Last week, the US Department of Agriculture (USDA) announced $22.3 million in funding for 2501 grants to help organizations conduct targeted outreach and provide technical assistance to socially disadvantaged farmers.
The Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers Program, more commonly known as the “2501 Program” and administered by USDA’s Office of Partnerships and Public Engagement (OPPE), helps to ensure that historically underserved producers have equitable access to the information, programs, and opportunities that will help them find success in agriculture. While 2501 typically has a 90-day application period, this year’s window is only 60 days.
All applications must be submitted via grants.gov by 11:59 pm EDT on July 5, 2024.
USDA will host two upcoming webinars to answer questions from potential grantees.
Session 1: May 22, 2024, at 2:00 pm EDT
Web conference link – https://www.zoomgov.com/j/1616233057?pwd=MFRTRklXYnFQaThxeDZ3MmwwOWlPUT09
Session 2: June 26, 2024 at 2:00 pm EDT
Web conference link – https://www.zoomgov.com/j/1615399036?pwd=NkdUN2VIdUNwenFGZENrc1laTVo2UT09
Program Background
Farmers of color have not historically benefitted from vital USDA safety net programs to the same extent as their white counterparts, often due to overt discrimination, limited resources, and USDA’s inadequate outreach to these communities. Farmers of color more commonly face unique and difficult challenges to starting and managing a successful farming operation, limiting the opportunity to have viable and resilient careers in farming. This disparity disadvantages farmers of color in both the national and global economy and stifles the growth and prosperity of rural communities. Rising costs and limited availability of farmland, access to markets and infrastructure, discrimination, and the worsening impacts of the climate crisis and natural disasters are just some of the challenges these farmers face. In an effort to support the operations of historically underserved farmers (known collectively as “socially disadvantaged farmers” in statute), the 1990 Farm Bill authorized the 2501 Program, which the 2014 Farm Bill expanded to include veterans in what is now the Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers Program.
The 2018 Farm Bill combined the 2501 program with the Beginning Farmer and Rancher Development Program (BFRDP) into a new umbrella program: the Farming Opportunities Training and Outreach (FOTO) program. Congress mandates that FOTO funds be divided equally between Section 2501 and BFRDP, with each program to receive $25 million in mandatory funding for Fiscal Year (FY) 2023. FOTO received an additional $75 million from the Emergency Coronavirus Relief Act of 2020 in December 2020, and these additional funds were meant to be dispersed over the next few years. In FY22, 52 organizations were awarded 2501 grants, almost double the amount of awards granted in FY21 as a result of the additional investment from COVID relief funds. However, President Joe Biden and former House Speaker Kevin McCarthy’s (R-CA-20) deal intended to avoid a default on the United States’ debt, now known as the Fiscal Responsibility Act of 2023, H.R. 3746, rescinded all unobligated funds from the $75 million appropriated to FOTO, resulting in less funding and fewer grantees for FY23 than originally expected.
Program Eligibility
Organizations can apply for a maximum amount of $250,000 for a single year, with a grant maximum of $750,000 over a 3-year period. There is no match required for applications and only one project proposal may be submitted per eligible entity. Grant funding will be awarded to three categories of applicants:
- Category 1 – Minority serving academic institutions (e.g., 1890 and 1994 Land Grant Universities, Hispanic-Serving Institutions)
- Category 2 – Non-profit, community-based organizations, and Eligible Tribal Entities or National Tribal organizations
- Category 3 – Academic institutions and organizations (e.g., 1862 Land Grant Universities, including those that received funding under this program before January 1, 1996)
Importantly, organizations must have demonstrated expertise working with underserved, socially disadvantaged, and/or veteran farmer communities during the 3-year period preceding the submission of the application.
USDA is soliciting project proposals that address the following program mission areas, which are slightly different from last year. Proposals from eligible entities must address at least two of the five following programmatic mission areas as they develop their goals:
- Assist underserved, military veteran farmers and ranchers, including beginning farmers and ranchers in owning and operating successful farms and ranches;
- Improve participation among underserved or military veteran farmers and ranchers in USDA programs;
- Build relationships between current and prospective farmers and ranchers who are underserved or military veterans and USDA’s local, state, regional, and National offices;
- Assist in reaching current and prospective underserved farmers, ranchers, or forest landowners in a linguistically appropriate manner; and
- Assist with identifying the problems and barriers that underserved farmers experience and working towards minimizing or alleviating those issues to enable their equitable participation in USDA programs.
Recent 2501 Project Awards
41 organizations were awarded 2501 grants in 2023. A mix of university institutions, including many 1890 land-grant universities, and several community-based organizations, received awards to educate, train, and mentor farmers.
A full list and descriptions of the 2023 Section 2501 projects are here, the following are descriptions of 2501 funded projects NSAC members carry out:
California Farmlink is using its grant to primarily serve Latino farmers and other socially disadvantaged farmers and ranchers in California with training and technical assistance needed to protect farm income and prepare farm and ranch businesses. This technical assistance supports farmers in accessing land, capital, and USDA programs.
Michigan Integrated Food & Farming Systems (MIFFS) is using its grant to assist socially disadvantaged farmers and farmer veterans in owning and successfully operating viable farms and ranches in Michigan. MIFFS supports peer-to-peer networks in Michigan for beginning and historically underserved farmers and utilizes their USDA technical assistance specialists to work one-on-one with socially disadvantaged farmers and ranchers, and veterans. MIFFS also facilitates an annual statewide conference with more than 25 workshops and hosts at least 2 annual USDA technical assistance clinics onsite in underserved communities to build relationships with local USDA staff and identify challenges and opportunities in order to respond to the needs of SDF/R and farmers and veterans in real time.
Cultivate Kansas City is using its grant to expand and refine its New Roots Farm Training and Business Incubation program by increasing the viability and sustainability of current program participants and providing greater support to program graduates. These refinement strategies include expanding outreach to other non-English speaking populations, securing land for program graduates, and providing education and demonstrations of effective product diversification.
Challenges and Opportunities for the 2501 Program
The administration of the 2501 program has not been without challenges, including funding cuts and delays in publishing funding announcements. Such delays, like the one in 2021, gave applicants only 30 days to prepare and submit complex and time-consuming grant applications. Not surprisingly, stakeholders have been frustrated by these problems, and the National Sustainable Agriculture Coalition (NSAC) has recommended the agency improve its oversight and accessibility of the program. While the 2501 program has improved oversight and in the past two years maintained a 90-day window for applications, NSAC is disappointed to see only a 60-day window for FY24 applications. We will continue advocacy efforts to increase funding for the program, to make sure that nonprofits and community-based organizations working directly with underserved farmers are eligible and are receiving awards, and to ensure this program is serving the farming community it is meant to serve.
2501 in the Senate and House Farm Bill Proposals
The upcoming Farm Bill will provide the opportunity to improve 2501 program administration, enhance accountability and transparency, and increase outreach and targeted support for underserved producers. In the past month, both the House and Senate have released their most detailed farm bill proposals to date. There are several recommendations about the program in each proposal. Both the House and Senate side-by-side maintain mandatory funding for FOTO at $50 million per year. However, the Senate version goes further:
- Adds interpretation and translation services to the program and clarifies that the program may provide outreach on programs that resolve ownership and succession on farmland with multiple owners.
- Moves administration of the program to the National Institute for Food and Agriculture.
- Extends the authorization of appropriations through fiscal year 2029.
- Continues the current mandatory funding level at $50 million for each fiscal year.
For more information on the 2501 program, visit NSAC’s Grassroots Guide.
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