2023_OMDG_RFA_Mod1_2.pdf

OMB No. is 0503-0028

Organic Market Development Grants

Fiscal Year 2023 Request for Applications

Funding Opportunity Number: USDA-AMS-TM-OMD-G-23-0019

Publication Date: May 10, 2023

Application Due Date: 11:59 PM Eastern Time on August 8, 2023

MODIFICATION: This Request for Application (RFA) is an updated version. The application deadline has been extended an additional 30 days. Application deadline dates were changed in pages 1,2,4 and 25.

Effective: Date 5/18/2023

Program Solicitation Information

Funding Opportunity Title: Organic Market Development Grants

Funding Opportunity Number: USDA-AMS-TM-OMD-G-23-0019

Announcement Type: Initial

Assistance Listing Number: 10.188

Dates: Applications must be received by 11:59 p.m. Eastern Time on August 8, 2023, through Grants.gov. Applications received after this deadline will not be considered for funding.

Executive Summary: The U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS), requests applications from certified organic and transitioning producers and handlers, as well as non-profit entities, tribal entities, certified benefit corporations, and state/tribal/local government entities, to the Organic Market Development Grant (OMDG) Program. These grants will create new and improved markets for domestically produced organic products through investments in expanded certified organic processing capacity; activities that develop, maintain, or expand commercial organic markets; and organic product developments which create new uses for producers that currently lack markets, such as rotational grains. These investments are anticipated to increase the consumption of domestic organic agricultural commodities by expanding or aiding in the expansion of markets or by developing or aiding in the development of new and additional markets, marketing facilities, and uses for such commodities.

Approximately $75 million is available in FY 2023 to fund applications under this solicitation. Awards will range from $100,000 to $3 million for to support Market Development and Promotion or Processing Capacity Expansion projects. A non-federal match of 50% of the total proposed project cost (with a reduced match for underserved producers and business owners) is required for these project types.

AMS is also offering a Simplified Equipment-Only application with no matching funds requirement for projects that solely request the cost of equipment and range from $10,000 up to $100,000 and do not include renovation or staffing costs. This option is designed to reduce administrative burden for the applicant.

Recipients are expected to execute projects from FY 2023 through FY 2026. This announcement identifies the application forms and associated instructions needed to apply.

USDA will prioritize applications from pinpointed markets such as organic grains livestock feed, legumes and other rotational crops, dairy, fibers, and ingredients currently unavailable in organic form. AMS encourages and may also prioritize applications that benefit smaller farms and ranches, and historically underserved producers. For projects intending to serve these entities, applicants should engage and involve those beneficiaries when developing projects and applications.

During application review, USDA will consider geography, project size, operation size, species, ownership structure, and business model to maximize diversity among awards.

USDA promotes climate-resilient landscapes and rural economic systems, including tools to support agriculture, forests, grazing lands, and rural communities. AMS encourages applicants to consider http://www.grants.gov/ https://www.nrcs.usda.gov/getting-assistance/underserved-farmers-ranchers https://www.nrcs.usda.gov/getting-assistance/underserved-farmers-ranchers including goals and activities related to mitigating or adapting to climate change in their project’s design and implementation. AMS also encourages applicants to prioritize investments which improve worker safety and wellbeing.

Application Checklist

AMS expects applicants to read the entire RFA prior to submitting their application to ensure that they understand the program’s requirements. This application checklist provides the required and conditionally required documents for an application package.

OMDG requires that all application packages include the following:

� SF-424 – Application for Federal Assistance (in Grants.gov) � SF-424A – Budget Information – Non-Construction Programs (in Grants.gov) � Project Abstract Summary (in Grants.gov) � Project Narrative Form (PDF Attachment) o Market Development and Promotion or Processing Capacity Expansion (section 5.2.4) o Simplified Equipment-Only Projects – (section 5.2.5)

For all project narrative forms:

Ensure the required template is used Ensure the executive summary is no more than 250 words Ensure the Project Narrative does not exceed the page limit (section 5.2.4 and

5.2.5) Ensure project excludes unallowable costs and activities (section 4.4)

� Market Development and Promotion & Processing Capacity Expansion Projects – Signed Letter

(s) Verifying Matching Funds for each match resource in the application (section 5.2.6)

� Simplified Equipment-Only Projects – Documentation to substantiate the costs of each piece of proposed equipment per section 5.2.5.

� Signed Letters (s) of Support from partners listed in the application (section 5.2.7)

If applicable, packages may also be required to include a Negotiated Indirect Cost Rate Agreement (NICRA) (PDF Attachment).

Tip for Applicants

• To do business with the Federal Government and to submit your application electronically using Grants.gov, you must— o Have a Unique Entity Identifier (UEI) and a Taxpayer Identification Number (TIN);

o Be registered in SAM.gov, the Government's primary registrant database;

o Provide your UEI number and TIN on your application; and o Maintain an active SAM registration with current information throughout the application review period and, if you are awarded a grant, during the project period.

https://www.grants.gov/web/grants/forms/sf-424-family.html https://www.grants.gov/web/grants/forms/sf-424-family.html

• Register in Grants.gov and submit applications early. DO NOT WAIT UNTIL THE DAY OF THE APPLICATION DEADLINE. AMS encourages to submit your application at least two weeks before the application deadline to ensure all certifications are met.

