[Federal Register Volume 91, Number 127 (Monday, July 6, 2026)]
[Rules and Regulations]
[Pages 40859-40865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-13571]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 91, No. 127 / Monday, July 6, 2026 / Rules
and Regulations
[[Page 40859]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1417
[Docket ID FSA-2026-0331]
RIN 0560-AI85
Organic Certification Cost Share Program (OCCSP)
AGENCY: Commodity Credit Corporation, U.S. Department of Agriculture
(USDA).
ACTION: Final rule.
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SUMMARY: The One Big Beautiful Bill Act (OBBBA) provides funding for
the Organic Certification Cost Share Program (OCCSP) for fiscal years
2025 through 2031, and, as a result, the Commodity Credit Corporation
(CCC) is issuing this rule to establish OCCSP for 2025 and future
program years. The rule specifies the eligibility criteria and payment
calculation for OCCSP, which are consistent with how CCC has
administered OCCSP in previous years by Notices of Funding Availability
(NOFAs). Prior NOFAs also established the opportunity for State
agencies to enter into agreements to administer OCCSP; these provisions
are also included in this rule. The rule also establishes the
application process and deadlines for eligible producers and handlers
who apply through FSA county offices.
DATES: This rule is effective on July 6, 2026.
Producer and Handler Applications: FSA county offices will accept
applications for OCCSP payments from producers and handlers for the
2025 and 2026 program years until December 31, 2026. For 2027 and
subsequent program years, producers and handlers may submit
applications to FSA county offices from the beginning of the
application period, which will be announced through a press release and
on the OCCSP website (https://www.fsa.usda.gov/resources/income-support/organic-certification-cost-share-program-occsp), through
December 31 following the end of the program year. That means, for
example, that for the 2027 program year, producers have until December
31, 2028, to submit an application for payment under OCCSP. Producers
and handlers who apply through a participating State agency should
refer to the State agency for application period beginning and ending
dates.
FOR FURTHER INFORMATION CONTACT: Jenae Orso; telephone: (229) 850-0194;
or email: [email protected]. Individuals with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice and text telephone (TTY mode))
or dial 711 for Telecommunications Relay Service (both voice and text
telephone users can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Available Funding
III. State Agency Participation
IV. Eligible Producers and Handlers
V. Eligible Scopes
VI. Allowable and Unallowable Costs
VII. How to Apply
A. Applying Through an FSA County Office
B. Applying Through a Participating State Agency
VIII. Payments
IX. Regulatory Analyses
A. Notice and Comment and Effective Date
B. Executive Orders 12866, 13563, and 14192
C. Environmental Review
D. Executive Order 13175
E. Unfunded Mandates Reform Act
F. Paperwork Reduction Act Requirements
G. E-Government Act Compliance
I. Background
OCCSP provides cost share assistance to producers and handlers of
agricultural products for the costs of obtaining or maintaining organic
certification under the National Organic Program (NOP; 7 CFR part 205).
USDA's Agricultural Marketing Service (AMS) administers the NOP, which
develops and enforces consistent national standards for organically
produced agricultural products sold in the United States and accredits
third-party organizations to certify that farms and businesses meet the
national organic standards. OCCSP is a separate program, administered
by FSA on behalf of CCC, that provides financial support to producers
and handlers who are certified under the NOP. This financial assistance
helps organic producers and handlers sustain their operations and meet
the growing consumer demand for products that meet the robust standard
indicated by the USDA organic label, which supports the Trump
Administration's expansive efforts to Make America Healthy Again.
National funding for 2025 through 2031 was authorized by Section
10606(e) of the One Big Beautiful Bill Act (OBBBA; Pub. L. 119-21),
which was signed on July 4, 2025. Due to the delay in authorization of
National funding for 2025, CCC will administer OCCSP for the 2025 and
2026 program years concurrently.
Prior to 2017, OCCSP was administered by AMS through grants with
State agencies. Beginning in 2017, administration of the program was
transferred to FSA on behalf of CCC and cost share assistance has been
provided through two approaches: (1) through grant agreements with
State agencies that provide cost share payments to producers and
handlers in their state; and (2) by issuing payments directly to
producers and handlers who apply for cost share payments through an FSA
county office (see 82 FR 23522, May 23, 2017; 84 FR 17997, April 29,
2019; and 89 FR 39579, May 9, 2024).
