USDA AMS NATIONAL ORGANIC PROGRAM 

COST-SHARE PROGRAMS 

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 USDA organic 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 ofthe Federal Crop 

Insurance Act, 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. AMS allocated $1.425 million 

to States in fiscal year 2012; States will distribute these funds to producers in fiscal year 

(FY) 2013. 

The second program is the National Organic Certification Cost-Share Program, which was 

re-established as a part of the Food, Conservation and Energy Act of2008 (7 U.S.C. 6523). 

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

Act of2002 (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 in cost-share programs through Federal Register 

Notices, Grants.gov postings, electronic communications, and personal phone calls. A Notice 

of Fund Availability was published for both programs in the Federal Register (78 FR 5164-

5165), and the NOP posted the notice and an accompanying newsletter article on its Web site. 

The funding opportunity was also posted on Grants.Gov. As of February 2013, the States had 

distributed approximately $20.3 million of the $22 million allocated for the National Organic 

Certification Cost-Share Program. 

1 The American Taxpayer Relief Act of2012 (P.L. 112-240, dated January 02, 2013) amended the availability of 

these funds to "the period of fiscal years 2008 through 201 2." 
B. FY 2013 PARTICIPATION AND FUNDING OBLIGATIONS 

15 of the 16 eligible States are expected to participate in the AMA cost-share program for 

FY 2013, as shown in the map below; AMS allocated these funds to the States in FY 2012. 

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

• Application instructions and cooperative agreements for FY 2013 were sent to the 

16 AMA program eligible States. All but Utah are participating in the program. 

The Utah 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. 

Legend 

STATE PARTICIPATION: FY 2013 

ORGANIC CERTIFICATION COST SHARE PROGRAM 

- Agricultural Management Assistance Program 

c==:J Not eligible 

~ Not participating 

• For the FY 2013 AMA program, $1.425 million is available to States for costshare assistance. 

• State agencies are required to submit requests for disbursements to receive funds. 

2 
C. SUMMARY OF FY 2012 AGRICULTURAL MANAGEMENT ASSISTANCE 

COST SHARE PROGRAMS FUND USE 

• Using cooperative agreements, AMS allocated $1.5 million to States for the AMA 

program in FY 2011; States distributed these funds to producers in FY 2012. 

• Table 2 lists the total cost-share assistance payments provided by States to 

AMA-eligible organic operations certified between October 1, 2011, and 

September 30, 2012 (FY 2012). 

• As of January 31, 2013, AMA program States had provided $1,296,208 in 

cost-share assistance to 2,348 organic producers, an average payment of $552. 

• 10 States provided more funds in cost-share assistance during FY 2012 than 

FY 2011, and two States provided funding at approximately the same level. 

Utah and Wyoming did not participate in the FY 2012 AMA program. 

D. SUMMARY OF NATIONAL PROGRAM FUND USE IN FY 2012 

• Table 3 lists total cost-share assistance payments provided through the National 

Cost-Share program to organic operations certified between October 1, 2011 , and 

September 30, 2012. 

• In FY 2012, $6,603,2002 

was allotted through cooperative agre~ments to the 

participating States. 

• As of January 31 , 2013, National Program States provided $5,309,783 in costshare assistance to 7,245 organic producers or handlers, an average payment 

of $733. Final reports are pending from 2 States: Kentucky and Indiana. 

• Unused funds or funds returned by States were reallocated to States through 

amendments to the FY 2012 cooperative agreements. 1 0 States requested fund 

increases during FY 2012. 

• 28 States provided more funds in cost-share assistance during FY 2012 than 

FY 2011 , and one State provided funding at approximately the same level. 

Two States and three territories did not issue any reimbursements in the 

FY 2012 National program: Guam, Puerto Rico, Utah, West Virginia, 

and the U.S. Virgin Islands. · 

2 The allotment has increased from the amount previously reported in the 2012 Report to Congress due to reallocation of unused State funds from the prior fiscal year to meet demand. 

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Table 1: USDA-AMS National Organic Program 

AMA Cost-Share Program 

Start of Year Fund Allotments to Participating States for 2013 

State AMA Program Allotments 

Connecticut $32,500 

Delaware 10,000 

Hawaii 65,000 

Maine 205,000 

Maryland 47,500 

Massachusetts 60,000 

Nevada 12,000 

New Hampshire 30,000 

New Jersey 30,000 

New York 450,000 

Pennsy 1 vania 202,500 

Rhode Island 15,500 

Utah 0 

Vermont 245,000 

West Virginia 5,000 

w • - 15 000 

TOTAL s 1 ,~25,000 

Table 2: AMA Cost-Share Fund Use by States, FY 2012 

Total Start of Year Funds Used Number of Operations 

State Fund Allocation by State Assisted 

Connecticut $37,500 $25,860 51 

Delaware 15,000 3,324 5 

Hawaii 75,000 42,612 63 

Maine 205,000 200,729 373 

Maryland 62,500 30,663 73 

Massachusetts 60,000 38,668 53 

Nevada 15,000 13,732 25 

New Hampshire 45,000 21 ,260 155 

New Jersey 45,000 14,144 29 

New York 450,000 450,000 623 

USDA ~ 4 
Table 2 continued 

Total Start of Year Funds Used Number· of Operations 

State Fund Allocation by State Assisted 

202 500 

985 

Table 3: National Cost-Share State Fund Use, FY 2012 

Total Start of Year Funds Used Number of Operations 

State Fund Allocation by State Assisted 

Alabama $10,000 $3,962 5 

Alaska 20,000 11,250 11 

Arizona 50,000 39,477 49 

Arkansas 20,000 9,204 19 

California 1,400,000 1,176,222 1,517" 

Colorado 204,200 203,572 185 

Connecticut 5,000 5,000 9 

Delaware 7,500 3,839 6 

Florida 135,000 134,897 194 

Georgia 45,000 34,843 61 

Hawaii 20,000 9,657 17 

Idaho 100,000 100,000 132 

Illinois 85,000 75,769 102 

Indiana *65,000 *0 *0 

Iowa 305,000 266,370 359 

Kansas 40,000 40,000 58 

Kentucky *25,000 *25,000 *112 

Louisiana 12,500 12,375 15 

Maine 25,000 21,922 34 

Maryland 15,000 9,075 21 

Massachusetts 30,000 11,373 25 

Michigan 180,000 174,169 274 

Minnesota 478,000 440,980 521 

Mississippi 15,000 2,325 4 

Missouri 85,000 64,702 96 

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Table 3 continued 

Total Start of Year Funds Used Number of Operations 

State Fund Allocation by State Assisted 

Montana 145,000 118,567 

Nebraska 120,000 81,876 

Nevada 10,000 

New 25,000 

New 35 000 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Key: * indicates that the State has not submitted final financial reports. 

Total fund allocation and funds used by state totals are rounded figures. All figures are 

current as of March 20, 2013. 

214 

103 

9 

20 

16 

60 

191 

60 

152 

189 

150 

4 

14 

45 

8 

6