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Food System Transformation

The food system of the future needs to be fair, competitive, distributed, and resilient. USDA has announced a framework to transform the food system to benefit consumers, producers and rural communities by providing more options, increasing access, and creating new, more, and better markets for small and mid-size producers. This investment builds on lessons learned from the COVID-19 pandemic and supply chain disruptions caused by Russia’s war in Ukraine.

On this page, you will find all the programs USDA is deploying to transform the food system, details about their status, and links to apply for funding.

BACKGROUND

When the COVID-19 pandemic began, USDA made significant investments through its Pandemic Assistance Program, providing immediate relief to producers, businesses, food workers and others. As the pandemic has evolved and Russia’s war in Ukraine has caused supply chain disruptions, it has become clear we cannot go back to the food system we had before: the Biden-Harris Administration and USDA recognize we must build back better and strengthen the food system across the supply chain, from how our food is produced to how it is purchased, and all the steps in between.

Food System graphic

Food Production

Farmers and ranchers across this country work hard every day to produce the food that feeds their neighbors and communities. The pandemic spotlighted the many challenges they face in accessing markets and capturing a fair share of the food dollar. We know that small and mid-size operations struggle in particular and there are still too many barriers to entry for new farmers. USDA is increasing options for American farmers to process locally, sell locally, and adopt practices that are both good for their businesses and the climate.

In addition to those listed here, USDA has many other programs to support farmers and ranchers. For more information on additional program opportunities, please visit: www.farmers.gov

OPEN PROGRAMS

The Food Safety Certification for Specialty Crops (FSCSC) program is providing up to $200 million in assistance for specialty crop producers who incur eligible on-farm food safety program expenses to obtain or renew a food safety certification in calendar years 2022 or 2023. Enrollment for calendar year 2022 closed January 31, 2023. USDA's Farm Service Agency will accept FSCSC applications for calendar year 2023 from February 1, 2023, through January 31, 2024. Additional information is available at farmers.gov/fscsc

PENDING AWARD ANNOUNCEMENTS

USDA is investing $5 million to increase organic expertise throughout its regions, creating organic experts at each of its regional technology support centers. These experts will train staff who provide direct services to USDA customers. These services include hosting hands-on organic training for state and field NRCS staff and fielding organic-related staff questions.

USDA is investing up to $70 million to develop a new Organic Management conservation practice standard and offer financial and technical assistance to producers who implement the practice. Payments will be modeled on those already available to producers meeting the existing nutrient and pest management conservation practice standards.

AWARD ANNOUNCEMENTS

USDA has awarded $75 million through the Organic Market Development Grant Program (OMDG) to help improve key organic markets where the need for domestic supply is high, or where additional processing and distribution capacity is needed for more robust organic supply chains. OMDG will fund businesses transitioning to organic or initiating new organic production or processing and support new, improved and expanded markets for domestically produced organic products with a focus on processing capacity, market access, and product development.

USDA’s Agricultural Marketing Service (AMS) has made three rounds of awards under OMDG, totaling $75.2 million for 93 projects across the nation. The projects are supporting the development of new and existing organic markets, supporting the infrastructure to improve processing capacity, exploring emerging technologies to promote organic products, purchasing equipment to help meet the increasing demand for organic commodities.

USDA anticipates the projects funded through this program will benefit more than 49,000 producers and over 118 million consumers by increasing organic market opportunities.

USDA has made an additional $10 million available through the program. Awards for this funding will be selected from the existing applicants and will be announced summer 2024.

A full list of awarded projects is available on the OMDG Awarded Grants webpage.

The Transition to Organic Partnership Program (TOPP) is investing up to $100 million over five years in cooperative agreements with non-profit organizations that will partner with others to provide technical assistance and wrap-around support for transitioning farmers in six regions across the United States. The TOPP partnership network covers six regions: the Mid-Atlantic/Northeast, Southeast, Midwest, Plains, Northwest, and West/Southwest. Organizations in these regions are actively forming partnerships to serve transitioning and existing organic farmers. TOPP regions are set geographically and form a mix of states that are well-represented in organic and states that are currently underserved.

