USDA and Minnesota Award $9.5 Million to Projects that Strengthen Food Supply Chain Infrastructure

The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) announced Monday it has partnered with Minnesota to award $9.5 million for 11 projects through the Resilient Food Systems Infrastructure Program (RFSI) to build resilience across the middle of the supply chain and strengthen local and regional food systems.

“Projects funded through the Resilient Food Systems Infrastructure program are building strength and resilience in Minnesota’s food system, diversifying agricultural markets, creating new revenue streams for small and mid-sized producers, and providing economic opportunities for local communities,” said USDA Marketing and Regulatory Programs Under Secretary Jenny Lester Moffitt. “USDA is grateful for Minnesota’s support strengthening local and regional agricultural supply chains.”

Through this program, the Minnesota Department of Agriculture will fund 11 Infrastructure Grant projects to support middle of the supply chain infrastructure.

Examples of Funded Projects:

• The Hmong American Farmers Association in Hastings, Minn., will use RFSI funding to construct a new processing, storage, and kitchen facility on the association’s incubator farm. The facility will be enclosed and climate controlled so the association’s 104 Hmong farmers can process their fresh produce year-round and take advantage of winter sales opportunities.
• Green Acres Milling in Albert Lea, Minn, will receive an Infrastructure Grant to purchase cleaning and kilning equipment systems for a new innovative oat milling facility that will enhance the local food system and support rural development by filling a middle-of-the supply-chain gap for oat processing infrastructure. Green Acres Milling will work with over 100 local oat farms to source oats, offering them a reliable market with fair pricing.
• The Red Lake Band of Chippewa Indians will use funding to build a new processing facility in Redby, Minn., expand its existing processing capacities to support new wholesale and retail opportunities of locally grown produce and value-added products. This project will contribute to the economic vitality of the Red Lake Band of Chippewa Indians by diversifying revenue streams and creating new jobs.

“We thank the USDA for the Resilient Food Systems Infrastructure program which benefits Minnesota businesses, farmers, and consumers by investing in the middle of the food supply chain in our state,” said Minnesota Agriculture Commissioner Thom Petersen. “These grants highlight the diversity of Minnesota’s food and ag sector, as the funding will benefit a wide range of industries, locations, and sizes of organizations and businesses.”

This awarded funding is part of the $420 million available through the Resilient Food Systems Infrastructure grant program to build capacity within the middle of the supply chain and support local and regional producers. It is funded by President Biden’s American Rescue Plan. Through this program, AMS has entered into cooperative agreements with state agencies, commissions, or departments responsible for agriculture, commercial food processing, seafood, or food system and distribution activities or commerce activities in states or U.S. territories.

For more information, visit the AMS Resilient Food Systems Infrastructure webpage. The status of each state and territory’s RFSI program is available on the program’s State Grant Webpage.