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The demand for organic products in the United States continues to grow, with domestic sales surpassing $69.7 billion in 2023.
For farmers, ranchers, processors, and handlers looking to enter or expand in this market, understanding the path to official organic certification can make a real difference. The USDA Organic seal is a recognized symbol that signifies adherence to strict federal standards, building consumer trust and potentially opening new market opportunities.
This article explains the process governed by the U.S. Department of Agriculture (USDA), detailing the rules, requirements, steps, costs, and available financial support associated with obtaining and maintaining USDA organic certification.
What is the USDA National Organic Program (NOP)?
The National Organic Program (NOP) is the federal regulatory body within the USDA’s Agricultural Marketing Service (AMS) tasked with overseeing organic agricultural products in the United States. Established under the Organic Foods Production Act of 1990 (OFPA), the NOP’s primary mission is to develop, implement, and enforce consistent national standards for products sold, labeled, or represented as “organic”. This ensures a level playing field for producers and protects consumer confidence in the integrity of the USDA Organic Seal.
The NOP’s authority covers all stages of the organic chain, including production, handling, labeling, and enforcement. A key function of the NOP is accrediting and overseeing third-party organizations known as certifying agents (or certifiers). These private, foreign, or state organizations are authorized by the USDA to inspect and certify that farms and businesses meet the rigorous national organic standards. The USDA and these accredited certifiers work collaboratively to enforce the regulations, ensuring compliance across the industry.
This structure, with federal oversight from the NOP combined with certification activities carried out by independent, accredited agents, forms a system of checks and balances designed to uphold the integrity of the organic label. It also means that businesses seeking certification must navigate both the overarching USDA regulations and the specific procedures and requirements of their chosen certifying agent.
The NOP places a strong emphasis on enforcement to maintain the value and trustworthiness of the organic seal. Recent regulatory updates, such as the Strengthening Organic Enforcement (SOE) final rule, signal an increasing focus on preventing fraud and bolstering consumer confidence, particularly as the organic market continues its significant expansion.
The primary hub for official information, regulations, guidance, and resources is the National Organic Program section on the USDA AMS website. This site contains vital information on regulations and standards, enforcement actions, the certification and accreditation process, resources for farms and businesses, the NOP Handbook, the National List of Allowed and Prohibited Substances, and the Organic Integrity Database, which lists certified operations. For a broader overview of USDA support for organic agriculture, the USDA’s Organic Farming page serves as a useful starting point.
Who Needs USDA Organic Certification?
The fundamental rule is that most businesses involved in producing or handling agricultural products that are intended to be sold, labeled, or represented as “organic” in the United States must obtain certification from a USDA-accredited certifying agent. This includes products labeled “100 percent organic,” “organic,” or “made with organic ingredients”.
The term “handling” is defined broadly under the regulations. It encompasses not only processing and packaging but also activities like selling, combining, aggregating, culling, conditioning, treating, packing, containerizing, repackaging, labeling, storing, receiving, or loading organic products. Handling also includes activities where there might not be direct physical contact with the product, such as selling, trading, facilitating sales or trade, importing, and exporting.
A significant development impacting certification requirements is the Strengthening Organic Enforcement (SOE) final rule, which took full effect on March 19, 2024. This rule substantially broadened the scope of operations requiring certification, particularly targeting entities in the middle of the supply chain like brokers, traders, importers, and exporters who previously might have been exempt. The explicit goal of SOE is to bolster oversight and traceability across the entire organic supply chain. Consequently, the USDA emphasizes that there are now “very few exceptions” to the certification requirement. Businesses newly required to be certified under SOE are urged to apply for certification promptly to avoid potential enforcement actions, including financial penalties under the Organic Foods Production Act (OFPA).
This tightening of the supply chain through SOE reflects a strategic move by the USDA. By shifting the certification burden more explicitly onto handlers, brokers, importers, and exporters, the program aims to close potential loopholes and enhance the integrity of organic products, especially as they move through complex, often global, supply chains.