View an interactive map with state-by-state TOPP partner listings (PDF, 6.1 MB)

Transitional and Organic Grower Assistance (TOGA) Program invested $25 million to provide producers transitioning to organic or producers growing certified organic grain or feed crop covered with Federal crop insurance premium assistance for the 2023 reinsurance year.

$40 million in cooperative agreements with organizations to support outreach and training activities for urban farmers. From farms within city boundaries to community gardens, urban agriculture plays an important role in connecting producers and consumers to food, agriculture, and one another while contributing to the local economy. These funds will expand access to nutritious foods, foster community engagement, provide jobs, educate communities about farming, and expand green spaces.

$30 million to support Urban Agriculture and Innovative Production Grant projects. These American Rescue Plan Act (ARPA) funds were awarded to 75 Urban Agriculture and Innovative Production grant applicants from 2021 and 52 applicants in 2022. This grant program has been oversubscribed the last several years, ARPA funds made it possible to fund these worthy projects. A full listing of projects is posted on www.usda.gov/topics/urban.

$20 million for an Organic Certification and Transition Cost Share program that provides pandemic assistance to producers and handlers of agricultural products who are obtaining or renewing their certification under the National Organic Program (NOP). This process can be costly and can be a barrier to market access for limited resource producers. This program closed on October 31, 2022.

$700 million to support for frontline farm and food workers. The Farm and Food Worker Relief Grant program provides approximately $700 million to provide grants to State agencies, Tribal entities, and non-profit organizations to provide support to farmworkers and meatpacking workers.

$5 million to reinvigorate The People's Gardens across the United States to grow fresh, healthy food and support a resilient, local food system; teach people how to garden using sustainable practices; and nurture habitat for pollinators and wildlife, and greenspace for neighbors to gather and enjoy.

Food Processing

The pandemic highlighted challenges within the middle of the food supply chain. Consolidated processing capacity created supply bottlenecks, which led to a drop in effective plant and slaughter capacity. Small and midsize farmers often struggled to compete for processing access and were left without an avenue for getting their animals to market. Addressing these challenges is key to transforming food systems. Building more distributed, local capacity will help build resiliency in the face of market disruptions, provide more choices for producers to create value-added products and sell locally, and support new economic opportunities and job creation in rural communities. USDA has already made investments to support new and expanded regional processing capacity and address challenges in the middle of the supply chain, including underinvestment in workforce development and barriers to new entry into the sector.

OPEN PROGRAMS

Meat and Poultry Processing: USDA is investing $1 billion in supporting the expansion of diversified, independent meat and poultry processing capacity. For all the information on grants, loans, other programs, and applications: usda.gov/meat

All non-meat and poultry processing-related programs have been announced.

Dairy Business Innovation Initiative Supports Long Term Resilience in the Dairy Industry

USDA increased funding ($80 million) to support dairy producers and regional dairy processors, especially those engaged in value-added production and processing. These Initiatives support regional-focused efforts tailored to the needs of dairy farmers and businesses locally. This new investment extends the reach of the DBI program from 30 to 39 states and will expand the capacity of the four initiatives to provide technical assistance and sub-grants.

PENDING AWARD ANNOUNCEMENTS

All non-meat and poultry processing-related programs have been announced. For the most recent information on meat and poultry processing grants.

AWARD ANNOUNCEMENTS

The Resilient Food Systems Infrastructure Program (RFSI) has entered into cooperative agreements with states and territories in this $420 million program to develop and administer state-coordinated initiatives to build resilience across the middle of the food supply chain for food crops. Funds will support expanded capacity for the aggregation, processing, manufacturing, storing, transporting, wholesaling, and distribution of locally and regionally-produced food products, including specialty crops, dairy, grains for consumption, aquaculture, and other food products, excluding meat and poultry.

