The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) has recently announced a crucial cooperative agreement with Tennessee under the Resilient Food Systems Infrastructure Program (RFSI). This partnership aims to allocate over $5.5 million in competitive grant funding to bolster resilience across the state’s food supply chain. The Tennessee Department of Agriculture (TDA) will accept applications for this program until August 31, 2024.
The COVID-19 pandemic and the ongoing supply chain disruptions exacerbated by geopolitical tensions, such as Russia’s war in Ukraine, have underscored vulnerabilities in the national food system. In response to these challenges, the USDA launched significant investments through its Pandemic Assistance Program, providing immediate relief to producers, businesses, and food workers.
Recognizing that returning to the pre-pandemic status quo was insufficient, the Biden-Harris Administration and USDA committed to “building back better.” This approach aims to fortify the entire food system from production to consumption. Resilience is critical, necessitating a more distributed and local food supply chain to reduce dependence on a few concentrated geographic areas. By enhancing regional capacity for food processing, storage, and distribution, the USDA and TDA seek to create more options for producers, support local economies, and reduce the climate impact of food logistics.
Market consolidation is a significant issue in the food supply chain, diminishing producers’ power. On average, only $0.14 of every food dollar goes to producers, highlighting a need for fairer market conditions. The USDA aims to combat market dominance by empowering both producers and consumers. By fostering new local market opportunities, the USDA ensures that producers have more power and consumers have more choices, benefiting the entire food system.
In February 2024, the USDA announced over $270 million in cooperative agreements with state departments of agriculture to build resilience and strengthen local and regional food systems. These funds are distributed as subawards for infrastructure grants to agricultural producers, processors, nonprofits, local governments, and institutions like schools and hospitals. Some states also allocate this funding for supply chain coordination and technical assistance.
The objective is to secure dependable access to fresh, locally produced food for consumers while creating economic opportunities for communities and retaining more value within rural areas. This strategy is about more than just survival; it’s about thriving and ensuring the long-term sustainability of the food supply chain.
Technology transforms the food supply chain by enhancing efficiency, transparency, and safety. Here are key technological advancements contributing to this transformation:
