Last week, the US Department of Agriculture (USDA) announced $45 million in funding for 2501 grants, almost $10 million more than was available last year, 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.

This amount includes the approximately $25 million provided to the program through mandatory farm bill funding for FY23, with an additional $20 million from the Coronavirus Response and Relief section of the FY22 omnibus appropriations bill. The grants are to support a range of outreach and assistance activities including farm management, financial management, marketing, and application and bidding procedures.

All applications must be submitted via grants.gov by 11:59 pm EDT on July 25, 2023.

USDA will host two upcoming webinars to answer questions from potential grantees. 

June 12, 2023 at 2pm EDT

Web conference link – www.zoomgov.com/j/1612690234?pwd=czRDTFNwNzc4cmdTaU45Z1U5NXdVdz09

July 10, 2023 at 2pm EDT

Web conference link – www.zoomgov.com/j/1607256449?pwd=QWw3UksvVUZKU1JyNCt2VlVXdDhhQT09

Program Background

For farmers of color, starting and managing a successful farming operation can present unique and difficult challenges because they 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. This disparity disadvantages farmers of color in both the national and global economy and stifles the growth and prosperity of rural communities. As a result, there are often enormous challenges for farmers of color when they are looking to start or maintain viable and resilient careers in farming. 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 increase support for the operations of these 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 mandated that FOTO funds be divided equally between Section 2501 and BFRDP, with mandatory funding of $30 million for FY 2020 increasing annually up to $50 million in FY2023. FOTO received an additional $75 million from the Emergency Coronavirus Relief Act of 2020 in December 2020, and the 2501 funds have continued to be granted over subsequent years.

Program Eligibility

Organizations can apply for a maximum amount of $250,000 for a single year, with a grant maximum amount 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 Indian Tribes
• Category 3 – Academic institutions and organizations (e.g., 1862 Land Grant Universities, including those that received funding under this program before January 1, 1996)

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 priorities, which are unchanged from last year:

• Assist socially disadvantaged or veteran farmers and ranchers in owning and operating successful farms and ranches;
• Improve participation among socially disadvantaged or veteran farmers and ranchers in USDA programs;
• Build relationships between current and prospective socially disadvantaged or veteran farmers and ranchers and USDA’s local, state, regional and national offices;
• Introduce agriculture-related information to socially disadvantaged or veteran farmers and ranchers through innovative outreach and technical assistance techniques; and
• Introduce agricultural education targeting socially disadvantaged youth and beginning farmers and ranchers, in rural and persistent poverty communities.

Recent 2501 Project Award

52 organizations were awarded 2501 grants in 2022, almost double the amount of awards granted in 2021 as a result of the extra money from COVID relief funds. An even 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 2022 Section 2501 projects can be found here.

• World Farmers, an NSAC coalition member, received funding to provide services and technical assistance to socially disadvantaged farmers in Florida, to build farmer capacity in market and resource access, food safety, and production. This includes training and hands-on support in soil health, irrigation, pest management, and overall production of crops in high market demand.
• The Ohio Ecological Food and Farm Association, another NSAC member, received funding to provide education, direct technical assistance, and network building for socially disadvantaged farmers to improve their ability to own and operate viable farms, utilize climate-friendly, sustainable agricultural practices, access land, and utilize USDA programs. 
• The Hmong American Partnership received funding to continue their 15-year technical assistance program and educational model which “has supported over 800 farmers and ranchers, and over 100 agricultural businesses grow and expand as they contribute to the state’s economy and food production needs.” This program focuses on providing culturally informed technical assistance in USDA products and services including application assistance, training and workshop classes, business plan development, credit counseling, and assistance in securing USDA loans and grants.
• Florida A&M University, an 1890s Land-grant Institution, received funding for a project designed to help suppress and mitigate the factors that cause farms owned by minority farmers in the south to fail. The expected outcomes of this project will include the acquisition of skills required to help socially disadvantaged/underserved, minority, veteran farmers, and ranchers effectively compete in a modern agricultural environment and help them return to farming in large numbers. the return of a larger number of them to farming.

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.

For FY 2023, NSAC is pleased to see the 2501 program receive its full mandatory funding as well as $20 million in COVID relief funds. While the 2501 program has experienced challenges, NSAC applauds USDA for its efforts this year, including the approximately 90 day window for applications to be submitted. NSAC will continue its 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.

The upcoming Farm Bill will provide the opportunity to increase oversight of the 2501 program administration, improve accountability and transparency, and increase outreach and targeted support for underserved producers.

Specifically, the 2023 Farm Bill should: 

• Reform the administration and peer review of the program to ensure a more transparent, timely, and responsive process by establishing a consistent Fall/Winter application period, with a minimum 90-day application window to allow ample time for individuals to prepare and submit applications. Additionally, USDA should provide grant writing support to applicants, especially limited resource organizations;
• Ensure that all funding provided by Congress for the 2501 program exclusively supports projects that benefit farmers of color and military veterans, and focus on addressing disparities in access and success in agriculture; and
• Increase transparency and public access to program grantee and project information and make information publicly available on project outcomes, and impacts, including evaluation metrics and more robust evaluation and reporting requirements for project grantees. The 2501 program should leverage the agency’s CRIS and REE data reporting interface and online portal to ensure stakeholders and policymakers are able to obtain up-to-date information on the status and outcomes of funded projects.

For more information on the 2501 program, check out NSAC’s Grassroots Guide.