$2.1 Billion Devoted to Bolster Food Supply Chain
The Biden administration on June 1 announced $2.1 billion in funding to help strengthen food supply chains, including initiatives to expand small and midsized processing plants, according to a U.S. Department of Agriculture official.
Funds will also be used to finance new infrastructure such as cold storage facilities and to assist farmers shifting to organic production, the official said.
Weakness in the Food Supply Chain
A number of events have emphasized weaknesses in the United States food supply chain, including a nationwide shortage of baby formula following the shutdown of a single Abbott Labs production facility, empty grocery shelves the COVID pandemic and soaring food prices over the past year. In April, grocery prices were up approx. 10.8% from the previous year which is the highest annual increase since November of 1980. This is when Jimmy Carter was President.
Agriculture Secretary Tom Vilsack planning a “framework” for strengthening supply chains, focusing on the importance of moving U.S. food supplies away from dominance by a few highly concentrated businesses and addressing climate change challenges. “A transformed food system is part of how we as a country become more resilient,” Vilsack will say, according to prepared remarks.
More Infrastructure Aid
Vilsack announced initiatives including $600 million in assistance for independently owned supply chain infrastructure. It would cover things like cold storage facilities and refrigerated trucks. The infrastructure aid comes on top of funding Biden announced earlier this year to assist independent processor expansion in the meatpacking industry.
USDA also will announce $400 million to create regional food business centers to support small and midsized farms and food processors, $300 million to assist farms transitioning to organic production and a $155 million increase for a program to promote healthy options in “food deserts” underserved by grocery stores.
Funding for the initiatives will come from the Biden-backed $1.9 trillion COVID relief plan Congress passed last year “and other relief legislation,” according to advance material the USDA provided to reporters.
Related Articles: