USDA Awards $26.8M to Expand Local Food Markets Nationwide

U.S. Department of Agriculture (USDA)

WASHINGTON, D.C. — Farmers, local food businesses, and regional food networks across the United States will receive more than $26.8 million in federal funding aimed at expanding markets for locally grown food and strengthening regional agricultural economies, the U.S. Department of Agriculture announced.

What This Means for You

  • More Local Food Options: Funding helps expand farmers markets and local food distribution networks.
  • Support for Farmers: Grants help farmers reach new buyers and regional markets.
  • Stronger Local Food Systems: Projects may connect farms to schools, hospitals, and community programs.

The funding comes through the USDA’s Local Agriculture Market Program, known as LAMP, which supports projects that help farmers sell products directly to consumers or through local supply chains.

According to the USDA, the program focuses on strengthening “producer-to-consumer” marketing systems — meaning sales where farmers sell food directly to buyers or through local networks rather than large national distributors.

“Part of our efforts to put Farmers First is to boost demand for locally grown food and connect our farmers to these growing regional markets,” said U.S. Secretary of Agriculture Brooke L. Rollins. “The Local Agriculture Market Program is an important part of USDA’s work to grow strong local and regional food systems.”

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Rollins added that the funding helps farmers expand their businesses while improving access to fresh foods for families.

Farmers Market and Direct Sales Projects

Nearly $11.1 million of the total funding will support 43 projects through the Farmers Market Promotion Program across 28 states and territories.

The program helps expand direct sales opportunities between farmers and consumers.

Projects funded through this program may support farmers markets, roadside farm stands, agritourism activities, community-supported agriculture programs, and online platforms that allow farmers to sell directly to consumers.

Funding for Local Food Businesses

Another $11.1 million will go to 37 projects through the Local Food Promotion Program across 24 states and territories.

Unlike farmers markets, these projects support businesses that act as intermediaries — organizations that help move locally produced food from farms to consumers through processing, distribution, and storage.

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Examples of activities funded under the program include processing local agricultural products into packaged goods, coordinating regional food supply chains, expanding storage and distribution infrastructure, and developing value-added products such as sauces, jams, or prepared foods made from farm ingredients.

Partnerships With Schools and Institutions

A third component of the funding — about $4.7 million — will support seven Regional Food System Partnerships projects operating across 10 states.

These partnerships aim to strengthen connections between farms and institutions such as schools, hospitals, and government meal programs.

The goal is to increase the use of locally produced foods in cafeterias and public meal programs.

Program Background

The Local Agriculture Market Program is administered by the USDA’s Agricultural Marketing Service and funded through the 2018 Farm Bill, the federal law that governs national agricultural policy and farm programs.

Organizations that receive LAMP grants must provide a 25% cost share, meaning they must match a portion of the federal funding with their own financial contribution.

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According to the USDA, the grants are designed to expand regional food markets, improve supply chain coordination, and increase consumer access to locally grown food.

More information about the program and the funded projects is available at https://www.ams.usda.gov/services/grants/lamp.

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