Despite the broad requirement, the USDA organic regulations (found at 7 CFR § 205.101) do provide a few specific, limited exemptions:
Small-Scale Operations
Farms or businesses that generate $5,000 or less in gross annual organic sales are exempt from certification. This threshold applies only to gross revenue from organic products, not total farm/business income or net profit.
While exempt, these operations face significant limitations:
- They cannot use the official USDA Organic Seal on their products
- They cannot represent their products as “certified organic”
- They are prohibited from selling their products as organic ingredients for use in another operation’s certified organic products
Furthermore, they must still comply with the applicable NOP production and handling standards, such as preventing commingling with non-organic products and contact with prohibited substances. Recordkeeping to prove compliance with production standards is generally required, although specific recordkeeping to prove the $5,000 exemption itself is not mandated.
This exemption is therefore quite narrow in practice, primarily suited for very small operations selling directly to consumers (e.g., at farm stands or local markets) who do not need the seal or access to the certified ingredient supply chain. It is not a pathway for businesses aiming for significant growth within the organic sector.
Retail Establishments
Operations that sell organic products directly to consumers are exempt if they do not process the organic products. Retailers that do process organic products (e.g., restaurants, bakeries, grocery store delis or salad bars preparing food) are also exempt, provided the processing occurs only at the final point of sale to the consumer.
“Processing” includes activities like cooking, baking, cutting, mixing, grinding, packaging, or otherwise enclosing food in a container. Exempt retailers handling or processing organic products must still prevent commingling with non-organic items and contact with prohibited substances, and must comply with labeling rules.
However, unless they choose to pursue voluntary certification, they cannot use the USDA seal or label their processed products as “certified organic”. It’s important to note that distribution centers owned by retail establishments that handle bulk, non-tamper-evident packaged goods, or perform processing activities like ripening or packing online orders from bulk goods, likely do require certification.
Specific Handling Operations (Low-Risk)
Exemptions also exist for certain handling operations considered lower risk:
- Handlers dealing only with products containing less than 70% organic ingredients, or products that only identify organic ingredients on the information panel (not the main display panel). These operations must still prevent commingling/contamination and maintain records verifying the organic status of ingredients used.
- Operations that only receive, store, and/or prepare for shipment organic products that remain in the same sealed, tamper-evident packaging throughout their control.
- Operations that only buy and sell organic products that are already packaged and labeled for retail sale, without any further handling.
- Customs brokers whose activities are limited solely to conducting customs business related to organic products.
Crucially, certain activities are explicitly excluded from these exemptions:
Importing and Exporting
These activities are not exempt under the SOE rule. Certification is required for both the exporter in the foreign country and the importer in the U.S. to maintain the integrity of organic imports. The electronic NOP Import Certificate is now mandatory for all certified organic shipments entering the U.S., providing traceability and an auditable record trail.
Handling Bulk, Unpackaged Products
Operations that handle organic products not in sealed retail packaging (e.g., bulk grain, milk, livestock, produce bins) generally need certification, even if their activities are limited to storage or transport.
Off-Site Processing
If a certified operation sends its organic products to another, separate facility for processing (e.g., slaughter, milling, bottling), that off-site facility must also be certified organic to perform that service on organic products. An uncertified facility cannot handle or process products claimed as organic under another operation’s certificate.
Even if an operation qualifies for a regulatory exemption, it may still choose to pursue voluntary organic certification. Reasons for doing so might include the desire to use the USDA Organic Seal, to sell products as certified organic ingredients, or to meet specific buyer requirements. It is common for processors, distributors, or retailers to contractually require their suppliers to be certified organic, regardless of whether the supplier meets the criteria for a legal exemption. This highlights how market demands can create a practical need for certification that goes beyond the minimum regulatory threshold. Businesses considering relying on an exemption should verify if their target customers will accept non-certified products.
For detailed guidance, the USDA provides resources including the webpage “Do I Need to Be Certified?” and a related factsheet.
Key USDA Organic Standards and Regulations
The foundation of the USDA organic system lies in a comprehensive set of standards and regulations governing how organic food is grown, handled, and processed. These rules ensure consistency and integrity across the certified organic sector.
