2026-13571: Organic Certification Cost Share Program (OCCSP)

Federal Register, Volume 91 Issue 127 (Monday, July 6, 2026) [Federal Register Volume 91, Number 127 (Monday, July 6, 2026)] [Rules and Regulations] [Pages 40859-40865] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2026-13571] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. ======================================================================== Federal Register / Vol. 91, No. 127 / Monday, July 6, 2026 / Rules and Regulations [[Page 40859]] DEPARTMENT OF AGRICULTURE Commodity Credit Corporation 7 CFR Part 1417 [Docket ID FSA-2026-0331] RIN 0560-AI85 Organic Certification Cost Share Program (OCCSP)

Agency

Commodity Credit Corporation, U.S. Department of Agriculture (USDA).

Action

Final rule. -----------------------------------------------------------------------

Summary

The One Big Beautiful Bill Act (OBBBA) provides funding for the Organic Certification Cost Share Program (OCCSP) for fiscal years 2025 through 2031, and, as a result, the Commodity Credit Corporation (CCC) is issuing this rule to establish OCCSP for 2025 and future program years. The rule specifies the eligibility criteria and payment calculation for OCCSP, which are consistent with how CCC has administered OCCSP in previous years by Notices of Funding Availability (NOFAs). Prior NOFAs also established the opportunity for State agencies to enter into agreements to administer OCCSP; these provisions are also included in this rule. The rule also establishes the application process and deadlines for eligible producers and handlers who apply through FSA county offices.

Dates

This rule is effective on July 6, 2026. Producer and Handler Applications: FSA county offices will accept applications for OCCSP payments from producers and handlers for the 2025 and 2026 program years until December 31, 2026. For 2027 and subsequent program years, producers and handlers may submit applications to FSA county offices from the beginning of the application period, which will be announced through a press release and on the OCCSP website (https://www.fsa.usda.gov/resources/income-support/organic-certification-cost-share-program-occsp), through December 31 following the end of the program year. That means, for example, that for the 2027 program year, producers have until December 31, 2028, to submit an application for payment under OCCSP. Producers and handlers who apply through a participating State agency should refer to the State agency for application period beginning and ending dates.

For Further Information Contact

Jenae Orso; telephone: (229) 850-0194; or email: [email protected]. Individuals with disabilities who require alternative means for communication should contact the USDA Target Center at (202) 720-2600 (voice and text telephone (TTY mode)) or dial 711 for Telecommunications Relay Service (both voice and text telephone users can initiate this call from any telephone).

Supplementary Information

Table of Contents I. Background II. Available Funding III. State Agency Participation IV. Eligible Producers and Handlers V. Eligible Scopes VI. Allowable and Unallowable Costs VII. How to Apply A. Applying Through an FSA County Office B. Applying Through a Participating State Agency VIII. Payments IX. Regulatory Analyses A. Notice and Comment and Effective Date B. Executive Orders 12866, 13563, and 14192 C. Environmental Review D. Executive Order 13175 E. Unfunded Mandates Reform Act F. Paperwork Reduction Act Requirements G. E-Government Act Compliance

I. Background

OCCSP provides cost share assistance to producers and handlers of agricultural products for the costs of obtaining or maintaining organic certification under the National Organic Program (NOP; 7 CFR part 205). USDA's Agricultural Marketing Service (AMS) administers the NOP, which develops and enforces consistent national standards for organically produced agricultural products sold in the United States and accredits third-party organizations to certify that farms and businesses meet the national organic standards. OCCSP is a separate program, administered by FSA on behalf of CCC, that provides financial support to producers and handlers who are certified under the NOP. This financial assistance helps organic producers and handlers sustain their operations and meet the growing consumer demand for products that meet the robust standard indicated by the USDA organic label, which supports the Trump Administration's expansive efforts to Make America Healthy Again. National funding for 2025 through 2031 was authorized by Section 10606(e) of the One Big Beautiful Bill Act (OBBBA; Pub. L. 119-21), which was signed on July 4, 2025. Due to the delay in authorization of National funding for 2025, CCC will administer OCCSP for the 2025 and 2026 program years concurrently. Prior to 2017, OCCSP was administered by AMS through grants with State agencies. Beginning in 2017, administration of the program was transferred to FSA on behalf of CCC and cost share assistance has been provided through two approaches: (1) through grant agreements with State agencies that provide cost share payments to producers and handlers in their state; and (2) by issuing payments directly to producers and handlers who apply for cost share payments through an FSA county office (see 82 FR 23522, May 23, 2017; 84 FR 17997, April 29, 2019; and 89 FR 39579, May 9, 2024). This final rule specifies the OCCSP eligibility criteria and payment calculation for producers and handlers. It also establishes the application process and deadlines for eligible producers and handlers who apply through FSA county offices, and it announces the opportunity for State agencies to establish agreements through grants to administer OCCSP. This final rule is not making substantive changes to the administration of OCCSP. The provisions of this final rule, which address OCCSP administration for 2025 and subsequent program years, are consistent with administration of OCCSP in recent years, as announced in previous NOFAs. The terms ``producer'', ``handler'', and ``program year'' are used throughout this rule. ``Producer'' and ``handler'' have the same meaning as used in the NOP regulations at 7 CFR 205.2. ``Producer'' means ``a person who engages in the [[Page 40860]] business of growing or producing food, fiber, feed, and other agricultural-based consumer products,'' and ``handler'' means ``any person that handles agricultural products, except final retailers of agricultural products that do not process agricultural products.'' The program year for OCCSP is the fiscal year beginning on October 1 of the preceding calendar year and ending on September 30 (7 CFR 1417.3). For example, the 2025 program year began on October 1, 2024, and ended on September 30, 2025. This final rule also uses the term ``scopes'', which means the four categories of USDA organic certification (crops, livestock, handling, and wild crops) and State organic program fees, as described in section V of this rule and defined in Sec. 1417.3.

