Montgomery County has launched a new grant program to help small local farms sell their food to schools, hospitals, senior centers, and other institutional buyers, strengthening the region’s food system and expanding market access for farmers. The FY26 Food Aggregation Grant Program, administered by the Montgomery County Office of Food Systems Resilience (OFSR), is designed to close a long-standing gap in the regional food system: strong demand from public institutions for locally grown food, and limited market access for small farms that cannot meet large volume purchasing requirements on their own. 

“This investment supports our economic development and climate goals by making it easier for local institutions to purchase food grown right here in Montgomery County,” said County Executive Marc Elrich. “Our region lacks this type of infrastructure, and having an aggregation facility locally will shorten supply chains, support family-owned farms, and put more nutritious food on the tables of our residents.” 

To address this challenge, the County is seeking experienced food aggregators and distributors to establish and operate a local food aggregation facility in Montgomery County. These facilities combine products from multiple small farms, allowing local food to be sold at the scale required by institutional buyers. 

Funding Available: 

• $550,000 is available for a single first-year award to support startup, construction or retrofitting, and initial operations. 
• Up to $1.6 million in total funding is anticipated over the full four-year grant period. The anticipated grant performance period is June 30, 2026 to June 30, 2030. 
• Annual support may range from $250,000 to $500,000, depending on funding availability and grantee performance. 

The program will support the aggregation, storage, distribution, and marketing of food grown by regional farmers, with a focus on supplying Montgomery County institutions and agencies. 

Why This Matters 

“This investment will help the regional food system respond to daily institutional needs while building long-term resilience and self-sufficiency,” said Heather Bruskin, director of OFSR. 

Maryland law requires state institutions to work toward purchasing at least 20% of their food from local sources, yet many agencies have struggled to meet these targets due to challenges connecting with producers. At the same time, Montgomery County is home to more than 100 food farmers and food entrepreneurs who face barriers accessing institutional markets because of their small scale. 

Food aggregation facilities solve this problem by pooling products from multiple farms, creating reliable sales channels that help small producers grow, improve profitability, and strengthen the local food supply.

“Connecting local producers to reliable markets keeps more of our harvest and revenue close to home,” said Mike Scheffel, director of the County’s Office of Agriculture, “while improving access to fresh, nutritious food for schools, healthcare partners, and families.”

State and Regional Support

The first-year award includes $300,000 in state grant funding awarded to 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 may be used for facility construction, processing and packing equipment, refrigerated vehicles, and other capital needs. 

“We are excited to support Montgomery County’s efforts to establish a food aggregation and distribution facility that creates new opportunities for Certified Local Farm Enterprises to sell to institutional and wholesale buyers,” said Steve McHenry, executive director of MARBIDCO. 

The program also advances County priorities outlined in the High Road Economic Inclusion Framework and the Climate Action Plan by investing in local businesses while reducing food-system emissions through shorter supply chains. 

By supporting economic opportunity and food access across the DMV region, this aggregator project aligns with the goals of a Local Food Procurement Challenge recently launched by the Metropolitan Washington Council of Governments (MWCOG)’s FARM Policy Committee. The Challenge encourages member jurisdictions to strategically shift a portion of existing food budgets toward locally grown and produced foods. 

“Strengthening the resilience of our regional food economy is a priority, and Montgomery County’s leadership is a welcome step forward,” said Clark Mercer, executive director of MWCOG. 

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In addition to economic benefits, increased local food storage capacity will strengthen emergency preparedness by improving access to food during supply chain disruptions. 

Eligible applicants must demonstrate: 

• Experience contracting with institutional buyers. 
• Experience developing or operating food hub infrastructure. 
• At least $1 million in annual food sales within the past three years. 
• Established wholesale buyer relationships. 
• Administrative and procurement capacity to manage grant funding. 

The application process includes two stages: 

• Stage One: Eligibility review 
• Stage Two: Program alignment and viability assessment 

A virtual information session for potential applicants will be held on Thursday, February 12^th from 12-1pm. The Phase One application deadline is Friday February 20th.

For program details and to apply, visit the Montgomery County Office of Grants Management’s (OGM) website. The program is managed by the OFSR in partnership with the Office of Grants Management. 

 For more information, email [email protected]. 

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