The primary regulations are codified in the U.S. Code of Federal Regulations at 7 CFR Part 205. This legal text outlines all the specific requirements, including prohibited practices, production and handling standards, labeling rules, and the National List of Allowed and Prohibited Substances.
To help interpret and implement these regulations, the NOP maintains the NOP Handbook. This essential resource compiles official guidance documents, policy memos, instructions, and clarifications. It is designed to assist organic operations and certifying agents in understanding and complying with the regulations.
The overarching authority for these regulations comes from the Organic Foods Production Act of 1990 (OFPA), the legislation that established the NOP.
The standards cover several key areas:
Land Requirements (Crops)
A fundamental requirement for organic crop production is that the land must have had no prohibited substances applied to it for a period of three years immediately preceding the harvest of an organic crop. This is often referred to as the transition period. Operations seeking certification must document the land’s history to prove compliance.
Additionally, organic fields must have distinct, defined buffer zones separating them from adjacent non-organic land or areas where prohibited substances (like synthetic pesticides or fertilizers) might be used. These buffers are necessary to prevent accidental contamination from spray drift or runoff.
Soil Fertility, Crop Management, and Pest/Weed/Disease Control (Crops)
Organic farming emphasizes proactive management practices that build soil health and maintain ecological balance. Key principles include:
Soil Fertility
Management practices must maintain or improve the physical, chemical, and biological condition of the soil and minimize erosion. This is achieved primarily through crop rotations, cover cropping, and the application of plant and animal materials, such as composted manure or crop residues.
Allowed and Prohibited Substances
The system relies heavily on natural inputs and prohibits the use of most synthetic substances, including synthetic fertilizers, pesticides, and herbicides. However, the regulations recognize that some synthetic substances may be necessary in specific situations, and some natural substances may be harmful.
The definitive guide is the National List of Allowed and Prohibited Substances, found within 7 CFR Part 205. This list specifies:
- Synthetic substances allowed for use in organic crop production (under specific restrictions).
- Non-synthetic (natural) substances prohibited for use in organic crop production.
- Non-agricultural, non-synthetic substances allowed in processed products.
- Synthetic substances allowed in processed products.
All inputs (fertilizers, pest controls, soil amendments) planned for use on an organic operation must be reviewed and approved by the operation’s certifying agent before application to ensure compliance. The National List is not static; changes can be made through a formal rulemaking process, typically initiated by petitions submitted to the National Organic Standards Board (NOSB), an advisory board that reviews substances and makes recommendations to the NOP.
This dynamic nature means operators must stay informed about the current status of allowed materials and consult their certifier regularly. Understanding the nuances of the National List is critical for compliance, especially when using any non-organic inputs.
Prohibited Practices
The USDA organic regulations explicitly forbid the use of sewage sludge (biosolids), ionizing radiation (irradiation), and “excluded methods,” which primarily refers to genetic engineering or genetically modified organisms (GMOs).
Pest, Weed, and Disease Management
Control strategies must prioritize preventative and ecological approaches, such as selecting appropriate plant species and varieties, implementing crop rotation, using mechanical or physical controls (like tillage or mulching), and encouraging beneficial insects. Synthetic pest or weed control products may only be used as a last resort, and only if the substance is explicitly allowed on the National List for that purpose.
Livestock Standards
Organic certification for livestock operations involves specific requirements for animal origin, feed, healthcare, and living conditions:
Origin
Generally, mammals raised for meat (slaughter stock) must be managed organically from the last third of gestation. Poultry must be managed organically from the second day of life. Dairy animals must be managed organically for at least 12 months prior to producing organic milk. Specific rules apply for transitioning conventional herds.
Feed
All agricultural feed provided to organic livestock must be 100% certified organic. This includes pasture, forage, and purchased feed rations.
Healthcare
The focus is on preventative healthcare practices, including providing appropriate nutrition, minimizing stress, and selecting suitable breeds. Routine use of animal drugs, such as antibiotics and hormones (like growth promoters), is prohibited. Vaccinations and biologics are generally permitted to prevent common diseases. If an animal becomes sick and requires treatment with a prohibited substance (like an antibiotic), it must be treated but loses its organic status and cannot be sold or represented as organic.