II. Available Funding

Funding for OCCSP is provided through two authorizations. Agricultural Management Assistance (AMA) funding is authorized by 7 U.S.C. 1524(b)(4)(C)(ii), which provides that the Commodity Credit Corporation shall use not less than 10 percent of the amounts made available to carry out that subsection per fiscal year to provide organic certification cost share assistance for producers in the following 16 States: Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Maine, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming. AMA funds are used for only the scopes of crops, wild crops, and livestock because the authorizing law specifies that those funds will be used to provide assistance to producers (7 U.S.C. 1524(b)(1)). AMA funding that is not obligated during the fiscal year for which it is provided cannot be used for future years. National funding is authorized by 7 U.S.C. 6523(d)(1)(C), which directs the Secretary to make available $8 million in CCC funding for each of fiscal years 2022 through 2031 for OCCSP, to remain available until expended. Approximately $1,945,000 in National funding is still available from prior years that has not been expended and can be used for any future years. National funding is used to assist certified producers and handlers in all States (including States with AMA funding), U.S. territories, and the District of Columbia. National OCCSP funds are used to provide cost share for all five scopes (crops, livestock, handling, wild crops, and State organic program fees). Both National funding and AMA funding may be used for grants to State agencies and payments through FSA county offices. AMA funding cannot be used for the scopes of handling and State organic program fees; therefore, all cost share for those scopes must be paid with National funding even in AMA-eligible States. AMA-eligible States must submit separate grant applications for AMA funding and National funding to cover all eligible scopes for applicants in their State.

III. State Agency Participation

To participate in OCCSP, State agencies must complete an Application for Federal Assistance (Standard Form 424 (OMB 4040-0004; Expiration Date: 03/31/2029) and 424B (OMB 4040-0007; Expiration Date: 07/31/2028)) and enter into a grant agreement with CCC (see Sec. 1417.4). State agencies must apply electronically via Grants.gov, the Federal grants website, at http://www.grants.gov. For information on how to use Grants.gov, please consult https://www.grants.gov/applicants/grant-applications/how-to-apply-for-grants. All grant awards will be subject to the provisions of the applicable Notice of Funding Opportunity (NOFO) and the USDA General Terms and Conditions for Federal Awards in effect at the time the grants are executed. FSA will soon announce a 30-day application period for state agencies to apply through Grants.gov to administer OCCSP. Upon receipt of complete applications, CCC may begin reviewing the applications and may make awards prior to the deadline. Applications for grant awards received after the deadline may be considered if CCC determines the delay does not disrupt program administration. For 2027 and future program years, this funding opportunity will be announced through a press release and on the OCCSP website and Grants.gov, without a Federal Register notice. State agencies that wish to participate should make a note of this change and monitor those locations for future announcements.

IV. Eligible Producers and Handlers

To be eligible for OCCSP, a producer or handler must: Possess USDA organic certification under the NOP: [cir] For the 2025 program year, at any time during the 2025 program year, or [cir] For 2026 and subsequent program years, at the time of application; Have paid fees or expenses related to their initial certification or renewal of their certification from a certifying agent; and Be located in the 50 United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands. Producers and handlers with suspended, revoked, or withdrawn certifications at the time of application are ineligible for cost share reimbursement.

