USDA Provides Extra ARP Funds for Local Food Producers

The U.S. Department of Agriculture today announced supplemental American Rescue Plan Act funding for the Local Agriculture Market Program. The program will receive $130 million in supplemental American Rescue Plan Act funding to promote competition and create additional markets for local and regional food producers by expanding and strengthening opportunities to sell to institutions, such as universities, hospitals and settings operated by local, tribal and state governments.

The supplemental ARP funding is divided into $65 million for fiscal years 2022 and 2023 each. In fiscal year 2022, LAMP will receive a total of $97 million in competitive grant funding to help local and regional food entities develop, coordinate and expand producer-to-consumer marketing, local and regional food markets and local food enterprises. The total includes the first $65 million of supplemental ARP funding and $32 million in funds provided through the 2018 Farm Bill. Of the $97 million, LAMP’s Farmers Market and Local Food Promotion Program will receive $57 million, and the Regional Food System Partnerships will receive $40 million.

“These grants have generated new income sources for small, beginning and historically underserved farmers; increased local food access across rural and urban communities; and provided platforms for value-added and niche products to shine,” said Agriculture Sec. Tom Vilsack. “Expanded access to and local food purchasing within institutional markets could be a major boon for small and mid-sized producers located throughout the country.”

FMLFPP is implemented through two funding opportunities: the Farmers Market Promotion Program and the Local Food Promotion Program.  FMPP supports direct to consumer markets like farmers markets and CSAs and the LFPP supports indirect to consumer markets like food hubs and value-added product incubators. Both programs require a 25% cash or in-kind match of the federal portion of the grant.

Learn more about the program and funding.