• Thoroughly read this RFA and follow all instructions.

• Thoroughly review the AMS General Terms and Conditions and Specific Terms and Conditions to understand allowable and unallowable costs.

• Ensure the application excludes unallowable costs and activities per section 4.4.

• Ensure the narrative does not exceed the page limit specified per section 5.2.4.

• Apply to the correct grant program in Grants.gov using the correct Assistance listing number

“10.188” and Funding Opportunity Number “USDA-AMS-TM-OMDG-G-23-0019.”

• Ensure you have the most recent copy of Adobe Reader installed on your computer and that it is compatible with Grants.gov software. Grants.gov supports Adobe Reader version 9.0.0 and higher.

• Limit Application File Size/ File Name Characters (50 or less).

• Avoid Special Characters in File Names ($, %, &, *, Spanish "ñ", etc.).

• When uploading attachments, click the “Add Attachments” button (do NOT use the “paperclip” icon in Adobe Reader)

• Do not password-protect your documents and make sure all tracked-changes are “accepted.”

• Input the correct UEI (formerly DUNS) number on the SF-424 form cover page.

• Review the Grants.gov Applicant User and Registration Guides:

http://www.grants.gov/web/grants/applicants/applicant-faqs.html https://www.grants.gov/web/grants/applicants/workspace-overview.html

Timing to Obtain and Submit Grants.gov Required Elements

Required Action Timing to Obtain/Submit

AMS Deadline to receive final application and all supporting materials through Grants.Gov August 8, 2023 – 11:59 p.m. Eastern Time

Obtaining Your Organization’s UEI Number (if you do not already have one) 7-10 business days

Establishing an Active SAM.gov Account (if you do not already have one) 7-10 business days

Obtaining a TIN/EIN (if you do not already have one) Up to 2 weeks

Creating your Grants.gov profile and registering your Authorized Organizational Representative (AOR) authorization

Up to 2 weeks https://www.ams.usda.gov/sites/default/files/media/FY2023_GeneralTermsandConditions.pdf https://www.ams.usda.gov/sites/default/files/media/OMGDProgramSpecificTermsConditions.pdf http://www.grants.gov/ http://www.grants.gov/web/grants/applicants/applicant-faqs.html https://www.grants.gov/web/grants/applicants/workspace-overview.html

Table of Contents

1.0 FUNDING OPPORTUNITY DESCRIPTION

1.1 Legislative Authority

1.2 Purpose

1.3 Program Description

1.4 Project Types

1.5 Project Activities Eligible and Not Eligible for Funding

1.6 Equipment

1.7 Consultation with USDA Transition to Organic Partnership Program

1.8 National Environmental Policy Act

2.0 AWARD INFORMATION

2.1 Type of Federal Assistance

2.2 Type of Applications

2.3 Available Funding and Federal Award Period Duration

2.4 Federal Award Period, Duration, and Size

3.0 ELIGIBILITY AND PARTNERSHIP INFORMATION

3.1 Eligible Applicants

3.2 Partners and Collaborators

4.0 FUNDING CONSIDERATIONS

4.1 Cost Sharing or Matching

4.2 Indirect Costs

4.3 Subawards

4.4 Allowable and Unallowable Costs and Activities

5.0 APPLICATION AND SUBMISSION INFORMATION

5.1 Electronic Application Package

5.2 Content and Form of Application Submission

5.3 Grants.gov Application Submission and Receipt Procedures and Requirements

5.4 Application submission requirements

5.5 Submission Date and Time

5.6 Intergovernmental review

6.0 APPLICATION REVIEW INFORMATION

6.1 Project Evaluation Criteria

6.2 Review and Selection Process

7.0 AWARD ADMINISTRATION INFORMATION

7.1 Award Notices

7.2 Unsuccessful Applicants

7.3 Administrative and National Policy Requirements

7.4 Reporting Requirements

7.5 Acknowledgement of USDA Support

8.0 AGENCY CONTACTS

9.1 Definitions

9.2 Non-Discrimination and Equal Opportunity Statement

9.3 Freedom of Information Act Requests

9.4 Paperwork Reduction

1.0 FUNDING OPPORTUNITY DESCRIPTION

1.1 LEGISLATIVE AUTHORITY

The Organic Market Development Grants (OMDG) program is authorized by section 5(e) of the Commodity Credit Corporation (CCC) Charter Act, (15 U.S.C. 714(e)).

1.2 PURPOSE

This program will support the development of new and expanded organic markets by providing additional resources for businesses transitioning to organic or initiating new organic production and processing capacity. These investments in certified organic infrastructure, expanding capacity for aggregation, processing,1 manufacturing, storing, transporting, wholesaling, distribution, or consumer markets, and supporting activities which develop new markets, are anticipated to increase demand for domestically produced organic agricultural products and provide additional market paths. Domestic organic producers and handlers have identified the development of new and expanded organic infrastructure, capacity, and markets as critical needs through public comments and listening sessions.