Dairy Business Innovation Initiative Supports Long Term Resilience in the Dairy Industry

USDA has made $12 million in grant funding available to support processing capacity expansion, on-farm improvements, and technical assistance services to producers through the Dairy Business Innovation Initiatives (DBI). The funds will be awarded noncompetitively to the DBI Initiatives at the California State University Fresno; the University of Tennessee; Vermont Agency of Agriculture, Food & Markets; and the University of Wisconsin. Dairy Business Innovation Initiatives provide valuable technical assistance and subgrants to dairy farmers and businesses across their regions.

Community Food Projects

USDA invested $10 million in 29 Community Food Projects. Community Food Projects, powered by a network of stakeholders from across the food system, support small to medium farmers, producers and processors in urban, rural, tribal and insular areas. The program provides communities a voice in food system decisions and supports local food markets to fully benefit the community, increase food and nutrition security and stimulate local economies.

National School Lunch Equipment Program

USDA invested an additional $50 million for state agencies to competitively award subgrants to local educational agencies and schools to purchase equipment needed to serve healthier meals, improve food safety, and to help support the establishment, maintenance, or expansion of the School Breakfast Program and National School Lunch Program.

Food Distribution and Aggregation

Having the right infrastructure in the right places to gather, move and hold food where and when it is needed is key to the resiliency of our food system. Efforts to shorten the supply chain from farm to fork provides more income opportunities for producers and more options for consumers to buy locally produced products. At the same time, shortening the supply chain has important climate benefits.

OPEN PROGRAMS

Stay Tuned

COMING SOON

$10 million for FY24 Compost and Food Waste Reduction cooperative agreements that support local and municipal governments, schools, and tribal governments/organizations with projects that develop and test strategies for municipal compost and food waste reduction plans.

PENDING AWARD ANNOUNCEMENTS

Investing in Local Food Promotion Program and Regional Food Systems Partnerships in 2024 to expand and strengthen opportunities for local and regional food producers to sell to institutions, such as universities, hospitals, and settings operated by local, tribal, and state governments. Expanding Food to Institution infrastructure will maximize opportunities for economic growth and ingenuity in the local and regional food system. These grants have generated new income sources for small, beginning and historically underserved farmers; increased local food access across rural and urban communities; and provided platforms for value-added and niche products to shine. The 2024 grant application period closed May 14, 2024.

Food Loss and Waste Training and Technical Assistance and Capacity Building Grants
USDA will invest almost $20 million to provide training, technical assistance, and capacity building grants for Community Food Project eligible entities to focus on further efforts that reduce food loss and waste.

Compost and Food Waste Reduction
This program will invest $10 million to funds cooperative agreements support local and municipal governments, schools, and tribal governments/organizations with projects that develop and test strategies for municipal compost and food waste reduction plans. The FY23 program closed on June 15, 2023.

AWARD ANNOUNCEMENTS

USDA Regional Food Business Centers

12 Organizations have been selected to establish USDA Regional Food Business centers that will provide coordination, technical assistance, and capacity building support to small and mid-size food and farm businesses, particularly focused on processing, distribution and aggregation, and market access challenges. The Regional Food Business Centers will support producers by providing localized assistance to access a variety of markets, including linking producers to wholesalers and distributors. By strengthening connections between rural and urban areas, the Regional Food Business Centers will drive economic opportunities across the region, creating a more diversified and resilient food system.

TEFAP Reach and Resiliency Grants Round 1 and 2

In June 2022, USDA awarded over $39 million to 38 TEFAP State agencies for TEFAP Reach and Resiliency Round One Projects. In the spring of 2023, FNS awarded over $58.5 million to 40 states for TEFAP Reach and Resiliency— Round 2 grants. These funds will enable State agencies to better serve those in need of emergency food assistance, especially in communities facing barriers to program access.

