USDA Outlines Programs and Support for Small and Mid-Sized Farmers

Small and mid-sized farmers remain an essential part of American agriculture, supporting local food systems, regional markets, and diversified production. To help these operations strengthen their businesses, the U.S. Department of Agriculture (USDA) offers a wide range of programs focused on improving access to capital, reducing financial risk, supporting land management and opening new marketing channels.

One major area of USDA support involves financing. Updates to the Farm Storage Facility Loan (FSFL) Program make it easier for smaller fruit and vegetable producers — including CSAs — to qualify for loans that cover cold storage, wash and pack stations, hay barns and grain bins. These producers can now access FSFL loans without carrying crop insurance or NAP coverage. USDA’s microloan program also remains a key tool, offering a simplified application process for loans up to $35,000, with the limit scheduled to increase to $50,000. Since 2013, the program has provided more than 8,400 microloans, 70% of which have gone to beginning farmers.

For farmers pursuing organic certification, cost-share support is available through the Organic Certification Cost Share Program.

USDA also continues to expand risk management options. A developing whole-farm insurance policy aims to better support diversified operations, especially small and mid-sized fruit and vegetable growers. Additional Farm Bill changes reduce crop insurance costs for beginning farmers and remove the previous 5% surcharge on organic crop insurance premiums.

Market access remains a significant challenge for many smaller producers, and USDA offers several tools to help. The Farm to School Program has added regional coordinators to strengthen connections between producers and school districts, contributing to nearly $355 million in local food purchases during the 2011–2012 school year. USDA’s Market News service is gathering new pricing data for grass-fed beef and local food markets to provide producers with up-to-date, unbiased market information. The USDA National Farmers Market Directory is also expanding to include CSAs, food hubs and on-farm stores.

Land and resource management support is available through the Natural Resources Conservation Service, including the Seasonal High Tunnel Initiative, which has funded more than 10,000 high tunnels since 2010. Additional educational tools — such as the learning guide series, small scale solutions resources and NewFarmers.gov — offer practical guidance for beginning and established farmers.

Other USDA programs, including the Beginning Farmer and Rancher Development Program, Value-Added Producer Grants, Farmers Market and Local Food Promotion Program and Rural Cooperative Development Grant Program, provide further assistance. These initiatives aim to expand economic opportunities, strengthen local and regional food systems and support producers in rural areas facing persistent poverty.

Source: USDA, Programs and Support for Small and Mid-Sized Farmers