Investing in the 'Missing Middle' of Regenerative Agriculture Supply Chains

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Dear [title] [last name],

In an increasingly uncertain economy, disrupted by severe and erratic climate conditions and global supply chain instability, regenerative agriculture represents a clear path forward for American businesses.
For businesses, regenerative agriculture is not a trend. Regenerative agriculture is a way to securely grow and reduce business risks while fulfilling the rapidly increasing consumer demand for products with ethical and environmental attributes.
Yet, businesses have experienced barriers to fully bringing regenerative agriculture into U.S. supply chains. In addition to the low number of agricultural producers trained in soil health practices, there are national supply chain gaps in the form of missing aggregators; limited processing and manufacturing capacity; and the associated shortages of skilled labor. Investments of resources in this “missing middle” is essential for both farmers to access existing markets and for brands and businesses striving to build new ones, but requires the federal government’s partnership.
These are the key challenges businesses face when trying to transition to more regenerative supply chains:
<ul>
<li>Severely limited supply and inconsistent availability of regenerative product;</li>
<li>Lack of sufficient aggregators, processors, manufacturers, and quality controls; </li>
<li>Burdensome, multi-source financing models are prohibitive to developing and securing domestic supply chains dedicated to products produced with regenerative attributes.</li>
</ul>
The U.S. market for regenerative products is poised to grow quickly in the next 10 years. Today, 60% of U.S. consumers want to be able to choose a product that is better for the environment. As businesses work to increase purchases of American-grown agricultural products produced in healthy soils and with regenerative practices, we are looking to Congress and the upcoming Farm Bill to support the growth of markets for products with these characteristics, and to help close the gaps in supply chains that are currently preventing market growth. 
Thank you for considering this critical topic. We have included below a list of policy recommendations. You can read more about these recommendations here https://www.asbnetwork.org/sites/main/files/050422_asbn_leavebehind_invest_rm.pdf
<ol>
<li>Pass the Local Farms and Food Act of 2023 (H.R. 2723) to increase funding to the LAMP program and improve accessibility for the VAPG program by reducing the matching requirement from 50% to 25%.  </li>
<li>Pass the Strengthening Local Processing Act (H.R. 945/S. 354) which revises provisions related to meat and poultry processing. </li>
<li>Make permanent the Meat and Poultry Intermediary Lending Program, Meat and Poultry Expansion Program and Food Supply Chain Loan and Guaranteed Loan programs authorized by the American Rescue Plan Act (ARPA).</li>
<li>Establish Alternative Lender Pilot Projects within the FSA Cooperative Lending Pilot Projects to provide patient, flexible capital needed for underserved farmers and ranchers to access new markets. (Draft legislative text available here: https://docs.google.com/document/d/1oFGmocNKRPrv_NT6T46azTKZrU8D76xxexQHg1NiGcc) </li>
<li>Establish the Small Rancher Market Access grant program, administered by the Agricultural Marketing Service, to help small producers and cooperatives add value and market meat products to local and regional markets with a focus on direct-to-consumer and direct-to-institution sales (taken from the Small Family Farmer And Rancher Relief Act (H.R. 8590)</li>
</ol>

Sincerely,

[Your Name]

[Your City & State]

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Summary

Over the last century, supply chains in the U.S. agricultural sector have experienced extreme concentration as small and mid-sized slaughterhouses, grain mills, and other processing and aggregation businesses closed across the country. This ‘missing middle’ severely limits independent farmers and rancher's access to existing markets and businesses creating new ones and is a barrier to the expansion of regenerative agriculture. (Read more about ASBN's work to advance regenerative agriculture in the 2023 Farm Bill here). There is an opportunity in the 2023 Farm Bill to secure investments and policy changes that address this issue of the "missing middle" of supply chains and facilitate the expansion of regenerative agriculture. Congress needs to hear from you that doing so will be good for businesses and farmers. Contact your representative and Senator now!

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