“Boon for small producers”: USDA injects US$130M extra funding for local food systems

02 Mar 2022 --- The US Department of Agriculture (USDA) is promoting competition and market diversity for local and regional food producers through US$130 million in supplemental American Rescue Plan (ARP) Act funding. 

The additional funds are part of the Local Agriculture Market Program (LAMP), designed to maximize opportunities for economic growth and ingenuity in the local and regional food system.

They are expected to bolster access and opportunities for smaller food producers. 

“This year, we are further developing market opportunities for local food producers by focusing on ‘farm to institution,’” says Agriculture Secretary Tom Vilsack. 

Increased access for more income sources
Institutions refer to universities, hospitals and settings operated by local, tribal and state governments. 

“Expanded access to and local food purchasing within these institutional markets could be a major boon for small and mid-sized producers located throughout the country.”

Vilsack explains the grants have generated new income sources for small, beginning and historically underserved farmers. 

They have also increased local food access across rural and urban communities and “provided platforms for niche products to shine.” 

Additional funding over two years
The supplemental ARP funding is divided into US$65 million for fiscal years 2022 and 2023 each.

In 2022, LAMP will receive US$97 million in competitive grant funding to help local and regional food entities develop, coordinate and expand producer-to-consumer marketing, local and regional food markets and local food enterprises. 

The total includes the first US$65 million of supplemental ARP funding and US$32 million in funds provided through the 2018 Farm Bill. 

Of the US$97 million, LAMP’s Farmers Market and Local Food Promotion Program (FMLFPP) will receive US$57 million and the Regional Food System Partnerships (RFSP) will receive US$40 million.

Strengthening direct- and indirect-to-consumer outlets 
FMLFPP is implemented through two funding opportunities: the Farmers Market Promotion Program (FMPP) and the Local Food Promotion Program (LFPP). 

FMPP supports direct-to-consumer markets like farmers markets and community-supported agriculture (CSAs), and the LFPP supports indirect-to-consumer markets like food hubs and value-added product incubators. 

Both programs require a 25% cash or in-kind match of the federal portion of the grant.

RFSP supports public-private partnerships that build and strengthen the viability and resilience of local or regional food economies. 

Projects focus on increasing the availability of locally and regionally produced agricultural products and alleviating unnecessary administrative and technical barriers. 

Projects can cover the planning and design of a local and regional food economy as well as implementing or expanding an existing one. This program requires a 25% cash match of the federal portion of the grant.

For the 2022 fiscal year, the funding through FMLFPP (FMPP and LFPP) and RFSP is being made available as follows:

Credit: USDA

Local solutions to a global crisis
Supply chain issues have persisted throughout the global COVID-19 pandemic. 

In a recent survey conducted on 1,000 UK and US consumers, 79% stated they believed supply chain problems, such as driver shortages, were to blame for the price increases.

In response, local sourcing strategies are being explored. In July 2021, the EU-funded Smartchain project recommended logistic improvements and creating new sales channels as ways to shorten the supply chain. 

By Missy Green