Farm-to-Market Value Chain Development Act
The Farm-to-Market Value Chain Development Act helps farmers and producers reach new markets by investing in processing, storage, logistics, and cooperative distribution infrastructure. The legislation supports local and regional food systems while improving producers’ ability to compete nationally and globally. By strengthening the full value chain, the Act boosts rural economies and increases the resilience of agricultural markets.
Key Provisions
On-Farm Infrastructure Grant Program: Provides grants to farmers for cold storage, packaging, and small-scale processing facilities to improve product shelf life and direct-market readiness.
Rural Food Hub and Aggregation Initiative: Supports the development of regional food hubs, shared logistics centers, and cooperative distribution models.
Producer-to-Market Technical Assistance Program: Offers business planning, food safety certification support, and market access training for small and mid-sized producers.
Local and Regional Market Expansion Incentive: Provides funding matches for producers or cooperatives entering new retail, wholesale, or institutional markets.
Farm Supply Chain Financing Support: Establishes a state-backed revolving loan or guarantee program for capital investments in value chain infrastructure.
Model Language
Section 1. Short Title. This Act shall be known and may be cited as the “Farm-to-Market Value Chain Development Act.”
Section 2. Purpose. The purpose of this Act is to support small and mid-sized agricultural producers in developing and expanding market access through investment in supply chain infrastructure, distribution networks, and technical capacity.
Section 3. Definitions.
(a) “Eligible producer” means a farmer, rancher, or agricultural cooperative engaged in commercial food or fiber production.
(b) “Value chain infrastructure” includes cold storage, aggregation facilities, processing equipment, packaging tools, and transport assets.
(c) “Department” means the state agency responsible for agriculture and rural development.
Section 4. On-Farm Infrastructure Grant Program.
(a) The Department shall administer a grant program for eligible producers to invest in:
(1) Cold storage and refrigeration systems;
(2) Small-scale value-added processing equipment;
(3) Packing and washing stations.
(b) Grants shall not exceed $50,000 per applicant and require at least a 25% cost share.
Section 5. Rural Food Hub and Aggregation Initiative.
(a) The Department shall provide planning and construction grants to nonprofits, local governments, and cooperatives for:
(1) Regional food hubs;
(2) Shared-use commercial kitchens;
(3) Distribution centers serving local producers.
(b) Facilities must serve at least five independent producers and meet food safety requirements.
Section 6. Producer-to-Market Technical Assistance Program.
(a) The Department shall offer training and assistance in:
(1) Business development and accounting;
(2) Regulatory compliance and food safety certifications;
(3) E-commerce and direct sales strategies.
(b) Services may be delivered through regional extension offices or contracted providers.
Section 7. Local and Regional Market Expansion Incentive.
(a) Eligible producers or cooperatives may receive matching funds for:
(1) Launching sales to new retail or wholesale accounts;
(2) Participating in farmers markets or institutional procurement programs;
(3) Branding and marketing campaigns.
(b) Awards shall not exceed $25,000 per project.
Section 8. Farm Supply Chain Financing Support.
(a) The Department shall establish a revolving loan or loan guarantee fund for capital investment in value chain assets.
(b) Loans shall have favorable terms and may support:
(1) Equipment purchases;
(2) Facility construction or retrofits;
(3) Transport vehicle acquisition.
Section 9. Severability. If any provision of this Act is held invalid, the remainder shall remain in full force and effect.
Section 10. Effective Date. This Act shall take effect on July 1 of the year following its enactment.