This final rule specifies the OCCSP eligibility criteria and
payment calculation for producers and handlers. It also establishes the
application process and deadlines for eligible producers and handlers
who apply through FSA county offices, and it announces the opportunity
for State agencies to establish agreements through grants to administer
OCCSP. This final rule is not making substantive changes to the
administration of OCCSP. The provisions of this final rule, which
address OCCSP administration for 2025 and subsequent program years, are
consistent with administration of OCCSP in recent years, as announced
in previous NOFAs.
The terms ``producer'', ``handler'', and ``program year'' are used
throughout this rule. ``Producer'' and ``handler'' have the same
meaning as used in the NOP regulations at 7 CFR 205.2. ``Producer''
means ``a person who engages in the
[[Page 40860]]
business of growing or producing food, fiber, feed, and other
agricultural-based consumer products,'' and ``handler'' means ``any
person that handles agricultural products, except final retailers of
agricultural products that do not process agricultural products.'' The
program year for OCCSP is the fiscal year beginning on October 1 of the
preceding calendar year and ending on September 30 (7 CFR 1417.3). For
example, the 2025 program year began on October 1, 2024, and ended on
September 30, 2025.
This final rule also uses the term ``scopes'', which means the four
categories of USDA organic certification (crops, livestock, handling,
and wild crops) and State organic program fees, as described in section
V of this rule and defined in Sec. 1417.3.
II. Available Funding
Funding for OCCSP is provided through two authorizations.
Agricultural Management Assistance (AMA) funding is authorized by 7
U.S.C. 1524(b)(4)(C)(ii), which provides that the Commodity Credit
Corporation shall use not less than 10 percent of the amounts made
available to carry out that subsection per fiscal year to provide
organic certification cost share assistance for producers in the
following 16 States: Connecticut, Delaware, Hawaii, Maryland,
Massachusetts, Maine, Nevada, New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming.
AMA funds are used for only the scopes of crops, wild crops, and
livestock because the authorizing law specifies that those funds will
be used to provide assistance to producers (7 U.S.C. 1524(b)(1)). AMA
funding that is not obligated during the fiscal year for which it is
provided cannot be used for future years.
National funding is authorized by 7 U.S.C. 6523(d)(1)(C), which
directs the Secretary to make available $8 million in CCC funding for
each of fiscal years 2022 through 2031 for OCCSP, to remain available
until expended. Approximately $1,945,000 in National funding is still
available from prior years that has not been expended and can be used
for any future years. National funding is used to assist certified
producers and handlers in all States (including States with AMA
funding), U.S. territories, and the District of Columbia. National
OCCSP funds are used to provide cost share for all five scopes (crops,
livestock, handling, wild crops, and State organic program fees).
Both National funding and AMA funding may be used for grants to
State agencies and payments through FSA county offices. AMA funding
cannot be used for the scopes of handling and State organic program
fees; therefore, all cost share for those scopes must be paid with
National funding even in AMA-eligible States. AMA-eligible States must
submit separate grant applications for AMA funding and National funding
to cover all eligible scopes for applicants in their State.
III. State Agency Participation
To participate in OCCSP, State agencies must complete an
Application for Federal Assistance (Standard Form 424 (OMB 4040-0004;
Expiration Date: 03/31/2029) and 424B (OMB 4040-0007; Expiration Date:
07/31/2028)) and enter into a grant agreement with CCC (see Sec.
1417.4). State agencies must apply electronically via Grants.gov, the
Federal grants website, at http://www.grants.gov. For information on
how to use Grants.gov, please consult https://www.grants.gov/applicants/grant-applications/how-to-apply-for-grants. All grant awards
will be subject to the provisions of the applicable Notice of Funding
Opportunity (NOFO) and the USDA General Terms and Conditions for
Federal Awards in effect at the time the grants are executed.
