Vermont program: Farm and Forest Viability, REDI help rural businesses access federal grants, succession planning

Liz Leeson, director of the Farm and Forest Viability Program and the Rural Economic Development Initiative (REDI) at the Vermont Housing and Conservation Board, told the Economic Development, Housing & General Affairs Committee that her programs focus on strengthening farm and forest businesses by pairing business advising with targeted grants and by helping communities draw down complex federal funds.

The programs provide multi-year business advising, succession and transfer planning, and small implementation grants. "Farmers generally are land rich and cash poor," Leeson said. "We match them with lawyers and tax planners and pay for an initial meeting or two to help navigate those issues." She told the committee the program measures outcomes and has seen an average 36% increase in profitability among participating businesses in recent years.

READING THE CONTEXT: The Farm and Forest Viability Program began as a business-development complement to land conservation work, Leeson said, and the REDI program (created by statute in 2017) helps small towns, nonprofits and working-lands businesses identify federal and other funding sources and prepare competitive grant applications. The committee was shown examples of REDI-supported projects that included water and wastewater infrastructure, downtown redevelopment, trail and agritourism investments, and child care conversions of former school buildings.

Program scale and outcomes: Leeson said the team of roughly 15 embedded farm and forest business advisors works with about 100–150 businesses a year; last year 108 clients in the multiyear program generated about $42 million in sales and supported roughly 300 jobs. Clients the program worked with in 2024 accessed more than $5 million in grants and loans, and the initiative has helped roughly 1,500 businesses since it began. Leeson cited Honeyfield Farm in Norwich and other farm transfers as examples of successful succession planning the program supported.

Grant assistance and partners: REDI helps towns and volunteer-run organizations stack and apply for federal funds (examples cited included USDA programs and the Municipal Technical Assistance Program). Leeson said VHCB also leverages congressional directed spending and other federal grants; she noted the Farm and Forest side is about 25% federally funded and that federal funds are an important component of the program budget.

Topics committee members raised: Committee members asked whether conservation easement decisions factor in proximity to existing development; Leeson said conservation and housing teams coordinate when a parcel is adjacent to settled areas and the town is consulted about potential carve-outs for development. Members also raised timber and milling losses in Vermont; Leeson said timber markets are highly exposed to international forces and acknowledged a decline in milling capacity.

Why it matters: Committee members pressed on succession barriers (estate and capital gains taxes, Medicare and end-of-life planning), local regulation that affects accessory on‑farm enterprises, and how the programs can help communities pursue wastewater and water projects that unlock downtown growth. Leeson emphasized the combination of business advising, targeted small grants ($5,000–$10,000), and grant-writing support as the program’s primary levers.

Looking ahead: Leeson said REDI continues to pursue federal and state funding to meet demand and that the agency provides an annual report to the legislature on REDI and the Farm and Forest Viability Program. She offered to follow up with more detail on particular town-level coordination questions raised by the committee.