WASHINGTON, D.C. – In a landmark move to bolster the nation’s food and agriculture sectors, President Biden and Secretary of Agriculture Tom Vilsack convened the inaugural meeting of the White House Council on Supply Chain Resilience. During this pivotal gathering, Secretary Vilsack unveiled a series of strategic USDA investments designed to fortify American food and agricultural supply chains, broaden market access for producers, and ultimately reduce food costs for families across the nation. These initiatives underscore the critical role of Partners Ag in ensuring a robust and resilient agricultural economy.
“The Biden-Harris Administration is firmly committed to championing America’s farmers and ranchers, recognizing them as key partners ag in our efforts to expand businesses and build more resilient American supply chains,” stated Secretary Vilsack. “The investments announced today in agricultural producers and rural entrepreneurs are a testament to this commitment. They are designed to create enhanced economic opportunities that will strengthen food supply chains throughout the country and foster greater competition – a cornerstone of Bidenomics. This will translate into more affordable prices and increased choices for consumers, alongside expanded opportunities and revenue streams for our dedicated farmers.”
This significant announcement was a highlight of the inaugural White House Council on Supply Chain Resilience meeting. The council itself is a key component of President Biden’s Bidenomics agenda, aimed at alleviating financial pressures on American families and boosting investment in critical American supply chains that are vital to both economic stability and national security. The newly announced USDA funding builds upon previous investments made under President Biden’s Investing in America agenda. These prior initiatives focused on promoting competition and lowering costs by enhancing independent meat and poultry processing capacity, diversifying food processing capabilities, strengthening local and regional food systems, and expanding innovative domestic fertilizer production. These efforts all reflect the administration’s approach to partners ag, working collaboratively across sectors to achieve common goals.
The USDA is channeling investments into 185 diverse projects, totaling nearly $196 million, to cultivate new and improved market opportunities for agricultural producers and entrepreneurs spanning 36 states and Puerto Rico. This widespread investment demonstrates a commitment to fostering partners ag relationships across the country, supporting a wide range of agricultural businesses.
For instance, several projects exemplify the impact of these strategic investments:
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In Texas, Lone Star Bakery, a family-owned business operating for three generations, will utilize a substantial $40 million Food Supply Chain Guaranteed Loan. This loan will facilitate the purchase and installation of advanced equipment, property enhancements, technology upgrades, and refinancing. The modernization of their two facilities in China Grove is crucial to meeting the evolving demands of their multinational food service and grocery chain clients. This loan exemplifies how USDA partners ag with established businesses to ensure their continued growth and contribution to the food supply chain.
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Merchant’s Garden LLC, an innovative hydroponic and aquaponic farm located in Tucson, Arizona, is set to receive a $250,000 Value-Added Producer Grant. This grant will empower them to expand their marketing and sales efforts for prepackaged salad mixes, with the goal of becoming a primary local supplier of organic leafy greens in southern Arizona. This grant showcases USDA’s commitment to partners ag with emerging, sustainable agricultural practices.
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Lot 279, LLC in Nebraska will leverage a Value-Added Producer Grant to enhance their operations in processing, marketing, distributing, and advertising their direct-to-consumer beef cattle cuts and shares. This project is projected to generate nearly $600,000 in increased annual revenue for the company and expand their customer base by an estimated 4,800 individuals. This grant illustrates how USDA partners ag with producers to add value to their products and reach wider markets.
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The Center for EcoTechnology Inc. in Massachusetts will utilize a $24,355 Rural Business Development Grant to spearhead an initiative aimed at assisting small farmers in decarbonizing their farm operations. Through outreach, technical assistance, training, and education across the Berkshire region, this grant will benefit approximately 40,000 residents in 25 towns. This grant demonstrates USDA’s role as partners ag in promoting sustainable and environmentally conscious agricultural practices.
Background on USDA Programs
These strategic investments by USDA and the Biden-Harris Administration are being channeled through six distinct programs, each meticulously designed to generate economic opportunities for individuals and businesses in rural America, fostering a strong network of partners ag across various sectors.
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Rural Business Development Grants: These grants are instrumental in supporting economic development planning and facilitating the financing or expansion of rural businesses. They offer crucial technical assistance and training for small rural businesses, strengthening the foundation of partners ag in rural communities.
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Value Added Producer Grants Program: This program is specifically tailored to assist farmers and ranchers in venturing into new markets by adding value to their bio-based products, thereby increasing their revenue potential. Funds can be deployed for processing or marketing these value-added products. This program encourages innovation and diversification within partners ag relationships.
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Business and Industry Loan Guarantees: These guarantees play a vital role in enhancing rural economic health by improving access to essential business capital. They empower commercial lenders, such as banks and credit unions, to extend affordable financing options to eligible rural businesses, fostering financial stability within partners ag networks. This program is authorized by the Consolidated Farm and Rural Development Act.
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Food Supply Chain Guaranteed Loan Program: This program specifically supports investments in critical infrastructure spanning food processing, manufacturing, storage, transportation, wholesaling, aggregation, and distribution. Its overarching goal is to augment capacity and cultivate a more resilient, diverse, and secure U.S. food supply chain, strengthening the entire ecosystem of partners ag from farm to fork. This program is supported by the American Rescue Plan Act.
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Rural Economic Development Loan and Grant Program: This program channels funding into vital rural projects through local utility organizations. USDA extends zero-interest loans to these utilities, which, in turn, lend the funding to local businesses to support projects that are committed to creating and retaining jobs in rural areas, reinforcing the economic bonds within partners ag communities.
Under the leadership of the Biden-Harris Administration, USDA Rural Development is dedicated to providing loans, loan guarantees, and grants that expand economic opportunities, generate employment, and improve the overall quality of life for millions of Americans residing in rural areas. This comprehensive assistance supports critical infrastructure improvements, business development, housing initiatives, essential community facilities (including schools, public safety, and healthcare), and the expansion of high-speed internet access in rural, tribal, and high-poverty regions. USDA’s multifaceted approach emphasizes its role as partners ag with rural communities in fostering sustainable growth and prosperity. For more detailed information, please visit www.rd.usda.gov.
USDA is actively transforming America’s food system, placing a heightened emphasis on fostering more resilient local and regional food production networks, ensuring fairer markets for all producers, guaranteeing access to safe, healthy, and nutritious food across all communities, cultivating new markets and income streams for farmers and producers through climate-smart practices, making unprecedented investments in infrastructure and clean energy capabilities in rural America, and championing equity throughout the Department by dismantling systemic barriers and building a workforce that is truly representative of America. USDA’s vision is to be a reliable partners ag in creating a more equitable and sustainable food future. To delve deeper into these initiatives, please visit www.usda.gov.
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USDA is proud to be an equal opportunity provider, employer, and lender, committed to inclusivity and equitable partners ag across all its programs and services.
