WASHINGTON — The Farm Service Agency (FSA) of the US Department of Agriculture (USDA) announced $58 million will be made available to organic dairy producers for marketing assistance.

The funds, available via the Organic Dairy Marketing Assistance Program (ODMAP) 2024, are intended to expand the market for organic dairy products and increase the consumption of organic dairy.

FSA administrator Zach Ducheneaux said ODMAP, which was created to support organic dairy producers facing unique challenges outside of their control, is an example of USDA’s commitment to keep organic dairies sustainable.

“In preparation for the launch of ODMAP 2024, we met often with organic milk industry leaders and their constituents to ensure that the assistance we provide addresses their expressed needs,” Ducheneaux said. “Through this proactive engagement, we identified the need for and are pleased to offer increased payment rates and an increased production level eligible for marketing cost-share assistance.”

The Organic Trade Association (OTA) called the announcement particularly good news for small- and medium-sized organic dairy operations, which are seeing “sharply increased” operating and marketing costs, with organic commodities in short supply.

In an effort to improve ODMAP, FSA noted the program in 2024 “provides for an increase in the payment rate to $1.68 per hundredweight compared to the previous $1.10 per cwt.” Plus, this year the production level eligible for receiving marketing cost-share assistance increased to 9 million pounds – previously the level was set at 5 million pounds.

OTA co-chief executive officer Tom Chapman said the trade association applauded the changes.

“This targeted support acknowledges organic’s distinct cost structures and will help strengthen American organic dairy farms,” Chapman said.

FSA said ODMAP 2024 will help companies mitigate “market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry.” FSA added that projected marketing costs for 2024 are calculated using a company’s 2023 marketing costs.

The application process for ODMAP 2024 opens on Sept. 30 and closes Nov. 29. FSA said certified organic dairy operations that produce milk from cows, goats and sheep are eligible to apply.

Strauss Family Creamery vice president of sustainability and strategic impact Joseph Button described the current market circumstances unprecedented, in particular due to “extremely high” animal feed costs.

“As organic dairy farmers and processors work to adapt to extreme weather challenges and general inflationary pressures, this critical financial assistance from USDA affirms the importance of the organic dairy sector and the nutrient-dense foods it provides for our communities across the US,” Button said.

More information on ODMAP 2024 is available online at FSA’s website.