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USDA AMS NATIONAL ORGANIC PROGRAM

COST SHARE PROGRAMS

2011 REPORT TO CONGRESS

A. BACKGROUND

The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) National 

Organic Program (NOP) administers two organic certification cost share programs. Each program 

provides cost share assistance, through participating States, to organic producers and/or organic 

handlers. Recipients must receive initial certification or continuation of certification to the NOP 

regulations from a USDA-accredited certifying agent. Reimbursement is currently available at 75 

percent of an operation’s certification costs, up to a maximum of $750 per year. 

The first program is the Agricultural Management Assistance (AMA) Organic Certification Cost 

Share Program, which was established in 2001 as part of the Agricultural Management Assistance 

Program. This program is authorized under Section 1524 of the Federal Crop Insurance Act 

(FCIA), as amended, (7 U.S.C. 1501–1524). It authorizes cost share assistance to producers of 

organic agricultural products in Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, 

Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, 

West Virginia, and Wyoming. The AMS received an annual funding allocation of $1.495 million for 

the fiscal year (FY) 2011 AMA program. 

The second program is the National Organic Certification Cost Share Program, which was reestablished as a part of the Food, Conservation and Energy Act of 2008 (7 U.S.C. 6523). This 

program was initially established as a part of the Farm Security and Rural Investment Act of 2002

(7 U.S.C. 3007). It authorizes cost share assistance to producers and handlers of organic 

agricultural products in all States and U.S. Territories (hereafter known as “States”). In FY 2008, 

Congress provided on a one-time basis $22 million for this program, to be allocated to States 

until the funds are exhausted. To prevent duplicate assistance payments, producers participating

in the AMA program are not eligible to participate in the producer portion of the National program.

AMS invited State agencies to participate through Federal Register Notices, press releases, 

Grants.gov postings, electronic communications and personal phone calls. On September 8, 

2010, a Notice of Fund Availability was published for both programs in the Federal Register (75 FR 

54590). Both notices and their accompanying press releases were posted on the NOP website.

The funding opportunities were also posted on Grants.Gov on August 27, 2010. 

B. FY 2011 PARTICIPATION AND FUNDING OBLIGATIONS

Forty-nine states, the commonwealth of Puerto Rico, and the US Virgin Islands are all enrolled in 

at least one of the cost share programs for FY 2011, as shown in the map below. Detailed 

enrollment and allocation data are outlined in Table 1 in the appendix. 

• Application instructions and cooperative agreements for the FY 2011 were sent to the 16 

AMA program eligible States. All but Utah are participating in the program. The Utah 
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Department of Agriculture and Food chose not to submit an application to participate in 

either cost share program, citing inadequate staff resources to manage it.

• Application instructions and cooperative agreements for the FY 2011 National program 

were sent to the 50 States, U.S. Virgin Islands, Guam, and Puerto Rico. All but two States 

(Guam and Utah) are participating in the program. Guam did not submit an application for 

Federal Assistance under the National program and provided no explanation. 

• For the FY 2011 AMA program, $1.495 million will be allotted for cost share assistance.

• For the FY 2011 National program, $5.263 million has been allotted to the participating 

States for the period October 1, 2010, through September 30, 2011.

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• Total program funds allotted in FY 2011 for both cost share programs are $6.758 million.

• To receive funds, State agencies are required to submit requests for disbursements. As of 

January 31, 2011, $107,400 has been disbursed to State agencies. Fund requests are 

typically more frequent in the third and fourth fiscal quarters. In FY 2010, about two-thirds 

of fund requests were received in the last half of the fiscal year. 

 1 The allotment has increased from the amount previously reported in the September 8, 2010 press release announcing the 

funds due to re-allocation of unused state funds from the prior fiscal year to meet demand. 
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C. SUMMARY OF FY 2010 AGRICULTURAL MANAGEMENT 

ASSISTANCE COST SHARE PROGRAMS FUND USE

• Results shown in Table 2 are cumulative data of FY 2010 cost share assistance payments 

provided to AMA-eligible organic operations certified between October 1, 2009 and 

September 30, 2010. 

• $1.485 million in annual funds was allotted through cooperative agreements to the 15 of 

16 eligible States for the AMA program in FY 2010. 

• As of January 31, 2011, AMA program States provided $1,116,049 in cost share assistance 

to 2,033 organic producers, an average payment of $549.

