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USDA Discontinues Regional Food Business Centers

USDA Discontinues Regional Food Business Centers


By Jamie Martin

The USDA's recent decision to cut the Regional Food Business Center (RFBC) program has raised concerns within the local food sector. The program, which helped small and medium-sized farm businesses, aimed to improve access to local foods and strengthen food supply chains. The Heartland Regional Food Business Center, covering Nebraska, Iowa, Kansas, Missouri, Oklahoma, and northwest Arkansas, will close its doors by September 15, 2025.

“The purpose of the regional centers was to organize groups of people who are involved in local and regional food systems together so that their combined efforts would be much greater than their individual efforts,” said Emery, a professor at the University of Nebraska-Lincoln.

The RFBC initiative distributed USDA funds to local food businesses and had planned to issue $12 million in Business Builder grants. The first round, amounting to $3.7 million, is already awarded, with Nebraska receiving 16 selected projects. However, the second round of funding, which would have provided $8.3 million in grants, was canceled due to the program's termination.

Robinette Farms, a local food business in Nebraska, was one of the recipients of the first round of grants. Co-owner Alex McKiernan expressed regret over the program’s cancellation, as it provided crucial support for small-scale producers trying to connect with local markets.

The USDA stated that the RFBC program was a temporary measure introduced during the pandemic without a long-term funding strategy. Despite the termination, local partners like the Heartland Center are exploring ways to continue supporting food businesses in the region.

Photo Credit: usda


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