NASHVILLE — The United States Department of Agriculture announced earlier this month that it will terminate a national program established to help small to mid-level farmers and food businesses.
The Regional Food Business Centers Program was established in 2023 by the USDA to help strengthen food supply chains weakened by the COVID-19 pandemic. Within the program are 12 divisions that encompass the entirety of the United States and its territories.
USDA officials said all 12 divisions would be terminated, including the local arm of the program, the Appalachia Regional Food Business Center (ARFBC).
The ARFBC has until September 15 before it is shuttered indefinitely.
In its year-and-a-half of operation, the ARFBC has worked with more than 2,800 farms in the Appalachian region, providing grants, training, advice, mental health services and more.
Prior to receiving its notice of termination, the ARFBC was set to inject more than $16 million into Appalachia this year through grants.
Leadership with the organization is negotiating to allow the ARFBC to distribute a final round of grants from its Business Builder Sub-award program to four finalists.
ARFBC Director Paul Freedman is optimistic the last round of grants will make it through. But even if it does, it will be the last one for the foreseeable future.
USDA leadership categorized the move as an elimination of unsustainable funding, part of a broader goal by the Trump Administration to eliminate “waste, fraud and abuse” from government programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
“The Biden Administration created multiple, massive programs without any long-term way to finance them. This is not sustainable for farmers who rely on these programs, and it flies in the face of Congressional intent,” said Secretary of Agriculture Brooke Rollins.
However, Freedman says the elimination of this program will lead to some gaps in the food supply chain. While he hopes some private organizations will be able to pick up the slack, he said they likely won’t be able to cover everything.
Apart from issuing grants, the ARFBC provided information to help local farmers sustain and grow their farms. That includes reaching out to experts to advise farmers on marketing tactics, crop strategies, machinery purchases, and food science.
Freedman used an example of an apple farm. The variety of apples popular with consumers change often — one season it may be Gala, the next, Fuji. Orchards aren’t able to keep up with the rapidly shifting demand for different varieties, and so orchard owners can often be caught with a surplus of product and a shortage of buyers.
“So we noticed that the need to help farmers think more strategically and be more nimble as a business was really critical,” said Freedman. “And often, that was a missing piece in the assistance that farmers got through traditional channels.”
In addition, the ARFBC provided other services, such as mental health counseling for farmers, who are 3.5 times more likely to commit suicide than the rest of the population.
What made this program unique from other USDA programs, Freedman said, is that it encompassed more than just farms. It also helped small to mid-sized food distributors to restaurants, warehouses and food banks.
“We went from some of the most rural corners of east and northeast Tennessee … and covered some of the urban areas,” said Freedman. “So we weren’t restricted to size or location. It really was trying to help the food businesses wherever they were.”
To offer some of these services, the ARFBC partnered with 15 groups across Appalachia. Three nearby providers include: Appalachian Resource Conservation and Development Council, located in Johnson City; Appalachian Sustainable Development, which operates in Northeast Tennessee; and Agrarian Trust, located just across the North Carolina border.
“We’re just disappointed in the determination, and our goal is to still find a way forward,” said Freedman.