Local Food Purchase Assistance

List of Signed LFPA Cooperative Agreements

This new $400 million program supports local, regional, and socially disadvantaged farmers and ranchers through the purchase of domestic local foods that are healthy, nutritious and unique to their geographic area. The food will meet the needs of the population, and serve feeding programs, including food banks, schools and organizations that reach underserved communities. In addition to increasing local food consumption, these awards will help build and expand economic opportunity for local and socially disadvantaged producers.

Farm to School Formula Grant Program

Invested $60 million to leverage increased commodity purchases through Farm to School Formula Grants. Farm-to-school programs are a proven model of increasing markets for farmers via child nutrition programs while also providing children healthy, fresh food. These grants to states and territories administering farm to school programs support efforts to coordinate and provide technical assistance to build and increase the capacity of participating institutions to procure and use local foods in program meals as well as provide agricultural education opportunities for participating children.

Community Food Projects – Food Loss and Waste

USDA invested $4.3 million in FY2023 Community Food Projects (CFP) projects that reduce food loss and waste, get surplus wholesome food to individuals, and develop linkages between food producers, providers, and food recovery organizations. The primary goals of CFP grants are to provide communities a voice in food system decisions and to support local food markets to fully benefit the community, increase food and nutrition security and stimulate local economies.

Food and Agriculture Service Learning Program – Food Loss and Waste

USDA has invested $500,000 in Food Loss and Waste reduction efforts on school grounds to engage and scale up food loss and waste effort. This funding will also reduce plate waste in the USDA food and nutrition school meal programs, working to educate school children and make meal program operations more efficient and reduce costs.

Composting and Food Waste Reduction

USDA invested $10 million in the Community Compost and Food Waste Reduction (CFWR) Program in 2022. A complete list of 2022 urban agricultural cooperative agreement recipients and their project summaries can be found on the following Composting and Food Waste Reduction (CFWR) Cooperative Agreements page.

$65 million Supplemental Funding to Local Food Promotion Program and Regional Food Systems Partnerships in 2022. USDA increased funding to these two grant programs to expand and strengthen opportunities for local and regional food producers to sell to institutions, such as universities, hospitals, and settings operated by local, tribal, and state governments. Expanding Food to Institution infrastructure will maximize opportunities for economic growth and ingenuity in the local and regional food system. These grants have generated new income sources for small, beginning and historically underserved farmers; increased local food access across rural and urban communities; and provided platforms for value-added and niche products to shine.

Markets and Consumers

OPEN PROGRAMS

Healthy Food Financing Initiative: The Healthy Food Financing Initiative (HFFI) provides loans, grants, and technical assistance resources to improve and support access to fresh, healthy, affordable food in urban and rural underserved communities. $30 million is available in grants for the Local and Regional Healthy Food Financing Partnerships Program – which focuses on improving access to capital and capacity building – is the first funding opportunity available under this expanded initiative. Visit www.investinginfood.com for more information.

Healthy Meals Incentive Recognition Awards.

The Recognition Awards application opened on June 30 and will remain open through School Year 2024-2025. School food authorities who meet the Recognition Award criteria will receive national and local recognition, as well as an awardee toolkit that includes digital assets and an invitation to attend a national Healthy Meals Summit.

COMING SOON

Healthy Food Financing Initiative. USDA increased funding to the Healthy Food Financing Initiative by $135 million. Many communities lack adequate, affordable access to healthy food and are ‘food deserts’. This program provides grants and loans to entities that offer healthy food in communities that are underserved by grocery stores and other food retailers. The program increases access to healthy foods, provides new market opportunities for farmers and ranchers, stabilizes small and independent retailers, and creates quality jobs and economic opportunity in low-income communities. More details will be coming soon.

School Food Systems Transformation Challenge. In spring/summer 2023, FNS will work with Boise State University, Chef Ann Foundation, Full Plates Full Potential, and Illinois Public Health Institute to support the development and implementation of the School Food System Transformation Challenge Sub-Grants. The sub-grants will support collaborative projects between school districts, food producers, suppliers, distributors, and/or community partners to stimulate the creation of a resilient, equitable, and nutritious school food system. Requests for Applications (RFA) for these sub-grants will be announced later in 2023.

