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USDA AMS NATIONAL ORGANIC PROGRAM

COST SHARE PROGRAMS

2010 REPORT TO CONGRESS

A. BACKGROUND

The 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. Current cost share assistance is at a rate of 75 percent of 

certification costs up to a maximum of $750.00 per year. 

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

Program, 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). This program 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. AMS received an annual fund allocation of $1.45 million for the Fiscal Year (FY) 2010 

AMA program. 

The second program is the National Organic Certification Cost Share Program, re-established 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. 6523). This 

program authorizes cost share assistance to producers and handlers of organic agricultural products in 

all States and U.S. Territories. In FY 2008, Congress allocated on a one-time basis $22.0 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 solicited participation of interested State Agencies through Federal Register Notices, press 

releases, Grants.gov, electronic communications and personal contact. On October 01, 2009, a Notice 

of Fund Availability for the AMA program was published in the Federal Register (74 FR 50767). A 

similar notice for the National program was published in the Federal Register on October 01, 2009 (74

FR 50768). Both notices and their accompanying press releases were posted on the NOP website. 

Additionally, on October 19, 2009, program synopses and a federal assistance application package for 

each cost share program were posted on the Grants.gov website. 

B. FY 2010 PARTICIPATION AND FUNDING OBLIGATIONS

Chart 1, States Participating in Organic Certification Cost Share – FY 2010, page 2, provides the status 

of State participation in the cost share programs:

FY 2010, Federal assistance applications and proposed cooperative agreements were sent to the 

16 AMA program eligible States. All but Utah submitted applications for Federal assistance 
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and signed cooperative agreements with AMS. The Utah Department of Agriculture and Food 

chose not to submit an application for Federal assistance to participate in either cost share 

program.

For FY 2010, Federal assistance applications and cooperative agreements for the National 

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

States (Alabama, Guam, Michigan, Puerto Rico, Utah, and U.S. Virgin Islands) are 

participating in the program.

Alabama, Guam, and U. S. Virgin Islands did not submit applications for Federal assistance 

under the National program due to lack of interest in the program and inadequate resources.

Michigan and Puerto Rico have indicated they may seek participation at a later time in the FY 

2010 cost share program. Provided there is a sufficient period of time remaining in FY 2010, 

AMS will facilitate their participation in the cost share program.

Utah did not submit applications for Federal assistance for the handler portion of the National 

program. They have also chosen not to participate in the AMA program. Program budget 

restraints and lack of interest are the reasons cited by the Utah State Agency for not applying to 

either program.
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Table 1, USDA - AMS / NOP FY 2010 Cost Share Program Fund Allotments to Participating States,

on pages 3 – 4, describes the total funds allotted through cooperative agreements between AMS and 

respective States: 

For the AMA program, $1.485 million will be allotted for cost share assistance.

For the FY 2010 National program, $4.49 million has been allotted to the participating States

for the period October 1, 2009, through September 30, 2010.

Total program funds allotted in FY 2010 for both cost share programs are $5.975 million.

To receive funds, State Agencies are required to submit requests for funds. No State Agency, 

as of February 1, 2010, has submitted a fund request for FY 2010. Based upon program 

history, requests for funding from State Agencies will be more frequent during the third and 

fourth quarters of FY 2010. 

Table 1: USDA - AMS / NOP FY 10 Cost Share Program 

Fund Allotments to Participating States

STATE National Program Fund 

Allotments

AMA Program Fund 

Allotments,

X = program noneligible State

Total Fund Allotments

ALABAMA $0.00 X $0.00

ALASKA $20,000.00 X $20,000.00

ARKANSAS $20,000.00 X $20,000.00

ARIZONA $50,000.00 X $50,000.00

CALIFORNIA $1,050,000.00 X $1,050,000.00

COLORADO $175,000.00 X $175,000.00

CONNECTICUT $5,000.00 $37,500.00 $42,500.00

DELAWARE $5,000.00 $22,500.00 $27,500.00

FLORIDA $80,000.00 X $80,000.00

GEORGIA $25,000.00 X $25,000.00

HAWAII $15,000.00 $75,000.00 $90,000.00

IDAHO $20,000.00 X $20,000.00

ILLINOIS $45,000.00 X $45,000.00

INDIANA $40,000.00 X $40,000.00

IOWA $300,000.00 X $300,000.00

KANSAS $40,000.00 X $40,000.00

KENTUCKY $10,000.00 X $10,000.00

LOUISIANA $15,000.00 X $15,000.00

MAINE $15,000.00 $180,000.00 $195,000.00

MARYLAND $15,000.00 $67,500.00 $82,500.00

MASSACHUSETTS $10,000.00 $67,500.00 $77,500.00

MICHIGAN $0.00 X $0.00
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STATE National Program Fund 

