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 OCCSP received continued support through the 2018 Farm Bill. It
provides cost-share assistance to producers and handlers of
agricultural products for the costs of obtaining or maintaining
organic certification under the USDA’s National Organic Program.
Eligible producers include any certified producers or handlers
who have paid organic certification fees to a USDA-accredited
certifying agent. Eligible expenses for cost-share reimbursement
include application fees, inspection costs, fees related to
equivalency agreement and arrangement requirements, travel
expenses for inspectors, user fees, sales assessments and
postage.
Certified producers and handlers are eligible to receive
reimbursement for up to 75 percent of certification costs each
year, up to a maximum of $750 per certification scope, including
crops, livestock, wild crops, handling and state organic program
fees.
Opportunities for State Agencies
Today’s announcement also includes the opportunity for state
agencies to apply for grant agreements to administer the OCCSP
program in fiscal 2019. State agencies that establish agreements
for fiscal year 2019 may be able to extend their agreements and
receive additional funds to administer the program in future
years.
FSA will accept applications from state agencies for fiscal year
2019 funding for cost-share assistance through May 29, 2019.
More Information
To learn more about organic certification cost share, please
visit the OCCSP webpage, view the notice of funds availability
on the Federal Register, or contact your FSA county office. To
learn more about USDA support for organic agriculture, visit
usda.gov/organic.
USDA Announces March Income over Feed Cost
Margin Triggers Third 2019 Dairy Safety Net Payment
Dairy Margin Coverage Program Sign-Up Begins June
17
USDA’s Farm Service Agency (FSA) announced this week that the
March 2019 income over feed cost margin was $8.85 per
hundredweight (cwt.), triggering the third payment for dairy
producers who purchase the appropriate level of coverage under
the new Dairy Margin Coverage (DMC) program.
DMC, which replaces the Margin Protection Program for Dairy (MPP-Dairy),
offers protection to dairy producers when the difference between
the all milk price and the average feed cost (the margin) falls
below a certain dollar amount selected by the producer.
The signup period for DMC opens June 17, 2019. Dairy producers
who elect a DMC coverage level between $9 and $9.50 would be
eligible for a payment for January, February and March 2019.
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For example, a dairy operation that chooses to enroll
an established production history of 3 million pounds (30,000 cwt.)
and elects the $9.50 coverage level on 95 percent of production
would receive $1,543.75 for March.
Sample calculation:
$9.50 - $8.85 margin = $0.65 difference
$0.65 x 95 percent of production x 2,500 cwt. (30,000 cwt./12) =
$1,543.75
DMC premiums are paid annually. The calculated annual premium for
coverage at $9.50 on 95 percent of a 3-million-pound production
history for this example would be $4,275.
Sample calculation:
3,000,000 x 95 percent = 2,850,000/100 = 28,500 cwt. x 0.150 premium
fee = $4,275
The dairy operation in the example calculation will pay $4,275 in
total premium payments for all of 2019 and receive $8,170 in DMC
payments for January, February and March combined. Additional
payments will be made if calculated margins remain below the
$9.50/cwt level.
All participants are also required to pay an annual $100
administrative fee in addition to any premium, and payments will be
subject to a 6.2 percent reduction to account for federal
sequestration.
Operations making a one-time election to participate in DMC through
2023 are eligible to receive a 25 percent discount on their premium
for the existing margin coverage rates. For the example above, this
would reduce the annual premium by $1,068.75.
About DMC
On December 20, 2018, President Trump signed into law the 2018 Farm
Bill, which provides support, certainty and stability to our
nation’s farmers, ranchers and land stewards by enhancing farm
support programs, improving crop insurance, maintaining disaster
programs and promoting and supporting voluntary conservation. FSA is
committed to implementing these changes as quickly and effectively
as possible, and today’s updates are part of meeting that goal.
Recently, FSA announced the availability of the DMC decision support
tool as well as repayment options for producers who were enrolled in
MPP-Dairy.
For DMC signup, eligibility and related dairy program information,
visit the DMC webpage or contact your local USDA service center. To
locate your local FSA office, visit farmers.gov/service-locator.
[USDA Farm Service Agency] |