FSA will soon announce a 30-day application period for state
agencies to apply through Grants.gov to administer OCCSP. Upon receipt
of complete applications, CCC may begin reviewing the applications and
may make awards prior to the deadline. Applications for grant awards
received after the deadline may be considered if CCC determines the
delay does not disrupt program administration.
For 2027 and future program years, this funding opportunity will be
announced through a press release and on the OCCSP website and
Grants.gov, without a Federal Register notice. State agencies that wish
to participate should make a note of this change and monitor those
locations for future announcements.
IV. Eligible Producers and Handlers
To be eligible for OCCSP, a producer or handler must:
Possess USDA organic certification under the NOP:
[cir] For the 2025 program year, at any time during the 2025 program
year, or
[cir] For 2026 and subsequent program years, at the time of
application;
Have paid fees or expenses related to their initial
certification or renewal of their certification from a certifying
agent; and
Be located in the 50 United States, the District of
Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the
U.S. Virgin Islands, and the Commonwealth of the Northern Mariana
Islands.
Producers and handlers with suspended, revoked, or withdrawn
certifications at the time of application are ineligible for cost share
reimbursement.
V. Eligible Scopes
Five separate ``scopes,'' or categories of certification, are
covered under OCCSP. Four of these scopes are set forth in the NOP
regulations and must be individually inspected and certified: crops,
livestock, wild crops, and handling. A single operation may be
certified under multiple scopes, which may all be listed on the same
certificate. For example, a certified organic vegetable farm that also
has certified organic chickens and produces certified organic jams
would be required to be certified for three scopes: crops, livestock,
and handling. To receive an OCCSP payment for the scopes of crops,
handling, livestock, or wild crops, the scope must be listed on the
producer or handler's organic certificate.
State organic program fees may be required by a State that has
established a State organic program, which allows the State to oversee
organic production and handling operations and assume regulatory
enforcement responsibility of the USDA organic regulations for all
organic farms and businesses operating within its boundaries (see 7 CFR
205.620 through 205.622). These fees are in addition to the costs of
organic certification under the four scopes of USDA organic
certification. These State organic program fees are eligible for OCCSP
cost share reimbursement and for OCCSP purposes are considered an
additional, separate scope.
VI. Allowable and Unallowable Costs
Allowable costs for OCCSP include only the following:
Application fees and administrative fees for USDA organic
certification;
Inspection fees for USDA organic certification, including
travel costs and per diem for organic inspectors;
USDA organic certification costs, including fees necessary
to access international markets with which AMS has equivalency
agreements or arrangements;
State organic program fees;
User fees and sale assessment fees for USDA organic
certification; and
Postage for materials related to obtaining or renewing
USDA organic certification.
[[Page 40861]]
Any costs not listed above are considered unallowable, including,
but not limited to, the following examples:
Inspections due to violations of USDA organic regulations
or violations of State organic program requirements;
Costs related to non-USDA organic certifications;
Costs related to transitional certification;
Costs related to any labeling program other than USDA
organic certification;
Materials, supplies, and equipment;
Late fees and expediting fees;
Membership fees; and
Consultant fees.
OCCSP provides cost share for allowable costs based on the program
year in which the allowable cost was paid, which may be different than
the year in which the cost was incurred. For example, during the 2025
program year (October 1, 2025, through September 30, 2026), a producer
paid their application fee and inspection fees. The producer also
incurred a sales assessment fee during the 2025 program year but paid
it on October 10, 2026. The producer would include the application fee
and inspection fees on their 2025 program year application. The sales
assessment fee would be included on their 2026 program year application
and the producer must meet eligibility requirements for that program
year to receive an OCCSP payment.
If an allowable cost is incurred for more than one scope, the
amount will be divided by the number of applicable scopes, and the
result will be entered on the application for each applicable scope.
For example, a producer received a bill with a single amount of $1,000
for an inspection that covered both crop and livestock scopes. The
amount of the inspection would be divided by 2; $500 would be the cost
for the crop scope and $500 would be the cost for the livestock scope
on the producer's application.
VII. How To Apply
All eligible producers and handlers can apply for OCCSP through
their local FSA county offices. Producers and handlers may apply with
either the State agency or an FSA county office in States where a State
agency participates in OCCSP; however, applicants may not receive OCCSP
payments for the same scope through both the State agency and their FSA
county office. Producers and handlers are subject to the same
eligibility criteria and calculation of cost share payments regardless
of whether they apply through a participating State agency or an FSA
county office.