• 10 States provided more funds in cost share assistance during FY 2010 than FY 2009, and 

two states provided funding at approximately the same level. Utah did not participate in 

the FY 2010 AMA program.

D. SUMMARY OF NATIONAL PROGRAM FUND USE IN FY 2010 

• Results shown in Table 3 are cumulative data of FY 2010 cost share assistance payments 

provided to organic operations certified between October 1, 2009 and September 30, 

2010. 

• In FY 2010, $4,767,5002 was allotted through cooperative agreements to the participating 

States. 

• As of January 31, 2010, National program States provided $3,889,675 in cost share 

assistance to 6,123 organic producers or handlers, an average payment of $635. Final 

reports are pending from one State.

• Unused funds or funds returned by States will be reallocated to States through new 

cooperative agreements. 16 States have requested fund increases since September 2010.

• 36 States provided more funds in cost share assistance during FY 2010 than FY 2009, and 

9 States provided funding at approximately the same level. Four States did not participate 

in the FY 2010 National program: Guam, Puerto Rico, Utah, and West Virginia. 

 2 The allotment has increased from the amount previously reported in the 2010 Report to Congress due to re-allocation of 

unused State funds from the prior fiscal year to meet demand. 
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Table 1: USDA-AMS National Organic Program FY 2011 Cost 

Share Program Fund Allotments to Participating States

State

National Program 

Allotments

AMA Program 

Allotments Total Allotments

Alabama $ 10,000 -- $ 10,000 

Alaska $ 22,500 -- $ 22,500 

Arizona $ 50,000 -- $ 50,000 

Arkansas $ 20,000 -- $ 20,000 

California $1,050,000 -- $ 1,050,000 

Colorado $ 175,000 -- $ 175,000 

Connecticut $ 5,000 $ 37,500 $ 42,500 

Delaware $ 5,000 $ 15,000 $ 20,000 

Florida $ 135,000 -- $ 135,000 

Georgia $ 45,000 -- $ 45,000 

Hawaii $ 20,000 $ 75,000 $ 95,000 

Idaho $ 100,000 -- $ 100,000 

Illinois $ 60,000 -- $ 60,000 

Indiana $ 65,000 -- $ 65,000 

Iowa $ 305,000 -- $ 305,000 

Kansas $ 40,000 -- $ 40,000 

Kentucky $ 20,000 -- $ 20,000 

Louisiana $ 15,000 -- $ 15,000 

Maine $ 25,000 $ 205,000 $ 230,000 

Maryland $ 15,000 $ 62,500 $ 77,500 

Massachusetts $ 30,000 $ 60,000 $ 90,000 

Michigan $ 130,000 -- $ 130,000 

Minnesota $ 405,000 -- $ 405,000 

Mississippi $ 15,000 -- $ 15,000 

Missouri $ 70,000 -- $ 70,000 

Montana $ 145,000 -- $ 145,000 

Nebraska $ 110,000 -- $ 110,000 

Nevada $ 10,000 $ 15,000 $ 25,000 

New Hampshire $ 15,000 $ 45,000 $ 60,000 

New Jersey $ 35,000 $ 45,000 $ 80,000 

New Mexico $ 30,000 -- $ 30,000 

New York $ 90,000 $ 450,000 $ 540,000 

North Carolina $ 60,000 -- $ 60,000 

North Dakota $ 140,000 -- $ 140,000 

Ohio $ 150,000 -- $ 150,000 

Oklahoma $ 20,000 -- $ 20,000 

Oregon $ 225,000 -- $ 225,000 

Pennsylvania $ 40,000 $ 202,500 $ 242,500 

Rhode Island $ 15,000 $ 20,000 $ 35,000 

South Carolina $ 10,000 -- $ 10,000 

South Dakota $ 40,000 -- $ 40,000 

Tennessee $ 25,000 -- $ 25,000 

Table 1 continued 
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State

National Program 

Allotments

AMA Program 

Allotments Total Allotments

Texas $ 90,000 -- $ 90,000 

Utah $ 5,000 Not Participating $ 5,000 

Vermont $ 30,000 $ 240,000 $ 270,000 

Virginia $ 50,000 -- $ 50,000 

Washington $ 565,000 -- $ 565,000 

West Virginia $ 5,000 $ 7,500 $ 12,500 

Wisconsin $ 475,000 -- $ 475,000 

Wyoming $ 10,000 $ 15,000 $ 25,000 

Guam $ 5,000 -- $ 5,000 

Puerto Rico $ 30,000 -- $ 30,000 

US Virgin Islands $ 5,000 -- $ 5,000 

TOTAL $5,262,500 $1,495,000 $6,757,500

Key: -- indicates that State is not eligible for the AMA program.

