Washington, January 23, 2023 The United States Department of Agriculture (USDA) today announced details of additional assistance to dairy producers, including a second round of payments through the Pandemic Market Volatility Assistance Program (PMVAP) and a new Organic Dairy Marketing Assistance Program (ODMAP). And the new PMVAP and ODMAP update will enable the USDA to better support small and medium-sized dairy operations that have survived the pandemic and are now facing other challenges.
“The Biden-Harris administration continues to fulfill its commitments to close gaps in pandemic assistance to producers. The USDA announced a second set of payments of nearly $100 million to finalize a $350 million commitment under PMVAP through partnerships with dairy processors and payment-delivery cooperatives,” said Jenny Lister. Moffitt, USDA Undersecretary for Marketing and Regulatory Programs. “The USDA is also announcing new assistance targeting small and medium-sized organic dairy farmers to help with projected marketing costs as they face a variety of challenges from weather to supply chain challenges.”
Pandemic market assistance program
PMVAP helps producers who have received less value due to market distortions caused by the pandemic and subsequent federal policies. As a result of the increased production cap, the USDA’s Agricultural Marketing Service (AMS) will make PMVAP payments to eligible dairy farmers for sales of liquid milk between £5m and £9m from July to December 2020. This level of production was not eligible for payment under The first round of PMVAP. Reimbursement rates will be similar to the first round of payments, 80 per cent of the revenue difference per month, on liquid milk sales of 5 million to 9 million pounds from July to December 2020. The USDA will again distribute the funds through agreements with independent dealers and co-operatives, With reimbursement of administrative costs allowed for therapists. The USDA will contact dealers of eligible producers to advise them of the opportunity to participate.
As part of the first round, PMVAP paid eligible dairy farmers up to £5m from sales of liquid milk from July to December 2020. The first round of payments distributed over $250m in payments to more than 25,000 eligible dairy farmers. These dairy farmers received the full compensation allowed for sales of liquid milk up to £5 million.
More information about increasing the PMVAP production cap is available at www.pmvap.com www.ams.usda.gov/pmvap.
Program of assistance in marketing organic dairy products
The new ODMAP program, which will be administered by the USDA Farm Services Agency (FSA), aims to help smaller-scale organic dairy farms that have faced a unique set of challenges and high costs over the past several years that have been exacerbated by the pandemic and ongoing drought conditions across the country. Many small organic dairy operations are now struggling to stay in business and the FSA plans to provide payments to cover part of estimated marketing costs for 2023. Final spending will depend on registration and projected production for each product, but ODMAP is allotted up to $100 million.
The assistance provided by ODMAP will be provided through unused Commodity Credit Corporation funds left over from previous pandemic assistance programs. The aid will assist qualified organic dairy producers with up to 75 percent of their projected future marketing costs in 2023, based on national estimates of marketing costs. This assistance will be provided through a streamlined application process based on a national batch per hundredweight. Payments will be capped at the first £5m of expected production, in line with pre-existing dairies programs aimed at providing assistance to smaller dairies more vulnerable to marketing challenges. This program is still under development.
Details about the Organic Dairy Marketing Assistance Program will be available and updated at www.organicdairy.com www.farmers.gov More details will be released in a notice of funds availability later this year.
The USDA touches the lives of all Americans every day in many positive ways. In a Biden-Harris administration, the USDA is transforming America’s food system with a greater focus on more resilient domestic and regional food production, fairer markets for all producers, ensuring access to safe, healthy, nutritious food in all communities, and building new markets and income streams To farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, committing to equality across governance by removing systemic barriers and building a workforce that is more representative of America. To find out more, visit www.usda.gov.
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