Gov. Glenn Youngkin announced $264,000 in matching grants to support six community infrastructure projects focused on strengthening local food production and sustainable agriculture.
The funding, provided through the Governor’s Agriculture and Forestry Industries Development (AFID) Fund Infrastructure Grant program, will enhance markets and food distribution while expanding access to locally grown food across the commonwealth.
“[These grants] are pivotal in providing targeted support to communities who want to create innovative solutions to local, healthy food access,” Youngkin said. “We are proud to invest in the efforts of these dedicated food leaders.”
The competitive grants will support projects in six localities:
Abingdon: $50,000 to enclose and heat the town’s farmers market, transforming it into a year-round facility with weather-resistant curtain walls, tracked doors and a two-bay sink.
Bath County: $50,000 to establish The Village Kitchen, a fully equipped shared-use commissary kitchen and food aggregator that will help local farmers and food businesses scale their operations.
Cumberland County: $32,678 to upgrade the farmers market at the Luther P. Jackson Community Center, including flooring protection, electrical improvements, new lighting, doors and signage.
Newport News: $50,000 for the SIP Seafood Market’s commercial kitchen and fresh seafood retail area, covering purchases of ice machines, refrigeration units and food display equipment.
Onancock: $31,943 to purchase equipment and a prefabricated building to house a winter market, creating a year-round food hub for farmers and food vendors.
Prince William County: $49,450 to support Sunshine Honey Farm’s expansion from a small farm stand to a brick-and-mortar market selling meat, eggs, honey and vegetables.
“It’s so important that we help our farmers and small food producers get their products to consumers, especially consumers in their local community,” said Secretary of Agriculture and Forestry Matthew Lohr. “These grants support farm income, strengthen local economies, and increase residents’ access to fresh local foods.”
Created by the General Assembly in 2021, the AFID Infrastructure Grant program partners with local governments to develop community infrastructure supporting small-scale farmers and food producers. Applications for the next round of grants will be accepted in spring 2025.
The following is a statement from Virginia Farm Bureau President Scott Sink, regarding recent funding and staffing changes at the U.S. Department of Agriculture and its affiliated agencies.
Virginia Farm Bureau has been actively following announcements from USDA related to availability of conservation funding to farmers, and staffing changes at the agency. We are engaging with USDA leadership, elected officials, and partners to advance Farm Bureau policy and priorities in this area.
Most recently, U.S. Agriculture Secretary Brooke Rollins announced USDA will release certain funds for conservation program contracts that the agency entered into with farmers and ranchers.
We are thankful the administration recognized the importance of making good on the first tranche of agreements, and we look forward to future announcements about fulfilling previously signed contracts. The freezing of funds created uncertainty for farm families who have invested in projects and practices on their farms based on USDA contracts and financial commitment from the federal government. They need to know the government will hold up its end of the bargain.
Regarding staffing, reports are still coming in about staff reductions at USDA, which we know are causing concern in rural and farming communities. We support the goal of efficient government; however, we urge the administration to be strategic in how they address staffing. USDA staff play a critical role in both the safety and reliability of our food and other products. Vital USDA functions range from food inspectors and animal disease experts to loan officers and disaster recovery experts, and they all help ensure that we continue to have a safe and stable food supply.
Last week, I traveled to Washington with a delegation of farmers from Virginia and other mid-Atlantic states to meet with Secretary Rollins. We conveyed concerns over funding and staffing issues, discussed other concerns and opportunities facing farmers, and shared priorities we hope to see this administration tackle. We were pleased to hear from Secretary Rollins about her commitment to listening to farmers and tackling the industry’s challenges. We stand ready to work with her.
In 2025, we face the need for a new, modernized farm bill that ensures animal health in the face of growing disease pressure, expands global trade, and addresses other priority challenges. Virginia Farm Bureau stands ready to advocate on farmers’ behalf and to ensure the Virginia agriculture and forestry industries have the policies, tools, services and opportunities they need to be successful.
More than $557,600 in federal Specialty Crop Block Grant Program funding has been awarded to eight agricultural projects in Virginia to help promote and enhance the competitiveness of specialty crops grown in the state.
“I applaud each of these awardees for their ingenuity and innovation in research and development initiatives that enhance the competitiveness of Virginia’s specialty crops. Not only will these projects help boost economic development in the Commonwealth, but they will enhance and expand new market opportunities for agricultural producers,” said Gov. Glenn Youngkin.
