Vilsack announces farmers’ market, food hub money available
May 08, 2014 | 08:36 PM
Agriculture Secretary Tom Vilsack today announced that USDA is making a total of $78 million from the 2014 farm bill available for local and regional food systems, including food hubs, farmers markets, aggregation and processing facilities, distribution services, and other local food business enterprises.
“The 2014 farm bill has given USDA new tools, resources and authority to support the rural economy,” Vilsack said.
“Consumer demand for locally-produced food is strong and growing, and farmers and ranchers are positioning their businesses to meet that demand,” he said.
Vilsack said that $48 million in loan guarantees for local food projects is now available through USDA’s Rural Development's business and industry guaranteed loan program, and $30 million is available through competitive grants via the Agricultural Marketing Service’s farmers market and local foods promotion program.
In a call to reporters Vilsack said that applicants for the farmers’ market grants should apply through the AMS website.
Under this program, $15 million is now available for marketing and promotional support specifically for local food businesses, including food hubs, delivery and aggregation businesses, and processing and storage facilities along the local food supply chain, while $15 million is for marketing support for farmers markets and other direct to consumer outlets.
Applications are due June 20.
Applicants for the guaranteed loans should contact the rural development offices in each state, but details on how to apply can be found on the USDA rural development website.
The 2014 farm bill requires USDA to set aside at least 5 percent of business and industry (B&I) program loan guarantees for projects that focus on local food business enterprises, USDA said in a news release. Applications are accepted on a rolling basis.
The B&I program has the authority to fund local food infrastructure in urban areas as long as the project supports farm and ranch income and expands healthy food access in underserved communities.
The National Sustainable Agriculture Coalition noted in a news release today that it had championed both programs.
The scaling up of the farmers’ market program in the 2014 farm bill was part of the Local Farms, Food, and Jobs Act introduced by Sen. Sherrod Brown, D-Ohio, and Rep. Chellie Pingree, D-Maine, NSAC said.
“For small and mid-sized family farmers, the farmers market and local food promotion program helps boost income and scale up to bigger markets,” said Eugene Kim, policy specialist with NSAC.
“Additionally, this program strengthens the infrastructure necessary to help get products to market, long identified as a key missing ingredient for meeting consumer demand for local food.”
NSAC also noted that the notice about loan guarantees “clarifies that, in addition to B&I projects located in rural areas, USDA will consider loan guarantee proposals from food aggregation and distribution facilities that are located in non-rural areas, so long as those entities benefit local and regional farmers and help increase access to high quality food in high poverty areas.”
“This allows aggregation and distribution facilities to be located nearer to the ultimate consumer market, thereby improving the economics of the business and increasing economic returns to the farmers supplying the market,” NSAC said.
“NSAC applauds USDA for enhancing the program in this manner,” said Greg Fogel, senior policy specialist with NSAC. “We believe it will result in more farmers and related rural food businesses being assisted by connecting them to growing consumer markets for local and regionally produced food products.”
▪ USDA Rural Development — Business and Industry Guaranteed Loans
▪ USDA Agricultural Marketing Service — Farmers Market Promotion Program
▪ USDA Agricultural Marketing Service — Local Food Promotion Program
“The 2014 farm bill has given USDA new tools, resources and authority to support the rural economy,” Vilsack said.
“Consumer demand for locally-produced food is strong and growing, and farmers and ranchers are positioning their businesses to meet that demand,” he said.
Vilsack said that $48 million in loan guarantees for local food projects is now available through USDA’s Rural Development's business and industry guaranteed loan program, and $30 million is available through competitive grants via the Agricultural Marketing Service’s farmers market and local foods promotion program.
In a call to reporters Vilsack said that applicants for the farmers’ market grants should apply through the AMS website.
Under this program, $15 million is now available for marketing and promotional support specifically for local food businesses, including food hubs, delivery and aggregation businesses, and processing and storage facilities along the local food supply chain, while $15 million is for marketing support for farmers markets and other direct to consumer outlets.
Applications are due June 20.
Applicants for the guaranteed loans should contact the rural development offices in each state, but details on how to apply can be found on the USDA rural development website.
The 2014 farm bill requires USDA to set aside at least 5 percent of business and industry (B&I) program loan guarantees for projects that focus on local food business enterprises, USDA said in a news release. Applications are accepted on a rolling basis.
The B&I program has the authority to fund local food infrastructure in urban areas as long as the project supports farm and ranch income and expands healthy food access in underserved communities.
The National Sustainable Agriculture Coalition noted in a news release today that it had championed both programs.
The scaling up of the farmers’ market program in the 2014 farm bill was part of the Local Farms, Food, and Jobs Act introduced by Sen. Sherrod Brown, D-Ohio, and Rep. Chellie Pingree, D-Maine, NSAC said.
“For small and mid-sized family farmers, the farmers market and local food promotion program helps boost income and scale up to bigger markets,” said Eugene Kim, policy specialist with NSAC.
“Additionally, this program strengthens the infrastructure necessary to help get products to market, long identified as a key missing ingredient for meeting consumer demand for local food.”
NSAC also noted that the notice about loan guarantees “clarifies that, in addition to B&I projects located in rural areas, USDA will consider loan guarantee proposals from food aggregation and distribution facilities that are located in non-rural areas, so long as those entities benefit local and regional farmers and help increase access to high quality food in high poverty areas.”
“This allows aggregation and distribution facilities to be located nearer to the ultimate consumer market, thereby improving the economics of the business and increasing economic returns to the farmers supplying the market,” NSAC said.
“NSAC applauds USDA for enhancing the program in this manner,” said Greg Fogel, senior policy specialist with NSAC. “We believe it will result in more farmers and related rural food businesses being assisted by connecting them to growing consumer markets for local and regionally produced food products.”
▪ USDA Rural Development — Business and Industry Guaranteed Loans
▪ USDA Agricultural Marketing Service — Farmers Market Promotion Program
▪ USDA Agricultural Marketing Service — Local Food Promotion Program
