(a) The regulations in this part specify how the Commodity Credit Corporation will administer the Organic Certification Cost Share Program (OCCSP). 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 (7 CFR part 205).

(b) The regulations in this part are applicable to the 2025 and subsequent program years. The availability of cost share assistance through OCCSP is subject to the availability of funding.

(a) The regulations in this part will be administered under the general supervision and direction of the Executive Vice President, Commodity Credit Corporation (CCC). In the field, the regulations in this part will be administered by the Farm Service Agency (FSA) State and county committees (referred to as “State committee” and “county committee,” respectively).

(b) State executive directors, county executive directors, and State and county committees do not have authority to modify or waive any of the provisions of this part.

(c) The State committee may take any action authorized or required by this part to be taken by the county committee that has not been taken by the county committee. The State committee may also:

(1) Correct or require a county committee to correct any action taken by the county committee that is not in accordance with this part; or

(2) Require a county committee to withhold taking any action that is not in accordance with this part.

(d) No delegation in this subpart to a State or county committee precludes the Executive Vice President, CCC, or a designee, from determining any question arising under this part or from reversing or modifying any determination made by a State or county committee.

(e) CCC may also carry out OCCSP through grant agreements with State agencies as provided in § 1417.4.

The definitions in this section are applicable for all purposes of administering this part. The terms defined in 7 CFR part 205 are also applicable, except where those definitions conflict with the definitions specified in this section. Where there is a conflict or a difference in definitions specified in this subpart and part 205 of this title, the regulations in this part will apply.

AMS means the USDA's Agricultural Marketing Service.

AMA funding means Agricultural Management Assistance funding authorized by 7 U.S.C. 1524(b)(4)(C)(ii) to provide organic certification cost share for producers in the following states: Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Maine, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming.

CCC-884 means Form CCC-884, Organic Certification Cost Share Program (OCCSP) Application.

National funding means the funding authorized by 7 U.S.C. 6523(d)(1)(C) to provide organic certification cost share for producers and handlers in all States, U.S. territories, and the District of Columbia.

Program year means the fiscal year beginning on October 1 of the preceding calendar year and ending on September 30.

State agency means the agency, commission, or department responsible for agriculture under its jurisdiction in each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Marina Islands.

Scope means the category of certification (that is, crops, livestock, wild crops, handling, or State organic program fees).

(a) To administer OCCSP, a State agency must apply for and receive a grant award to administer OCCSP. All grant awards will be subject to the provisions of the applicable Notice of Funding Opportunity and the USDA General Terms and Conditions for Federal Awards in effect at the time the grants are executed.

(b) To apply to administer OCCSP, a State agency must submit an Application for Federal Assistance (Standard Form 424 and 424B) electronically via Grants.gov by the announced deadline for the applicable fiscal year. CCC may consider applications received after the deadline if the delay does not disrupt program administration.

(c) All State agencies may apply for a grant award of National funding. State agencies in State that are eligible for AMA funding may receive grant awards for both AMA funding and National funding but must submit a separate application for each grant award.

(a) To be eligible for OCCSP, a producer or handler must:

(1) Possess a valid USDA organic certification:

(i) For the 2025 program year, at any time during the program year; or

(ii) For 2026 and subsequent program years, at the time of application;

(2) Have paid allowable expenses, as specified in § 1417.7, for initial organic certification or renewal of organic certification from a certifying agent during the applicable fiscal year; and

(3) Be located in the 50 United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, or the Commonwealth of the Northern Mariana Islands.

(b) Producers and handlers with suspended, revoked, or withdrawn certifications at the time of application are ineligible for OCCSP.

(a) Applicants may receive OCCSP cost share for the following scopes:

(1) Crops;

(2) Handling;

(3) Livestock;

(4) Wild crops; and

(5) State organic program fees.

(b) To receive OCCSP cost share for the scopes of crops, handling, livestock, or wild crops, the scope must be listed on the producer or handler's organic certificate.

(c) National funds may be used to issue OCCSP payments for all scopes listed in paragraph (a) of this section. AMA funds may be used to issue OCCSP payments for only the scopes of crops, wild crops, and livestock.

(a) OCCSP provides cost share for allowable costs that are paid by the eligible producer or handler during a program year. Allowable costs that have not been paid at the time of application are not eligible for OCCSP.

(b) Allowable costs for OCCSP include:

(1) Application fees and administrative fees for USDA organic certification;

(2) Inspection fees for USDA organic certification, including travel costs and per diem for organic inspectors;

(3) USDA organic certification costs, including fees necessary to access international markets with which AMS has equivalency agreements or arrangements;

(4) State organic program fees;

(5) User fees and sale assessments for USDA organic certification; and

(6) Postage for materials related to obtaining or renewing USDA organic certification.

