1.09 Market Development 
(Develop Process for RD State Directors to Receive Input from Stakeholders)

USDA Action. State Rural Development Directors were directed to focus on farmer-owned, value-added entities for Rural Business Enterprise Grants (RBEG), and Business & Industry (B&I) funding.  

Modified instructions for the annual strategic plan development and revision process to specifically require that groups representing small, minority, and women farm operators are included among consultant/partnership groups in the strategic planning process as required under GPRA. State Directors will conduct outreach to small farm groups. 

Status: Fully implemented (code 1). For FY 1999, RBS placed emphasis on farmer-owned, value added ventures. As a result, State Office Business Programs reported that RBS financial assistance (either directly or indirectly) benefitted small, women, minority, and beginning farmers. See below: 

• $15,930,427 for B&I Guaranteed; 
• $74,000 for B&I Direct; and, 
• $428,202 for RBEG. 

The same policies have been established as Administrative Priority Goals for FY 2000. 

1.10 Market Development 
(Exclusive targeting of Rural Business funds to assist farmer-owned cooperatives for small farm operators)

These include funds targeted for the Rural Business Enterprise Grants (RBEG), B&I Loans, and the Intermediary Relending Program (IRP). 

USDA Action. For programs in which Rural Development State Directors have discretionary priority points, the State Directors have been encouraged to use discretionary points to encourage use of RBS program funds for value-added, cooperative development, and other business activities that support the marketing, supply, and service needs of small, minority, women and beginning farmers.  

Status: Fully implemented (code 1). In fiscal year 1999, RBS  supported projects include: $44,416,239 for B&I;  $440,840 for RBEG; and $800,000 for IRP. 

Action Plan. Mission area and Rural Development State Strategic Plans have been amended to explicitly recognize those businesses, including cooperatives or other ventures, that add value to agricultural commodities resulting in economic opportunities to rural residents including small farmers. 

Status: Fully implemented (code 1). RBS issued an unnumbered letter to Rural Development State Directors in September 1998 to implement the Commission's recommendation. 

USDA Action. Mission area strategic plan amended to include this as a targeted objective, and State offices to be requested to amend the States' strategic plans accordingly. 

RBS issued an unnumbered letter to Rural Development State Directors in September 1998 to implement the Commission's recommendation. 

Status: Fully implemented (code 1). For FY 1999, $801,941 of the B&I Guarantee Loan program was obligated to farmers for financing start-up capital stock in a new hog processing facility. 

For FY 2000, $170 million of B&I Guarantee Loan program funding has been set aside for cooperative development. Within the priority set aside, projects involving small or limited-resource farmer-owned, value-added cooperatives. 

For FY 2000, an administrative priority goal is to establish one B&I Guarantee Loan per State Office in support of cooperative development. 

USDA Action. RBS has modified instructions for the annual strategic plan development and revision process to specifically require that groups representing small, minority and women farm operators be included among partnership groups in the strategic planning process. 

The Community Priority principal has been amended to include "agriculturally dependent" community as a target. 

Status: Fully implemented (code 1). A revised, draft five-year Rural Development mission area strategic plan includes RBS program funding priorities in support of small, minority, female and disadvantaged farmers, as well as cooperatives and value added programs. 

USDA Action. The RBS Administrator sent a staff directive to Cooperative Services staff, and RBS program staff, to actively promote the availability of funding that could potentially benefit small farmer cooperatives. 

Status: Fully implemented (code 1). RBS sent an unnumbered letter to all State Directors highlighting the importance of working with small farmers to develop value-added processing cooperatives. Will continue to work to place Cooperative Development Specialists in all Rural Development State offices. 

USDA Action. Several USDA agencies already have activities aimed at achieving the objectives of individual components of this recommendation. 

The Agricultural Marketing Service (AMS) has undertaken additional outreach, through changes in funding announcements and through informational efforts, to increase the proportion of Federal-State Marketing Improvement Program (FSMIP) projects targeted toward local and regional food systems. 

At the Food and Nutrition Service (FNS), officials have been working closely with partners at AMS, State agencies and the National Association of Farmers Market Nutrition Programs to bring new States into the WIC Farmers Market Nutrition Program and to expand existing State programs. 

Although USDA requested $20 million for this program in the President's FY 2000 Budget, Congress only appropriated $15 million. However, within the $15 million appropriated for the FY 2000 WIC/Farmers Market Program, FNS has sufficient funds to expand State participation in the program to most of the 12 non-participating States. 

Currently, 38 States (including 3 Indian Tribal Organizations) participate in the program.

FNS also is working with farmers market organizations and with State agencies to ensure that farmers markets can be properly equipped to handle electronic transactions as food stamps are converted to Electronic Benefits Transfer (EBT) nationwide. 

FNS, AMS, and other USDA agencies also have continued to pursue marketing opportunities for small farms to directly supply local school lunch programs. 

AMS has undertaken additional outreach measures, through changes in funding announcements and through information efforts, to increase the proportion of FSMIP projects targeted toward local and regional food systems. Additionally, we have continued to support the development of farmers markets on federal property and the promotion of WIC/Farmers Market. 