Organic production and markets play a critical, expanding role in further diversifying food systems.

Consumer demand for organically produced goods surpassed $63 billion in 2021, and multi-year trends of strong growth in the sector provide market incentives for U.S. farmers across a broad range of products. Organic sales account for over 4 percent of total U.S. food sales and organic products are now available in nearly 20,000 natural food stores and nearly three out of 4 conventional grocery stores.

However, stakeholders have conveyed that producers may be less willing to commit to the three-year transition to organic certification because of risks related to inadequate organic processing, storage, and handling capacity, cost barriers due to limited markets for rotational crops, a lack of certainty about market access, and insufficient supply of certain organic ingredients. The organic livestock and processed product markets depend heavily on imported agricultural products for feed grains and key ingredients. These longstanding market issues facing organic livestock feedstocks, rotational crops, dairy, fiber, and ingredients were brought into sharp focus due to the impacts of COVID and international conflicts in critical overseas organic supply areas, resulting in limitations on certain organic products in the face of rising demand.

Further, existing organic producers lack market access because of bottlenecks in certified organic processing, storage, specialized equipment, and handling/shipping, which have not kept up with the growth in organic crops or the demand for organic products. Producers of organic commodities often lack the resources or the capacity to build processing infrastructure, which is also outside the business model for end-use consumer food manufacturers or animal feed buyers. Certain regions also lack certified organic processing capacity, meaning that local and regional organic producers must either pay

1 As defined in the USDA Organic Regulations at 7 C.F.R. § 205.2, processing includes cooking, baking, curing, heating, drying, mixing, grinding, churning, separating, extracting, slaughtering, cutting, fermenting, distilling, eviscerating, preserving, dehydrating, freezing, chilling, or otherwise manufacturing food and agricultural commodities. Processing also includes packaging, canning, and jarring food.

https://www.agriculture.senate.gov/imo/media/doc/Commodity%20Credit%20Corporation%20Charter%20Act.pdf https://www.ecfr.gov/current/title-7/subtitle-B/chapter-I/subchapter-M/part-205/subpart-A/section-205.2#p-205.2(Processing) increased shipping costs or sacrifice organic price premiums by processing their commodities at non-organic facilities, which removes the ability to sell the product as “organic” to the consumer. These middle-of-the-supply-chain bottlenecks limit markets for raw organic commodities and cause some producers to sell organic commodities at conventional prices, missing premium prices for organic animal feed and processed consumer products.

Implementation of the Organic Market Development Grants program is intended to align with numerous policy goals and objectives across government, including, but not limited to:

• Ensure equitable access to USDA programs and benefits from USDA-funded projects and support the policies of Executive Order 13985 (Executive Order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government).

• Contribute to the resilience of the food and agricultural supply chains through support for diversified, value-added agriculture such as organic production and support the policies of Executive Order 14017 (Executive Order on America’s Supply Chains).

• Promote competition in the organic sector and support the policies of Executive Order 14036 (Promoting Competition in the American Economy).

• Implement the Build America, Buy America (BABA) Act. Guidance on BABA requirements for USDA award recipients is available at USDA’s Implementation of BABA Act.

1.3 PROGRAM DESCRIPTION

The Organic Market Development Program supports projects that:

• Increase domestic organic supply chain capacity for producers, handlers, suppliers, and processors;

• Facilitate market development for domestically produced organic food products;

• Demonstrate a clear benefit to organic communities in defined regions; and

• Remove barriers to entry to organic certification for historically underserved entities.

• Expand capacity for processing, aggregation, and distribution of agricultural products to create more and better markets for producers;

• Modernize manufacturing, tracking, storage, and information technology systems specific to the purposes of this program, such as process control or organic ingredient tracking systems;

• Improve the capacity of entities to comply with regulatory requirements or quality standards required to access markets, such as food safety and organic certification; and

• Market and promotional activities that help build commercial markets for U.S. organic agricultural products and commodities.

This program focuses on investments which will aid in the expansion of new and additional markets for U.S. organic commodities, opening markets for producers and/or addressing inadequate capacity in certified organic processing, storage, and handling/shipping. Capacity in the middle of the organic supply chain has not kept pace with the growth in organic crops or the demand for organic products, and it therefore limits market access for transforming domestic organic crops into organic feed grains or consumer products. Expanded processing capacity will increase consumption of domestic organic https://www.usda.gov/sites/default/files/documents/usda-implementation-baba-act-09132022.pdf commodities through increased manufacturing of finished products for human food, animal feed, and fiber.

USDA encourages projects which are targeted to specific production regions or crops to ensure meaningful impacts that facilitate the movement of agricultural products in key markets.

1.4 PROJECT TYPES

OMDG offers three project types: 1) Market Development and Promotion 2) Processing Capacity Expansion 3) Simplified Equipment-Only

A project is a set of interrelated tasks with a cohesive, distinct, specified, and defined goal. It follows a planned, organized approach over a fixed period of time and within specific limitations (cost, performance/quality, etc.). Additionally, it uses resources that are specifically allocated to the work of the project and usually involves a team of people.