A. Applying Through an FSA County Office
To apply for OCCSP through an FSA county office, an applicant must
submit the following:
Form CCC-884 (OMB 0560-0289; Expiration Date: 04/30/2029),
Organic Certification Cost Share Program (OCCSP) Application, available
online at https://www.fsa.usda.gov/programs-and-services/occsp or at
any FSA county office;
Proof of USDA organic certification;
Itemized invoices showing allowable certification costs
paid to a third-party certifying agency or State organic program during
the program year for which the application is submitted; and
Form AD-2047 (OMB 0560-0265; Expiration Date: 01/31/2027),
if not previously filed with FSA.
Applicants may be required to provide additional documentation, if
necessary, to verify eligibility or issue a payment. FSA may contact an
applicant's certifying agent to verify the information provided by an
applicant.
Applications may be submitted in person, electronically, or by mail
or FAX. FSA county offices are currently accepting OCCSP applications
for the 2025 and 2026 program years. The beginning of the application
period for 2027 and future program years will be announced through a
press release and on the OCCSP website at https://www.fsa.usda.gov/resources/income-support/organic-certification-cost-share-program-occsp.
For 2026 and future program years the deadline to submit CCC-884
and other required documents is December 31 following the end of the
program year. For example, the 2026 program year ends on September 30,
2026, and an applicant must apply for cost share for allowable costs
paid between October 1, 2025, through September 30, 2026, by December
31, 2026. Due to the delay in the authorization of funds, the
application period for the 2025 program year will run concurrently with
program year 2026, and the deadline is December 31, 2026.
In some instances, a producer or handler may pay allowable costs
during a program year but not receive their initial organic
certification until after the deadline for the program year. In those
instances, an exception to the December 31 deadline applies and the
producer or handler must submit all required documents to their FSA
county office within 30 days after receiving their certification,
subject to the availability of funding. This exception does not apply
to applications submitted to participating State agencies.
CCC and State agencies will stop issuing payments for a program
year if available funding is expended, regardless of when an
application is filed.
B. Applying Through a Participating State Agency
Participating State agencies will establish their own application
process and deadlines for producers and handlers, subject to the terms
of their grant agreements. State agencies should refer to the NOFO on
Grants.gov for additional details on application and deadline
requirements. CCC will provide a list of participating State agencies,
updated as their grants are finalized, at https://www.fsa.usda.gov/programs-and-services/occsp.
VIII. Payments
OCCSP payments are equal to the lesser of the following for each
scope per program year:
the applicable reimbursement percentage, not to exceed 75
percent, multiplied by a producer's or handler's allowable costs; or
the maximum payment amount, not to exceed $750 per scope.
The maximum reimbursement percentage and payment amount are
specified in 7 U.S.C. 6523(b). Prior to the beginning of the
application period for a program year, CCC will determine the
applicable percentage and maximum amount for a program year based on
factors such as participation rates in prior years and changes in the
number of certified organic operations. If sufficient funding is
available to cover expected participation, OCCSP payments will be
calculated based on the maximum percentage and payment amount. If
available funding is not likely to cover all eligible applicants, CCC
may announce a lower percentage and maximum amount to allow a larger
number of certified organic operations to receive assistance. For the
2025 and 2026 program years, the reimbursement percentage will be 75
percent, up to a maximum of $750 per scope.
The percentage and maximum payment amount will be the same
regardless of whether a producer or handler applies through an FSA
county office or a participating State agency. Cost share assistance
will be provided to producers and handlers on a first come, first
served basis, until all available funds for a program year are
expended. Applications received after all funds are expended will not
be paid.
FSA will coordinate with participating State agencies to ensure
[[Page 40862]]
there are no duplicate payments. If a duplicate payment is
inadvertently made, then FSA will inform the participant and require
that funds be returned to CCC.
