What are the Market Implications of the Ukrainian Grain Export Deal?

The Ukrainian Grain Export Deal

A grain export deal was finally signed by Ukraine, Turkey, Russia, and the United Nations (UN) on July 22 (USDA, Foreign Agricultural Service, Grain: World Markets and Trade, August 2022).  With much media fanfare, the first shipment of Ukrainian corn left the Bosphorus strait and headed for Lebanon on August 3 (Financial Times, August 3, 2022).  The agreement, set to last for 120 days with potential for renewal, provides for the safe passage and inspection of grains from three Ukrainian ports on the Black Sea – Odesa, Chornomorsk, and Pyvdenny – shipments following a route to Turkish ports approved by the Russian navy, with an agreed 10 nautical mile buffer zone (Reuters, August 8, 2022).  The movement of grain will be monitored from a center in Istanbul, and before their return to Ukraine, vessels will be jointly inspected by teams from Russia, Ukraine, Turkey, and the UN to ensure they carry no weapons (New York Times, August 1, 2022).

Organic Certification Cost Share Available from Farm Service Agency 

Have you ever considered transitioning all or part of your dairy or crop enterprise to organic production?  If so, you may be interested in programs available through your local Farm Service Agency (FSA).  These include the Organic Certification Cost Share Program (OCCSP) and the Organic and Transitional Education and Certification Program (OTECP). 

Organic Certification Cost Share 

The Organic Certification Cost Share Program (OCCSP) provide cost share assistance to producers and handlers who are obtaining organic certification for the first time or renewing their previous certification. Organic certification is obtained through certifying agents accredited by the USDA National Organic Program. 

This program provides 50 percent of a certified operation’s allowable certification costs, up to a maximum of $500.  The following categories or “scopes” are included: crops, livestock, wild crops, processing/handling, and organic program fees. Cost share is provided on a first come, first served basis, until all available funds are obligated.  This program is available until September 30, 2022. 

To be eligible, a producer must have both (1) a valid organic certification for their operation at the time of application and (2) paid fees or expenses related to its initial certification or renewal for certification from a certifying agent.  

Allowable costs under the OCCSP include: 

  • Application fees and administrative fees 
  • Inspection fees, including travel and per diem for organic inspectors 
  • USDA organic certification costs 
  • User fees or sale assessments 
  • Postage 

Organic and Transitional Education and Certification Program 

The Organic and Transitional Education and Certification Program (OTECP) provides financial assistance to producers interested in obtaining or renewing USDA organic certification.  In addition to many acronyms, there are certain terms that producers need to know the definitions.  These include certified operation, educational event, soil testing, micronutrients, transitional operation, and USDA organic certification.  These terms are defined below: 

  • Certified operation – is a crop or livestock production, wild crop harvesting, or handling operation, or portion of such operation, that is certified by an accredited certifying agent. 
  • Educational event – is an event, conference, training program, or workshop, that provides educational content addressing topics related to organic production and handling. 
  • Soil testing – means soil testing to document micronutrient deficiencies. 
  • Micronutrients – can not be used as a defoliant, herbicide, or desiccant.  Those made from nitrates or chlorides are not allowed.  Deficiencies must be documented by soil or tissue testing. 
  • Transitional operation – is a crop or livestock production operation that is transitioning to organic production in anticipation of obtaining USDA organic certification and has an organic system plan from a certifying agent. 
  • USDA organic certification – means a determination made by a certifying agent that a production or handling operation is in compliance with the Organic Production Act of 1990. 

Eligibility  

To be eligible for OTECP, an applicant must have paid eligible costs during the program year and, at the time of application, be either a certified or a transitional operation.  Expenses that have been incurred during the program year but not paid by the applicant are not eligible for cost-share assistance.  Eligibility for the OTECP is based on the date expenses are paid, rather than on the date the organic certification is effective.  

Eligible Categories 

Certified Organic Operations may have expenses for any combination of the following categories: crops, wild crops, livestock, handling/processing, program fees, soil testing, and educational events. 

