USDA Terminates Regional Food Business Centers Program

WASHINGTON, D.C. — U.S. Secretary of Agriculture Brooke L. Rollins announced the termination of the Regional Food Business Centers (RFBC) program, which supported food producers by providing localized assistance to access a variety of markets, including linking producers to wholesalers and distributors.

This pandemic-era program was created using one-time, temporary funding from Congress, said USDA in a July 15 statement. The department said it is terminating a program “that should not have been established in this manner in the first place, but are doing so in a way to honor commitments made to farmers.”

In September 2022, USDA announced $400 million to fund the Regional Food Business initiative, and in May 2023, the agency selected 12 organizations to lead efforts in their regions and together serve all areas of the country.

Rollins said initiative, spearheaded during Joe Biden’s presidency, was not sustainable.

“The Biden administration created multiple, massive programs without any long-term way to finance them,” said Rollins. “This is not sustainable for farmers who rely on these programs, and it flies in the face of Congressional intent.”

Rollins said USDA will honor existing commitments for more than 450 grants to farmers and food businesses to ensure planning decisions on the farm can continue as usual.

“However, stakeholders should not plan on this program continuing,” she said. “Any remaining funds will be repurposed to better support American agriculture.”

Out of the 12 RFBCs, eight have selected or issued Business Builder grants, said USDA. The agency said it will honor current and pending commitments to producers and food businesses through the Business Builder subaward program.

“Due to the broad scope of the program and a long process of setting up partnerships and conducting work planning, a relatively small number of those Business Builder grants have been awarded to date,” said the USDA in its July 15 statement.

RFBCs that have executed or announced Business Builder subawards will have the option to continue managing those existing commitments through May 2026. Centers that have not yet made Business Builder commitments will be terminated; these include the Great Lakes Midwest RFBC, Southeast RFBC, Delta RFBC and Islands and Remote Areas RFBC.