Living Conditions
Organic standards require that living conditions accommodate the health and natural behavior of the animals. This includes access to the outdoors, shade, shelter, exercise areas, fresh air, clean drinking water, and direct sunlight, suitable to the species, stage of life, climate, and environment. For ruminants, access to pasture during the grazing season is mandatory. Specific requirements are detailed in the regulations, including the recent Organic Livestock and Poultry Standards (OLPS) final rule, which further clarifies and strengthens these requirements.
Handling and Processing Standards
Operations that handle or process organic products after they leave the farm must also meet specific standards:
Preventing Commingling and Contamination
Handlers must implement measures to protect organic products from contact with prohibited substances (e.g., non-approved sanitizers, pest control materials) and to prevent commingling, which is the mixing of organic and non-organic products. This requirement applies throughout receiving, processing, storage, and transportation, and even extends to exempt operations that handle organic goods.
Allowed Ingredients and Processing Aids
Any non-agricultural ingredients (e.g., yeast, baking soda) or synthetic processing aids (e.g., clarifying agents) used in or on processed organic products must be specifically allowed on the National List. Non-organic agricultural ingredients may only be used if they are included on the National List (under the category §205.606) and are determined by the certifier to not be commercially available in organic form.
Labeling Categories
The USDA organic regulations define specific categories for labeling products based on their certified organic content, ensuring transparency for consumers:
“100% Organic”: All ingredients (excluding water and salt) must be certified organic. Any processing aids must also be organic. These products may display the USDA Organic Seal.
“Organic”: At least 95% of the ingredients (excluding water and salt) must be certified organic. Any remaining agricultural ingredients must be non-organic items that are not commercially available in organic form and are included on the National List (§205.606). Other non-agricultural ingredients and processing aids must be on the National List (§205.605). These products may display the USDA Organic Seal.
“Made With Organic”: Must contain at least 70% certified organic ingredients (excluding water and salt). These products cannot display the USDA Organic Seal but may state “Made with organic [up to three specific ingredients or ingredient categories]” on the principal display panel. Remaining ingredients must comply with the restrictions mentioned above.
Specific Ingredient Listing: Products containing less than 70% certified organic ingredients cannot use the word “organic” on the principal display panel and cannot use the USDA seal. However, they may identify specific ingredients that are certified organic in the ingredient list on the information panel.
These strict labeling rules, combined with the requirement that certified operations must have their labels reviewed and approved by their certifying agent prior to use, directly connect the on-farm and handling standards to how products are represented in the marketplace. This linkage is fundamental to the NOP’s goal of ensuring consumers can trust the organic label and understand the different levels of organic content represented by each category.
The NOP provides detailed guidance on labeling requirements and the proper use of the USDA Organic Seal. Key resources include the Organic Labeling guide and information on Using the USDA Organic Seal.
The comprehensive nature of these standards—covering land management, crop inputs, animal welfare, processing integrity, and labeling accuracy—illustrates that USDA organic certification is based on a holistic system approach. Achieving compliance involves more than simply substituting inputs; it requires a commitment to proactive, ecologically-focused management practices across the entire operation. It is a process-based certification, verifying the methods used to produce and handle the food, not just testing the final product.
The USDA Organic Certification Process: Step-by-Step
Obtaining USDA organic certification involves a structured process overseen by a USDA-accredited certifying agent (ACA). While specifics can vary slightly between certifiers, the core steps are consistent across the program. The USDA maintains an online list of all ACAs, searchable by location and scope of certification, available via the Organic Integrity Database portal.
Step 1: Select a USDA-Accredited Certifying Agent (ACA)
The first step for an applicant (farm, ranch, processor, handler) is to choose a certifying agent accredited by the USDA. ACAs operate regionally, nationally, or even internationally. Applicants should research and contact several potential certifiers to compare their fee structures, expertise relevant to the specific type of operation (e.g., crops, livestock, processing), application process, and overall responsiveness.
Step 2: Develop and Submit an Organic System Plan (OSP)
The heart of the certification application is the Organic System Plan (OSP). This detailed document describes how the operation will achieve and maintain compliance with all applicable USDA organic regulations. The OSP typically covers:
- Practices and substances used in production or handling.
