The US Department of Agriculture (USDA) recently announced $33.5 million in awards that will strengthen and improve access to local and regional food markets by investing in a diverse range of businesses, organizations, markets, and communities.
This latest announcement of funds for 113 projects across 43 states is a part of the Agricultural Marketing Service’s Local Agriculture Market Program (LAMP) and is funded by a combination of mandatory funds from the farm bill and annual appropriations.
Program Background
The LAMP program was established in the 2018 Farm Bill and combined existing Farmers Market and Local Food Promotion and Value-Added Producer grant programs with a new Regional Food System Partnership program. The combination of programs ensures they each have permanent funding and encourages coordination between the Agricultural Marketing Service (AMS) and Rural Development.
Recent Program Updates
Last year AMS announced a new simplified, “turnkey” application for Farmers Market (FMPP) and Local Food Promotion Program (LFPP) grants in response to directives in the 2018 Farm Bill and with input from NSAC and other stakeholders. This new application seeks to simplify applications and reporting processes to increase the accessibility of the program for small and rural organizations. It funds common marketing and promotion activities, such as developing a marketing plan or evaluating new marketing techniques. This year, AMS expanded this simplified application to include a new set of activities focused on recruitment and training. This new offering demonstrates USDA’s responsiveness to stakeholder input and their ongoing evaluation of program needs within communities.
Program Demand, Reach, and Impact
Earlier this year, AMS also published a Report to Congress that provides an overview of program demand and quantitative and qualitative program success, including metrics of job creation, new business development, customer base growth, and change in sales. This report provides updated and multi-year figures that build upon a previous evaluation completed by Kansas State University in 2014. Both reports demonstrate the effectiveness of LAMP to
- Reduce barriers to entry for new businesses,
- Increase business readiness and business capacity,
- Increase access to institutional and wholesale markets through training and food safety certification,
- Promote long-term increases in customer bases, and
- Increase connectivity between regional producers, mid-tier businesses, and markets through value-chain coordination and food systems planning.
These impacts are experienced broadly across projects and the United States. Between 2019-2022, AMS funded 591 projects across 50 states and three territories. Some highlights of the program’s impact for Farmers Market Promotion, Local Food Promotion, and Regional Food System Partnership projects include:
- The creation of 4,237 local and regional food business enterprises
- The creation or maintenance of 5,067 jobs
- 87.2 percent of projects reporting an increase in their customer base
- 79.1 percent of projects reporting an increase in both sales and customers
- 2,424 new, beginning, or underserved farmers selling into local and regional markets
While the report highlights the effectiveness of these programs, it also demonstrates how much economic potential is unfulfilled due to insufficient program funding. Since 2014, AMS has received 5,221 applications and has only been able to fund approximately 31% of those applications.
Highlights from FY2024 Awards
Below several NSAC members that were recently awarded projects are featured to provide insight into how LAMP-funded activities generate such economic returns.
For example, the Northeast Organic Farming Association of Vermont will support a variety of direct marketing farmers in developing campaigns to promote agritourism opportunities, which can increase business resilience by diversifying farm revenue. It will also update and enhance a statewide online producer directory to increase marketing. This is one of 60 Farmers Market Promotion Program awards.
Nourish Colorado received one of 43 Local Food Promotion Awards to build upon a previous statewide evaluation of common public institutional purchases to streamline purchases of four key Colorado-grown products. Their project will provide technical assistance and food safety training to producers to build their capacity to meet institutional requirements, support additional local aggregation, and secure regional bids for local products.
West Virginia Food and Farm Coalition received a Regional Food System Partnership that will extend the reach of their farmers beyond state lines. West Virginia has seen an increase in demand for West Virginia-made value-added products but does not have sufficient distribution networks to reach the larger markets of the Mid-Atlantic region. Their project will plan a statewide distribution system and establish new, out-of-state partnerships to aggregate and distribute products in 5 Mid-Atlantic cities, driving revenue from larger metropolitan areas into rural farming communities.
Broader Market Impact
The AMS Congressional Report and evaluation identified trends of local and regional market development directly impacted by LAMP projects. NSAC looked at the 2022 Agricultural Census to understand these market trends across the nation. To learn more, visit: Census of Agriculture Reveals the Promise of Regional Food Systems.
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