USDA to provide $78m fund for local food enterprises

The United States Department of Agriculture (USDA) is set to invest $78m in local and regional food systems, Agriculture Secretary Tom Vilsack has announced.

The investments will be made in food hubs, farmers markets, aggregation and processing facilities, distribution services, and other local food business enterprises.

USDA will provide $48m in loan guarantees for local food projects through Rural Development’s Business and Industry Guaranteed Loan Program.

About $30m will be available through competitive grants such as Agricultural Marketing Service’s (AMS) Farmers Market and Local Foods Promotion Program.

USDA Agriculture Secretary Tom Vilsack said the 2014 Farm Bill has given USDA new tools, resources and authority to support the rural economy.

"Consumer demand for locally-produced food is strong and growing, and farmers and ranchers are positioning their businesses to meet that demand.

"These historic USDA investments in support of local food give farmers and ranchers more market opportunities, provide consumers with more choices, and create jobs in both rural and urban communities," Vilsack added.

The 2014 Farm Bill requires USDA to allocate at least 5% of Business and Industry (B&I) programme loan guarantees for projects that focus on local food business enterprises.

The B&I program has been authorised 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.

Rural Development’s B&I program is one of several USDA initiatives that provides financial backing for rural business development in partnership with private-sector lenders.

In 2013, Rural Development supported around 170 local food infrastructure projects, covering food hubs, processing facilities, cold storage and distribution networks.

The 2014 Farm Bill tripled funding for marketing and promotion support for local food enterprises, allocating $30m annually to farmers markets, other direct producer-to-consumer venues, and other businesses in the local food supply chain.