(c) Any costs not included in paragraph (a) of this section are considered unallowable, including, but not limited to:

(1) Inspections due to violations of USDA organic regulations or violations of State organic program requirements;

(2) Costs related to non-USDA organic certifications;

(3) Costs related to transitional certification;

(4) Costs related to any other labeling program;

(5) Materials, supplies, and equipment;

(6) Late fees and expediting fees;

(7) Membership fees; and

(8) Consultant fees.

(d) If a single 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.

(a) FSA county offices will begin accepting OCCSP applications for a program year on the date announced by CCC. Applications may be submitted in person, electronically, or by mail or FAX.

(b) To apply for OCCSP through an FSA county office, a producer or handler must submit all of the following:

(1) Form CCC-884, Organic Certification Cost Share Program (OCCSP) Application;

(2) USDA organic certificate; and

(3) Itemized invoices showing allowable certification costs paid to a third-party certifying agency or State organic program during the program year for which the application is submitted.

(c) Applicants may be required to provide additional documentation to FSA if necessary to verify eligibility or issue a payment. FSA may contact an applicant's certifying agent to verify the information provided by an applicant.

(d) The deadline to apply through an FSA county office for the 2025 program year is December 31, 2026. For 2026 and future program years, the deadline to submit CCC-884 and other required documents to an FSA county office is December 31 following the end of the program year.

(e) If a producer or handler pays allowable costs during a program year but does not receive their initial organic certification until after the OCCSP deadline for that program year, the deadline for the producer or handler to apply through an FSA county office is 30 days after receiving their organic certification, subject to the availability of funding. Applications will not be accepted by participating State agencies after December 31 following the end of the program year.

(f) Producers and handlers applying through a participating State agency must follow the application process and deadlines announced by the State agency.

(a) OCCSP payments are equal to the lesser of the following for each scope:

(1) The applicable reimbursement percentage, not to exceed 75 percent, multiplied by a producer's allowable costs; or

(2) The maximum payment amount, not to exceed $750 per scope.

(b) The applicable reimbursement percentage and maximum payment amount for a program year will be determined and announced by CCC prior to the beginning of the application period.

(c) Producers and handlers shall not receive OCCSP payments for the same scope through both a State agency and an FSA county office for the same program year.

(d) OCCSP payments shall be provided on a first come, first served basis, until all available funds are expended by CCC or the State agency. Applications received after all available funds are expended will not be paid.

(a) All information provided to FSA for program eligibility and payment calculation purposes is subject to spot check. Participants are required to retain documentation in support of their application for 3 years after the date of approval. Participants receiving OCCSP payments or any other person who furnishes such information to the U.S. Department of Agriculture (USDA) must permit authorized representatives of USDA or the Government Accountability Office, during regular business hours, to enter the operation and to inspect, examine, and allow representatives to make copies of books, records, or other items for the purpose of confirming the accuracy of the information provided by the participant.

(b) If an OCCSP payment resulted from erroneous information provided by a participant, or any person acting on their behalf, the payment will be recalculated and the participant must refund any excess payment to FSA with interest calculated from the date of the disbursement of the payment. If FSA determines that the applicant intentionally misrepresented information included on their application, the application will be disapproved and the applicant must refund the full payment to FSA with interest from the date of disbursement.

(c) Any payment under this subpart will be made without regard to questions of title under State law and without regard to any claim or lien. The regulations governing offsets in 7 CFR part 3 apply to OCCSP payments.

(d) In either applying for or participating in OCCSP, or both, the applicant is subject to laws against perjury (including, but not limited to, 18 U.S.C. 1621). If the applicant willfully makes and represents as true any verbal or written declaration, certification, statement, or verification that the applicant knows or believes not to be true, in the course of either applying for or participating in OCCSP, or both, then the applicant may be found to be guilty of perjury. Except as otherwise provided by law, if guilty of perjury the applicant may be fined, imprisoned for not more than 5 years, or both, regardless of whether the applicant makes such verbal or written declaration, certification, statement, or verification within or outside the United States.

(e) For the purposes of the effect of a lien on eligibility for Federal programs (28 U.S.C. 3201(e)), USDA waives the restriction on receipt of funds under this subpart but only as to beneficiaries who, as a condition of the waiver, agree to apply OCCSP payments to reduce the amount of the judgment lien.

(f) In addition to any other Federal laws that apply to OCCSP, the following laws apply: 18 U.S.C. 286,287,371,and.

(g) Sequestration will apply to the total amount of funding available for OCCSP if required by law.