Programs and Support for Small and Mid-Sized Farmers

Small and midsize producers provide new opportunities for American agriculture across the country. This page provides small and midsize producers valuable resources and program information about access to capital, land management and conservation practices, managing risk, finding local markets, and other educational resources.

Accessing Capital

USDA has made changes to the Farm Storage Facility Loan (FSFL) Program to help small and mid-sized fruit and vegetable producers access the program for cold storage and related equipment like wash and pack stations. Diversified and smaller fruit and vegetable producers, including CSAs, are now eligible for a waiver from the requirement that they carry crop insurance or NAP coverage when they apply for a FSFL loan. FSFL can also be used to finance hay barns and grain bins.

Funding for producers under the popular microloan program. USDA launched the Microloan Program to allow beginning, small and mid-sized farmers to access up to $35,000 in loans using a simplified application process. In November 2014, the loan limit expands to $50,000. Since their debut in 2013, USDA has issued more than 8,400 microloans, with seventy percent of these loans going to beginning farmers.

Cost share support is also available for farmers pursuing organic certification. Organic farming can integrate cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biodiversity. Not all small and mid-sized farmers are organic. However, USDA is ready to support those who are interested in the certification process.

Risk Management

USDA is developing tools to help small and mid-sized farmers and ranchers make sound financial decisions as they plan for their future including a whole farm insurance policy that will better meet the needs of highly-diversified producers, particularly small and mid-sized fruit and vegetable growers. Using new tools provided by the Farm Bill, USDA is working to reduce crop insurance costs for beginning farmers and ranchers. And organic producers will benefit from the elimination of a previously-required five percent surcharge on crop insurance premiums.

Locating Market Opportunities

USDA's Farm to School Program has put seven new Farm to School Coordinators on the ground in regional offices to help build direct relationships between small and mid-sized producers and school districts. One priority area for Farm to School is creating more opportunities for small and mid-sized livestock and poultry producers. Since 2013, USDA has invested nearly $10 million in Farm to School grants that support schools as they purchase from local and regional sources. In the 2011-2012 school year alone, schools spent nearly $355 million on local and regional food purchases.

Market News is now collecting price data on grass-fed beef to arm producers will real pricing information from the sector. Market News will also soon begin collecting data about local food prices and volume, valuable to small and mid-sized producers engaged in that marketplace. Market News provides real time price, volume, supply, and demand information for producers to use in making production and marketing decisions. Access to timely, unbiased market information levels the playing field for all producers participating in the marketplace.

The USDA National Farmers Market Directory will be broadened to include CSAs, on-farm stores and food hubs. This information will help small and mid-sized producers find new market opportunities. USDA will begin collecting data to update the directory for the 2014 season this spring. The USDA National Farmers Market Directory receives over 2 million hits annually.