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Over a several year period, the USDA is awarding nearly $400 million to newly established regional food hub centers, where under resourced farmers and food businesses can get help in getting their products to a wider market. Photo from Adobe Stock.
Ever order a hamburger at a restaurant and wonder where the ingredients came from? Farmers in North Dakota and surrounding states are leaning on a new federal program to help ensure those menu items come from their operations.
Partners under the Regional Food Business Center for North Central States recently gathered in Fargo to help small and mid-sized food and farm businesses navigate government resources. The virtual center is one of 12 across the country announced by the USDA over the past year.
Jenny Lester Moffitt, undersecretary for marketing and regulatory programs at the USDA, said some of the early funding went to North Dakota’s Square One commercial kitchen, a rental space for culinary startups.
“Someone who’s making jams, you can’t afford a commercial kitchen just on your own,” Moffitt said. “What many folks will do is they’ll come together and they’ll say, ‘We need a space in which to make our product that meets the different food safety requirements, also has the types of equipment that we need.’”
Another example is a family farm in North Dakota, specializing in pasture-raised poultry, receiving funds to expand its wildflower honey operations. The USDA has faced criticism for how it awards funding under separate initiatives, with money flowing to large-scale farms. But Moffitt noted requirements built into this program allow them to focus on under-resourced farmers and businesses.
Moffitt said it is about more than awarding money and helping these farm and food businesses apply for other grants. She emphasized marketing expertise is another component, so places such as restaurants and hospitals have more choices when buying food in bulk.
“It’s choice for farmers and producers to be able to have more places that they can sell their product,” Moffitt said. “But also it’s about choice for the buyers.”
In the end, officials say building a more resilient and diversified food system benefits consumers, who might not feel the squeeze as much during future market disruptions. The north-central food hub covers North and South Dakota and Minnesota. In its first year, more than $600,000 was awarded to local recipients, with application demand much higher.