USDA ending Regional Food Business Centers program

The USDA is ending a program that supported the development of small farms, local food businesses and regional food supply chains in the wake of the COVID-19 pandemic.

In a July 15 statement, the USDA’s Agricultural Marketing Service announced the termination of the Regional Food Business Centers program.

In May 2023, 12 regional centers were created to provide national coordination and technical assistance to farmers, ranchers and other food businesses in accessing new markets and navigating federal, state and local resources.

The USDA said in the July statement that eight of the centers have selected or issued Business Builder grants.

“Due to the broad scope of the program, and a long process of setting up partnerships and conducting work planning, a relatively small number of those Business Builder grants have been awarded to date,” the statement read in part.

Centers that have executed or announced Business Builder subawards will have the option to continue managing those existing commitments through May 2026, according to the statement. Centers that have not yet made Business Builder commitments will be terminated, including the Great Lakes Midwest RFBC, Southeast RFBC, Delta RFBC, and Islands and Remote Areas RFBC.

The five-state Heartland Regional Food Business Center, administered by the University of Nebraska–Lincoln’s Rural Prosperity Nebraska initiative in cooperation with co-director New Growth and the Center’s Governance Council, will be allowed to continue normal operations until Sept. 15, according to the University of Nebraska.

The Heartland Center has assisted more than 2,500 food and farm regional enterprises through its network of 32 partner organizations.

“The Biden administration created multiple, massive programs without any long-term way to finance them,” USDA Secretary Brooke Rollins said in the statement. “This is not sustainable for farmers who rely on these programs, and it flies in the face of Congressional intent.”

Rollins said USDA would honor existing commitments for more than 450 grants to farmers and food businesses, but “stakeholders should not plan on this program continuing. Any remaining funds will be repurposed to better support American agriculture.”