- Monitoring procedures to ensure compliance.
- A comprehensive recordkeeping system.
- Practices to prevent commingling of organic and non-organic products and contamination by prohibited substances.
- Any specific requirements related to the type of operation (e.g., pasture management for livestock, sanitation procedures for processors).
- Details about leased land or facilities, and contracted services occurring on the certified operation’s premises.
The chosen ACA will provide the necessary OSP forms and templates. Completing the OSP requires careful planning and documentation of the operation’s practices. This document serves not just as the initial application but as the foundational blueprint against which the operation will be inspected and monitored for ongoing compliance. Its thoroughness and accuracy are critical for a smooth certification process. A well-prepared OSP demonstrates a clear understanding of the organic regulations and how the operation intends to meet them. Submission of the OSP typically requires payment of a one-time application fee.
Step 3: Application Review
Once the OSP is submitted, the ACA reviews it thoroughly to ensure it is complete and addresses all relevant regulatory requirements. The reviewer checks if the described practices align with the USDA organic standards. The ACA may contact the applicant with questions or requests for additional information or clarification during this stage.
Step 4: On-Site Inspection
After the ACA determines the OSP is complete and appears to meet the requirements, an on-site inspection is scheduled. An organic inspector, either employed by or contracted by the ACA, visits the operation. The purpose of the inspection is to verify that the practices described in the OSP are being implemented correctly on the ground and that the operation is in full compliance with the regulations. The inspector will typically:
- Tour fields, facilities, and storage areas.
- Review records related to inputs (seeds, fertilizers, pest controls, feed), production activities, harvest, storage, sales, and traceability.
- Observe practices and equipment.
- Interview personnel.
- Assess potential risks of commingling or contamination (e.g., buffer zones, cleaning procedures).
Inspectors audit all types of organic operations, from crop farms and dairies to processing facilities. The applicant is usually responsible for the costs associated with the inspection, which often include the inspector’s hourly fee plus travel expenses.
Step 5: Final Review and Certification Decision
Following the on-site inspection, the inspector submits a detailed report to the ACA. The ACA then conducts a final review, considering the OSP, the inspection report, and any additional information provided. Based on this comprehensive review, the ACA makes the certification decision:
- Certification Granted: If the ACA determines the operation fully complies with the USDA organic regulations, it issues an organic certificate. The newly certified operation is then added to the publicly accessible USDA Organic Integrity Database.
- Notification of Noncompliance: If minor issues or inconsistencies are found that do not preclude certification but require correction, the ACA may issue a notification of noncompliance, outlining the issues and setting a deadline for the operation to resolve them.
- Denial of Certification: If significant violations of the regulations are identified, the ACA may deny certification.
Step 6: Maintaining Certification
Organic certification is not a one-time event; it is an ongoing process that requires continuous commitment. To maintain certification, operations must:
- Update the OSP: Submit an updated OSP to the ACA annually, reflecting any changes in practices, land, facilities, or products.
- Pay Annual Fees: Pay annual renewal or certification fees to the ACA.
- Undergo Annual Inspection: Be inspected by an ACA inspector at least once per year. ACAs may also conduct additional unannounced inspections.
- Maintain Detailed Records: Keep meticulous records documenting all activities related to organic production and handling, sufficient to demonstrate compliance and allow for traceability. Recordkeeping requirements apply even to some exempt handling operations.
- Notify ACA of Changes: Inform the ACA of any significant changes to the operation or OSP throughout the year (e.g., adding new land, changing inputs, new products).
Failure to comply with the regulations at any point can lead to enforcement actions by the ACA or USDA, potentially resulting in suspension or revocation of the organic certificate and financial penalties. The annual cycle of OSP updates, fees, inspections, and rigorous recordkeeping underscores that maintaining organic integrity requires ongoing diligence and robust internal systems.
For official guidance on the steps involved, refer to the USDA AMS page “How to Become Certified Organic”.
