trump administration

Trump Administration Ends Regional Food Business Centers Program

DanAgri-Business, Funding, Regulation

Trump Administration Shuts Down Regional Food Business Centers Supporting Small Farms

trump administration

In a major shift in federal agricultural policy, the Trump administration has announced the termination of 12 Regional Food Business Centers—a key initiative launched to support small farmers and local food enterprises across the United States.

Trump Administration Ends Regional Food Business Centers Program
A COVID-Era Initiative Designed for Resilience

The centers were established two years ago by the Biden administration in response to the supply chain disruptions caused by the COVID-19 pandemic. Their mission was to offer technical assistance, facilitate business development, and distribute grants to help small and mid-sized producers adapt to changing market conditions.

Backed by $4 billion from the American Rescue Plan, the initiative was designed to foster long-term resilience in the food system. It aimed to help farmers and food entrepreneurs invest in processing infrastructure, diversify income sources, and reach broader markets—support strategies that advocates said were essential to stabilizing local agriculture and increasing food security.

Uneven Implementation Before Dismantling

Despite its strong backing and forward-looking goals, the program faced challenges from the outset. Only 8 of the 12 centers secured Business Builder grants—a core funding mechanism—raising concerns over inconsistent distribution and the long-term viability of the program. Critics pointed to these early implementation hurdles as a warning sign that the initiative lacked the sustained support necessary for success.

Policy Shift with the Farmers First Agenda

The decision to shut down the centers comes two months after the release of the Trump administration’s Farmers First Agenda, a policy framework focused on deregulation, free-market principles, and direct support to producers. This agenda contrasts sharply with the Biden-era approach, which favored capacity building through regional infrastructure investments.

Opponents of the decision argue that closing the centers could reverse progress made in empowering small farms, especially those vulnerable to market shocks and logistical bottlenecks. Many worry the absence of regional support hubs could widen the gap between industrial and smaller-scale producers.

A Broader Debate on the Role of Government in Agriculture

The closure underscores a deepening ideological divide over how best to support American agriculture. While some applaud the move as a return to market-driven policy, others see it as a rollback of crucial support mechanisms for localized food systems.

As the nation’s agricultural landscape continues to evolve, the future of regional food support remains uncertain. Stakeholders now look to Congress and future administrations for potential legislative action that could restore or reimagine support for small and mid-sized food producers.