The purpose of the U.S. Department of Agriculture (USDA) Specialty Crop Block Grant Program is to enhance the competitiveness of specialty crops, by funding research and development initiatives that are developing improvements for the sector. Agricultural associations, industry and producer groups, localities, community-based organizations, educational institutions, and non-profits are eligible for this grant opportunity. The competitive grant process established by the Virginia Department of Agriculture and Consumer Services (VDACS) gave priority to projects that included the following activities:
Assist farmers transitioning into specialty, high-value agricultural initiatives that address the eligible specialty crops.
Increase net farm income through high-value or value-added enterprises.
Find new ways to market or add value to specialty agricultural products.
Develop pilot and demonstration programs in specialty agriculture that have the potential for transferability within rural Virginia.
“By supporting strategic research that helps to increase success for Virginia producers, these grant awards help to further our efforts of encouraging economic growth in rural areas through the use of agriculture,” said Secretary of Agriculture and Forestry Matthew Lohr. “Congratulations to each of the awardees for their innovative research and programs that will help improve the competitiveness of Virginia’s specialty crops, strengthen food safety and resiliency, and help our producers access new markets.
Specialty crops are defined as fruits and vegetables, tree nuts, dried fruits, horticulture and nursery crops, including floriculture. Among this round of specialty crop grant awards are projects that advance research with different crop varieties and disease management, while also improving economic resilience, food safety, and market access. For more information, please visit the Virginia’s Specialty Crop Block Grant Program website.
During this grant round, the following recipients and projects received funding:
Increasing access to diverse markets for specialty crop farmers with pathways to food safety training and certification Appalachian Sustainable Development (ASD), Duffield, Va., Robin Robbins ASD and its partners will conduct food safety classroom training, provide individual technical assistance, and conduct mock audits to increase the competitiveness of Virginia specialty crop producers. This effort will help producers reduce food safety risks, while expanding their knowledge and business model by enabling them to access new markets.
New disease management approaches to improve the quality of fresh market snap beans Virginia Polytechnic Institute and State University (Virginia Tech), Eastern Shore Agricultural Research and Extension Center (AREC) Painter, Va., Dr. Douglas Higgins Research will determine the prominence of fungal pathogens, Alternaria alternata and Plectosporium tabacinum, in Virginia snap beans and determine their resistance to strobilurin type fungicides. The goal of this research is to provide new disease management approaches to improve snap bean pod quality.
New blackberry varieties: Yield, post-harvest traits, and antioxidant capacity determination Virginia Tech, Blacksburg, Va., Dr. Dennis Cladis Researchers will evaluate the yield, post-harvest traits, and antioxidant content of new and established Virginia blackberry cultivars. This project will enhance the competitiveness of Virginia blackberries by identifying cultivars that maximize yields for growers while also producing a high antioxidant content which optimizes the health benefits for consumers.
Protecting Virginia vegetable crops from pests through novel biofumigation approaches Virginia Tech, Blacksburg, Va., Dr. Steven Rideout As many specialty crop producers are interested in biofumigation with brassica crop covers, Virginia Tech researchers, in cooperation with Virginia Cooperative Extension, will conduct research to explore the usefulness of BioFence applications (granular, irrigation, and foliar) for disease control and the safety of produce produced using these tactics.
Do floating row cover types influence yield and disease carry over potential in strawberry crop? Virginia Tech, Hampton Roads AREC, Virginia Beach, Va., Dr. Jayesh Samtani Led by Virginia Tech’s Hampton Roads AREC, in partnership with the Southern Piedmont AREC and Virginia Seafood AREC, researchers will study row cover usage to assist growers in managing diseases and improving crop yield with the increase in climate change and temperature fluctuations.
Profitable faba bean production and marketing in Central and Southeastern Virginia Virginia State University, Petersburg, Va., Dr. Shahram Torabian The Virginia State University Agricultural Research Station will explore profitable strategies for faba bean production and marketing in Central and Southeastern Virginia.
Assessing and mitigating food safety risks associated with using freeze dryers to enhance competitiveness of value-added specialty crops Virginia Tech, Blacksburg, Va., Dr. Alexis Hamilton Virginia Tech will help specialty crop producers safely produce freeze-dried products by assessing the impact of pre-processing acid rinses on the activation of Salmonella enterica prior to freeze-drying.