Costs of USDA Organic Certification
The financial investment required for USDA organic certification is a significant consideration for applicants. Costs are not standardized across the board; they vary widely depending on several factors, including the specific certifying agent chosen, and the size, type, and complexity of the operation being certified. Overall costs can range from a few hundred dollars per year for very small, simple operations to several thousand dollars for larger or more complex farms and processors. In some cases involving very large-scale operations with high sales volumes, annual costs can potentially reach tens of thousands of dollars.
Understanding the typical components of certification fees can help operations budget and compare certifiers:
- Application Fee: This is generally a one-time, non-refundable fee paid when submitting the initial Organic System Plan (OSP). Reported ranges vary, often falling between $200 and $500 or more. Some certifiers may apply this fee towards the first year’s service costs.
- Inspection Fee: This fee covers the cost of the mandatory annual on-site inspection (and any additional inspections required). It is typically calculated based on the inspector’s time (an hourly rate) plus reimbursement for the inspector’s travel expenses (e.g., mileage, lodging, per diem). Because travel costs and inspection time can vary, this fee often fluctuates from year to year. Estimates suggest inspection costs might range from around $500 to over $1,500 annually, depending heavily on location and complexity.
- Annual Certification/Renewal Fee: This is an ongoing fee paid each year to maintain the organic certification. It covers the certifier’s costs for reviewing the updated OSP, managing records, issuing certificates, and general program oversight. This fee structure varies significantly among certifiers. It is often calculated based on the operation’s estimated or actual Gross Organic Production Value (OPV) or gross annual organic sales, frequently using a tiered system where higher sales volumes fall into higher fee brackets. Annual fees can range from as low as $300-$400 for small farms to $16,000 or significantly more for large, high-revenue operations. Certifying agents are required to file their fee schedules with the USDA NOP.
- Assessment Fee: Some certifiers may levy an additional fee calculated as a percentage of the operation’s annual organic production value or sales, sometimes in addition to or in lieu of a flat annual fee.
- (Optional) Expedited/Rush Fees: For operations needing certification or specific approvals quickly, some certifiers offer expedited services for a substantial additional fee.
The following table summarizes these common cost components:
| Fee Component | Description | Estimated Range (USD) |
|---|---|---|
| Application Fee | One-time fee paid with initial application/OSP submission. | $200 – $500+ (Varies by certifier) |
| Inspection Fee | Annual fee covering inspector’s time (hourly rate) and travel expenses (mileage, per diem). Billed after inspection. | $500 – $1,500+ annually (Highly variable based on location, complexity, inspector rates) |
| Annual Renewal Fee | Ongoing yearly fee to maintain certification. Often based on tiers of gross organic sales/production value (OPV). | $300 – $16,000+ annually (Extremely variable based on certifier, operation size/sales/complexity. Can be significantly higher for very large ops.) |
| Assessment Fee | Fee based on a percentage of annual organic sales or production. May be charged by some certifiers instead of or alongside renewal fees. | Varies by certifier and sales volume. |
| Other Potential Fees | Expedited service fees, fees for adding new scopes or facilities, international market access fees, postage, etc. | Varies based on specific service/certifier. |
Disclaimer: These ranges are estimates based on available data and can vary significantly. Applicants should always obtain a specific fee schedule and cost estimate directly from potential certifying agents.
Several key factors influence the total cost:
- Certifying Agent Choice: Different ACAs have different fee structures, overhead costs, and inspector rates. This is often the most significant factor driving cost variation. Thoroughly researching and comparing quotes from multiple certifiers is essential.
- Operation Size and Scale: Larger operations (more acreage, higher livestock numbers, greater sales volume) generally incur higher annual certification fees due to tiered fee structures and potentially require longer, more complex inspections. This link between scale and cost means certification represents a larger absolute expense for bigger businesses.
- Operation Complexity: Operations with multiple physical sites, diverse crop or livestock types, or integrated processing/handling activities are more complex to certify and inspect, which typically translates to higher costs. Different certification “scopes” (crops, livestock, handling) may have distinct fee calculations.
- Geographic Location: The operation’s location impacts inspector travel time and costs (mileage, lodging), directly affecting the annual inspection fee.
