USDA Awards $33.5 Million in Grants to Strengthen Local Food Systems Across 43 States

USDA Awards $33.5 Million in Grants to Strengthen Local Food Systems Across 43 States

Funding Supports 113 Projects to Boost Local Food Markets, Empower Small Farmers, and Increase Fresh Food Access in Rural and Underserved Communities

The U.S. Department of Agriculture’s Agricultural Marketing Service (USDA AMS) has announced a substantial funding initiative to strengthen local and regional food systems nationwide, awarding over $33.5 million in grants to 113 projects across 43 states and territories.

The funds, aimed at increasing access to locally grown foods and supporting small to mid-sized producers, are distributed through the Local Agriculture Market Program’s (LAMP) Farmers Market and Local Food Promotion Programs (FMLFPP) as well as the Regional Food System Partnerships (RFSP) grant program.

The grants will focus on expanding direct-to-consumer markets, enhancing regional food distribution channels, and fostering collaborative efforts across the food supply chain to build resilient local economies.

LAMP, an integral part of the USDA’s efforts to empower local food systems, has provided over $220 million for 597 projects since 2021, according to USDA Under Secretary for Marketing and Regulatory Programs Jenny Lester Moffitt.

Jenny Lester Moffitt, USDA Under Secretary for Marketing and Regulatory Programs

In a statement, Moffitt emphasized the program’s role in “strengthening local and regional food systems” and noted that these grants enable smaller agricultural operations to thrive while encouraging economic growth in rural communities.

Two primary grant programs under FMLFPP, the Farmers Market Promotion Program (FMPP) and the Local Food Promotion Program (LFPP), each play a specific role in driving market expansion and offering support for farmers and food businesses.

The FMPP, this year awarding $14.2 million to 60 projects across 28 states and territories, backs initiatives that facilitate direct sales from producers to consumers, including farmers markets, roadside stands, agritourism, community-supported agriculture programs, and online sales platforms.

One notable recipient, the University of Wisconsin, is set to use its FMPP funding to train 100 early-career and direct-to-consumer farmers in key business management skills. This training will support farmers in diversifying their sales and fostering valuable peer networks to enhance financial literacy and management confidence.

The LFPP, which this year is disbursing $14.1 million to 43 projects in 29 states and territories, supports local food businesses that act as intermediaries, connecting producers with consumers indirectly.

These grants fund activities like processing, aggregation, storage, and distribution of local food products, as well as the creation of value-added products.

In Mississippi, In Her Shoes, Inc. will leverage LFPP funding to increase small farms’ sustainability and enhance fresh food access in underserved communities. As part of their project, the organization will train more than 30 small farm businesses and build a mobile produce market, which will provide fresh produce to rural areas and link farmers to broader USDA food assistance programs, such as the Local Food Purchase Assistance program.

The RFSP program, responsible for awarding $5.2 million to 10 projects across 10 states, is designed to create partnerships between local food businesses and institutions like schools, hospitals, and governments, thereby encouraging the inclusion of local foods in institutional meal programs.

A project spearheaded by the Southeast Regional Cooperative in East Point, Georgia, will utilize an RFSP grant to bring together food businesses, nonprofits, and universities to enhance the efficiency of the regional food supply network. This initiative will focus on optimizing transportation logistics, processing, and data management, all contributing to the establishment of a regional service center aimed at improving food distribution to charitable organizations.

Funded through the 2018 Farm Bill and Fiscal Year 2024 appropriations, LAMP reflects AMS’s commitment to supporting U.S. food market opportunities while promoting consumer access to fresh, nutritious food.

Through these congressionally backed grants, the USDA seeks to empower producers, expand market reach, and build resilient food systems capable of withstanding economic and logistical challenges. The awarded projects will not only support direct producer-to-consumer marketing and local food enterprises but also enhance value-added agricultural initiatives that bring diverse, locally sourced products into American homes and communities.

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