Farm2Food Accelerator: Energizing growth for Virginia’s small-scale specialty crop producers National Association of State Departments of Agriculture (NASDA) Foundation, Arlington, Va., Chris Jones NASDA Foundation will adapt the Farm2Food Accelerator curriculum to serve Virginia’s specialty crop producers launching/refining food/beverage value-added products to reduce food waste and improve economic resilience, food safety, and market access.
Homestead Creamery to expand processing capacity, purchase nearly $1.9 million in Virginia-produced cream
Homestead Creamery Inc. will invest over $2.5 million to renovate and expand their Franklin County production facility. The company will construct a new ice cream production room and install additional production and refrigeration equipment and freezers, in response to increased customer demand for their premium churned ice cream products. Through this expansion, the company will add two new jobs and purchase an additional $1.9 million of Virginia-produced cream over the next three years.
“I’m grateful to Homestead Creamery for their investment into one of Virginia’s top milk-producing counties and for supporting the growth of Virginia’s dairy industry—the fourth largest commodity in the Commonwealth,” said Gov. Glenn Youngkin.
“Homestead Creamery was the very first recipient of an AFID Facility Grant in 2012. I am extremely pleased that we could partner with the company again with another AFID Facility Grant to support this expansion project,” said Secretary of Agriculture and Forestry Matthew Lohr. “This project builds on the success of a small, Virginia company and positions Homestead for future growth opportunities.”
Founded in 2001 in Burnt Chimney (Franklin County), Homestead Creamery, Inc. utilizes high-quality A2A2 milk from its network of local dairy farms to produce a variety of premium drinkable milk, ice cream, eggnog, and other dairy products that are sold through retail and wholesale networks. The company also operates an on-site retail market and deli featuring a variety of its dairy products along with Virginia’s Finest and Virginia Grown products. Homestead has grown steadily over the years and now sells its dairy products and specialty lemonade in approximately 100 stores across Virginia. Homestead Creamery’s super-premium ice cream is available in twenty-nine flavors across 13 states and Washington D.C.
Homestead Creamery, Inc. Controller Jesse Novak says, “This grant will fuel our vision for impactful building improvements, empowering us to better serve our customers and community. Together, we’re nurturing growth, innovation, and prosperity.”
The Virginia Department of Agriculture and Consumer Services (VDACS) worked with Franklin County to secure this expansion project for the Commonwealth. Youngkin approved a $20,000 grant from the Governor’s Agriculture and Forestry Industries Development Facility Grant program, which Franklin County will match with local funds.
The Agriculture and Forestry Industries Development Facility Grant program supports agribusinesses of all sizes including produce companies, dairy processors, meat and poultry processors, specialty food and beverage manufacturers, greenhouse operations, forest product manufacturers and more. The fund can also support aquaculture projects such as oyster production and nurseries producing native plants for stormwater BMPs.
Interested businesses should contact their local economic development office or the Virginia Department of Agriculture and Consumer Services for more information.
Gov. Glenn Youngkin signs CEA legislation and announces expansion of high-tech indoor farm in Prince William County on June 6, 2024. Photo by Christian Martinez, Office of Gov. Glenn Youngkin.
Beanstalk Farms Inc. will build its second indoor farm and distribution facility in the Freedom I-66 Industrial Business Park in Manassas. The project includes 18 new jobs and a capital investment of $4.1 million. Beanstalk Farms expects to produce 2.1 million pounds annually of leafy greens and fresh-cut herbs.
Following the announcement of the expansion, Gov. Youngkin signed House Bill 1429 and Senate Bill 483, which clarifies that the existing classification of farm machinery includes CEA machinery, allowing localities to exempt equipment from personal property taxes, or adopt a reduced tax rate. The same exemption provisions already exist for traditional agricultural operations. The legislation was patroned by Senator Lashrecse Aird, Senate District 13, and Delegate Amy Laufer, House District 55. This is the second year that Youngkin has signed agricultural technology tax exemption legislation. In 2023, legislation was signed to exempt items used in the construction of controlled environment agriculture facilities from sales taxes.
“Congratulations to Beanstalk Farms for their investment in this community and in Virginia. I am pleased that the Commonwealth’s pro-business climate and partnerships continue to be a factor in securing and scaling up projects such as this,” said Gov. Glenn Youngkin. “The legislation I signed today reinforces Virginia’s position as a top state for the controlled environment agriculture industry.”
The Virginia Department of Agriculture and Consumer Services worked with Prince William County, the Prince William County Department of Economic Development and Tourism and the Industrial Development Authority of the County of Prince William to secure this new expansion project. Youngkin approved a $100,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund, which Prince William County will match with local funds.
