The funding aims to support small and mid-sized food businesses by improving market access, infrastructure, and financial sustainability across the Appalachian region.
The U.S. Department of Agriculture (USDA) and the Appalachia Regional Food Business Center (ARFBC) have announced $3.32 million in subawards through their Business Builder program to strengthen food and farm business development in several states, including Ohio, West Virginia, Kentucky, Tennessee, and parts of Pennsylvania, Virginia, and Maryland. This marks the first of five funding cycles aimed at boosting regional food systems by addressing key areas such as market access, processing, and distribution infrastructure.
In May 2023, the USDA provided $360 million to establish 12 Regional Food Business Centers, including one dedicated to Indigenous communities. These Centers aim to support small and mid-sized producers and food businesses, fostering resilience, diversity, and competitiveness in the food system.
The Appalachia Regional Food Business Center, led by Rural Action, Inc. and managed by the Mountain Association, focuses on improving the infrastructure for aggregation and distribution, enhancing financial sustainability for food enterprises, and bridging rural and urban markets.
According to a press release, the new Regional Food Business Centers serve as a pivotal element in the USDA’s efforts to support local and regional food systems, which are integral to the nation’s food supply chain. These centers provide technical support to help producers create new market connections, improve product viability, and access both state and national markets.
Through its Business Builder program, the Appalachia Regional Food Business Center offers strategic investment to develop a more equitable and prosperous Appalachian food system, which is expected to contribute to both the health and economic well-being of the region.
“The Regional Food Business Centers are a cornerstone of USDA’s food system transformation efforts,” said Jenny Lester Moffitt, USDA Under Secretary for Marketing and Regulatory Programs. She emphasized that the Business Builder program is crucial in enabling small and mid-sized food businesses to expand, generate new revenue streams, and attract investors. Moffitt underscored the Biden-Harris Administration’s vision of a food system that empowers regional food businesses and strengthens rural economies.
Paul Freedman, Director of the Appalachia Regional Food Business Center, highlighted the transformative potential of this funding. “This funding creates a unique opportunity to not only support the mid-tier of the food system but also transform the food supply chain and help local communities, both rural and urban,” he said. Freedman expressed optimism that the subawards would lead to reduced food insecurity, better health outcomes, and increased economic investment in Appalachia.
The Business Builder program, backed by $16.6 million in total funding for the Appalachia Regional Food Business Center, will distribute funds over five cycles between 2024 and 2027. Two distinct award types have been designed to address different stages of food system development.
Planning & Development (P&D) awards will support the growth of emerging food enterprises, while Implementation & Expansion (I&E) awards will focus on larger projects aligned with the Center’s strategic priorities. Both types of awards will follow the same Request for Applications (RFA) schedule, with competitive review and selection processes.
Prioritized areas for these awards include the development of food and farm businesses to meet consumer demand and increase financial stability, improving market access to underserved populations, and enhancing regional food supply.
Additionally, investments will be made in infrastructure related to processing, aggregation, and distribution to improve food safety and make the infrastructure more accessible, particularly for underserved communities.
Applications for the first round of funding are open until November 1, 2024. Interested parties can visit the Appalachia Regional Food Business Center website for more information on eligibility criteria and application procedures.
