the application will be 
disapproved and the full ODMAP payment will be required to be refunded 
to FSA with interest from the date of disbursement. ODMAP applications, 
FSA-630, will be reviewed and spot-checked by FSA for program 
eligibility and payment calculation purposes through milk marketing 
statements or similar supporting documentation. ODMAP participants must 
retain all ODMAP supporting documentation for 3 years.
    The liability of anyone for any penalty or sanction resulting from 
a ODMAP application, or for any refund to FSA, is in addition to any 
other liability of such person under any civil or criminal fraud 
statute or any other provision of law including, but not limited to: 18 
U.S.C. 286, 287, 371, 641, 651, 1001, and 1014; 15 U.S.C. 714; and 31 
U.S.C. 3729.

Miscellaneous Provisions

    Appeal regulations specified in 7 CFR parts 11 and 780 apply. FSA 
program requirements and determinations that are not in response to, or 
result from, an individual disputable set of facts in an individual 
participant's application for assistance are not matters that can be 
appealed.

Paperwork Reduction Act Requirements

    In compliance with the provisions of the Paperwork Reduction Act 
(44 U.S.C. chapter 35), the information collection request has been 
approved by OMB under the control number of 0503-0028. FSA will collect 
the information from the organic dairy operations to qualify for the 
ODMAP payment. ODMAP provides one-time funding as described in this 
NOFA.

Environmental Review

    The environmental impacts have been considered in a manner 
consistent with the provisions of the National Environmental Policy Act 
(NEPA, 42 U.S.C. 4321-4347), the regulations of the Council on 
Environmental Quality (40 CFR parts 1500-1508), and the FSA regulations 
for compliance with NEPA (7 CFR part 799).
    The purpose of ODMAP is to provide marketing assistance funding to 
organic dairy operations in the United States to increase the domestic 
consumption of organic milk and organic milk products by aiding in the 
expansion of the organic milk market. The limited discretionary aspects 
of ODMAP do not have the potential to impact the human environment as 
they are administrative. Accordingly, these discretionary aspects are 
covered by the categorical exclusions in 7 CFR 799.31(b)(6)(iii) that 
applies to price support programs, provided no extraordinary 
circumstances are found to exist. As such, the implementation of ODMAP 
and the participation in ODMAP do not constitute major Federal actions 
that would significantly affect the quality of the human environment, 
individually or cumulatively. Therefore, FSA will not prepare an 
environmental assessment or environmental impact statement for this 
action and this document serves as documentation of the programmatic 
environmental compliance decision for this federal action.

Federal Assistance Programs

    The title and number of the Federal assistance programs, as found 
in the Assistance Listing, to which this document applies is 10.977, 
Organic Dairy Marketing Assistance Program (ODMAP).

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family or parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Individuals who require alternative means of communication for 
program information (for example, braille, large print, audiotape, 
American Sign Language, etc.) should contact the responsible Agency or 
USDA TARGET Center at (202) 720-2600 (voice and text telephone (TTY)) 
or dial 711 for Telecommunications Relay Service (both voice and text 
telephone users can initiate this call from any telephone). 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https:/
/

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www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by mail to: U.S. Department of Agriculture, Office of 
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410 or email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Zach Ducheneaux,
Administrator, Farm Service Agency, and Executive Vice President, 
Commodity Credit Corporation.
[FR Doc. 2023-11030 Filed 5-19-23; 4:15 pm]
BILLING CODE 3410-05-P