“This is a great day for the future of controlled environment agriculture in Virginia. We are providing support for Beanstalk Farms expansion, encouraging investment in Prince William County, and creating high paying jobs to this area through the Governor’s Agriculture and Forestry Industries Development Fund grant award. In addition, Governor Youngkin is helping to spur growth in this industry by expanding tax relief through the approval of the agricultural sales tax exemption legislation last year and his signature today on the tangible personal property tax relief legislation,” said Secretary of Agriculture and Forestry Matthew Lohr.
The U.S. Department of Agriculture (USDA) is encouraging dairy producers to enroll by April 29, 2024, for 2024 Dairy Margin Coverage (DMC), an important safety net program that helps offset milk and feed price differences. This year’s DMC signup began Feb. 28, 2024, and payments, retroactive to January, began in March 2024. So far, DMC payments triggered in January and February of 2024 at margins of $8.48 and $9.44 respectively.
2024 DMC Coverage and Premium Fees
FSA revised DMC regulations to extend coverage for calendar year 2024, which is retroactive to Jan. 1, 2024, and to provide an adjustment to the production history for dairy operations with less than 5 million pounds of production. In previous years, smaller dairy operations could establish a supplemental production history and receive Supplemental Dairy Margin Coverage.
For 2024, dairy producers can establish one adjusted base production history through DMC for each participating dairy operation to better reflect the operation’s current production.
For 2024 DMC enrollment, dairy operations that established supplemental production history through Supplemental Dairy Margin Coverage for coverage years 2021 through 2023, will combine the supplemental production history with established production history for one adjusted base production history.
For dairy operations enrolled in 2023 DMC under a multi-year lock-in contract, lock-in eligibility will be extended until Dec. 31, 2024. In addition, dairy operations enrolled in multi-year lock-in contracts are eligible for the discounted DMC premium rate during the 2024 coverage year. To confirm 2024 DMC lock-in coverage or opt out in favor of an annual contract for 2024, dairy operations having lock-in contracts must enroll during the 2024 DMC enrollment period.
DMC offers different levels of coverage, even an option that is free to producers, minus a $100 administrative fee. The administrative fee is waived for dairy producers who are considered limited resource, beginning, socially disadvantaged or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.
Congress passed a 2018 Farm Bill extension requiring these regulatory changes to the program. DMC is also authorized through calendar year 2024.
DMC Payments
DMC payments are calculated using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses. These updated feed calculations use 100% premium alfalfa hay.
More Information
DMC is a voluntary risk management program providing protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. In 2023, DMC payments triggered in 11 months including two months, June and July, where the margin fell below the catastrophic level of $4.00 per hundredweight, a first for DMC or its predecessor Margin Protection Program.
USDA also offers other risk management tools for dairy producers, including the Dairy Revenue Protection (DRP) plan that protects against a decline in milk revenue (yield and price) and the Livestock Gross Margin (LGM) plan, which provides protection against the loss of the market value of milk minus the feed costs. Both DRP and LGM livestock insurance policies are offered through the Risk Management Agency. Producers should contact their local crop insurance agent for more information.
HP Hood LLC, will invest more than $83.5 million to expand its dairy processing operations in Frederick County. The expansion project includes upgrades to production and packaging equipment and construction of additional cooler and warehouse space. The project will enable the company to further grow its business while continuing to provide a local market for Virginia dairy farms through its milk cooperative network which includes the Dairy Farmers of America and the Maryland & Virginia Milk Producers Cooperative Association.
“I commend HP Hood for their continued investment in Frederick County and in Virginia’s dairy industry, the state’s fourth largest sector in the agriculture industry,” said Gov. Glenn Youngkin. “Supporting companies like HP Hood is vitally important to Virginia’s dairy producers and spurs economic development in this area of the Commonwealth.”
Hood’s Winchester facility, which was constructed in 2000, employs more than 600 people and processes extended-shelf-life fluid milk and nondairy products for Hood’s own brands, private label partners, licensed brands and co-packing partners. The facility expansion will provide increased production capacity that is critical to the company’s operations and fund technology that will enable Hood to produce new products in response to growing customer demand.
“HP Hood has played a vital role in Frederick County’s food manufacturing sector for more than 20 years, providing employment opportunities and contributing to our economic growth,” said Josh Ludwig, Chairman of the Frederick County Board of Supervisors. “We are grateful for their continued investment and confidence in our community.”