IX. Regulatory Analyses
A. Notice and Comment and Effective Date
The Administrative Procedure Act (APA, 5 U.S.C. 553(a)(2)) provides
that the notice and comment requirements and 30-day delay in the
effective date provisions of that Act do not apply when the rule
involves specified actions, including matters relating to loans,
grants, benefits, or contracts. This rule governs payments to certified
organic producers and handlers and therefore falls within the benefits
exemption.
The Office of Information and Regulatory Affairs has found that
this rule does not meet the criteria at 5 U.S.C. 804(2) of the
Congressional Review Act (CRA). Moreover, 7 U.S.C. 9091(c)(3) directs
the Secretary to use the authority provided by the CRA at 5 U.S.C.
808(2), which allows an agency to make such regulations effective
immediately with good cause. USDA has determined that such good cause
exists. Further, this rule implements mandatory requirements of the
OBBBA, and the assistance provided by this rule is necessary to help
beneficiaries sustain their normal business operations. As a result,
USDA finds that notice and public procedure are contrary to the public
interest. Accordingly, this rule is effective upon publication in the
Federal Register.
This rule is exempt from the regulatory analysis requirements of
the Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by the
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA),
because it involves matters relating to benefits. The requirements for
the regulatory flexibility analysis in 5 U.S.C. 603 and 604 are
specifically tied to the requirement for a proposed rule by section 553
or any other law; in addition, the definition of ``rule'' in 5 U.S.C.
601 is tied to the publication of a proposed rule.
B. Executive Orders 12866, 13563, and 14192
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
directed agencies to assess all costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Further, Executive Order 13563 emphasized the
importance of quantifying both the costs and benefits of reducing
costs, harmonizing rules, and promoting flexibility. Executive Order
14192, ``Unleashing Prosperity Through Deregulation,'' announced the
Administration policy to significantly reduce the private expenditures
required to comply with Federal regulations to secure America's
economic prosperity and national security and the highest possible
quality of life for each citizen and to alleviate unnecessary
regulatory burdens placed on the American people. In line with these
Executive Order requirements, the Agency has chosen this regulatory
approach in order toprovide clarity with respect to program
administration and enable CCC to partner with State agencies to
facilitate program delivery in a manner that maximizes benefits and
minimizes burdens on certified organic producers and handlers. This
rule is not an Executive Order 14192 regulatory action because it does
not impose any more than de minimis regulatory costs.
The Office of Management and Budget (OMB) has designated this rule
as ``not significant'' under Executive Order 12866. Accordingly, OMB
has not reviewed this rule and an analysis of costs and benefits is not
required under either Executive Order 12866 or Executive Order 13563.
C. 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) and the USDA regulation for compliance with
NEPA (7 CFR part 1b).
There are no actions under this rule that have the potential to
impact the human environment. Accordingly, the actions under this rule
are covered by the FSA Categorical Exclusion specified in 7 CFR
1b.4(c)(16)(vii), financial assistance to supplement income, that
applies to OCCCP.
No Extraordinary Circumstances (Sec. 1b.3(f)) exist because this
is an administrative payment program. OCCSP does not constitute a major
Federal action that would significantly affect the quality of the human
environment, individually or cumulatively. Therefore, CCC will not
prepare an environmental assessment or environmental impact statement
for this action and, consistent with Sec. 1b.3(g), this document
serves as the programmatic finding of applicability and no
extraordinary circumstance (FANEC) for this Federal action.
D. Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' Executive Order 13175 requires Federal agencies
to consult and coordinate with Tribes on a Government-to-Government
basis on policies that have Tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian Tribes, on the relationship between the Federal Government
and Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes.
CCC has assessed the impact of this rule on Indian Tribes and
determined that this rule does not, to our knowledge, have Tribal
implications that require Tribal consultation at this time. If a Tribe
requests consultation in the future, FSA will work with the Office of
Tribal Relations to ensure meaningful consultation is provided.
E. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L.
