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REPORT TO CONGRESS

Fiscal Year (FY) 2016

NATIONAL AND AGRICULTURAL MANAGEMENT ASSISTANCE

ORGANIC CERTIFICATION COST SHARE PROGRAMS

I. BACKGROUND

The U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS) administers two

organic certification cost-share programs: the National Organic Certification Cost Share Program

(National) and the Agricultural Management Assistance Organic Certification Cost Share Program

(AMA), collectively referred to as the Organic Certification Cost Share Programs (OCCSP).

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The AMS administers the OCCSP by awarding funds to participating States that in turn reimburse

organic producers and handlers for specific costs related to organic certification. To be eligible,

recipients must receive an initial certification or continuation of certification from a USDA-accredited

certifying agent, in accordance with the USDA organic regulations. The annual reimbursement is set

at 75 percent of certification costs, with a maximum of $750 per certification category: crops,

livestock, wild crops, and handling. Operations that are certified in more than one category are eligible

for a reimbursement of $750 maximum per certification category, not to exceed 75 percent of total 

certification costs.

Each Federal fiscal year, AMS announces the availability of the National and AMA funds through a

variety of communication channels, such as telephone calls and emails to State contacts, outreach

materials, and informational postings to Grants.gov and the AMS Web site: www.ams.usda.gov/.

A. National OCCSP

The National OCCSP is authorized under Section 10606(d)(1) of the Farm Security and Rural

Investment Act of 2002 (7 U.S.C. 6523(d)), as amended by Section 10004(c) of the Agriculture Act

of 2014 (2014 Farm Bill; Pub. L. 113–79).

The Agricultural Act of 2014 reauthorized the National OCCSP and provides “no year” funding, which

is open to certified organic producers and handlers in the 50 States, the District of Columbia, and five 

U.S. Territories (hereafter referred to as “States”). However, nine States chose not to participate,

specifically American Samoa, the District of Columbia, Guam, Nevada, the Northern Mariana Islands, 

Puerto Rico, Tennessee, Utah and Wyoming. Delaware, Oklahoma, and South Carolina participated by 

counter-signing the grant agreement, but no reimbursement requests have been submitted to date.

 1 In September 2016, USDA notified Congress of its intent to transfer the authority for administering the organic certification cost-share 

programs from the Agricultural Marketing Service to the Farm Service Agency. This transfer became effective in Fiscal Year 2017.
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B. The Agricultural Management Assistance Cost Share Program

The AMA OCCSP is authorized under the Federal Crop Insurance Act (FCIA), as amended

(7 U.S.C. 1524(b)). Under this authority, Congress authorizes USDA to annually provide organic

certification cost share assistance to certified organic producers operating in 16 specifically named

States: Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Hampshire,

New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming. Of 

the 16 States, Massachusetts and Utah chose not to participate, citing inadequate resources to manage 

the AMA OCCSP funds. Delaware, Nevada, and West Virginia participated by counter-signing the 

grant agreement, but no reimbursement requests have been submitted to date. To prevent duplicate 

assistance payments, producers participating in the AMA OCCSP are not eligible to participate in the

producer portion of the National OCCSP.

II. FISCAL YEAR 2016

A. National Participation

Under the 2016 National OCCSP, $10,815,7722 was apportioned for 56 States. AMS allocated

$10,777,836 to the 47 States which signed agreements with AMS to participate. These States 

subsequently disbursed $7,140,503.91 in cost-share assistance to 9,301 qualifying organic operations. The 

$37,936 difference between the total apportionments for the program and the amount AMS allocated to 

the 47 participating States represents funds apportioned for the nine non-participating States plus AMS 

administrative cost. All states are provided funding amount since it is not known until later which states 

will actually participate. The funds allocated to the non-participating States will roll over for use in the 

next fiscal year because National OCCSP funds are no-year funds.

The Appendix to this report provides State-by-State data on the funds allocated and disbursed by 

participating State, the number of certified organic operations benefiting from the reimbursement of

certification costs, and the percent of allocated funds used. National OCCSP agreements signed by 

participating States for 2016 are in effect from October 1, 2015, through September 30, 2016. Only a few

States have disbursed all of their allocated funds for 2016 at the time of this report. The other participating

States may retain their remaining funds until fully dispersed. Disbursements vary by the number of 

requests for reimbursement submitted by organic operations.

 

2 In fiscal year 2016, National OCCSP was authorized $11.5M plus $167,500 carry-over for an estimated funding at $11,667,500 and then 

sequestered at 7.3% for a total apportionment of $10,815,772.
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B. AMA Participation

Under the 2016 AMA OCCSP, $927,0003 was apportioned for 16 States authorized to receive funds by 

the legislation. AMS allocated $879,900 to the 14 States which signed agreements with AMS to 

participate. The $47,100 difference between the total apportionment for the program and the amount AMS 

allocated to the 14 participating States represents funds apportioned for the two non-participating States 

(Massachusetts and Utah) plus AMS administrative cost. All states are provided funding amount since it 

is not known until later which states will actually participate. The participating States subsequently 

disbursed $831,226 in cost share assistance to 1,205 qualifying organic operations. The funds allocated for 

the non-participating states as well as funds not used by participating states are returned to the Treasury 

because AMA OCCSP funds are annual funds.

