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Funding Sources For Healthy Food Retail : Category - Co-operatives

U.S. Department of Agriculture (USDA)

Agricultural Marketing Services Program (AMS)

The Agricultural Marketing Services' Farmers' Market Promotion Program (FMPP) offers grants to help improve and expand domestic farmers' markets, roadside stands, community-supported agriculture programs, and other direct producer-to-consumer market opportunities. Approximately $1 million was allocated for 2007, with the amount awarded for any one proposal not to exceed $75,000.

Eligibility: 

Entities eligible to apply include agricultural cooperatives, local governments, nonprofit corporations, public health corporations, economic development corporations, regional farmers' market authorities, and tribal governments.

Project Example: 

Davis, California: Farmers' Market Foundation
In 2006, the FMPP awarded $41,800 to the Davis Farmers' Market Foundation to create new marketing opportunities for vendors through an innovative partnership with the Davis Joint Unified School District.

U.S. Department of Agriculture (USDA)

Intermediary Relending Program (IRP)

The IRP provides funds to local intermediary organizations to establish revolving loan funds (recirculated into new loans for other projects) toward reducing poverty and expanding economic activity and employment in disadvantaged rural communities. The intermediary organizations are responsible for lending money to finance business creation, upgrade, or expansion; acquire and develop land; conduct feasibility studies; and carry out other related economic development activity.

Eligibility: 

Private nonprofit corporations, public agencies, Indian groups, and cooperatives with at least 51 percent rural membership aimed at increasing income for producer members or purchasing power for consumer members may apply for intermediary lender status. Loans may be made to the following entities, provided they are located in a rural area (an area with a population of 25,000 or less):

  • Individual citizens or individuals who have been legally admitted to the United States
  • Entities that are able to incur debt, give security, and repay the loan
  • Corporations, partnerships, limited liability corporations, individuals, nonprofit corporations, or public bodies

U.S. Department of Agriculture (USDA)

Rural Business Opportunity Grants (RBOG)

Rural Business Opportunity Grants are aimed at promoting sustainable economic development in rural communities, which includes supporting technical assistance for rural businesses and training for rural entrepreneurs or economic development officials. Activities funded by the RBOG include real estate acquisition, building construction, and development. The maximum grant amount for projects serving one state is $50,000, or $150,000 for those serving two or more states.

Eligibility: 

Applicants must be public entities, nonprofit corporations, Indian tribes, or cooperatives with primarily rural members.

U.S. Department of Agriculture (USDA)

Rural Development Value-Added Agriculture Producer Grants (VAPG)

VAPG may fund one of two activities: (1) developing feasibility studies or business plans (including marketing plans) to establish a viable value-added marketing opportunity for an agricultural product; or (2) acquiring working capital to operate a value-added business venture or an alliance that will allow agricultural producers to better compete in markets. Farmers' markets often sell value-added products as well as fresh fruits and vegetables, and add value to producer goods by providing a direct market for these products.

Eligibility: 

Independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures are eligible.

Project Example: 

Milwaukee, Wisconsin: The Rainbow Farmer's Cooperative
The cooperative received $150,000 to develop a business marketing plan to support an innovative value-added venture that works with socially disadvantaged and limited resource producers by providing an alternative outlet for fresh and healthy food to urban and rural markets.