Kentucky food businesses get funding boost

By Blake Jackson

The U.S. Department of Agriculture (USDA) and the Appalachia Regional Food Business Center (ARFBC) have announced $3.32 million in Business Builder subawards to support food and farm business development in Kentucky, alongside other states.

This funding is part of the first cycle of five competitive award rounds that ARFBC will manage, aiming to enhance infrastructure for processing, aggregation, and distribution, and improve market access.

In May 2023, USDA allocated $360 million to establish 12 Regional Food Business Centers, including one in Appalachia. These Centers are designed to assist small and mid-sized producers and food businesses, fostering a more resilient and competitive food system.

The Appalachia Regional Food Business Center, spearheaded by Rural Action, Inc. and managed fiscally by the Mountain Association, focuses on strengthening infrastructure, enhancing financial stability, and increasing connectivity between rural and urban areas in Kentucky and the broader region.

USDA Under Secretary for Marketing and Regulatory Programs, Jenny Lester Moffitt, emphasized the Centers' role in transforming the food system: “The Regional Food Business Centers are a cornerstone of USDA’s food system transformation efforts, serving to help farmers, ranchers, and other food businesses access the resources and technical assistance they need to access new markets.”

Paul Freedman, Director of the Appalachia Regional Food Business Center, highlighted the broader impacts of the funding: “This funding creates a unique opportunity to not only support the mid-tier of the food system, helping farmers, food processors, distributors and alternative forms of retail, but also to transform the food supply chain and help local communities, both rural and urban.”

The ARFBC's Business Builder program will distribute funding over five cycles from 2024 to 2027, offering two types of awards: Planning & Development and Implementation & Expansion. The first-round applications are due by November 1, 2024.

For more details on eligibility and application procedures, visit the Appalachia Regional Food Business Center website.

Photo Credit: usda