What's Happening?
The USDA Southwest Regional Food Business Center, which has been instrumental in supporting small farms and food businesses since 2023, is set to cease operations on September 15, 2025. This center, led by the University of California Agriculture and Natural Resources and backed by 21 partners, has provided essential services such as technical assistance, marketing advice, and business development support to farmers and food entrepreneurs in California, Arizona, Nevada, and Utah. The USDA initially launched 12 food business centers nationwide to bolster local food systems and supply chains. Despite their success, the USDA Agricultural Marketing Service has decided to end the program after two years, leaving the Southwest Center to operate with a reduced team until May 2026 to manage existing grant projects.
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Why It's Important?
The closure of the USDA Southwest Regional Food Business Center is significant as it disrupts the support system for small farms and food businesses, which have relied on the center for growth and resilience, especially during emergencies like the COVID-19 pandemic. The center's efforts in improving local food supply chains and providing financing solutions have been crucial for regional networks. The end of federal funding means these businesses may face challenges in accessing markets and navigating regulations without the center's assistance. The Southwest Leadership Council is now tasked with finding alternative partnerships or funding sources to continue supporting these vital sectors.
What's Next?
The Southwest Leadership Council, comprising agriculture departments, universities, and local organizations, is actively seeking new partnerships or funding sources to maintain support for small farms and food businesses. The center will continue to operate with a reduced team until September 2025, overseeing existing Business Builder grant projects until May 2026. However, without new funding, most programs will conclude earlier than the planned July 2028 timeline, necessitating urgent action to ensure the sustainability of regional food networks.
