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Agriculture

Nevada Loses $3 Million in Federal Funding After Program Shutdown

Strategic Insights

— 2 min read

The Southwest Regional Food Business Center, a program designed to support local small and mid-sized food and farm businesses in Nevada, California, Arizona, and Utah, has been terminated three years ahead of schedule. As a result, the state will lose $3 million in federal funding. The program was part of a $360 million initiative funded through the American Rescue Plan Act to bolster rural development and build stronger food-supply networks. Despite its success, the program will cease most operations in September, cutting off millions in funding for local food systems.

Key Takeaways:

  • The Southwest Regional Food Business Center was awarded $30 million to be split among the four states, including $4 million in Business Builder Grants.
  • The center supported 170 small and mid-sized food and farm businesses in Nevada during its two years in operation.
  • The center's early closure means only about $350,000 will ultimately be distributed in Business Builder Grants, down from the allocated $900,000.
  • Small farms in Nevada make up about 93% of producers in the state, but often lack access to federal subsidies and resources that support larger farms.
  • Programs like the Southwest Regional Food Business Center are vital for pushing back on corporate consolidation in the food industry that has hollowed out rural communities.
  • Fallon Livestock Processing received a Business Builder Grant to expand their cold storage capacity to serve 10 additional local meat producers.
  • The center was not able to award about $1.6 million in grant funding before its closure.
  • The center's success led to the creation of more than 300 new food businesses nationally.
  • Nationally, 2,800 individuals received technical assistance, 1,500 new partnerships were formed, and 287 businesses reported increased revenue as a result of the program.
  • The cancellation of planned consumer preference research will impact local food businesses' ability to develop marketing strategies and expand their market.
  • The center is working to build private-sector partnerships within the four-state area to continue its initiatives.

Statistics:

  • $3 million: the amount of federal funding Nevada will lose after the program shutdown.
  • $30 million: the amount of funding awarded to the Southwest Regional Food Business Center to be split among the four states.
  • $4 million: the amount of Business Builder Grants allocated to the center.
  • $900,000: the amount of Business Builder Grants initially set aside to help food businesses in Nevada expand capacity, but only $350,000 will ultimately be distributed.
  • 170: the number of small and mid-sized food and farm businesses supported by the center in Nevada.
  • 93%: the percentage of Nevada farms that are family-owned.
  • 300: the number of new food businesses created nationally as a result of the program.
  • 2,800: the number of individuals who received technical assistance nationally.
  • 1,500: the number of new partnerships formed nationally.
  • 287: the number of businesses that reported increased revenue nationally.

Sources:

  • USDA press release: "Termination of Regional Food Business Centers Programs"
  • USDA report: "Combined RFBC PPR Highlights and Dashboard July 2023 - June 2024"
  • University of Nevada, Reno Extension press release: "Southwest Regional Food Business Center"

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