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USDA Cuts Support for Small Food Businesses and Farm Networks

USDA Cuts Support for Small Food Businesses and Farm Networks


By Jamie Martin

The USDA Southwest Regional Food Business Center will shut down operations by September 15, 2025, ending a key source of support for small-scale farms and food businesses in California, Arizona, Nevada, and Utah.

Since its start in 2023, the center provided hands-on help to small businesses, from product marketing to navigating complex regulations. Success stories include Apryl’s Life in a Bottle in South Los Angeles and Oliver’s Place, a multi-generational dairy farm in Utah. Both received vital assistance through the center’s network of 21 regional partners.

Part of a nationwide network of 12 USDA-funded food business centers, the Southwest Center aimed to strengthen local food supply chains and offer business growth tools. These centers supported local farmers, processors, distributors, and food entrepreneurs, especially during disruptions like the COVID-19 pandemic.

The USDA Agricultural Marketing Service now plans to end the program. The Southwest Center will continue some services until September 2025, maintaining a smaller team to oversee Business Builder grant projects through May 2026. No further funding rounds will be offered, cutting short the original program end date of July 2028.

The center’s work included strengthening regional supply chains, providing access to food processing equipment, delivery services, and financing options for local producers. These efforts helped farmers and food businesses grow and connect with markets.

The Leadership Council, which includes agriculture agencies, universities, and local groups, is exploring other ways to continue supporting the region’s small farms and food businesses through partnerships or new funding opportunities.

Photo Credit: usda


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