On November 1, the U.S. Department of Agriculture (USDA), in partnership with the Reinvestment Fund, announced an investment of $5.8 million across 45 projects to improve access to healthy foods in underserved communities with limited access to grocery stores. Of the $5.8 million investment, $2.6 million has been awarded to 20 food co-op development projects selected through a competitive process.
The investments are made through the Healthy Food Financing Initiative (HFFI) Planning Grant Program. Established in the 2014 Farm Bill and reauthorized in 2018, HFFI provides grants to organizations, including co-ops, assisting in the development of healthy food retail or food retail supply chain projects in early-stage planning and predevelopment phases.
HFFI is an important funding source for food co-ops, including NCBA CLUSA members, to establish and expand healthy food access in underserved communities. HFFI funding not only helps co-ops develop but also strengthens their role in addressing food insecurity and inequity.
NCBA CLUSA Member Co-op Project Examples:
Project Name: Fertile Ground Food Cooperative Community Grocery Store
Partnering Organization: Carolina Common Enterprise
Location: Raleigh, NC
After the closing of national supermarket stores in Raleigh’s historically segregated Southeast quadrant in 2013, community members came together to start Fertile Ground Food Cooperative, a community-owned grocery store that will increase food security, create living wage jobs, and serve as a safe community gathering space in Southeast Raleigh. Fertile Ground is currently in the early predevelopment construction phase, with the goal of opening the store in the Summer of 2026.
Project Name: Aliquippa Food Co-op
Partnering Organization: Keystone Development Center
Location: Aliquippa, PA
The Aliquippa Food Co-op will use HFFI Planning Grant funds to further the cooperative’s development, engaging skilled and knowledgeable technical assistance providers to enhance the activities of this all-volunteer effort and continue community engagement. Grant funds will be used to continue work with Keystone Development Center, from whom the Team has been receiving technical assistance for two years. National Co+op Grocers (NCG) will be engaged to support lease or purchase negotiation, financing, and store design.
Project Name: Del Valle Food Co-op
Partnering Organization: Austin Cooperative Business Association
Location: Austin, TX
Del Valle Food Co-op, a cooperative grocery store incorporated this year. The project started as a City of Austin solicitation, funded by the American Rescue Plan Act (ARPA), to support the development of a cooperative grocery store in Austin’s “Eastern Crescent” to address historic food inequity caused by historic, systemic, and institutional racism and discriminatory practices and policies by public and private entities. HFFI funding will enable continued outreach, business planning, project management, and capital campaign planning & execution. Additionally, the co-op will launch a pilot program to address food insecurity in Del Valle and bolster co-op membership.
Project Name: Medford Food Co-op Development Project
Location: Medford, OR
Medford Food Co-op (MFC) will use HFFI funding for crucial planning and feasibility assessments at a new proposed location. Funding will be used for professional assessment and the creation of a site and building plan – essential steps before MFC can secure the site and financing for construction. The expansion will significantly enhance the ability to provide fresh, healthy food to more people as the needs of the community are growing beyond the capacity of the current single location.