PENDING AWARD ANNOUNCEMENTS

$5 million for GusNIP Produce Prescription Program fiscal year 2023. The primary goal of the Gus Schumacher Nutrition Incentive Program (GusNIP) Produce Prescription Program is to demonstrate and evaluate the impact of projects on (1) the improvement of dietary health through increased consumption of fruits and vegetables; (2) the reduction of individual and household food insecurity; and (3) the reduction in healthcare use and associated costs. Applications for fiscal year 2023 are closed and awards are pending.

AWARD ANNOUNCEMENTS

Healthy Food Financing Initiative. USDA announced an additional $20M investment in Healthy Food Financing, in partnership with the Reinvestment Fund to improve access to healthy foods in underserved communities across the country. The investments are being made through the Healthy Food Financing Initiative (HFFI), which helps bring grocery stores and other healthy food retailers to underserved urban and rural communities. The announcement included investments that will support 134 projects in rural, urban and Tribal communities in 46 states, Puerto Rico and Washington D.C.

Healthy Meals Incentive Grants for small and/or rural school food authorities. Nearly $30 million in subgrants were awarded to 264 school districts across 44 states and the District of Columbia, reaching students in some of our nation’s highest need schools. Each small and/or rural school district will receive up to $150,000 to support them in improving the nutritional quality of their meals and modernizing their operations, through efforts which could include: innovative staff training programs; kitchen updates and renovations; redesigning food preparation and service spaces; other school-district led efforts to support school meals and school nutrition professionals.

Senior Farmers Market Nutrition Program. USDA added $50 million in grants to 47 states and tribes to modernize and expand the Senior Farmers Market Nutrition Program at farmers markets, roadside stands, and community supported agriculture programs. These grants will allow states to reach more eligible seniors by funding the $50 maximum benefit for up to 250,000 more eligible seniors, while expanding geographic areas served and transitioning to online training and electronic benefits transfer in some states.

$25 million to support SNAP technology improvements to modernize the delivery of incentive programs through SNAP’s electronic benefit transfer (EBT) technology. Reliable, affordable, user-friendly technology is important to enabling producers and food businesses to accept SNAP benefits from customers. This will support more project funds going to incentives rather than the administrative costs of delivering the incentive.

Healthy Meals Incentive Recognition Awards.

USDA’s Food and Nutrition Service (FNS) awarded approximately $47M to Action for Healthy Kids (AFHK). Under this cooperative agreement, AFHK will develop and implement a national nutrition recognition awards program, starting school year 2023-2024, for School Food Authorities participating in the National School Lunch Program.

$50 million for School Food Systems Transformation Challenge sub-grants. Starting in spring 2023, USDA’s Food and Nutrition Service (FNS) will support the development and innovative solutions for K-12 food service transformation. Eligibility for sub-grants will be for school districts, food producers, suppliers, distributors, and community partners. Awards were announced on March 22.

GusNIP Produce Prescriptions. USDA added $40 million to the Gus Schumacher Nutrition Incentive Program (GusNIP) Produce Prescription Program. GusNIP Produce Prescription projects provide financial and non-financial incentives to income-eligible individuals and families to procure fresh fruits and vegetables intended to improve dietary health through increased consumption of fruits and vegetables, reduce individual and household food insecurity, and reduce associated health care costs. Since launching this program following the passage of the Agriculture Improvement Act of 2018, demand has increased by 30 percent each year.

GusNIP Produce Prescription fiscal year 2022. An investment of $20.7 million in 43 awards was announced in November 2022.
GusNIP Produce Prescription fiscal year 2021 ($8 million). Those applications were highly ranked but could not be funded in FY21 due to budget constraints. NIFA has notified eligible organizations and provided additional details and a copy of the application package.
Active GusNIP Produce Prescription awardees (from FY19, 20 and 21) who were not already implementing GusNIP COVID Relief and Response awards were eligible for project enhancement funding ($5.7 million).