USDA Agricultural Marketing Service (AMS) 

Organic Pinpointed Market Development 

Listening Session

November 15, 2022
Listening Session Roadmap 

• Overview (10 min) 

– Purpose of Listening Session 

– Brief Overview of Organic Transition Initiative –

Part of Broad Food Systems Transformation Program

• Five Key Areas for Feedback – With Questions! (8 Minutes Each)

– Brief Overview of Topic 

– Participants Use Chat for Responses and Feedback

– Names and Chats will be Published on AMS Website 

• Next Steps (10 min) – Posting Materials, Instructions for Written Input

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Organic Transition Initiative ($300 M)

Transition to Organic 

Partnership Program 

($100 M)

• Farmer-to-Farmer 

Mentoring 

• Technical Assistance 

• Community 

Development 

• Workforce Development 

• Data and Reporting 

Direct Support: 

Conservation and 

Crop Insurance ($100 M)

• Conservation Support 

for Transitioning 

Farmers (NRCS)

• Crop Insurance 

Assistance for 

Transitional Organic 

Growers (RMA)

Pinpointed Organic 

Market Development 

(Up to $100 M)

• Support Innovation by 

building organic supply 

chains in targeted 

markets

• $75M for Grants; $25M 

for Commodity 

Procurement 

• $75M in Grants: 

Commodity Credit 

Corporation (CCC) Funds 

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OTI Complements Other USDA Investments 

Available in the Organic Integrity Learning Center

Link: https://content.govdelivery.com/accounts/USDAAMS/bulletins/335f328

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Market Development: Overarching Goals 

• Develop new and expanded organic markets by providing more 

resources and certainty for businesses transitioning to organic or 

initiating new organic production and processing capacity

• Focus on creating more, new, and better markets for targeted 

domestic organic products 

• Drive demand for domestically-produced agricultural products by 

investing in certified organic processing capacity and product 

development

• Expanding organic processing capacity will create critical paths to 

market for organic growers

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Current Concept for $75M Grant Program

• Investments to be primarily regional and/or crop specific

• Program will be targeted to key markets to ensure meaningful impacts

• Investments will fund activities outside the organic certification process 

to avoid duplicating cost share program

• To be administered by the Agricultural Marketing Service (AMS) 

Transportation and Marketing Program (TM)

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Financial Structure 

We are seeking input on the following decision points:

• Proposed minimum funding level: $100,000

• Proposed maximum funding level: $2,000,000

• Matching funds:

– Tiered requirement, exempting projects below a certain size

– Dollar for dollar matching funds above a certain size 

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Moving to Chat Phase.... 

• Background: We used this same approach for early development for 

the Organic Integrity Database, the Organic Integrity Learning Center, 

Strengthening Organic Enforcement Rulemaking, and Input on Wild 

Caught Fish. It is a proven way to get great feedback. 

• Process: 

– We will cover 5 key areas – with similar question set for each area. 

– I will mark the start of each topic in Chat. 

– Remember – your name and chat will be published in the Chat 

Record. 

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1. Organic Grain and Feed

• Build domestic supply and associated processing capacity of organic grain 

and feed to respond to growing demand and reduce reliance on imports, 

which historically demonstrated fraudulent activity. Mitigate recent 

impacts to overseas organic feed markets. 

• Stakeholders have identified livestock feed proteins, including soybean 

meal, canola, alfalfa, and sun cake as needing USDA support. 

• Question: 

What targeted investments at what dollar level would likely have the most 

meaningful impacts? Crop, Region, and/or Market Components (what part 

of market/supply chain)

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2. Legumes and Other Rotational Crops 

• Feed grain markets must be complemented by processing capacity and 

consumer product markets for organic legumes and rotational crops like 

peanuts, oats, beans, field peas, barley, and lentils. 

• Organic feed grains depend on extensive rotational cropping systems, with 

different marketing channels for non-feed rotational crops. 

• Adding cash value for organic rotational crops like beans and lentils will 

further incentivize transition to organic production.

• Question: 

What targeted investments at what dollar level would likely have the most 

meaningful impacts? Crop, Region, and/or Market Components (what part 

of market/supply chain)

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3. Organic Ingredients

• Consumer products depend on certified organic ingredients for 

manufacturing, which can be in short supply. 

• Organic ingredients require a high degree of specialization and technical 

knowledge to ensure compliance with the USDA organic regulations. 

• Providing market incentives for these nascent products is key to 

achieving the quantity, quality, and form of certified organic ingredients, 

creating more demand for certified organic products. 

• Question: 

What targeted investments at what dollar level would likely have the 

most meaningful impacts? Ingredients, Region, and/or Market 

Components (what part of market/supply chain)

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4. Ensure Market for Organic Dairy 

• The current domestic surplus in organic dairy has caused some farmers to 

lose their contracts with processors. Existing grant programs do not have 

the authority to target dairy investments specific to organic products. 

• By targeting investments in organic dairy infrastructure these grants will 

provide new paths to market for organic milk. 

• Question: 

What targeted investments at what dollar level would likely have the most 

meaningful impacts? Region and/or Market Components (what part of 

market/supply chain)

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5. Fiber

• Organic fiber continues to be the largest and fastest-growing sector in the 

U.S. organic non-food industry. Only 0.2% of U.S. cotton is grown 

organically, and the U.S. grows only 3% of the global organic cotton supply. 

Organic hemp data are not readily available.

• By investing in dedicated organic fiber processing and marketing activities, 

USDA can incentivize fiber production with fewer synthetic inputs.

• Question: 

What targeted investments at what dollar level would likely have the most 

meaningful impacts? Crop, Region, and/or Market Components (what part 

of market/supply chain)

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Next Steps 

• Written input due November 30, 2022: 

rebecca.e.claypool@usda.gov

• Do not need to resend chatted content 

• AMS will post slides and chat record on website

• Next Step: AMS will develop Grant Request for Application (RFA) 

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