USDA Releases Report on the Growing Importance of Food Hubs in Rural America
NEW ORLEANS, La., February 26, 2013 – Agriculture Deputy Secretary Kathleen Merrigan today announced the release of a report which provides a comprehensive look at the economic role, challenges and opportunities for food hubs in the nation's growing local food movement. The announcement was made during a visit to Hollygrove Market and Farm, a produce market, local distributor and farm in downtown New Orleans. In operation since 2009, Hollygrove Farm and Market sources from twenty local growers across southern Louisiana and Mississippi. Hollygrove's mission includes increasing access to fresh produce for underserved New Orleans neighborhoods. The organization first began operations as part of the city's post-Hurricane Katrina rebuilding efforts.
"At USDA we are committed to food hubs because we believe that they offer strong and sound infrastructure support to producers across the country which will also help build stronger regional food systems," said Merrigan. "This report is an important addition to the ongoing research in this field and Hollygrove is an example of how it is done."
The new report is titled The Role of Food Hubs in Local Food Marketing. With an increasing demand for fresh, local, foods, the report finds that the success of food hubs is rapidly expanding, with well over 200 food hubs now operating in the United States. They are a part of a distribution system designed to move locally produced food into mainstream markets by supplying chains for goods to go from farms to the table efficiently. To view the full report click here.
USDA's working definition of a regional food hub is "a business or organization that actively manages the aggregation, distribution, and marketing of source-identified food products primarily from local and regional producers to strengthen their ability to satisfy wholesale, retail, and institutional demand". More information about USDA's work on food hubs is available at www.ams.usda.gov/foodhubs.
The dramatic increase in the number of food hubs since President Obama took office has been supported by state and federal efforts including USDA programs like Rural Business Enterprise Grant, Rural Business Opportunity Grant, Value-Added Producer Grant, and the Business and Industry Guaranteed Loan Program.
For example, as noted in the report, USDA Rural Development's Cooperative grants can be used to support building local food systems infrastructure. The Federation of Southern Cooperatives/Land Assistance Fund in Alabama received a grant to establish a vegetable processing and marketing cooperative and a regional goat processing and marketing cooperative. The Federation also trains and supports members involved in direct marketing activities, such as selling at urban farmers markets, redeeming nutrition assistance coupons and selling directly to schools. Part of the grant focused on business planning and training for community development credit unions.
President Obama's plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President's leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities. USDA's investments in rural communities support the rural way of life that stands as the backbone of our American values. President Obama and Agriculture Secretary Tom Vilsack are committed to a smarter use of Federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.
USDA, through its Rural Development mission area, has an active portfolio of more than $176 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.
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