Transitional Organic Operations may have expenses for any combination of transitional operation, soil testing, and educational events. 

Payment Amounts & Limitations  

Eligible Applicants  Category of Expenses  Payment Amount 
Certified operations  Certification – crops  25%, up to $250 
Certified operations  Certification – livestock  25%, up to $250 
Certified operations  Certification – wild crops  25%, up to $250 
Certified operations  Certification – handling  25%, up to $250 
Certified operations  State Organic Program fees  25%, up to $250 
Transitional Operations  Eligible transitional expenses  75%, up to $750 
Certified & Transitional Operations  Educational event registration fees  75%, up to $100 
Certified & Transitional Operations  Soil testing  75%, up to $150 

 

Required Documentation 

 In addition to dividing expenses paid by category, applicants self-certify to having either a valid organic certificate, or documentation to show a transition to organic.  Applicants must retain documentation in support of their application for three years after the date of approval. 

 Additional Information 

 If you are interested in learning more about this or other Farm Service Agency programs, contact your local FSA office.  Not sure which FSA serves your county?  Use this link (https://offices.sc.egov.usda.gov/locator/app) to locate your nearest FSA office. 

These OSU Extension resources may be of interest: 

 https://ohioline.osu.edu/factsheet/sag-3  

 https://ohioline.osu.edu/factsheet/anr-34  

For Ohio specific information about the organic certification process, consult the Ohio Ecological Food and Farm Association: https://certification.oeffa.org/ 

 

Chris Zoller, Extension Educator, ANR, Tuscarawas County 

 

Registration Now Open for 2022 East Ohio Women in Agriculture Conference

We’re back! The East Ohio Women in Agriculture Conference will be Friday, March 25, 2022 from 9:00 AM – 3:30 PM. This year we will be hosted at Ohio FFA Camp Muskingum near Carrollton, Ohio. And we’d love to see you there!

This one-day conference is a great place to learn, share, and network.  Be surrounded by other women who are facing the same day-to-day ups, downs, adventures, and dilemmas as you.

This year’s conference features 16 break-out sessions within four themes: Natural Resources, Plants & Animals, Home & Family, and Special Interest.

Conference is $55 for Adults and $30 for Students. Registration Deadline is March 11. For more information call 330-264-8722.

Register online at go.osu.edu/eowia2022 Please help us spread the word!

Farm Office Live…August 27

Farm Office Live” returns August 27, 2021, at 10:00 AM with special appearances by Ben Brown and attorney Robert Moore! Tune in to get the latest outlook and updates on ag law, farm management, ag economics, farm business analysis, and other related issues. Targeted to farmers and agri-business stakeholders, our specialists digest the latest news and issues and present it in an easy-to-understand format.

Special Guests

Ben Brown – A former member of the OSU Farm Office Team, Ben’s areas of expertise include farm management, commodity markets, and agricultural policy.

Robert Moore, Esq. A former OSU Extension employee, Robert now practices agricultural law at Wright & Moore, with a focus on farm succession planning, estate planning, and business planning.

August Topics: 

  • Tax Proposals
  • Tax Planning in the Midst of Uncertainty – Robert Moore, Esq.
  • Ohio Cropland Values & Cash Rents
  • FSA Program Update
  • Grain Marketing Update – Ben Brown
  • Your Questions

To register or to view a previous “Farm Office Live,” please visit https://go.osu.edu/farmofficelive. You will receive a reminder with your personal link to join each month. 

The Farm Office is a one-stop shop for navigating the legal and economic challenges of agricultural production. For more information visit https://farmoffice.osu.edu or contact Julie Strawser at strawser.35@osu.edu or call 614.292.2433

Who’s on the Farm Office Team? — Our team features OSU experts ready to simplify farm management issues and make farm ownership less stressful:

Peggy Kirk Hall – Agricultural Law
Dianne Shoemaker – Farm Business Analysis and Dairy Production
David Marrison – Farm Management
Barry Ward – Farm Management and Tax