“As a lifelong dairy farmer in the Shenandoah Valley, I’m excited to see this level of investment in dairy processing in the Commonwealth. I welcome HP Hood’s investment in the community and look forward to growing Virginia’s dairy supply to meet their needs,” said Senator Timmy French.
The Virginia Department of Agriculture and Consumer Services (VDACS) worked with Frederick County and the Frederick County Economic Development Authority to secure the project for Virginia. Governor Youngkin approved a $50,000 Infrastructure Grant from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund, which Frederick County will match with local funds.
“I am pleased that the Commonwealth will continue its partnership with Frederick County and HP Hood to increase market opportunities for Virginia dairy producers. This announcement is certainly a win-win for Frederick County, the state’s dairy producers and Virginia agriculture,” said Secretary of Agriculture and Forestry Matthew Lohr.
“We proudly selected this location to build a greenfield plant more than 24 years ago and have been grateful for the ongoing support of Frederick County and the Commonwealth of Virginia,” said Gary Kaneb, President and CEO of HP Hood. “This expansion enables us to continue to grow Hood’s business and accommodate the everchanging needs of our customers and continue to provide a market for local dairy farms through our local milk cooperative network.”
Founded in 1846 in Charlestown, Massachusetts as a milk delivery service, HP Hood is a nationally branded dairy processor with more than 3,000 employees and annual sales revenues of approx. $3.5 billion. The company manufactures conventional, extended-shelf life (ESL) and shelf stable dairy and non-dairy beverages cultured products, as well as ice cream and frozen desserts. The company’s broad portfolio of retail consumer product brands include Hood, Heluva Good!, Lactaid, Blue Diamond Almond Breeze, and Planet Oat, to name a few. In addition to selling its products through traditional retail and wholesale channels, the company also manufactures private-label products and provides co-packing services.
The Alliance to Advance Climate-Smart Agriculture is a pilot program that will incentivize farmers and ranchers to adopt climate-smart agriculture practices that will maintain and improve agricultural productivity, benefit the producer, and improve climate resilience.
Under the three-year pilot program, The Alliance and its partners will help producers in Virginia prove the value of paying farmers and ranchers $100 per acre or animal unit for stewardship practices that deliver public value through carbon sequestration, greenhouse gas reduction, improved soil health, water quality, water conservation, and other environmental services. Direct payments will be issued by Virginia Tech.
Participating Districts:
Colonial Soil and Water Conservation District (757) 645-4895 OR samantha.pereira@colonialswcd.org: Charles City, James City, New Kent, York and City of Williamsburg. For the Alliance grant, Colonial has an expanded service area of: Caroline, Chesterfield, Essex, Gloucester, Hanover, Henrico, Isle of Wight, King & Queen, King William, Mathews, Middlesex, Prince George, Surry and City of Suffolk
Thomas Jefferson Soil and Water Conservation District (434) 975-0224 ext 112 OR agriculture@tjswcd.org: Louisa, Fluvanna, Nelson, Albemarle and City of Charlottesville
Eligibility:
Farm located within an eligible county shown above
Verified Farm Service Agency (FSA) Number
Two-acre minimum
Land can not be enrolled in another state or federal conservation program in the same practice on the same acres
Applications opening on February 15-March 15. Looking for more information? Join in to our Alliance Virtual Information Session on Monday, February 5 at 5:30pm! Register HERE!
The USDA Risk Management Agency (RMA) has announced they will be conducting listening sessions throughout the country this winter to gather feedback and to discuss policy improvements to livestock products.
RMA will be conducting more than a dozen in-person and virtual workshops this winter for producers to learn about new and expanded livestock risk management products. This “Roadshow” will highlight policy improvements based on the feedback from producers as a way to promote, educate, and broaden RMA’s outreach to livestock producers.
Specifically, RMA will be discussing and soliciting feedback on the following products:
Annual Forage
Dairy Revenue Protection
Livestock Gross Margin
Livestock Risk Protection
Pasture, Rangeland, and Forage
Weaned Calf Risk Protection (New for Calendar Year 2024)
The Livestock Roadshow builds on other recent outreach and education efforts. Earlier this year, RMA held a roadshow highlighting insurance options for specialty crop, organic, and urban producers, drawing more than 3,000 attendees. Additionally, since 2021, RMA has invested around $13 million in partnerships to advance risk management education.
Plows and Politics 