Center for an Agricultural Economy tells Senate committee it needs funding, labor and storage to scale Vermont food system

John Ramsey, executive director of the Center for an Agricultural Economy, told the Vermont Senate Agriculture Committee on Tuesday, Jan. 28, that his Hardwick-based nonprofit has expanded to a staff of about 40 and runs statewide programs that include small business loans, refrigerated aggregation and value‑added food processing, but that the organization needs stable grant support and more workers to keep services running.

Ramsey said the center operates a microloan product called the Vermont Farm Fund (emergency loans, business-builder loans and new-producer loans typically in the $15,000–$30,000 range), a distribution service called Farm Connects that uses refrigerated trucks to aggregate and fulfill orders, and a commercial kitchen and incubator called the Vermont Food Venture Center. "We bring product back to our warehouse, and we do all of their fulfillment and distribution," Ramsey said of the aggregation work. He added that the center purchases roughly $200,000 of Vermont‑grown produce a year and processes product into more than 400,000 servings served in schools, hospitals and colleges.

Why this matters: Ramsey told senators the center plugs gaps for small and mid‑scale farms that lack access to refrigerated storage, fulfillment infrastructure and stable markets. The center's services, he said, both create market access for farms and supply local institutions, while also subsidizing trucking and distribution costs that would otherwise be unaffordable for very rural producers.

Key programs and scale: Ramsey said the center runs a fleet of refrigerated box trucks (five trucks noted in testimony), two food‑hub facilities in Hardwick (one focused on value‑added processing, one on storage and aggregation), and a loan pool of about $1.6 million in revolving private contributions that can be deployed quickly as emergency loans. He said earned revenue represents roughly a third to 40% of the center's budget (truck fees, product sales, kitchen rentals), private contributions grew from about $300,000 to $1.3 million in recent years, and the organization has raised most of a $4.1 million capital target to outfit a new facility adjacent to the Yellow Barn in Hardwick (Ramsey said the center was about $400,000 short of that $4.1 million goal). Ramsey attributed part of the capital support to a Northern Border Regional Commission (NBRC) award and smaller grants from the Agency of Agriculture and other private donors.

Workforce and labor concerns: Committee members pressed Ramsey on workforce shortages. He said labor shortages affect on‑farm work, food processing, trucking and managerial roles on growing farm businesses. "I could fill 300 jobs—probably better than that—just snap my fingers and boom," one senator said during questioning; Ramsey responded that the center has added positions in trucking, distribution and processing and recently added health care for employees, which he estimated raised nonprofit costs by about $250,000 but was necessary to recruit and retain workers.

Markets and farm finances: Ramsey described current beef markets and transition challenges for farms moving from dairy to beef. He said his own farm sells breeding stock and that ‘‘week‑old Angus‑Holstein cross calves are $7,800 a calf’’ as observed in recent market conditions, a price he said raises questions about long‑term viability for buyers who must raise animals for two years to finish them. He warned that many Vermont farms carry historic dairy debt that complicates transitions to other enterprises.

Federal grant and loan concerns: Ramsey told the committee he and other farm businesses were watching announcements from Washington, D.C., about pauses or freezes on federal grants and loans. He specifically referenced USDA Rural Business Development grants and FSA loan guarantees as funding streams on which many Vermont farm transfers and projects rely. Ramsey urged committee members to coordinate with the governor's office and federal legislators to protect grant and loan programs central to farm infrastructure and transfers.

Coordination and emergency support: Ramsey described collaboration with local and statewide partners—Green Mountain Farm to School, Hunger Mountain Co‑op customers, Vermont Food Bank, NOFA, the Sustainable Jobs Fund and other food hubs—and said the sector needs better coordination to avoid duplicative truck routes and to direct emergency resources after floods. He noted the center offers 0% emergency loans with deferred payments for a year and described discussion among stakeholders about a farm security fund to deliver rapid, small grants after disasters.

Funding sources and gaps: Ramsey said the center's capital campaign for refrigeration, plumbing and kitchen equipment required about $4.1 million; about $500,000 of public grants (including NBRC and Agency of Agriculture support) and the rest private fundraising. He said some federal grant programs require applicants to be uncommitted at specific deadlines, which can unintentionally make projects ineligible if commitments preceded grant announcements.

Context and next steps: Ramsey asked the committee to consider how state leaders can help ensure federal and state grant flows continue and encouraged closer coordination between food hubs and pantry networks. He also emphasized workforce policy options, including the need for a guest‑worker program to fill agricultural jobs—an issue several senators raised during the exchange.

Ending: Ramsey concluded that the center aims to keep rural farm businesses viable by lowering distribution costs, expanding storage and processing capacity, and providing flexible financing, but that continued public and private support is required to scale those services statewide.