USDA Ends Vital Support for Small Farms and Food Businesses

Southwest Center Plans Transition as Federal Funding Ends Soon

The USDA Southwest Regional Food Business Center, which has supported small farms and food businesses since 2023, will officially end operations on September 15, 2025. The center served farmers and entrepreneurs in California, Arizona, Nevada, and Utah, helping them build businesses, access markets, and navigate regulations.

The center, led by the University of California Agriculture and Natural Resources (UC ANR) and supported by 21 partners, offered direct help to farmers and food entrepreneurs. Examples include businesses like Apryl’s Life in a Bottle in Los Angeles and Oliver’s Place dairy farm in Utah, both of which received technical help, marketing advice, and business development support.

The USDA launched 12 food business centers nationwide in 2023 to strengthen local food systems and improve supply chains. These centers were designed to offer hands-on learning and business growth tools. However, after two years of service, the USDA Agricultural Marketing Service has announced plans to shut down the national program.

The Southwest Center will keep running until September 2025, with a reduced team to oversee existing Business Builder grant projects until May 2026. No new funding will be provided, and most programs will end earlier than the original July 2028 timeline.

The center has played a critical role in improving local food supply chains, supporting farmers with delivery systems, processing equipment, and financing solutions. The goal was to create strong regional networks that could withstand emergencies like the COVID-19 pandemic.

The Southwest Leadership Council, made up of agriculture departments, universities, and local organizations, is seeking ways to keep supporting small farms and food businesses through partnerships or new funding sources.