On July 6, 2026, the U.S. Department of Agriculture's Commodity Credit Corporation (CCC) published a final rule in the Federal Register, formalizing the Organic Certification Cost Share Program (OCCSP). This significant regulatory action establishes the operational framework for OCCSP from fiscal year 2025 through 2031, providing critical financial assistance to organic producers and handlers to offset the costs associated with obtaining or maintaining organic certification. The move codifies a program previously managed through annual Notices of Funding Availability (NOFAs), signaling a long-term federal commitment to the organic agricultural sector.
Background and Legislative Mandate
OCCSP, which offers cost share assistance for certification under the National Organic Program (NOP), has been a cornerstone of federal support for organic agriculture. The NOP, administered by USDA's Agricultural Marketing Service (AMS), sets and enforces national standards for organic products. While AMS oversees the NOP, OCCSP itself is administered by the Farm Service Agency (FSA) on behalf of the CCC, providing financial aid that helps organic operations meet robust USDA organic label standards. This assistance supports the organic sector and aligns with the Trump Administration's stated expansive efforts to "Make America Healthy Again."
The newly codified funding for OCCSP is a direct result of Section 10606(e) of the One Big Beautiful Bill Act (OBBBA; Public Law 119-21), signed into law on July 4, 2025. This legislation authorized national funding for the program from 2025 through 2031, providing a stable financial foundation. Historically, the program's administration transitioned from AMS to FSA in 2017, and since then, cost share assistance has been delivered both through grant agreements with State agencies and directly via FSA county offices. This final rule maintains these dual administrative pathways.
Program Mechanics: Eligibility and Scopes
The rule precisely defines the eligibility criteria for producers and handlers seeking OCCSP payments. To qualify, an applicant must possess USDA organic certification under the NOP. For the 2025 program year, certification was required at any time during that year. For 2026 and subsequent years, certification must be active at the time of application. Applicants must also have paid fees or expenses related to their initial or renewal certification from a certifying agent and be located within the 50 United States, the District of Columbia, or U.S. territories. Importantly, those with suspended, revoked, or withdrawn certifications are ineligible.
OCCSP covers costs across five distinct "scopes" of certification. Four of these are defined by NOP regulations: crops, livestock, wild crops, and handling. These typically require individual inspection and certification, although a single operation may hold multiple scopes. For example, a farm with organic vegetables, chickens, and jams would require certification for crops, livestock, and handling. The fifth eligible scope covers State organic program fees, which are additional fees charged by States that have established their own organic regulatory oversight programs. Allowable costs generally include application fees, administrative fees, and inspection fees, along with associated travel costs and per diem.
Funding Streams and Administration
The OCCSP draws from two distinct funding streams, each with specific parameters.
Agricultural Management Assistance (AMA) Funding
AMA funding is authorized by 7 U.S.C. 1524(b)(4)(C)(ii) and is specifically allocated for producers in 16 designated states: Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Maine, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming. These funds can only be used for the scopes of crops, wild crops, and livestock, excluding handling and State organic program fees. A critical aspect of AMA funding is its fiscal year limitation: any amounts not obligated within their respective fiscal year cannot be carried over for future use.
National Funding
National funding, authorized by 7 U.S.C. 6523(d)(1)(C), designates $8 million in CCC funds for OCCSP annually from fiscal years 2022 through 2031. Unlike AMA funds, National funding remains available until expended, with approximately $1,945,000 from prior years still accessible. This funding supports certified producers and handlers in all States, U.S. territories, and the District of Columbia, covering all five eligible scopes, including handling and State organic program fees. Both AMA and National funds can be used for grants to State agencies and direct payments through FSA county offices, though AMA-eligible States must submit separate grant applications for each funding type to cover all scopes.
Application Process and Deadlines
The final rule clarifies the application process and deadlines for interested parties. For the 2025 and 2026 program years, FSA county offices will accept applications from producers and handlers until December 31, 2026. This extended window addresses delays in national funding authorization for 2025, allowing concurrent processing for both years. For 2027 and subsequent program years, applications may be submitted to FSA county offices from the beginning of an announced application period through December 31 following the end of the program year. For instance, for the 2027 program year, the deadline would be December 31, 2028. Applicants applying through participating State agencies must consult their respective State agencies for specific application dates.
State agencies wishing to participate must complete an Application for Federal Assistance via Grants.gov. FSA plans to announce a 30-day application period for State agencies soon. For 2027 and future years, funding opportunities for State agencies will be announced via press release, the OCCSP website, and Grants.gov, rather than through a Federal Register notice, requiring proactive monitoring by interested agencies.
Implications for the Organic Sector
This final rule brings long-awaited stability and clarity to the Organic Certification Cost Share Program. By codifying the program's provisions, the USDA removes uncertainty previously associated with annual funding announcements and administrative changes. The long-term authorization through 2031 provides organic producers and handlers with a predictable mechanism for financial relief, which is crucial for planning and sustaining operations in an increasingly competitive market. This regulatory certainty can encourage new farmers to pursue organic certification, support the expansion of existing organic businesses, and ultimately contribute to meeting the growing consumer demand for certified organic products. The distinct funding mechanisms for AMA and National funds also highlight a nuanced approach to supporting organic agriculture across different regions and operational types, balancing specific regional needs with broad national objectives.
