small producer

With sales of over $11 billion in 2014 and projected growth of 10 percent annually, local and regionally-produced food is the fastest growing sector of American agriculture. At USDA, we hear a lot from communities interested in strengthening the connection between farmers and consumers. That’s why we’re investing in projects across the country to help farm and food businesses tap into this growing market.

Yesterday, USDA announced more than $56 million in grants to support local and community food projects, including a program administered by my agency, the Agricultural Marketing Service (AMS). The Farmers Market and Local Food Promotion Program awarded over $26 million in competitive grants, divided equally between the Farmers Market Promotion Program (FMPP) and the Local Food Promotion Program (LFPP).

Since it’s National Pollinator Week, it seemed fitting to express my thanks to farmers Scott and Susan Hill - who run the Hill Farm outside Charlottesville, VA.  Earlier, I had the chance to visit their 10-acre property former tobacco farm to see firsthand how hard they are working to grow a variety of produce for the local customers. But there are more little workers helping on the Hill Farm too. Pollinators!

In the United States, about one third of all agricultural output depends on pollinators. Insects and other animal pollinators are vital to the production of healthy crops for food, fibers, edible oils, medicines, and other products. It’s clear that pollinators are important to the Hill Farm for their production of their artisan and specialty varieties of several vegetables, including lettuce, asparagus, tomatoes and even golden beets.  And the first year, the addition of bees increased their tomato production by 25 percent.

Nutritional classes, purple beets, basil pesto and dark roast coffee - it’s not your father’s farmers market.  The entire local food system is maturing and farmers markets are offering more and more community-focused services. Many farmers markets now give their customers a chance to learn about locally-produced foods, in addition to buying and consuming them.

USDA is a proud partner and supporter of local and regional food systems through our programs, grants and technical services. USDA’s Agricultural Marketing Service (AMS) grants are helping farmers markets implement creative programs to support local food producers and build healthy communities. One example of an AMS grant success story is Community Foodworks, which manages the Columbia Heights Farmers Market and six other markets across Washington, DC, and Northern Virginia.

Anticipation is building for the opening of seasonal farmers markets in communities across the country—especially in Takoma Park, MD, at the Crossroads Farmers Market.  With over 1,000 visitors each week and vendors offering 131 different fruits and vegetables, market manager Michelle Dudley has a lot of work to do figuring out the perfect placement of farmers and vendors coming to the market starting June 1.

Thanks to USDA’s Agricultural Marketing Service (AMS), she has it all mapped out!

Excitement is building in the produce industry.  From salad greens to roasted beets to fresh blueberries, local food is showing up on grocery stores shelves, as new features on restaurants menus and on our kids’ school lunch plates.  The increased demand for local food is creating more opportunities for farmers, ranchers and producers. While exploring new ways to meet the demand, the produce industry is also keeping an eye on the U.S. Food and Drug Administration’s Food Safety Modernization Act (FSMA).

To help producers meet the requirements of FSMA, one of the most important services USDA’s Agricultural Marketing Service (AMS) provides is our Good Agricultural Practices (GAP) certification. That’s why we’re launching a new GroupGAP certification program that allows smaller growers and producers to band together to become certified as a group. We are working closely with FDA to align our GAP and GroupGAP programs with FSMA requirements so that as FSMA takes effect, certified growers will know they are meeting the new requirements.

Since they were brought over during the earliest explorations of North America, the sheep industry has played a vital role in the agricultural history of our nation.  In the 1940s, there were over 55 million sheep in the U.S., but today those numbers hover around one-tenth of that total.  There are about 80,000 sheep ranchers across the U.S., and, with support from the 2014 Farm Bill, they will have additional resources to help develop innovative approaches to address their long-term needs.

Consolidation of the U.S. sheep packing industry, higher feed and energy costs, loss of animals to predators and lower lamb consumption, along with competition from imported of lamb cuts, have taken their toll on U.S. sheep producers.  In response to industry needs, USDA is committed to working with our stakeholders to ensure the long-term viability of the sheep industry.

For their communities, small farmers are anything but small. Their contributions are quite large – not only do they provide food for local residents – they also create jobs and economic opportunities.  However, retailer requirements and the cost of marketing can make it difficult for small producers to scale up and reach larger markets. USDA’s Agricultural Marketing Service (AMS) is working to remove those barriers by offering a number of services that help small and local producers grow and sustain their businesses.

In the produce industry, more and more retailers require suppliers to have Good Agricultural Practices (GAP) certification, which verifies that the operation is following industry-recognized food safety practices and recommendations from the Food and Drug Administration.  For small farmers, getting GAP certified can be difficult and expensive. To help offset some of these costs, the AMS Specialty Crops Inspection Division and Transportation and Marketing Program are partnering with the Wallace Center at Winrock International to implement a Group GAP Pilot Project.

Lou’s Gourmet Sausage, a small family business run by the Vinciguerra brothers of Cleveland, Ohio, takes sausage seriously.  For over fifty years, the company has been supplying Cleveland restaurants and grocery stores with Sicilian, Andouille, Cajun, mild and hot chicken and veal sausages. But despite strong demand for its products, it took a USDA program to make Lou’s sausage available outside Ohio.

In 2012, Ohio was the first state to join USDA’s Cooperative Interstate Shipment program (CIS).  The program, authorized under the 2008 Farm Bill, allows inspected and approved small state-inspected meat processors, like Lou's Gourmet Sausage, to bear an official USDA Mark of Inspection and ship meat and poultry across state lines. Previously, only products from federally inspected plants could be sold in other states. To participate in the program, state certified plants like Lou's Sausage work with USDA's Food Safety Inspection Service (FSIS) to integrate their systems to meet federal inspection standards.  Once inspected and approved for compliance, these smaller plants can ship across state lines and are poised for bigger market opportunities.

Just because a producer works at a smaller operation doesn’t mean he or she can’t sell on a bigger scale. And the size of a farm shouldn’t limit a producer’s ability to feed local foods to local people. But how can such an operation connect the dots to successfully market its products?

One answer lies in a new kind of business model known as food hubs, which are emerging as critical pillars for building stronger regional and local food systems.  A food hub centralizes the business management structure to facilitate the aggregation, storage, processing, distribution, and/or marketing of locally/regionally produced food products.