Projects are different from other ongoing operations in an organization because, unlike operations, projects have a definitive beginning and end – they have a limited duration. A project has an overarching goal that the applicant wants to accomplish through a series of individual activities or tasks.

1.4.1 MARKET DEVELOPMENT AND PROMOTION

Market Development and Promotion supports the development or expansion of new or existing organic markets to create access between organic producers, handlers, and consumers. This may include:

• Product development activities which create uses for organic commodities that currently lack markets, such as rotational row crops.

• Market development related to producer and consumer education that creates or increases demand for new or existing organic product categories domestically or abroad.

• Create or strengthen farm to institution market channels, farm to local retail, or other markets that build local and regional food systems opportunities in organic agriculture.

• Exploring and promoting domestic and international opportunities for organically grown and processed agricultural commodities.

• Developing marketing strategies for organic producers to help strengthen new or emerging markets.

1.4.2 PROCESSING CAPACITY EXPANSION

Processing capacity expansion supports the infrastructure to improve organic agriculture production, processing capacity, and exploring emerging technologies to help keep the demand of organic products.

This may include:

• Purchase and installation of equipment to support on-farm or cooperatively owned processing facilities to help agricultural producers add value to their products at the farmgate level by generating new or enhanced products.

• New or expanded aggregation, processing, storage, marketing, and distribution mechanisms for organic commodities to create a path to market for producers, including purchase and installation of equipment.

https://www.usda.gov/sites/default/files/documents/6-Farmtoinstitution.pdf

• Expanding processing capacities within existing facilities to increase organic production volumes, process additional commodities, create parallel production needed to segregate organic production lines, and/or add new value-added product types.

• Projects to support on-farm or cooperatively owned processing to help multiple agricultural producers add value to their products at the farmgate level to generate new products and increase producer income, including purchase and installation of equipment.

1.4.3 SIMPLIFIED EQUIPMENT-ONLY PROJECTS

Simplified Equipment-Only Projects will fund equipment-only grants of up to $100,000. Applicants will use a simplified application form, and applications will be reviewed on the same timeframe as other projects. The goal for this project type is to have new equipment purchased and installed within 6 months, or as quickly as practicable, after issuance of the award. This option is a Fixed Price Grant, meaning it will fund only equipment purchases and not associated facility upgrades, staffing, or other costs.

Applicants must attach documentation to substantiate the costs of each piece of proposed equipment, which can include contracts, catalog pricing or binding quotes provided by license commercial entities.

Applicants are required to provide a project narrative that describes the need for the equipment and the estimated increases in production that will result, as well as other program indicators and outcomes provided on the Project Narrative Template.

The simplified application instructions and description of the AMS review process can be found in section 5.2.5.

1.4.4 PROJECT EXAMPLES

• Market Development and Promotion: An organic grain cooperative seeks funds to convene conferences that connect growers to processors and buyers, as well as paying for travel and booth space at trade shows to open new markets.

• Processing Capacity Expansion: An ingredient manufacturer proposes a study assessing market demands for organic meat casings and uses the findings from that study to both develop new product formulations and invest in the processing equipment necessary to produce these casings in the appropriate commercial form.

• Processing Capacity Expansion: A small pizza crust manufacturer proposes to purchase new equipment dedicated exclusively to organic products, increasing its processing capacity. The project includes costs associated with moving an interior wall to accommodate the machinery, as well as related electrical upgrades to power the additional equipment.

• Simplified Equipment-Only Project: A cooperative of alfalfa growers proposes to purchase and install pellet mills to make their product more transportable, opening new markets and increasing demand for organic alfalfa. This proposal has no alteration or renovation costs.

1.4.5 AWARD AND ACTIVITIES LIMITATIONS

Applicants may submit multiple projects applications to OMDG. If recommended for more than one award, applicants are limited to receiving one award. If the applicant is recommended for multiple awards, AMS staff will contact the applicant to discuss the options. All projects must show a clear link between the proposed activities and increased market access for more than one producer or handler.

Applicants should note that while activities such as developing marketing plans or conducting feasibility studies may be included in project proposals, a project cannot be limited to solely information gathering and dissemination activities. Projects including information gathering work must demonstrate how such work will support implementation activities, such as increasing certified organic processing capacity and/or product formulation.

1.4.6 PINPOINTED MARKET PRIORITY

AMS will give priority consideration to projects addressing the specific pinpointed markets needs below, identified through organic stakeholder comments and feedback.

• Organic grains and livestock feed, building domestic supply of organic grain and feed and associated processing capacity to respond to growing demand and reduce reliance on imports.

• Organic dairy, targeting investments in specialized organic dairy processing infrastructure.

• Organic fibers, the largest and fastest-growing non-food sector in organic – yet where less than

1% of domestic production acreage is certified organic.

• Organic legumes and other rotational crops, including but not limited to processing capacity and consumer product development for peanuts, oats, beans, field peas, barley, and lentils.