Table 2: AMA Cost Share Fund Use by States, FY 2010

State

Total Fund 

Allocation

Funds Used by 

State3

Number of 

Operations 

Assisted

Connecticut $37,500 $19,258 39

Delaware $22,500 $2,152 6

Hawaii $75,000 $50,741 95

Maine $180,000 $170,651 338

Maryland $67,500 $33,056 79

Massachusetts $67,500 $31,613 56

Nevada $15,000 $3,990 20

New Hampshire $45,000 $16,681 60

New Jersey $45,000 $8,468 12

New York $450,000 $390,716 582

Pennsylvania $202,500 $145,818 252

Rhode Island $30,000 $3,630 22

Utah N/A N/A 0

Vermont $225,000 $225,000 446

West Virginia $7,500 $1,856 3

Wyoming $15,000 $12,421 23

Total $1,485,000 $1,116,049 1,781

 3 Funds requested for each of the States were the same as those used by the State, except for the following two States: 

New Hampshire ($25,000) and New York ($394,900).
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Table 3: National Cost Share State Fund Use, FY 2010

State

Total Fund 

Allocation

Funds Used by 

State4

Number of 

Operations Assisted

Alabama $10,000 $3,000 4

Alaska $20,000 $10,588.64 13

Arizona $50,000 $26,191 48

Arkansas $20,000 $3,793 7

California $1,050,000 $881,345 1,304

Colorado $175,000 $106,905 128

Connecticut $5,000 $2,846 4

Delaware $5,000 $4,512 7

Florida $80,000 $80,000 148

Georgia $25,000 $24,833 44

Hawaii $15,000 $11,528 24

Idaho $60,000 $54,964 86

Illinois $45,000 $44,858 73

Indiana $40,000 $40,000 65

Iowa $300,000 $187,684 280

Kansas $40,000 $30,211 46

Kentucky $22,500 $17,799 101

Louisiana $15,000 $6,961 17

Maine $20,000 $15,120 26

Maryland $15,000 $8,580 21

Massachusetts $10,000 $10,000 14

Michigan $130,000 $76,920 123

Minnesota $400,000 $323,339 483

Mississippi $10,000 $0 0

Missouri $45,000 $45,000 64

Montana $90,000 $90,000 134

Nebraska $85,000 $84,301 123

Nevada $10,000 $2,091 5

New Hampshire $15,000 $9,458 18

New Jersey $15,000 $15,000 20

New Mexico $30,000 $24,878 64

New York $65,000 $64,642 84

North Carolina $35,000 $35,000 60

North Dakota $140,000 $115,675 147

Ohio $150,000 $91,222 159

Oklahoma $20,000 $6,600 31

Oregon $225,000 $213,668 353

Pennsylvania $20,000 $20,000 27

 4 Funds requested for each of the States were the same as those used by the State, except for the following five States: 

Alabama ($10,000), Kentucky ($18,700), New Hampshire ($15,000) New York ($394,900), and Wisconsin ($444,059).
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Table 3 continued

State

Total Fund 

Allocation

Funds Used by 

State

Number of 

Operations Assisted

Rhode Island $15,000 $2,031 5

South Carolina $10,000 $4,151 10

South Dakota $40,000 $39,159 60

Tennessee $25,000 $16,031 30

Texas $75,000 $62,263 102

Utah $5,000 Not participating N/A

Vermont $25,000 $22,461 37

Virginia $50,000 $31,010 48

Washington $475,000 $475,000 790

West Virginia $5,000 Not participating N/A

Wisconsin $475,000 $444,059 686

Wyoming $10,000 $825 1

Guam $10,000 Not participating N/A

Puerto Rico $30,000 $2,713 4

US Virgin Islands $10,000 Not participating N/A

Total $4,767,500 $3,888,390 6,128

 All figures are current as of March 10, 2011.