Allotments

AMA Program Fund 

Allotments,

X = program noneligible State

Total Fund Allotments

MINNESOTA $400,000.00 X $400,000.00

MISSISSIPPI $5,000.00 X $5,000.00

MISSOURI $45,000.00 X $45,000.00

MONTANA $90,000.00 X $90,000.00

NEBRASKA $60,000.00 X $60,000.00

NEVADA $5,000.00 $15,000.00 $20,000.00

NEW HAMPSHIRE $10,000.00 $45,000.00 $55,000.00

NEW JERSEY $10,000.00 $45,000.00 $55,000.00

NEW MEXICO $30,000.00 X $30,000.00

NEW YORK $65,000.00 $450,000.00 $515,000.00

NORTH CAROLINA $30,000.00 X $30,000.00

NORTH DAKOTA $140,000.00 X $140,000.00

OHIO $150,000.00 X $150,000.00

OKLAHOMA $20,000.00 X $20,000.00

OREGON $225,000.00 X $225,000.00

PENNSYLVANIA $20,000.00 $202,500.00 $222,500.00

RHODE ISLAND $15,000.00 $30,000.00 $45,000.00

SOUTH CAROLINA $10,000.00 X $10,000.00

SOUTH DAKOTA $40,000.00 X $40,000.00

TENNESSEE $50,000.00 X $50,000.00

TEXAS $75,000.00 X $75,000.00

UTAH $0.00 $0.00 $0.00

VERMONT $25,000.00 $225,000.00 $250,000.00

VIRGINIA $50,000.00 X $50,000.00

WASHINGTON $475,000.00 X $475,000.00

WEST VIRGINIA $5,000.00 $7,500.00 $12,500.00

WISCONSIN $475,000.00 X $475,000.00

WYOMING $10,000.00 $15,000.00 $25,000.00

Guam $0.00 X $0.00

Puerto Rico $0.00 X $0.00

U.S. Virgin Islands $0.00 X $0.00

Total $4,490,000.00 $1,485,000.00 $5,975,000.00

C. Summary of FY 2009 AMA Cost Share Program Fund Use, Table 2

$1.5 million in annual funds was allotted through cooperative agreements to the 15 of 16

eligible States for the AMA program in FY 2008. 
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As of January 30, 2010, AMA program States have provided $1,069,692.82 in cost share 

assistance to 2,072 organic producers, an average payment of $516.26. Final reports are 

pending from several States.

11 States have provided more funds in cost share assistance during FY 2009 than FY 2008. 

Three States have provided funding at approximately the same level. Comparative data for 

Hawaii will not be available until after FY 2010. Utah did not participate.

Table 2: AMA Cost Share Program Fund Use by States, FY 2009

(as of 01/30/10)

State Allotted Funds* Funds Requested 

By State 

Total Fund 

Payments** 

Number of 

Operations 

Assisted

Connecticut $37,500.00 $28,500.00 $19,807.00 40

Delaware $22,500.00 $923.18 $923.18 2

Hawaii $75,000.00 $33,688.81 $33,688.81 75

Maine $180,000.00 $173,182.50 $173,182.50 352

Maryland $67,500.00 $36,073.06 $36,073.06 88

Massachusetts $67,500.00 $23,906.25 $23,906.25 46

Nevada $15,000.00 $5,026.00 $5,026.00 17

New Hampshire $45,000.00 $25,000.00 $25,000.00 130

New Jersey $45,000.00 $8,088.75 $8,088.75 27

New York $450,000.00 $391,451.35 $375,967.16 596

Pennsylvania $202,500.00 $142,025.38 $142,025.38 239

Rhode Island $30,000.00 $495.00 $495.00 3

Utah $15,000.00 $0.00 $0.00 0

Vermont $225,000.00 $212,382.50 $212,382.50 430

West Virginia $7,500.00 $2,640.00 $2,640.00 5

Wyoming $15,000.00 $10,487.21 $10,487.21 22

Total $1,500,000.00 $1,093,869.99 $1,069,692.80 2,072

*Allotted funds annually apportioned through cooperative agreements to States are based upon program data.

** Total Fund Payments = Funds Requested by State – Returned Unused Funds.

D. Summary of National Program Fund Use in FY 2009, Table 3 

Table 3 contains cumulative data of FY 2009 cost share assistance payments provided to 

organic operations certified in either one or two assistance periods, October 1, 2008, through 

September 30, 2009, and, October 1, 2007, through September 30, 2008. 

The assistance period, October 1, 2007, through September 30, 2008, was amended onto the 

FY 2009 agreements. This action was taken to expand program participation to more organic 

operations and fulfill Congressional intent that program fund use begin in FY 2008.

After initially declining to participate in the program, Arizona submitted an application to 

receive Federal assistance in March 2009.

Five States, Connecticut, Delaware, Guam, Puerto Rico, and West Virginia, did not participate 

in the National program. 
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In FY 2009, $8,225,000.00 in program funds was allotted through cooperative agreements to 

the participating States. 

As of January 30, 2010, National program States have provided $5,912,045.91 in cost share 

assistance to 9,749 organic producers or handlers, an average payment of $606.43. Final 

reports are pending from several States.

Comparative annual data for States participating in the National program will not be available 

until after FY 2010 as annual cooperative agreements were used for the first time in FY 2009.

