USDA Announces Details of Framework to Transform the Food Supply Chain

June 01, 2022

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The USDA today announced program details of a framework to make the food supply chain fairer, more competitive, and more resilient. The announcement builds on and expands previous announcements and investments into transforming the food system in line with an Executive Order signed in February 2021.

The main goals of the USDA’s Food System Transformation framework are:

  • Building a more resilient food supply chain that provides more and better market options for consumers and producers while reducing carbon pollution

  • Creating a fairer food system that combats market dominance and helps producers and consumers gain more power in the marketplace by creating new, more and better local market options

  • Making nutritious food more accessible and affordable for consumers

  • Emphasizing equity

The program involves investments into food production, food processing, food aggregation and distribution, and markets and consumers.

Food production

  • Up to $300 million in a new Organic Transition Initiative

  • Up to $75 million to support urban agriculture

Food processing

  • Investment of up to $100 million to support development of a pipeline of well-trained workers and safe workplaces in the processing sector

  • $200 million for Food Safety Certification for Specialty Crops Program

  • Up to $600 million in financial assistance to support food supply chain infrastructure

Food distribution and aggregation

  • Investment of $400 million to create regional food business centers

  • Investing $60 million to leverage increased commodity purchases through Farm-to-School

  • Investing up to $90 million to prevent and reduce food loss and waste

Markets and consumers