USDA Boosts Money For Local Foods, Markets

U.S. Secretary of Agriculture Tom Vilsack outlined a number of new local food initiatives Thursday that are included in the most recent Farm Bill.

Vilsack announced that the USDA will be awarding $30 million in grants annually, through the Farmers’ Market and Local Food Promotion Programs. The latest Farm Bill tripled that program’s funding, and also expands it to support local food production and promotion. Funds could go towards processing facilities, CSAs, or agritourism efforts.

Vilsack says it will help small and medium producers grow their businesses and create rural jobs.

“It does indeed expand access to nutritious food with a smaller greenhouse gas footprint,” Vilsack said. “Obviously local and regionally produced food is not traveling quite as far as other food products are traveling in order to get to people’s homes.”

The Farm Bill also requires that five percent, or $48 million, of the USDA’s Business and Industry Guaranteed Loan Program goes towards local food projects.

Sarah Lloyd is the interim general manager of the Wisconsin Food Hub Cooperative. Twenty organic and conventional farmers have banded together and have the Hub work with restaurants, grocery stores, and distributors to sell their products. Lloyd says the government backing helps get food hubs and other local businesses off the ground.

“With some of the volatility, it’s hard to look good on paper … to get a traditional bank loan,” Lloyd said. “So, any of the things the U.S. government is offering in the way of start up support or assistance with guarantees for loans: all those things are really helpful.”

Local USDA offices will be working with farmers, organizations, and businesses to help secure the new grants and loans.