104-4) requires Federal agencies to assess the effects of their
regulatory actions on State, local, and Tribal governments or the
private sector. Agencies generally must prepare a written statement,
including cost benefit analysis, for proposed and final rules with
Federal mandates that may result in expenditures of $100 million or
more in any 1 year for State, local, or Tribal governments, in the
aggregate, or to the private sector. UMRA generally requires agencies
to consider alternatives and adopt the more cost effective or least
burdensome alternative that achieves the objectives of the rule. This
rule contains no Federal mandates, as defined in Title II of UMRA, for
State, local, and Tribal governments or the private sector. Therefore,
this rule is not subject to the requirements of sections 202 and 205 of
UMRA.
F. Paperwork Reduction Act Requirements
There are no changes to the information collection request for
OCCSP that has been approved by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act. The OMB control number for the
approval is 0560-0289; Expiration Date: 04/30/2029.
[[Page 40863]]
G. E-Government Act Compliance
CCC is committed to complying with the E-Government Act of 2002, to
promote the use of the internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
Federal Assistance Programs
The title and number of the Federal assistance program, as found in
the Assistance Listing, to which this document applies are 10.171--
Organic Certification Cost Share Program (OCCSP).
List of Subjects in 7 CFR Part 1417
Agricultural commodities, Agriculture, Animals, Grant programs-
agriculture, Livestock, Organically produced products, Plants,
Reporting and recordkeeping requirements.
0
For the reasons discussed above, Commodity Credit Corporation amends 7
CFR chapter XIV by adding part 1417 to read as follows:
PART 1417--ORGANIC CERTIFICATION COST SHARE PROGRAM
Sec.
1417.1 Applicability.
1417.2 Administration.
1417.3 Definitions.
1417.4 State agencies.
1417.5 Eligible producers and handlers.
1417.6 Eligible scopes.
1417.7 Allowable and unallowable costs.
1417.8 How to apply.
1417.9 Payments.
1417.10 General provisions.
Authority: 7 U.S.C. 1524; 7 U.S.C. 6523; and 15 U.S.C 714, et
seq.
Sec. 1417.1 Applicability.
(a) The regulations in this part specify how the Commodity Credit
Corporation will administer the Organic Certification Cost Share
Program (OCCSP). OCCSP provides cost share assistance to producers and
handlers of agricultural products for the costs of obtaining or
maintaining organic certification under the National Organic Program (7
CFR part 205).
(b) The regulations in this part are applicable to the 2025 and
subsequent program years. The availability of cost share assistance
through OCCSP is subject to the availability of funding.
Sec. 1417.2 Administration.
(a) The regulations in this part will be administered under the
general supervision and direction of the Executive Vice President,
Commodity Credit Corporation (CCC). In the field, the regulations in
this part will be administered by the Farm Service Agency (FSA) State
and county committees (referred to as ``State committee'' and ``county
committee,'' respectively).
(b) State executive directors, county executive directors, and
State and county committees do not have authority to modify or waive
any of the provisions of this part.
(c) The State committee may take any action authorized or required
by this part to be taken by the county committee that has not been
taken by the county committee. The State committee may also:
(1) Correct or require a county committee to correct any action
taken by the county committee that is not in accordance with this part;
or
(2) Require a county committee to withhold taking any action that
is not in accordance with this part.
(d) No delegation in this subpart to a State or county committee
precludes the Executive Vice President, CCC, or a designee, from
determining any question arising under this part or from reversing or
modifying any determination made by a State or county committee.
(e) CCC may also carry out OCCSP through grant agreements with
State agencies as provided in Sec. 1417.4.
Sec. 1417.3 Definitions.
The definitions in this section are applicable for all purposes of
administering this part. The terms defined in 7 CFR part 205 are also
applicable, except where those definitions conflict with the
definitions specified in this section. Where there is a conflict or a
difference in definitions specified in this subpart and part 205 of
this title, the regulations in this part will apply.
AMS means the USDA's Agricultural Marketing Service.
AMA funding means Agricultural Management Assistance funding
authorized by 7 U.S.C. 1524(b)(4)(C)(ii) to provide organic
certification cost share for producers in the following states:
Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Maine, Nevada,
New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah,
Vermont, West Virginia, and Wyoming.
CCC-884 means Form CCC-884, Organic Certification Cost Share
Program (OCCSP) Application.
National funding means the funding authorized by 7 U.S.C.
6523(d)(1)(C) to provide organic certification cost share for producers
and handlers in all States, U.S. territories, and the District of
Columbia.
