Montgomery County Aims to Bolster Local Agriculture with New Food Aggregation Grant Program

Montgomery County has initiated a new grant program, the FY26 Food Aggregation Grant Program, aimed at fostering stronger connections between local farms and institutional buyers such as schools, hospitals, and senior centers. This initiative, managed by the Montgomery County Office of Food Systems Resilience (OFSR), seeks to address a critical need within the regional food system: bridging the gap between the significant demand for locally sourced food from public institutions and the limited market access faced by small farms that may not be able to fulfill large-volume orders independently.

The program intends to award a single first-year grant of $550,000 to support the establishment, construction, retrofitting, and initial operational costs of a local food aggregation facility. Over a projected four-year grant period, up to $1.6 million in total funding is anticipated, with annual awards ranging from $250,000 to $500,000, contingent on available funds and grantee performance. The grant performance period is scheduled from June 30, 2026, to June 30, 2030. Selected recipients will be responsible for the aggregation, storage, distribution, and marketing of food produced by regional farmers, with a primary focus on supplying Montgomery County institutions and agencies. This initiative aligns with the county’s economic development and climate objectives by shortening supply chains, supporting family-owned farms, and enhancing access to nutritious food for residents.

This investment is designed to bolster the regional food system’s capacity to meet daily institutional demands while simultaneously building long-term resilience and self-sufficiency. Maryland law mandates that state institutions strive to procure at least 20% of their food from local sources, a target that many agencies have found challenging to achieve due to difficulties in connecting with producers. Concurrently, Montgomery County is home to over 100 food farmers and entrepreneurs who encounter obstacles in accessing institutional markets due to their smaller operational scale. Food aggregation facilities offer a solution by consolidating products from multiple farms, thereby creating dependable sales avenues that facilitate growth, improve profitability, and fortify the local food supply for these producers. This endeavor is expected to retain more of the region’s harvest and revenue locally, while simultaneously improving the availability of fresh, nutritious food for various community sectors and families.

The program benefits from significant state and regional support. The initial year’s award includes $300,000 in state grant funding secured by OFSR through the Maryland Agricultural and Resource-Based Industry Development Corporation’s (MARBIDCO) Certified Local Farm and Fish Enterprise Food (CLFF) Aggregation Grant Program. These funds are earmarked for capital expenditures such as facility construction, processing and packing equipment, and refrigerated vehicles. The establishment of this food aggregation and distribution facility is expected to create new avenues for Certified Local Farm Enterprises to supply institutional and wholesale buyers. Furthermore, the initiative supports the county’s High Road Economic Inclusion Framework and Climate Action Plan by investing in local businesses and reducing food-system emissions through localized supply chains. This project also contributes to the goals of the Local Food Procurement Challenge, recently launched by the Metropolitan Washington Council of Governments’ (MWCOG) FARM Policy Committee, which encourages member jurisdictions to reallocate a portion of their food budgets towards locally grown and produced foods. Strengthening the regional food economy is a key priority, and this program represents a significant advancement in that effort. Beyond economic advantages, increased local food storage capacity is anticipated to enhance emergency preparedness by ensuring food access during potential supply chain disruptions.

Eligible applicants must demonstrate substantial experience in contracting with institutional buyers, developing or operating food hub infrastructure, and have achieved at least $1 million in annual food sales over the past three years. Additionally, applicants should possess established wholesale buyer relationships and the necessary administrative and procurement capacity to manage grant funding effectively. The application process involves two stages: an initial eligibility review followed by an assessment of program alignment and viability. A virtual information session for prospective applicants is scheduled for Thursday, February 12th, from 12:00 PM to 1:00 PM. The deadline for submitting Phase One applications is Friday, February 20th. Detailed program information and application instructions are available on the Montgomery County Office of Grants Management (OGM) website. The OFSR is overseeing the program in collaboration with the OGM. For further inquiries, individuals can contact ofsr@montgomerycountymd.gov.

Article by Mel Anara, based upon information from Montgomery County Office of Food Systems Resilience

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