The Appendix to thisreport providesindividual State data on the funds allocated, reimbursed by the States, 

the number of certified organic operations benefiting from the reimbursement, and the percent of allocated 

funds used. AMA OCCSP agreements signed by participating States for 2016 were in effect from 

October 1, 2015, through September 30, 2016. Some States disbursed their total allocation, and others

did not receive enough requests from eligible organic operations for certification cost reimbursement to 

expend their total allocation. 

 3 In fiscal year 2016, AMA was authorized estimated funding at $1,000,000 and then sequestered at 7.3% for a total apportionment of 

$927,000.
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III.APPENDIX

National Cost Share Program FY 2016 Allocation, Disbursement and Use of Funds by the 

Participating States

State Total Allocation1 Amount Paid as

Reimbursements2

Number of

Operations

Assisted3

Percent of

Funds Used4

Alabama $23,072 $7,998 11 34%

Alaska $20,372 $10,263 14 50%

Arizona $50,000 $49,041 75 98%

Arkansas $25,600 $15,613 23 60%

California $2,180,872 $1,062,783 1,295 48%

Colorado $216,776 $216,776 273 100%

Connecticut $58,800 $18,059 25 30%

Delaware $11,500 $0 0 0%

Florida $175,000 $99,823 95 57%

Georgia $103,572 $62,145 51 60%

Hawaii $81,000 $60,475 65 74%

Idaho $200,000 $79,542 107 40%

Illinois $202,800 $80,170 113 39%

Indiana $202,300 $97,624 125 48%

Iowa $418,000 $326, 650 381 78%

Kansas $75,772 $34,585 41 46%

Kentucky $76,200 $39,600 150 52%

Louisiana $27,472 $14,162 18 52%

Maine $256,772 $233,192 295 91%

Maryland $84,300 $19,953 35 24%

Massachusetts $124,000 $83,391 100 67%

Michigan $279,672 $203,803 254 73%

Minnesota $548,772 $419,250 832 76%

Mississippi $12,600 $6,326 16 50%

Missouri $127,800 $69,023 92 54%

Montana $129,980 $129,980 286 100%

Nebraska $115,300 $115,300 150 100%

New Hampshire $81,600 $5,428 10 7%

New Jersey $136,500 $50,119 63 37%

New Mexico $81,600 $12,346 17 15%

New York $607,200 $377,561 441 62%

North Carolina $168,172 $168,172 224 100%

North Dakota $228,100 $19,190 24 8%

Ohio $369,100 $280,719 350 76%
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National Cost Share Program FY 2016

Allocation, Disbursement and Use of Funds by the Participating States (cont.)

State Total Allocation1 Amount Paid as

Reimbursements2

Number of

Operations

Assisted3

Percent of

Funds Used4

Oklahoma $50,000 $0 0 0%

Oregon $398,172 $344,274 459 86%

Pennsylvania $453,400 $257,254 288 57%

Rhode Island $24,000 $8,240 13 34%

South Carolina $31,000 $0 0 0%

South Dakota $64,372 $59,498 75 92%

Texas $247,900 $131,359 175 53%

Vermont $327,800 $290,070 360 88%

Virginia $92,500 $37,168 50 40%

Washington $607,972 $570,488 677 93%

West Virginia $17,672 $14,869 15 84%

Wisconsin $957,472 $957,472 1137 100%

US Virgin

Islands

$5,000 $750 1 15%

Total $ 10,777,836 $7,140,504 9,301 66%

1 Amount AMS authorized the State to use for reimbursement to certified organic operations plus up to 10% indirect cost to cover States’

administrative expenses.

2 Funds paid by States to reimburse certified organic operators plus up to 10% indirect cost to cover States’ administrative expenses. Any

difference between the amount requested and the amount paid to operators is held for future disbursement. 3

Number of producers and handlers that received reimbursement. 4

Total reimbursement divided by the total allocation amount.
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AMA Cost Share Program FY 2016 Allocation, Disbursement and Use of Funds by the 

Participating States

State Total Allocation1 Amount Paid as

Reimbursements2

Number of

Operations

Assisted3

Percent of

Funds Used4

Connecticut $24,000 $23,467 40 98%

Delaware $2,500 $0 0 0%

Hawaii $31,900 $30,062 40 94%

Maine $91,500 $90,206 180 99%

Maryland $33,000 $32,625 73 99%

Nevada $12,000 $0 0 0%

New Hampshire $32,100 $15,235 44 47%

New Jersey $25,000 $16,752 44 67%

New York $317,800 $317,800 389 100%

Pennsylvania $163,600 $163,586 182 99%

Rhode Island $5,000 $4,993 17 99%

Vermont $119,200 $119,200 171 100% 

West Virginia $5,000 $0 0 0%

Wyoming $17,300 $17,300 25 100%

Total $879,900 $831,226 1,205 94%

1 Amount AMS authorized the State to use for reimbursement to certified organic operations plus up to 10% indirect cost to cover States’

administrative expenses.

2 Funds paid by States to reimburse certified organic operators plus up to 10% indirect cost to cover States’ administrative expenses. Any

difference between the amount requested and the amount paid to operators is returned to the federal government. 3 Number of producers that received reimbursement. 4 Total reimbursement divided by the total allocation amount.