Vilsack Announces "Food System Transformation" Plan

The Biden administration announced on June 1 a “food system transformation” plan for building resilience in the supply chain. During a speech at Georgetown University, Agriculture Secretary Tom Vilsack outlined more than $2 billion in spending initiatives funded through the American Rescue Plan enacted in March last year and other COVID-19 relief legislation.

“The transformation that needs to take place has to be comprehensive,” Vilsack said. “It has to touch on all elements of our food system: production, processing, distribution and aggregation, and market development.”

The plan emphasizes addressing the needs of small and mid-size operations and promoting organic and urban agriculture. Many aspects of the framework have already been announced, but forthcoming spending initiatives announced this week include $300 million for assisting farmers to transition to organic agriculture and $75 million to support urban agriculture.

Vilsack said USDA is already considering 250 meat and poultry processing projects accepted in the first phase of the Meat and Poultry Processing Expansion Program, which will deploy $150 million in grants up to $25 million each. In addition to previous program announcements supporting regional processing capacity, the framework announced up to $100 million for training workers in meat processing.

Additional planned investments include:

• Up to $600 million in financial assistance to support food supply chain infrastructure that is not covered by the meat and poultry processing program, including cold storage, refrigerated trucks, and processing facilities.

• $400 million to create regional food business centers.

• $200 million for Food Safety Certification for Specialty Crops Program for specialty crop operations that incur eligible on-farm food safety program expenses.

Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., praised the plan in a statement issued June 1. “I’m pleased Secretary Vilsack is implementing my supply chain provisions to lower costs and build a food system that is fairer for consumers and better for the men and women who power our food economy,” she said.

Meanwhile, Ranking Member John Boozman, R-Ark, said the plan “misses the mark,” calling it “merely a repackaging of previously announced initiatives that will receive one-time funding provided for COVID relief.”

House Agriculture Committee Chairman Glenn “GT” Thompson, R-Pa., also criticized the plan. “Increasing spending on organic initiatives and rooftop gardens while placing misguided blame on corporations and agribusinesses will not increase domestic food production,” he said.