• Organic ingredients currently unavailable in commercial form, as evidenced either by inclusion on the National List of Allowed and Prohibited Substances or by data cited in the application.

The Organic Foods Production Act envisioned “sunsetting” such allowances, but such ingredients are often in short supply.

While funding may be provided for other market segments, projects serving markets other than those listed above will not be given priority. Applications for projects which do not address these pinpointed market segments must clearly explain the market needs, supply chain constraints, or gaps which the project would address.

1.4.7 ADDITIONAL FUNDING PRIORITIES

Within the above pinpointed market priorities, AMS will prioritize applications that demonstrate engagement with and benefit to organic producers, including underserved producers and/or low-income communities with areas of persistent poverty.

AMS may prioritize applications based on:

• Diversity in applicants funded in geographic regions and across size, scale, or product types.

• For Processing Expansion and Market Development projects: Leverage significant non-Federal financial and technical resources, as appropriate to the scope and scale of the project. Any match above and beyond the match requirement (see section 4.1) may lend support to the application.

• A focus on developing, customizing or installing climate-smart equipment that reduces greenhouse gas emissions, increases efficiency in water use, improves air and/or water quality, and/or meets one or more of USDA’s climate action goals.

• On-farm and/or cooperative projects which support multiple producers.

1.5 PROJECT ACTIVITIES ELIGIBLE AND NOT ELIGIBLE FOR FUNDING

1.5.1 ACTIVITIES ELIGIBLE FOR FUNDING

Activities or tasks that could be a part of such projects might include, but are not limited to:

• Modernizing equipment or facilities through upgrades, repairs, or retooling; (e.g., adapting product lines for institutional procurement or adding parallel processing capacity to prevent commingling of organic and non-organic products);

• Expanding processing capacities to increase production volumes, process additional organic crops or animal products, or add new value-added product types;

• Installation of holding pens, wastewater management systems, or other improvements that do not require breaking new ground or constructing new facilities;

• Consumer advertising, public relations, point-of-sale demonstrations, participation in trade fairs and exhibits, and value chain coordination; or

• Specialized equipment purchases, such as processing components, sorting equipment (e.g., equipment which prevents commingling between organic and non-organic products), packing and labeling equipment, or delivery vehicles.

The following activities are eligible for funding but cannot be funded in isolation. These activities must be conducted in conjunction with one of the activities listed above, or with a similar market intervention that demonstrably increases the consumption of domestically produced organic products:

• Hiring personnel;

• Develop marketing plans, conduct feasibility studies, analyze potential facility upgrades and changes that meet regulatory requirements, obtain design and/or architecture services, etc.;

• Planning for Hazard Analysis Critical Control Points (HACCP) or other food safety plans;

• Developing worker safety measures;

• Technical assistance that focuses on enhancing “middle of the supply chain” organic processing and product development; or

• Training on the use of equipment purchased under the grant and/or on new processes developed as the result of the grant.

1.5.2 ACTIVITIES NOT ELIGIBLE FOR FUNDING

The following activities are not eligible for funding.

• New construction and/or structural changes to an existing building/facility resulting in a square foot expansion or changes to the building’s floor, foundation, and exterior or load bearing walls.

• Routine maintenance and repair of an organization’s buildings and operational facilities.

• Purchasing land, buildings or facilities, or any interest therein.

https://www.usda.gov/climate-solutions/climate-adaptation-usda

• Paying ongoing staffing or operational costs not specifically tied to the proposed expansion project.

• Expenses that have been or will be reimbursed under any Federal, State, or local government funding, including but not limited to certification activities funded under the Organic Certification Cost Share Program.

• Activities already funded by another Federal award program.

Due to restrictions outlined in the Commodity Credit Corporation Charter Act, the following activities are also ineligible for funding.

• Purchase or construction of refrigerated cold storage facilities.

• Research, per Section 4(m).

o The prohibition on research does not extend to information gathering activities outlined in section 1.4.

1.6 EQUIPMENT

As outlined in the Program Specific Terms and Conditions and the AMS General Terms and Conditions, equipment purchases that support producer access to new markets and/or benefit organic supply chains are generally allowable as special purpose equipment. Special purpose equipment purchases may include the following:

1. Processing, aggregation, or storage investments;

2. Value chain/supply chain innovation or upgrades, including equipment or technology upgrades or investments to support process adaptations;

3. Food safety equipment, processing equipment, or packaging equipment;

4. Vehicles which specifically alleviate supply chain bottlenecks, such as delivery vans or milk trucks; and

5. Product development, packaging, and marketing of agricultural products.

Purchases over $5,000 must be approved in writing and the resulting purchased equipment monitored by AMS, as required by 2 CFR § 200.313.

All AMS awards are subject to the terms and conditions, cost principles, and other considerations described in the Program Specific and AMS General Terms and Conditions.

Applicants that have questions concerning the allowability of costs after reviewing this document should contact AMS staff using the contact information in section 8.0.

