Sacramento, CA -— Today, California Governor Gavin Newsom released his final annual state budget proposal. The state budget continues to invest in California’s agricultural sector, recognizing it as a foundational part of the state economy and food system. While we are pleased to see ongoing appropriation of hard-fought Prop 4 Climate Bond funding, our communities are continuing to suffer from cuts to federal programs that are vital to our food economies and climate.
We are pleased to see the following programs proposed to receive funding in FY26-27:
- $14 million to fund projects through the newly established Tribal Food Sovereignty Program, which is aimed at enhancing tribes’ food sovereignty through projects that focus on irrigation and water, utility and power, and food processing infrastructure
- $14 million to fund equipment sharing & technical assistance to establish farmer cooperatives
- $65 million for the Multibenefit Land Repurposing Program, which we hope will broaden its scope to include small-scale sustainable agricultural alternatives
- $5 million to improve land access and tenure for socially disadvantaged farmers, ranchers or tribal producers through the Department of Conservation
- $24.6 million for CDFA’s Farm to School Program
While the proposed budget includes increased funding for Farm to School, this investment comes as California faces over $100 million in federal cuts to farm-to-institution procurement through the Local Food Purchasing Assistance (LFPA) and Local Food for Schools (LFS) programs. These cuts threaten to dismantle proven partnerships that have connected hundreds of California farmers to food banks and communities as demand for food assistance is rising.
California’s small and mid-sized farmers also rely on continued state investment in proven programs like the California Underserved and Small Producers (CUSP) program, which has delivered direct relief to California’s most underserved farmers.
“Just as the LFPA was beginning to show statewide impact, and with nearly 1000 California farmers involved in the program, the federal funding was withdrawn. The state must step in to protect successful programs that address food access and local economies during increased affordability challenges.” – Jamie Fanous, Policy & Organizing Director at CAFF
“This effort will be able to keep a market open for the small farmers who have limited access to markets relative to larger operations”. –Donald Sherman, Sherman Produce Market, Fresno, CA
Sustaining and expanding these investments is essential to maintaining farmer viability and ensuring local food continues to reach California communities. We look forward to working with the legislature and the administration in this final year to invest in California’s most vulnerable farming populations and our state’s small and mid-size family farmers.