USDA will end funding for the Southwest Regional Food Business Center, forcing it to close in September, nearly three years ahead of schedule.
The move comes as part of a broader USDA decision to terminate the entire Regional Food Business Centers initiative, citing the program’s origins in temporary COVID-era funding.
“The Department is terminating this program that should not have been established in this manner in the first place,” USDA stated in its announcement. “But [we] are doing so in a way to honor commitments made to farmers.”
USDA officials emphasized the program was created using one-time congressional funds and warned stakeholders not to expect further support.
Launched in 2023 and hosted by University of California Agriculture and Natural Resources, the Southwest center served small and mid-sized food producers across California, Arizona, Nevada and Utah. It partnered with 21 organizations, providing technical assistance, market access support and grants.
The center worked with nearly 2,000 individuals and more than 1,000 food businesses, according to program manager Tracy Celio. About $1 million in Business Builder grants were distributed, supporting a bottled juice startup in Los Angeles, a multigenerational dairy in rural Utah and other ventures.
It’s easy to be “in the know” about what’s happening in Washington, D.C. Sign up for a FREE month of Agri-Pulse news! Simply click here
UC ANR had planned to award $4.2 million over multiple years, but those plans were halted with the cancellation. Staffing will be scaled back as the center winds down operations and manages about 50 to 60 existing grants through May 2026.
“We are deeply grateful for the commitment and dedication to our regions’ small farmers demonstrated by our center partners, and the incredible local farms and food businesses throughout the region,” said Celio in a UC ANR blog post on the closure.
A final impact report is expected later this year. Center leaders are now seeking alternative funding and partnerships to continue some of the work beyond USDA's exit.
For more news, go to Agri-Pulse.com.