1.7 CONSULTATION WITH USDA TRANSITION TO ORGANIC PARTNERSHIP PROGRAM

During the development of project proposals, USDA encourages applicants to consult with the USDA’s Transition to Organic Partnership Program (TOPP) to identify market gaps and market opportunities affected by projected transitioning farms and food businesses. The TOPP partners can provide information regarding regional markets for organic products, as well as aggregate information about trends in transition to organic certification, which can help applicants to forecast unmet market needs.

See https://www.ams.usda.gov/services/organic-certification/topp for more information. The six https://www.fsa.usda.gov/programs-and-services/occsp/index https://www.fsa.usda.gov/programs-and-services/occsp/index https://www.ams.usda.gov/sites/default/files/media/OMGDProgramSpecificTermsConditions.pdf https://www.ams.usda.gov/sites/default/files/media/FY2023_GeneralTermsandConditions.pdf https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR8feb98c2e3e5ad2/section-200.313 https://www.ams.usda.gov/services/organic-certification/topp regions of the TOPP network can provide key insights into the regional processing infrastructure needed to create new markets for organic products produced in those same regions.

Applicants will be asked to indicate if they are coordinating with a TOPP partner in their Project Narrative (section 5.2.4).

1.8 NATIONAL ENVIRONMENTAL POLICY ACT

All activities funded under this RFA must comply with the National Environmental Policy Act (NEPA) and related applicable agency regulations and instructions, Section 106 of the National Historic Preservation Act (NHPA), the Endangered Species Act (ESA), other laws and regulations as outlined therein, and any applicable state, local, or tribal laws. A review for NEPA compliance is required prior to the award of grant funds.

If selected for an award, applicants must provide AMS with all requested information to support compliance with NEPA, NHPA, ESA, and all other federal environmental laws and regulations. The costs associated with satisfying environmental review requirements and permits are also eligible for reimbursement as pre-application expenses. See Program Specific Terms and Conditions for allowable pre-application costs for environmental review process and permitting.

AMS reserves the right to deny an application that does not meet NEPA or permitting policies, or an applicant that fails to provide the necessary environmental review documentation within the established time frame. More information on the NEPA Policy is in the Program Specific Terms and Conditions.

2.0 AWARD INFORMATION

2.1 TYPE OF FEDERAL ASSISTANCE

AMS will use a Grant Agreement to provide the Federal award to applicants.

2.2 TYPE OF APPLICATIONS

New application. AMS will review all applications for conformance with the criteria in section 6.1 and may require the applicant to provide additional information or clarification by a specified date.

2.3 AVAILABLE FUNDING AND FEDERAL AWARD PERIOD DURATION

AMS anticipates approximately $75 million to be available in FY2023. OMDG funding is made available through the Commodity Credit Corporation (CCC).

Funding may be contingent on Federal appropriations or authorizations. USDA does not guarantee minimum funding levels or a specific number of awards.

2.4 FEDERAL AWARD PERIOD, DURATION, AND SIZE

AMS expects applicants to complete their projects within the performance period of the grant. It is acceptable to complete a project before the scheduled performance period end date. However, AMS https://www.ams.usda.gov/sites/default/files/media/OMGDProgramSpecificTermsConditions.pdf encourages applicants to take the full grant period to allow ample time to complete projects. The applicant must indicate the start date and end date on Block 17 of the SF-424 “Application for Federal Assistance”.

Award size varies by project type. Applicants may not request less than or more than the respective minimum/maximum amounts. Applicants must justify the requested funding amounts within the Project Narrative.

Project Type Duration (Months) Start Date Completion Date Minimum

Award Maximum

Award Market

Development & Promotion

36 November 30, 2023 November 29, 2026 $100,000 $3,000,000

Processing Capacity

Expansion 36 November 30, 2023 November 29, 2026 $100,000 $3,000,000

Simplified Equipment -Only 24 November 30, 2023 November 29, 2026 $10,000 $100,000

3.0 ELIGIBILITY AND PARTNERSHIP INFORMATION

3.1 ELIGIBLE APPLICANTS

Eligible applicants for Organic Market Development grants include business entities (regardless of legal structure) who produce or handle organic foods. Producer and handler applicants must either be certified to the USDA organic standards or in transition to organic certification, consistent with 7 C.F.R.

§205. Such applicants must be registered in the Organic INTEGRITY Database before the date of the Notice of Award. This requirement does not apply to non-profit or government entities.

Eligible applicants also include non-profit or government entities. Eligible government entities include but are not limited to tribal, state, territory, and local government entities such as economic development authorities and regional conservation districts. Eligible non-profit entities may include trade associations.

AMS may prioritize funding to individual or groups of agricultural producers majority-controlled producer-based ventures, farmer or rancher-controlled cooperatives, or government entities.

Separate entities who are at least 51 percent owned and operated by the same parent company may not submit multiple applications. Such entities may submit a single joint application. AMS may remove applications from consideration, if the applicants are found to be owned and operated by the same parent company and are applying separately.

All applicants must be domestic entities owned, operated, and located within the 50 United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, or Tribal Governments.

Producer or handler operations which are suspended or revoked at the time of application are ineligible for funding. Suspension and revocation are defined by 7 C.F.R. §205.662(e).

https://www.ecfr.gov/current/title-7/subtitle-B/chapter-I/subchapter-M/part-205 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-I/subchapter-M/part-205 https://organic.ams.usda.gov/integrity https://www.ecfr.gov/current/title-7/subtitle-B/chapter-I/subchapter-M/part-205/subpart-G/subject-group-ECFRe1109e9eb802355/section-205.662

3.2 PARTNERS AND COLLABORATORS

Projects that aim to develop markets or support supply chains for multiple producers should document evidence of existing organic community or industry support and engagement. In the project narrative (section 5.2.4), applicants must describe how the requested funding will support expanding organic processing capacity and/or develop products to create market paths for domestic organic agricultural producers.

4.0 FUNDING CONSIDERATIONS

4.1 COST SHARING OR MATCHING

For Market Development and Promotion Projects and Processing Capacity Expansion Projects:

• Match requirements. Grant recipients are required to contribute 50% of the total federal proposed project cost as a match to Federal funding. This applies to all applicants except those who qualify for the reduced match described in the next bullet point.

• Reduced Match for Small and Underserved Business Owners. For grant recipients that are Historically Underserved Farmers or Ranchers or for other businesses that qualify under the Small Business Administration (SBA) categories of Small Disadvantaged Business, Women- Owned Small Business, and Veteran-Owned Small Business, the match requirement is reduced to 25% of the total federal proposed project cost as a match to the Federal funding. Applicants will be required to self-certify in their Project Narrative Template to being eligible for this reduced match.

Note: Entities other than farmers and ranchers may be certified as small, disadvantaged businesses, women-owned small businesses, or veteran-owned small businesses. To complete this certification, entities must register through SAM.gov using the Small Business Administration (SBA) categories.

Information on the SBA Certification process can be found on the program pages for the Small Disadvantaged Business program, Women-Owned Small Business Federal Contract program, and the Veteran Contracting Assistance Program.

For Simplified Equipment -Only projects:

• No match is required for, and voluntary match will not be considered in selecting projects.

Match funding may be cash or in-kind. In-kind contributions are defined, when used as a cost share or match for a grant, as the value of goods or services provided for the benefit of the grant program, where no funds transferred hands. For example, a partner, such as a tribal community member, may volunteer their professional expertise as a match contribution to the project as described in 2 CFR § 200.306(e).

These contributions cannot satisfy a cost sharing or matching requirement for this grant program if they are used toward satisfying a match requirement under any other Federal grant agreement to which the applicant is a party.

All matching contributions must be committed or secured at the time an applicant is recommend for an award.

https://www.nrcs.usda.gov/getting-assistance/underserved-farmers-ranchers https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.sba.gov%2Ffederal-contracting%2Fcontracting-assistance-programs%2Fsmall-disadvantaged-business&data=05%7C01%7C%7Cb517b8bce1464dfd8a1608db19cda64d%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C638132143267656045%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=UeuD%2FbkgztLTAWpkrCulNMX3fOcitfnM2Jat%2F78kWa8%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.sba.gov%2Ffederal-contracting%2Fcontracting-assistance-programs%2Fsmall-disadvantaged-business&data=05%7C01%7C%7Cb517b8bce1464dfd8a1608db19cda64d%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C638132143267656045%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=UeuD%2FbkgztLTAWpkrCulNMX3fOcitfnM2Jat%2F78kWa8%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.sba.gov%2Ffederal-contracting%2Fcontracting-assistance-programs%2Fwomen-owned-small-business-federal-contract-program%23section-header-6&data=05%7C01%7C%7Cb517b8bce1464dfd8a1608db19cda64d%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C638132143267656045%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=FF%2FCPk7LC7rMYhQ9wRl6zh4oZFoBxRQOfzM2IkWCKPg%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.sba.gov%2Ffederal-contracting%2Fcontracting-assistance-programs%2Fveteran-contracting-assistance-programs%23section-header-2&data=05%7C01%7C%7Cb517b8bce1464dfd8a1608db19cda64d%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C638132143267656045%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=cZeGfyoU0efVA5hl1M0Uu9y%2FTcas9dYRrsz7FOOfIu4%3D&reserved=0 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200#p-200.306(e)

Applicants must indicate the total amount of match and how it will specifically align with their requested funding when completing the fiscal plan and resources section of the Organic Market Development Program Project Narrative, section 5.2.4. Additionally, applicants must submit signed letters or other documentation verifying the match for EACH cash and/or in-kind resource. Refer to section 5.2.6, Matching Funds and Letters of Verification for more information. An award will not be issued unless all matching funds over the life of the grant are secured. Additional anticipated matching funds not in place by the time the project commences cannot be counted toward the matching requirement.

Indirect costs may count toward your match. Refer to section 4.2.1, Indirect for more information.

Program income (as defined in 2 CFR § 200.1) or any other Federal funds is an ineligible source of match or cost share.

4.2 INDIRECT COSTS

Indirect costs (also known as “facilities and administrative costs”—defined at 2 CFR § 200.1) are those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved.