Program year means the fiscal year beginning on October 1 of the
preceding calendar year and ending on September 30.
State agency means the agency, commission, or department
responsible for agriculture under its jurisdiction in each of the 50
States, the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Marina Islands.
Scope means the category of certification (that is, crops,
livestock, wild crops, handling, or State organic program fees).
Sec. 1417.4 State agencies.
(a) To administer OCCSP, a State agency must apply for and receive
a grant award to administer OCCSP. All grant awards will be subject to
the provisions of the applicable Notice of Funding Opportunity and the
USDA General Terms and Conditions for Federal Awards in effect at the
time the grants are executed.
(b) To apply to administer OCCSP, a State agency must submit an
Application for Federal Assistance (Standard Form 424 and 424B)
electronically via Grants.gov by the announced deadline for the
applicable fiscal year. CCC may consider applications received after
the deadline if the delay does not disrupt program administration.
(c) All State agencies may apply for a grant award of National
funding. State agencies in State that are eligible for AMA funding may
receive grant awards for both AMA funding and National funding but must
submit a separate application for each grant award.
Sec. 1417.5 Eligible producers and handlers.
(a) To be eligible for OCCSP, a producer or handler must:
(1) Possess a valid USDA organic certification:
(i) For the 2025 program year, at any time during the program year;
or
(ii) For 2026 and subsequent program years, at the time of
application;
(2) Have paid allowable expenses, as specified in Sec. 1417.7, for
initial organic certification or renewal of organic certification from
a certifying agent during the applicable fiscal year; and
(3) Be located in the 50 United States, the District of Columbia,
the Commonwealth of Puerto Rico, Guam, American Samoa, the U.S. Virgin
Islands, or the Commonwealth of the Northern Mariana Islands.
(b) Producers and handlers with suspended, revoked, or withdrawn
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certifications at the time of application are ineligible for OCCSP.
Sec. 1417.6 Eligible scopes.
(a) Applicants may receive OCCSP cost share for the following
scopes:
(1) Crops;
(2) Handling;
(3) Livestock;
(4) Wild crops; and
(5) State organic program fees.
(b) To receive OCCSP cost share for the scopes of crops, handling,
livestock, or wild crops, the scope must be listed on the producer or
handler's organic certificate.
(c) National funds may be used to issue OCCSP payments for all
scopes listed in paragraph (a) of this section. AMA funds may be used
to issue OCCSP payments for only the scopes of crops, wild crops, and
livestock.
Sec. 1417.7 Allowable and unallowable costs.
(a) OCCSP provides cost share for allowable costs that are paid by
the eligible producer or handler during a program year. Allowable costs
that have not been paid at the time of application are not eligible for
OCCSP.
(b) Allowable costs for OCCSP include:
(1) Application fees and administrative fees for USDA organic
certification;
(2) Inspection fees for USDA organic certification, including
travel costs and per diem for organic inspectors;
(3) USDA organic certification costs, including fees necessary to
access international markets with which AMS has equivalency agreements
or arrangements;
(4) State organic program fees;
(5) User fees and sale assessments for USDA organic certification;
and
(6) Postage for materials related to obtaining or renewing USDA
organic certification.
(c) Any costs not included in paragraph (a) of this section are
considered unallowable, including, but not limited to:
(1) Inspections due to violations of USDA organic regulations or
violations of State organic program requirements;
(2) Costs related to non-USDA organic certifications;
(3) Costs related to transitional certification;
(4) Costs related to any other labeling program;
(5) Materials, supplies, and equipment;
(6) Late fees and expediting fees;
(7) Membership fees; and
(8) Consultant fees.
(d) If a single allowable cost is incurred for more than one scope,
the amount will be divided by the number of applicable scopes, and the
result will be entered on the application for each applicable scope.
Sec. 1417.8 How to apply.
(a) FSA county offices will begin accepting OCCSP applications for
a program year on the date announced by CCC. Applications may be
submitted in person, electronically, or by mail or FAX.
