USDA to Transform Food System
Published: Friday, June 10, 2022
The U.S. Department of Agriculture last week announced details of a framework to reshape the U.S. food system in a plan it says will increase fairness, competition and resiliency that will benefit both agricultural producers and consumers.
In a news release, USDA says the framework builds on lessons learned from the COVID-19 pandemic and supply chain disruptions caused by Russia's war in Ukraine. The announcement also provides additional details on the June 2021 announcement to strengthen critical supply chains and address longstanding structural challenges that were revealed and intensified by the pandemic.
The goals of USDA's Food System Transformation framework include:
• Building a more resilient food supply chain that provides more and better market options for consumers and producers while reducing carbon pollution.
• Creating a fairer food system that combats market dominance and helps producers and consumers gain more power in the marketplace by creating new, more and better local market options.
• Making nutritious food more accessible and affordable for consumers.
• Emphasizing equity.
To support these goals, USDA is planning to invest more than $2.8 billion to help food production, processing, distribution, and to help markets and consumers. These investments include the following:
• Up to $300 million in a new Organic Transition Initiative;
• Up to $75 million to support urban agriculture;
• Up to $375 million in support for independent meat and poultry processing plant projects;
• Up to $25 million for creation of a robust technical assistance network to ensure that participants in USDA's meat and poultry supply chain initiatives have access to a full range of technical assistance;
• Up to $275 million in partnership with lenders to address the credit gap for meat and poultry processing projects;
• Up to $100 million to support development of a pipeline of well-trained workers and safe workplaces in the processing sector;
• $200 million for a Food Safety Certification for Specialty Crops Program;
• Up to $600 million in financial assistance to support food supply chain infrastructure not covered by the meat- and poultry- processing program;
• $60 million to leverage increased commodity purchases through Farm-to-School;
• Up to $90 million to prevent and reduce food loss and waste
• $400 million to create regional food business centers that will provide coordination, technical assistance and capacity-building support to small and midsize food and farm businesses;
• $50 million to the Senior Farmers Market Nutrition Program;
• $40 million to the GusNIP Produce Prescriptions Program;
• $25 million to support SNAP technology improvements to modernize the delivery of incentive programs through electronic benefit transfer technology; and
• $100 million to create a new Healthy Food Incentive Fund, which will support school food authorities.
Additionally, USDA will increase funding to the Healthy Food Financing Initiative by $155 million. Many communities lack adequate, affordable access to healthy food and are food deserts. This program provides grants and loans to entities that offer healthy food in communities that are underserved by grocery stores and other food retailers.
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