In accordance with 2 CFR § 200.414(f), any non-Federal grant applicant or recipient that does not have a current, negotiated (including provisional) indirect cost rate, except State and Local Government and Indian Tribe Indirect Cost Proposals, may elect to charge a de minimis rate of 10 percent of modified total direct costs (MTDC) that may be used indefinitely. No documentation is required to justify the 10 percent de minimis indirect cost rate. Costs must be consistently charged as either indirect or direct costs but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all Federal awards until such time as a grant recipient chooses to negotiate for a rate, which the recipient may apply to do at any time.

All applicants who elect to charge a de minimis rate of 10 percent must use the MTDC as the base.

MTDCs are defined in 2 CFR § 200.1 as all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDCs exclude equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward in excess of $25,000. Other items may be excluded only when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval by an applicant’s cognizant agency for indirect costs.

If an applicant has a negotiated indirect cost rate approved by its cognizant agency, the applicant must submit a copy of its approved NICRA with its application. Grant applicants or recipients that would like to negotiate an indirect cost rate must contact their cognizant agency. For assignments of cognizant agencies, see 2 CFR § 200.1.

4.2.1 USING INDIRECT COSTS FOR COST SHARING OR MATCHING

The maximum indirect costs allowed for a project may be included under the Federal portion of the budget or, alternatively, may be offered as an in-kind matching contribution if no indirect costs are https://www.ams.usda.gov/sites/default/files/media/2023OMDGProjectNarrative.docx https://www.ams.usda.gov/sites/default/files/media/2023OMDGProjectNarrative.docx https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200#p-200.1(Program%20income) https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.414 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1 requested on the Federal portion of the budget. For example, if a proposed project’s maximum allowable indirect costs are $8,000, the applicant may include $8,000 on the Federal portion of the budget or $8,000 as a matching in-kind contribution, but not both.

The applicant may split the indirect cost allocation between the Federal and non-Federal portions of the budget only if the total amount of indirect costs does not exceed the maximum indirect costs allowed.

Alternatively, the recipient may request any other combination that, when combined, does not exceed the maximum indirect costs allowable. Refer to 2 CFR §§ 200.413 and 200.414 for additional information on determining if costs charged to the award are direct or indirect.

4.3 SUBAWARDS

Subawards or contracts with partners, collaborators, or other parties that provide additional knowledge, expertise, or resources for the purposes of the proposed project are permitted.

4.4 ALLOWABLE AND UNALLOWABLE COSTS AND ACTIVITIES

All AMS awards are subject to the terms and conditions, cost principles, and other considerations described in the AMS General Terms and Conditions and Program Specific Terms and Conditions.

Applicants that have questions concerning the allowability of costs after reviewing this document should contact AMS staff using the contact information listed under section 8.0 Agency Contacts.

In general, grant funds may not be used for the following:

• Pay costs that have been or will be reimbursed by a third party.

• Pay costs incurred prior to the date the grant is executed without prior authorization from AMS and subject to grant award terms and conditions.

• Pay costs that support or oppose union organizing.

• Pay costs associated with conducting research and development.

5.0 APPLICATION AND SUBMISSION INFORMATION

5.1 ELECTRONIC APPLICATION PACKAGE

Only electronic applications may be submitted via Grants.gov in response to this RFA. We urge applicants to submit early to the Grants.gov system. For an overview of the Grants.gov application process see Grants.gov’s Apply for Grants webpage. This RFA contains the information needed to obtain and complete required application forms and AMS-specific attachments. More information about applying through Grants.gov can be found in section 5.3.

Applicants can find the opportunity under either the Assistance Listing number “10.188,” or the OMDG Funding Opportunity Number “USDA-AMS-TM-OMDG-G-23-0019.”

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.413 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.414 https://www.ams.usda.gov/sites/default/files/media/FY2023_GeneralTermsandConditions.pdf http://www.grants.gov/web/grants/applicants/apply-for-grants.html

5.2 CONTENT AND FORM OF APPLICATION SUBMISSION

5.2.1 FORM SF-424 APPLICATION FOR FEDERAL ASSISTANCE

Required. Form SF-424 is available via the opportunity at Grants.gov. Applicants must use the following supplemental instructions associated with specific blocks on form SF-424.

Box Instruction 1 - Type of Submission Select Application 2 - Type of Application Select New 8.a Legal Name Must match SAM.gov exactly 8.c - Organizational Unique Entity Identifier (UEI) Enter applicant UEI for the Organization submitting the application.

8.d – Address The applicant street address as it appears in

SAM.gov. P.O. Boxes will not be accepted. Enter a 9-digit zip code.

10 - Name of Federal Agency AMS, USDA 11 -Catalog of Federal Domestic Assistance Number (Assistance Listing Number)

10.188

12 - Funding Opportunity Number USDA-AMS-TM-OMD-G-23-0019 14 - Areas Affected by Project Enter cities, counties, States affected by project.

15 - Descriptive Title of Applicant’s Project Provide a short descriptive title of the project

(do not include applicant organization name).

16.a - Congressional Districts for Applicant Enter the Congressional district where your main office is located.

16.b - Congressional Districts for…