(b) To apply for OCCSP through an FSA county office, a producer or
handler must submit all of the following:
(1) Form CCC-884, Organic Certification Cost Share Program (OCCSP)
Application;
(2) USDA organic certificate; and
(3) Itemized invoices showing allowable certification costs paid to
a third-party certifying agency or State organic program during the
program year for which the application is submitted.
(c) Applicants may be required to provide additional documentation
to FSA if necessary to verify eligibility or issue a payment. FSA may
contact an applicant's certifying agent to verify the information
provided by an applicant.
(d) The deadline to apply through an FSA county office for the 2025
program year is December 31, 2026. For 2026 and future program years,
the deadline to submit CCC-884 and other required documents to an FSA
county office is December 31 following the end of the program year.
(e) If a producer or handler pays allowable costs during a program
year but does not receive their initial organic certification until
after the OCCSP deadline for that program year, the deadline for the
producer or handler to apply through an FSA county office is 30 days
after receiving their organic certification, subject to the
availability of funding. Applications will not be accepted by
participating State agencies after December 31 following the end of the
program year.
(f) Producers and handlers applying through a participating State
agency must follow the application process and deadlines announced by
the State agency.
Sec. 1417.9 Payments.
(a) OCCSP payments are equal to the lesser of the following for
each scope:
(1) The applicable reimbursement percentage, not to exceed 75
percent, multiplied by a producer's allowable costs; or
(2) The maximum payment amount, not to exceed $750 per scope.
(b) The applicable reimbursement percentage and maximum payment
amount for a program year will be determined and announced by CCC prior
to the beginning of the application period.
(c) Producers and handlers shall not receive OCCSP payments for the
same scope through both a State agency and an FSA county office for the
same program year.
(d) OCCSP payments shall be provided on a first come, first served
basis, until all available funds are expended by CCC or the State
agency. Applications received after all available funds are expended
will not be paid.
Sec. 1417.10 General provisions.
(a) All information provided to FSA for program eligibility and
payment calculation purposes is subject to spot check. Participants are
required to retain documentation in support of their application for 3
years after the date of approval. Participants receiving OCCSP payments
or any other person who furnishes such information to the U.S.
Department of Agriculture (USDA) must permit authorized representatives
of USDA or the Government Accountability Office, during regular
business hours, to enter the operation and to inspect, examine, and
allow representatives to make copies of books, records, or other items
for the purpose of confirming the accuracy of the information provided
by the participant.
(b) If an OCCSP payment resulted from erroneous information
provided by a participant, or any person acting on their behalf, the
payment will be recalculated and the participant must refund any excess
payment to FSA with interest calculated from the date of the
disbursement of the payment. If FSA determines that the applicant
intentionally misrepresented information included on their application,
the application will be disapproved and the applicant must refund the
full payment to FSA with interest from the date of disbursement.
(c) Any payment under this subpart will be made without regard to
questions of title under State law and without regard to any claim or
lien. The regulations governing offsets in 7 CFR part 3 apply to OCCSP
payments.
(d) In either applying for or participating in OCCSP, or both, the
applicant is subject to laws against perjury (including, but not
limited to, 18 U.S.C. 1621). If the applicant willfully makes and
represents as true any verbal or written declaration, certification,
statement, or verification that the applicant knows or believes not to
be true, in the course of either applying for or participating in
OCCSP, or both, then the applicant may be found to be guilty
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of perjury. Except as otherwise provided by law, if guilty of perjury
the applicant may be fined, imprisoned for not more than 5 years, or
both, regardless of whether the applicant makes such verbal or written
declaration, certification, statement, or verification within or
outside the United States.
(e) For the purposes of the effect of a lien on eligibility for
Federal programs (28 U.S.C. 3201(e)), USDA waives the restriction on
receipt of funds under this subpart but only as to beneficiaries who,
as a condition of the waiver, agree to apply OCCSP payments to reduce
the amount of the judgment lien.
(f) In addition to any other Federal laws that apply to OCCSP, the
following laws apply: 18 U.S.C. 286, 287, 371, and 1001.
(g) Sequestration will apply to the total amount of funding
available for OCCSP if required by law.
William Beam,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2026-13571 Filed 7-2-26; 8:45 am]
BILLING CODE 3411-E2-P