WASHINGTON, D.C. – The USDA’s Farm Service Agency (FSA) recently announced it is making $58 million available for marketing assistance to eligible certified organic dairy producers through its Organic Dairy Marketing Assistance Program 2024.

The agency said the goal for the funding is to expand the market for organic dairy, and increase the consumption of organic dairy.

“The Organic Dairy Marketing Assistance Program continues the USDA’s commitment to keep the market for organic dairies sustainable as they weather challenges outside of their control,” said Zach Ducheneaux, FSA administrator.

“In preparation for the launch of Organic Dairy Marketing Assistance Program 2024, we met often with organic milk industry leaders and their constituents to ensure that the assistance we provide addresses their expressed needs,” he added. “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 USDA said Organic Dairy Marketing Assistance Program 2024 helps mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry.

“Specifically, through Organic Dairy Marketing Assistance Program 2024, Farm Service Agency is assisting organic dairy operations with projected marketing costs in 2024 calculated using their marketing costs in 2023,” the USDA said in a statement. “Eligible producers include certified organic dairy operations that produce milk from cows, goats, and sheep.”

The USDA added organic dairy producers who participate in the assistance program will benefit from improvements to provisions outlined in the program.

“Specifically, Organic Dairy Marketing Assistance Program 2024 provides for an increase in the payment rate to $1.68 per hundredweight, compared to the previous $1.10 per cwt. (100 pounds; cwt. is a standard unit of weight or mass used in certain commodities markets),” the agency said. “Additionally, the production level eligible for marketing cost-share assistance has increased to 9 million pounds, compared to the previous 5 million pounds.”

Doug Kilgore, FSA program manager for dairy and special programs, told Farm World certified organic dairy operations marketing milk at Organic Dairy Marketing Assistance Program 2024 enrollment are eligible for the program’s marketing assistance.

“The USDA’s Commodity Credit Corp. Charter Act has limited ability to provide marketing assistance to organic dairy operations,” he said. “Organic Dairy Marketing Assistance Program 2024 basically provides a payment for the year for hauling costs, which fall under the definition of marketing costs.

“Post-pandemic have been tough times for all aspects of the organic dairy industry,” he added. “Record high costs for organic feed and forage commodities, in addition to the unavailability of feed. Organic Dairy Marketing Assistance Program 2024 pays on the cwt. of organic milk marketed in 2023, or projected 2024 milk production for new, transitioning, or expanding dairy operations.”

Wedemeier Dairy, an organic dairy farm near Maynard, Iowa, operates as a partnership between Scott and Catherine Wedemeier, along with their children Mae, Evan, Will and Jed; and his parents, Gary and Becky Wedemeier. The Wedemeiers operate about 711 acres, all farmed organically.

Scott Wedemeier, a third-generation farmer who also owns an organic row-crop operation called Grassway Farm, told Farm World, “I have been dairy farming since 2003 and organic since 2017. We market all of our milk production through our farmer-owned co-op, Organic Valley (headquartered in La Farge, Wis.).

“The USDA’s market assistance funding will help organic dairy producers recoup some losses and fill in the financial hole, which was caused by inflationary pressures,” he said. “Many like to think that all dairy farming is the same (conventional and organic).

“But the cost of organic inputs and production expenses have a higher cost per unit,” he added. “I think almost all the funds organic producers receive will be going right back into the local community businesses in the form of farm labor, repairs, maintenance, and upkeep.”

The USDA said FSA is accepting applications through Nov. 29. To apply, producers should contact FSA at their local USDA Service Center.

To complete the Organic Dairy Marketing Assistance Program 2024 application, producers must certify to pounds of 2023 milk production, show documentation of their organic certification, and submit a completed application form.

The USDA added organic dairy operations are required to provide their USDA certification of organic status confirming operation as an organic dairy in 2024 and 2023, along with the certification of 2023 milk production, or estimated 2024 milk production in hundredweight.

To learn more about FSA dairy programs, visit: www.fsa.usda.gov/programs-and-services/farm-bill/farm-safety-net/dairy-programs.