While the initial application and first inspection represent upfront costs, it’s crucial for businesses to recognize that the annual renewal fees and inspection costs constitute a significant, recurring operational expense. This ongoing financial commitment must be factored into long-term business planning and weighed against the potential benefits of organic certification, such as price premiums or expanded market access.
Financial Assistance: The Organic Certification Cost Share Program (OCCSP)
To help mitigate the financial burden of certification, the USDA offers the Organic Certification Cost Share Program (OCCSP). This program is specifically designed to make obtaining and maintaining USDA organic certification more affordable for producers and handlers by reimbursing them for a portion of their paid certification costs.
OCCSP is primarily administered by the USDA Farm Service Agency (FSA). Applications are typically submitted through local FSA county offices located across the country. However, some State Departments of Agriculture also choose to participate in administering OCCSP funds for operations within their state. In states where both FSA and the state agency offer the program, eligible operations can apply through either entity, but they cannot receive duplicate payments from both sources for the same certification expenses. This dual pathway offers flexibility but also means applicants in participating states should investigate both options, as application processes, deadlines, and potentially the speed of payment or funding availability might differ. It’s advisable to check with both the local FSA office and the State Department of Agriculture (if applicable) to determine the best application route.
To be eligible for OCCSP reimbursement, an operation must:
- Be a certified organic producer or handler located in the United States or its territories.
- Have obtained initial certification or renewed an existing certification under the USDA National Organic Program.
- Have paid eligible certification fees and expenses during the specified federal fiscal year (October 1 to September 30) for which they are applying.
- Hold a certification in good standing; operations with suspended, revoked, or withdrawn certifications are ineligible for reimbursement.
OCCSP provides reimbursement for up to 75% of the certified operation’s eligible costs paid during the program year. The reimbursement is capped at a maximum of $750 per certification scope (or category) per year. The recognized certification scopes are:
- Crops
- Wild Crops
- Livestock
- Handling (Processing)
- State Organic Program fees (currently applicable only in California).
This per-scope limit means that an operation certified in multiple categories can receive reimbursement for each scope. For example, a farm certified for both crops and livestock could potentially receive up to $750 for crop-related costs plus up to $750 for livestock-related costs, for a total maximum reimbursement of $1,500 per year, provided their eligible costs reach that level. This structure makes the program particularly beneficial for diversified operations and significantly reduces the net cost of certification, especially for smaller businesses where the fees might represent a larger portion of their budget.
Eligible costs that can be reimbursed include:
- Application fees
- Inspection fees (including inspector travel and per diem)
- Annual certification fees
- Fees related to international organic equivalency agreements/arrangements
- User fees or sales assessments charged by the certifier
- Postage related to the certification process
- State Organic Program fees (where applicable).
Ineligible costs include:
- Inspections required due to violations of organic regulations
- Fees for non-USDA organic certifications or other labeling programs
- Expenditures on materials, supplies, or equipment
- Late fees or membership fees
- Fees paid to consultants for assistance with certification.
The application process typically requires submitting:
- An OCCSP application form (such as FSA form CCC-884 or a state-specific form).
- Proof of valid USDA organic certification.
- Itemized invoices or receipts documenting the eligible costs that have been paid by the operation during the relevant fiscal year.
- Completed tax and payment forms (e.g., IRS Form W-9, direct deposit information).
There are application deadlines each year (for example, the FSA deadline for the 2024 fiscal year costs is October 31, 2024), and state agency deadlines may differ. Program funds can sometimes be limited and may be distributed on a first-come, first-served basis, so applicants are encouraged to apply as early as possible after paying their certification costs for the year.
It is important to remember that OCCSP is a reimbursement program. This means operations must first incur and pay their certification costs out-of-pocket. They can then apply for the cost-share assistance afterward. While the program significantly reduces the overall financial burden, it doesn’t eliminate the need for operations to budget for and manage the cash flow required to cover the full certification costs upfront, which can still be a challenge, particularly for new or transitioning farms and businesses.
For the most current information, application forms, and deadlines, operations should consult the official FSA OCCSP webpage or contact their local USDA Service Center or participating State Department of Agriculture. Additional information on USDA organic programs can be found at USDA’s organic resources page.
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