US farm agency ends program to support small businesses

By Leah Douglas

WASHINGTON (Reuters) -The U.S. Department of Agriculture said on Tuesday it would cut funding for a national network of centers that have supported thousands of small- and mid-sized farm and food businesses.

The cuts are another hit to farmers from President Donald Trump's effort to shrink the size and cost of the federal government. The administration has previously canceled programs for local foods and food banks and climate-friendly farming, among others.

Agriculture Secretary Brooke Rollins said in a statement that the agency was terminating the Regional Food Business Centers program because they were not financially sustainable.

Four of the 12 centers will close immediately, and the remaining eight have the option to continue managing existing grants through next May, Rollins said.

"USDA will honor existing commitments for over 450 grants to farmers and food businesses to ensure planning decisions on the farm can continue as normal, however stakeholders should not plan on this program continuing," she said.

The USDA under former President Joe Biden spent $400 million to open the centers as part of its effort to increase resilience and competition in the U.S. food supply chain. The centers have provided training or technical assistance to more than 5,500 farms and businesses, according to a 2024 progress report.

"The USDA has made yet another decision to prematurely end multi-year agreements that are effectively serving the small family farms the administration claims to be the focus of their agenda," said Hannah Quigley, policy specialist at the National Sustainable Agriculture Coalition, a policy and advocacy group.

(Reporting by Leah Douglas; Editing by Sandra Maler)

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