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

cooperative agreement.

Table 3: NOP National Cost Share State Fund Use, FY 2009

(as of 01/30/10)

STATES 

(a) AMA program 

State

Allotted Funds* Funds 

Requested By 

State

Total Fund 

Payments**

Number of 

Operations 

Assisted

ALABAMA* $20,000.00 $0.00 $0.00 0

ALASKA* $30,000.00 $14,497.68 $14,497.68 24

ARKANSAS* $40,000.00 $10,715.75 $10,715.75 19

ARIZONA* $100,000.00 $11,213.28 $11,213.28 17

CALIFORNIA* $1,900,000.00 $1,606,480.42 $1,606,480.42 2,481

COLORADO* $350,000.00 $133,711.65 $133,711.65 195

CONNECTICUT(a) $0.00 $0.00 $0.00 0

DELAWARE(a) $0.00 $0.00 $0.00 0

FLORIDA $80,000.00 $68,588.30 $68,588.30 178

GEORGIA $25,000.00 $11,257.14 $11,257.14 27

HAWAII(a) $10,000.00 $9,446.18 $9,446.18 21

IDAHO $20,000.00 $19,824.50 $19,824.50 29

ILLINOIS* $90,000.00 $68,969.06 $68,969.06 120

INDIANA $35,000.00 $23,807.25 $23,807.25 43

IOWA* $550,000.00 $351,304.03 $351,304.03 553

KANSAS $40,000.00 $31,347.10 $31,347.10 50

KENTUCKY $5,000.00 $5,000.00 $5,000.00 14

LOUISIANA* $20,000.00 $8,414.99 $8,414.99 24

MAINE(a)* $10,000.00 $10,000.00 $10,000.00 27

MARYLAND(a) $10,000.00 $6,600.00 $6,600.00 20

MASSACHUSETTS(a) $10,000.00 $6,000.00 $6,000.00 10

MICHIGAN* $260,000.00 $132,500.77 $132,500.77 202

MINNESOTA* $650,000.00 $641,708.08 $641,708.08 876

MISSISSIPPI $5,000.00 $186.00 $186.00 6

MISSOURI $45,000.00 $45,000.00 $45,000.00 69

MONTANA* $180,000.00 $148,275.69 $148,275.69 242
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STATES 

(a) AMA program 

State

Allotted Funds* Funds 

Requested By 

State

Total Fund 

Payments**

Number of 

Operations 

Assisted

NEBRASKA* $120,000.00 $120,000.00 $120,000.00 199

NEVADA(a)* $10,000.00 $2,977.00 $2,977.00 6

NEW 

HAMPSHIRE(a)* $10,000.00 $10,000.00 $10,000.00 36

NEW JERSEY $10,000.00 $10,000.00 $10,000.00 31

NEW MEXICO* $40,000.00 $20,586.66 $20,586.66 72

NEW YORK(a)* $120,000.00 $120,000.00 $116,853.89 159

NORTH CAROLINA* $30,000.00 $30.000.00 $30,000.00 60

NORTH DAKOTA* $280,000.00 $182,474.36 $182,474.36 261

OHIO* $300,000.00 $128,512.49 $128,512.49 242

OKLAHOMA* $40,000.00 $11,100.00 $11,100.00 81

OREGON* $450,000.00 $265,255.40 $265,255.40 410

PENNSYLVANIA(a)* $30,000.00 $26,402.52 $26,402.52 36

RHODE ISLAND(a)* $10,000.00 $165.00 $165.00 1

SOUTH CAROLINA $5,000.00 $3,469.00 $3,469.00 8

SOUTH DAKOTA $40,000.00 $29,298.00 $29,298.00 52

TENNESSEE* $50,000.00 $18,903.87 $18,903.87 35

TEXAS* $200,000.00 $0.00 $0.00 0

UTAH(a) $5,000.00 $0.00 $0.00 0

VERMONT(a) $15,000.00 $15,000.00 $15,000.00 31

VIRGINIA* $100,000.00 $65,556.78 $65,556.78 104

WASHINGTON* $950,000.00 $690,593.28 $690,593.28 1,479

WEST VIRGINIA(a) $0.00 $0.00 $0.00 0

WISCONSIN* $900,000.00 $799,224.79 $799,224.79 1,208

WYOMING(a) $10,000.00 $825.00 $825.00 1

GUAM $0.00 $0.00 $0.00 0

PUERTO RICO $0.00 $0.00 $0.00 0

US VIRGIN ISLANDS $20,000.00 $0.00 $0.00 0

Total $8,230,000.00 $5,915,192.02 $5,912,045.91 9,759

*Allotted funds annually apportioned through cooperative agreements to States are based upon program data. 

** Total Fund Payments = Funds Requested by State – Returned Unused Funds.

E. Program Planning for FY 2011

NOP will continue to review current administrative procedures of the cost share programs for the 

purpose of developing and implementing recommendations to increase the effectiveness of program 

administrative procedures, and/or recommend alternative procedures to replace obsolete or noncompliant processes.