The U.S. Department of Agriculture announced the final round of projects being awarded under the Organic Market Development Grant (OMDG), including two California-based projects. 

Alexandre Family Farm, the “first U.S. regenerative dairy” with a specialty in A2/A2 milk production, sought funds to replace outdated milk collection, cooling and storage equipment and for the purchase of post-harvest hay collection equipment. Turning Green, a bay area-based farm-to-school procurement program, plans to use the funding to network local school districts with small organic farmers and provide technical support to school food service teams. 

“What we heard loud and clear was it's really important to build farmers, but the farmers, when they turn to organic, they need to have markets,” USDA Undersecretary Jenny Lester Moffitt told Agri-Pulse. “And that's what this Organic Market Development Grant program is about.”

Stephanie and Blake Alexandre, the founders and farmers of Alexandre Family Farm, are excited to use the grant to expand brand awareness via distribution trucks that will carry their product across the nation.

“It opens opportunity for us to be a part of rural revival and support other farmers who share our values of regenerative, organic approaches and taking care of ecology on their farm,” Stephanie Alexandre said. “So taking care of our community.”

Turning Green founder and executive director Judi Shils is focused on expanding their Conscious Kitchen program which helps kindergarten through high school food service directors source organic, fresh products to their dining facilities. 

Shils has previously worked with CDFA and the Farm to School program, which she said helped “fan the flame” of applying to larger grant opportunities through USDA. With the grant, Shils hopes to expand their pilot program with the West Contra Costa Unified School District and continue to promote organic ingredients in schools, eventually making the effort statewide.

“When you start moving into an organic supply chain, and you're aiming for 100% which is what we're doing, there's a lot of logistical education, awareness, understanding from both parties,” Shils said. “Large school districts aren't used to buying from small farmers.”

The agency has slowly announced grant recipients since January, with the fourth and final announcement including 13 projects nationwide. The grant program will allocate approximately $85 million to 106 projects across 37 states.

Alexandre Dairy and Turning Green were awarded $3 million and $355,808 in federal funds respectively, with both amounts doubled by their matching funds.

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Born out of the U.S. Department of Agriculture’s Transition to Organic Partnership Programlaunched in August 2022, the USDA Agriculture and Marketing Service launched the OMDG program to focus on expanding markets for organic production and providing support throughout the supply chain. 

“If you're trying to be able to not just compete on the efficiency scale, but build a connection with customers…show the work that's being done on the land in a way that customers will support and invest in…the organic market space is a vital way to do that,” USDA Deputy Secretary Xochitl Torres Small said in an interview with Agri-Pulse.

Moffitt said other feedback from organic farmers highlighted the difficulties of sourcing domestic organic feed for cattle and dairy producers. The USDA focused on providing funding to feed, grain, legumes, dairy and other ingredients that aren’t as available in organic production.

The three project types available under OMDG are two year Simplified Equipment-Only projects which can receive between $10,000 to $100,000, three year Market Development projects eligible for $100,000 to $3 million and three year Processing Capacity Expansion projects.

“I think [organics] really dovetails with a lot of the different goals and priorities that we have in agriculture across the country… looking at the value proposition for farmers and ranchers, but also the environmental value proposition that happens on every farm too,” Moffitt said.

In total, California has 13 projects receiving OMDG funds.