V. Eligible Scopes

Five separate ``scopes,'' or categories of certification, are covered under OCCSP. Four of these scopes are set forth in the NOP regulations and must be individually inspected and certified: crops, livestock, wild crops, and handling. A single operation may be certified under multiple scopes, which may all be listed on the same certificate. For example, a certified organic vegetable farm that also has certified organic chickens and produces certified organic jams would be required to be certified for three scopes: crops, livestock, and handling. To receive an OCCSP payment for the scopes of crops, handling, livestock, or wild crops, the scope must be listed on the producer or handler's organic certificate. State organic program fees may be required by a State that has established a State organic program, which allows the State to oversee organic production and handling operations and assume regulatory enforcement responsibility of the USDA organic regulations for all organic farms and businesses operating within its boundaries (see 7 CFR 205.620 through 205.622). These fees are in addition to the costs of organic certification under the four scopes of USDA organic certification. These State organic program fees are eligible for OCCSP cost share reimbursement and for OCCSP purposes are considered an additional, separate scope.

VI. Allowable and Unallowable Costs

Allowable costs for OCCSP include only the following: Application fees and administrative fees for USDA organic certification; Inspection fees for USDA organic certification, including travel costs and per diem for organic inspectors; USDA organic certification costs, including fees necessary to access international markets with which AMS has equivalency agreements or arrangements; State organic program fees; User fees and sale assessment fees for USDA organic certification; and Postage for materials related to obtaining or renewing USDA organic certification. [[Page 40861]] Any costs not listed above are considered unallowable, including, but not limited to, the following examples: Inspections due to violations of USDA organic regulations or violations of State organic program requirements; Costs related to non-USDA organic certifications; Costs related to transitional certification; Costs related to any labeling program other than USDA organic certification; Materials, supplies, and equipment; Late fees and expediting fees; Membership fees; and Consultant fees. OCCSP provides cost share for allowable costs based on the program year in which the allowable cost was paid, which may be different than the year in which the cost was incurred. For example, during the 2025 program year (October 1, 2025, through September 30, 2026), a producer paid their application fee and inspection fees. The producer also incurred a sales assessment fee during the 2025 program year but paid it on October 10, 2026. The producer would include the application fee and inspection fees on their 2025 program year application. The sales assessment fee would be included on their 2026 program year application and the producer must meet eligibility requirements for that program year to receive an OCCSP payment. If an allowable cost is incurred for more than one scope, the amount will be divided by the number of applicable scopes, and the result will be entered on the application for each applicable scope. For example, a producer received a bill with a single amount of $1,000 for an inspection that covered both crop and livestock scopes. The amount of the inspection would be divided by 2; $500 would be the cost for the crop scope and $500 would be the cost for the livestock scope on the producer's application.

VII. How To Apply

All eligible producers and handlers can apply for OCCSP through their local FSA county offices. Producers and handlers may apply with either the State agency or an FSA county office in States where a State agency participates in OCCSP; however, applicants may not receive OCCSP payments for the same scope through both the State agency and their FSA county office. Producers and handlers are subject to the same eligibility criteria and calculation of cost share payments regardless of whether they apply through a participating State agency or an FSA county office.

VIII. Payments

OCCSP payments are equal to the lesser of the following for each scope per program year: the applicable reimbursement percentage, not to exceed 75 percent, multiplied by a producer's or handler's allowable costs; or the maximum payment amount, not to exceed $750 per scope. The maximum reimbursement percentage and payment amount are specified in 7 U.S.C. 6523(b). Prior to the beginning of the application period for a program year, CCC will determine the applicable percentage and maximum amount for a program year based on factors such as participation rates in prior years and changes in the number of certified organic operations. If sufficient funding is available to cover expected participation, OCCSP payments will be calculated based on the maximum percentage and payment amount. If available funding is not likely to cover all eligible applicants, CCC may announce a lower percentage and maximum amount to allow a larger number of certified organic operations to receive assistance. For the 2025 and 2026 program years, the reimbursement percentage will be 75 percent, up to a maximum of $750 per scope. The percentage and maximum payment amount will be the same regardless of whether a producer or handler applies through an FSA county office or a participating State agency. Cost share assistance will be provided to producers and handlers on a first come, first served basis, until all available funds for a program year are expended. Applications received after all funds are expended will not be paid. FSA will coordinate with participating State agencies to ensure [[Page 40862]] there are no duplicate payments. If a duplicate payment is inadvertently made, then FSA will inform the participant and require that funds be returned to CCC.