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USDA, CDFA Award $21.5 Million to Strengthen California’s Local Food Supply Chain

DanAgri-Business, Funding, Legislative

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The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) announced a new partnership with the California Department of Food and Agriculture (CDFA) to fund projects that strengthen local and regional food systems. Through the Resilient Food Systems Infrastructure Program (RFSI), $21.5 million has been awarded for 117 projects, including both Infrastructure and Equipment Grants. This funding aims to improve the “middle” of the supply chain—distribution, storage, and processing—so that smaller producers and communities can benefit from more stable, efficient local food networks.

The CDFA will provide support for 117 projects immediately, and it is reviewing another 11 proposals worth an additional $9.0 million. Once these are approved, California’s total share will be $30.5 million. According to USDA Agricultural Marketing Service Administrator Bruce Summers, these projects will help create new revenue streams for small and mid-sized producers, diversify agricultural markets, and provide economic opportunities for local communities.

One example is the North Coast Growers Association, which received an Infrastructure Grant. With this funding, it will establish a local food distribution system in Northwestern California. This will include delivery vans, cold storage, kitchen equipment, and expanded market outlets.

Induchucuiti Organic Farm, an Indigenous, woman-owned farm in Salinas, will also use grant funds to improve the long-term viability of its vegetable operation. The farm’s efforts will help other small-scale, Spanish-speaking farmers of color develop direct-marketing strategies, benefiting up to 30 additional producers.

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.

These investments are part of a larger $420 million national program funded by President Biden’s American Rescue Plan. According to CDFA Secretary Karen Ross, the initiative supports climate-smart, resilient, and local food systems that strengthen California’s diverse agricultural network.

USDA, CDFA Award $21.5 Million to Strengthen California’s Local Food Supply Chain

Sabrina Halvorson
National Correspondent / AgNet Media, Inc.

Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour and The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.