$270M awarded to build supply chain resiliency

To date, USDA has awarded over $270 million through cooperative agreements with state departments of agriculture to strengthen the food supply chain, Agriculture Secretary Tom Vilsack has announced.

The funding is being awarded through the Resilient Food Systems Infrastructure program, which is administered by USDA Agricultural Marketing Service, according to a news release.

Through a competitive grant process, states and territories will issue subawards of infrastructure grants to agricultural producers or processors, nonprofit organizations, local government entities, tribal governments, and institutions such as schools, universities or hospitals, USDA said. In addition to infrastructure grants, some states will use funding to support supply chain coordination and technical assistance to increase resiliency within the food system, according to the release.

At the National Association of State Departments of Agriculture’s 2024 Winter Policy Conference, Vilsack announced Colorado, Connecticut, Delaware, Kentucky, Louisiana, Utah, and West Virginia have now opened their request for applications for the Resilient Food Systems Infrastructure program, joining 28 states already offering grant funding for projects that support supply chain infrastructure, the release said.

Currently, there is $230 million available in infrastructure grant funding across the country, the release said.

“These unprecedented investments into our nation’s supply chain infrastructure will not only benefit consumers by ensuring they have dependable access to fresh and locally produced food, the investments will benefit producers and rural communities by providing more options and creating more, new and better markets for small and mid-size producers,” Vilsack said in the release. “USDA also recognizes that the work through the Resilient Food Systems Infrastructure program is made possible by the strong partnerships we maintains with state agricultural agencies.”

In May 2023, USDA announced the availability of up to $420 million through the Resilient Food Systems Infrastructure program to create food systems infrastructure to support competitive and profitable market access for domestic farm products and create more economic opportunities for communities, allowing them to retain more of the value chain dollar, the release said.

The program is also supporting the creation of new, safe job opportunities with fair wages that keep profits within rural communities, USDA said. The Resilient Food Systems Infrastructure program is authorized by the American Rescue Plan.

Through the Resilient Food Systems Infrastructure program, the seven recently announced states will fund projects that expand capacity for the aggregation, processing, manufacturing, storing, transporting, wholesaling and distribution of food products, USDA said. This can include specialty crops, dairy, grains, aquaculture, and more, but excluding meat and poultry.

The amounts include:

• Colorado — $4.1 million awarded, $3 million available in infrastructure grants.
• Connecticut — $2.7 million awarded, $2.1 million available in infrastructure grants.
• Delaware — $2.1 million awarded, $1.7 million available in infrastructure grants.
• Kentucky — $8.6 million awarded, $7 million available in infrastructure grants.
• Louisiana — $6.2 million awarded, $4.6 million available in infrastructure grants.
• Utah — $3 million awarded, $2.3 million available in infrastructure grants.
• West Virginia — $4.5 million awarded, $3.6 million available in infrastructure grants.

Those interested in receiving a subaward should apply directly through their respective state department of agriculture. Updates for each state’s request for spplications for the Resilient Food Systems Infrastructure program are available on the AMS website.

Through the program and in addition to the infrastructure hrant funding, the states will support supply chain coordination and technical assistance to farmers and food businesses operating in processing, aggregation and distribution, USDA said.

Related link: More information from the AMS Resilient Food Systems Infrastructure webpage