USDA and California Award $21.5 Million to Projects that Strengthen Food Supply Chain Infrastructure

WASHINGTON, Dec. 18, 2024 -- The U.S. Department of Agriculture's (USDA) Agricultural Marketing Service (AMS) today announced it has partnered with the California Department of Food and Agriculture (CDFA) to award $21.5 million for 117 projects through the Resilient Food Systems Infrastructure Program (RFSI) to build resilience across the middle of the supply chain and strengthen local and regional food systems.

"Projects funded through the Resilient Food Systems Infrastructure program are building strength and resilience in California's food system, diversifying agricultural markets, creating new revenue streams for small and mid-sized producers, and providing economic opportunities for local communities," said USDA Agricultural Marketing Service Administrator Bruce Summers. "USDA is grateful for California's support strengthening local and regional agricultural supply chains."

Through this program, CDFA will fund 117 projects, including seven Infrastructure Grants and 110 Equipment Grants to support middle of the supply chain infrastructure. CDFA is still reviewing 11 additional projects - nine Infrastructure Grants and two Equipment Grants totaling $9.0 million - which will be awarded in the coming months, bringing California's total awarded to $30.5 million.

"This is an innovative, much-needed program from the USDA, and we are so appreciative of their vision in bringing it forward," said CDFA Secretary Karen Ross. "This is an investment to advance the California State Board of Food and Agriculture's strategic goals for Ag Vision - to foster climate-smart, resilient and local food systems by addressing gaps in the supply chain and to provide more opportunities for California's small farms while contributing to healthy, local communities with expanded access to the bounty of flavorful, nutritious food we grow in our state."

Examples of Funded Projects:

• North Coast Growers Association in Arcata, Calif., is receiving an Infrastructure Grant to partner with the Del Norte and Tribal Lands Community Food Council to create a local food distribution system across rural Northwestern California. This project will include purchasing delivery vans to increase distribution; acquiring cold storage nodes to efficiently collect, store, and distribute produce; and purchasing kitchen and processing equipment to add value to farm products, sourcing products from local and regional producers. This project is expected to create three new jobs, train 12 employees, benefit 100 local and regional producers, process 12 new local and regional products, develop 20 new value-added products, and establish 14 new market outlets.

• Twin Peaks Orchards in Newcastle, Calif., recently experienced an onsite fire, losing 95% of their infrastructure, including a delivery vehicle. With an Equipment Grant, they will be able to restore their lost delivery vehicle and increase distribution of organic fruits and vegetables in and around Placer County, including working with local growers to source and deliver their produce. This project is expected to benefit 15 local and regional producers, establish six new market outlets, and distribute six new local and regional products.

• Induchucuiti Organic Farm, an Indigenous woman-owned farm in Salinas, Calif., is receiving an Equipment Grant to increase the long-term viability of its small-scale, diversified vegetable operation. It will also support local farmers' markets, restaurants, and schools that will be the recipients of the produce. Furthermore, this work will inspire other small-scale Spanish-speaking farmers of color in the Salinas area to transition to direct-marketing strategies, ultimately benefiting a localized food system. Through this purchase and related efforts, Induchucuiti Organic Farms will help up to 30 additional local and regional producers in need of a reliable and efficient distribution method. Additionally, 17 new agricultural products will be aggregated and distributed and eight new markets will be established.

This awarded funding is part of the $420 million available through the Resilient Food Systems Infrastructure grant program to build capacity within the middle of the supply chain and support local and regional producers. It is funded by President Biden's American Rescue Plan. Through this program, AMS has entered into cooperative agreements with state agencies, commissions, or departments responsible for agriculture, commercial food processing, seafood, or food system and distribution activities or commerce activities in states or U.S. territories.

For more information, visit the AMS Resilient Food Systems Infrastructure webpage. The status of each state and territory's RFSI program is available on the program's State Grant Webpage.

AMS administers programs that create domestic and international marketing opportunities for U.S. producers of food, fiber, and specialty crops. AMS also provides the agriculture industry with valuable services to ensure the quality and availability of wholesome food for consumers across the country and globally. AMS services and its significant grant investments create opportunities by supporting American farmers, ranchers and businesses across the supply chain, and drive economic development in small towns and rural communities.

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USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America's food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

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