Status: Partially implemented (code 2). AMS and FNS are working together to implement a Farm-to-School Meal Initiative.  Under this initiative, this interagency team of AMS and FNS staffs have conducted joint work shops and listening forums in several agricultural states to promote School Meals Initiative. Under this initiative, schools are encouraged to purchase fresh fruits and vegetables directly from local farmers. 

Additionally, as proposed the Commission's Recommendation 3.26, the team also is considering all other programs and activities where the Department can foster and promote local and regional food systems. Early results of the these efforts have been published in the USDA's first Progress and Achievements Report published in 1999. 

                and, 

Mission Area: FNCS (Food, Nutrition, and Consumer Services 
Agency: FNS (Food & Nutrition   Service) 
Contact: Ron Johnson, FNS 
Tel: 703-305-2654  
Fax: 703-305-2420  
E-Mail: ron.johnson@fns.usda.gov  
Rev. Date: 02/15/01 
Status Code: 2-Partially implemented.

USDA Action. Pilot entrepreneurial ventures now underway in 4 states (FL, Maine, MI, CO), and slated for expansion to other states, including New Mexico, Kentucky, Wisconsin, Texas, Alabama, Florida and Idaho. 

The total estimated cost for the pilots is $300,000 over 4 years. They are being refocused on small and under-served farmers in response to the Commission recommendations. Pilot expansion depends on additional Federal funding from existing funds to leverage private foundation grants. 

Status: Partially implemented (code 2). Planning is underway for professional development workshops in Colorado and Florida to provide USDA field outreach professionals with the understanding and skills needed for producers in launching new ventures and engaging in more direct of farm produce d products and recreational experiences. Internet-based training is projected to go on-line in late 2001. 

USDA Action. Pilot entrepreneurial ventures now underway in 4 states (FL, Maine, MI, CO), and slated for expansion to other states, including New Mexico, Kentucky, Wisconsin, Texas, Alabama, Florida and Idaho. 

The total estimated cost for the pilots is $300,000 over 4 years. They are being refocused on small and under-served farmers in response to the Commission recommendations. Pilot expansion depends on additional Federal funding from existing funds to leverage private foundation grants. 

Status: Partially implemented (code 2). Planning is underway for professional development workshops in Colorado and Florida to provide USDA field outreach professionals with the understanding and skills needed for producers in launching new ventures and engaging in more direct of farm produce d products and recreational experiences. Internet-based training is projected to go on-line in late 2001. 

USDA Action: USDA did not request additional Smith-Lever 3c funding for the Small and Part-Time Farmer program, opting instead to request $4 million CSREES for the Small Farm Initiative in the FY 2001 President's Budgets.

Status: Not implemented (code 4). For FY 2001, no funding was provided by Congress for the CSREES Small Farm Initiative.

USDA Action: An increase of $300,000 was requested for FSMIP in the FY 2001 Budget. 

Status: Not implemented (code 4). For FY 2001, Congress appropriated $1.4 million for FSMIP, an increase of $200,000. Proposals concerning market development for small, minority farmers and for direct marketing proposals are being emphasized.

In FY 2000, Congress appropriated $1.2 million for FSMIP, the same as for FY 1999. 

USDA Action: The FY 2000 Budget supported mandatory funding of $60 million for the Fund for Rural America.

The FY 2001 Budget also supports mandatory funding of $60 million for the Fund for Rural America.

Status: Not implemented (code 4). For FY 2001, $30 million is available for the Fund for Rural America. 

USDA Action: An increase of $700,000 was requested for the program in the FY 2000 Budget. 

The FY 2001 Budget requested an increase of $800,000 to finalize implementation of the National Organics Program and to expand Market News reports of organically grown fruits and vegetables.

Status: Partially implemented (code 2). For FY 2001, Congress appropriated $1.7 million for the National Organics Program. An increase of $75,000 above the $1 million base level for this program was appropriated in FY 2000.

Congress also requested draft legislation to cover seafood. AMS continues to work toward implementation, and has published a reproposal of the National Organic Standards rule.

USDA Action. USDA requested a funding level of $20 million for this Program in the President's FY 2000 Budget. 

Status: Partially implemented (code 4). For FY 2001, Congress appropriated $20 million annually for the WIC/Farmers Market Nutrition Programs.

For FY 2000, Congress appropriated $15 million annually for the WIC/Farmers Market Nutrition Program, the same as appropriated for FY 1999. 

However, USDA's Food and Nutrition Service (FNS) has launched a new outreach effort to increase State participation in the program. Since FY 1998, the number of States participating in this program has increased from 34 to 38 States (including 3 Indian Tribal Organizations). 

Despite the fact that Congress did not increase in the funding level for this program, FNS believes USDA still has sufficient funds available to expand the program to additional States within the current appropriation level. 

Presently, there are 12 States which have not applied for participation in the WIC/Farmers Market Nutrition Program even though sufficient funds are available to fund these States. 

FNS will continue to conduct outreach efforts to bring in more  non-participating States. FNS also plans to work with the newly appointed Advisory Committee on Small Farms to identify barriers that might be keeping other States from participating in this program even though, as previously mentioned, Federal funds are currently available to expand the program.