Federal funding freeze and cancellation

FMC sent out a survey to markets and state associations through our listservs asking for information on any funding freezes from their federal grants.

About 20 organizations responded to the survey directly, some with multiple grants. Another 8 organizations responded via email.

(The low level of responses for an FMC survey also points to another issue that FMC has identified in the last few years: it seems fewer markets are applying for these federal grants and USDA is awarding fewer grants each year than previously awarded.*

Many market operators report to FMC that the length and complexity of the proposal and “the randomness of the review process” reduces their interest in applying. A quick review of the funded grants from 2020-2024 suggests that many grants are awarded to entities that support direct-to-consumer activities rather than to farmers market organizations, which may support FMC’s anecdotal information that fewer market organizations even apply.) **

The majority of the responses from the freeze survey (over 70%) were FMPP-funded projects, with LFPA and LFPP tied as the second most used grants (10% for each).

About 50% received notice of a freeze in funding in January. Only one was notified that their grant was cancelled, and that was for an LFPA grant. Many of the others who did not report a freeze or a cancellation said they had NO information at all from their grant administrator.

As of March, many have reported they have been told to submit invoices for work through January of 2025, but report they still lack clarity on future payments.

Some report they are moving ahead “with fingers crossed” that payment will be made, and others say they are beginning to fall behind on some project activities because they are afraid to spend any funds beyond staffing and other absolutely necessary expenses. “we can’t afford to cover those grant expenses with our own general operations funds if USDA stops paying again.”


*In 2015 alone, the FMPP funded 164 proposals, and from 2009-2015 reported they funded 902 proposals.

Recent years:

2024: 60

2023: 55

2022: 55

2021: 88

2020: 49

**My analysis from a 2015 blog post said that for 2015 awards, 47 states, districts, and territories were represented. California had the largest number of grants with 14.

The majority of the proposals focused on simple marketing and outreach for markets. Here were the number of grants that specifically mention one of the following:

  • EBT/SNAP/benefit programs: 44

• Farmer/vendor assistance/expansion

  • Farmer Training: 47 (“Peer-to-peer”: 2)
  • Agritourism: 15
  • GAP training: 5
  • Storage for farmers: 4
  • Food trucks: 1

Marketing outlets

  • Mobile Markets: 17
  • CSA/Market Box/Farm Stands: 20
  • Online purchasing system: 6
  • Mobile app: 3
  • Food Hubs: 2

Market upgrades

  • New market development: 16
  • Market relocation: 3
  • 501 (c) application: 2

Strategic planning

  • Analysis/data collection/measurement strategies: 13
  • Network development/support: 16 (New FM associations: 2)
  • Additional staffing: 7 (internship program development: 3)
  • Market manager certification program: 1

Marketing/Outreach

  • Bilingual materials: 7
  • Transportation to market: 3
  • Curriculum: 4
  • Cooking demos or classes: 29
  • Kids events: 10 (POP: 2

In 2024, USDA announced the creation of “turnkey” grants through both FMPP and LFPP, suggesting these options were designed to “simplify the application process for common FMPP and LFPP activities, focusing on specific, predefined activities.” The amount of these awards is 50,000-100,000.

(FMC and other sector leaders had advocated for this change through its advocacy network NSAC, suggesting that smaller awards with more specific activities would encourage smaller and newer entities to apply.)

The list of awarded turnkey grants for 2024 included 21 of these grants, with 6 awarded to farmers market organizations.

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