USDA Allocates Additional $8.7 Million to Support Organic Dairy Producers

The United States Department of Agriculture (USDA) has declared a second distribution of funds aimed at assisting dairy producers through the Organic Dairy Marketing Assistance Program (ODMAP) 2024. This initiative offers an additional $8.7 million to help dairy producers cope with market volatility, increased production costs, transportation expenses, and an unpredictable feed supply and pricing scenario, which have led to distinct challenges within the organic dairy sector.

In the initial phase, the USDA's Farm Service Agency (FSA) disbursed $23 million in payments to qualified producers. With this new tranche, total compensation under the ODMAP 2024 amounts to over $31 million.

"This funding provides critical aid to organic dairy producers as they navigate challenges beyond their control," stated Dr. Ronald M. Howell, Jr, FSA state executive director in Virginia. "These payments aim to ensure producers remain operational until market conditions improve," he added.

The FSA's financial support covers projected marketing costs for producers in 2024, based on their 2023 expenses. ODMAP 2024 includes a one-time cost-share payment calculated on marketing expenses related to the pounds of organic milk sold in 2023 or the estimated marketing expenses for producers who have ramped up milk production in 2024.