Over the last century, supply chains in the U.S. agricultural sector have become increasingly concentrated as small and mid-sized slaughterhouses, grain mills, and other processing businesses have closed. This missing middle severely limits market access for independent farmers and ranchers while also hindering opportunities for businesses creating new markets.
Initiatives Rebuilding the Missing Middle
Many organizations are working to rebuild these missing links. One example is Growing GRASS, a USDA-funded project led by the American Sustainable Business Institute/Network (Link) and Other Half Processing (Other Half Processing). This initiative aims to strengthen supply chains for meat processing byproducts from regeneratively raised cattle and bison. The goal is to increase the value and production of verified regenerative livestock while creating more climate-friendly materials for leather, ingredient, and pet food markets.
Another example is the Colorado Grain Chain (CGC) (Colorado Grain Chain), which connects Colorado grain growers with businesses that rely on their products. CGC works to ensure small and mid-sized farms can access and thrive in these markets.
Founded in 2019, CGC is a membership-based nonprofit that supports healthier preindustrial grain varieties while reintroducing the grain production cycle to the region. Today, it has a statewide network of more than 50 members and 1,200 subscribers. The organization helps everyone along the supply chain, including farmers, processors, wholesalers, millers, maltsters, bakers, chefs, distillers, and brewers.
“You can’t keep growing or producing if you don’t have a path to market,” said Lisa Boldt, Executive Director of Colorado Grain Chain.
Expanding Local and Regional Infrastructure
The Grain Chain is part of a national movement to strengthen local and regional infrastructure to support small and mid-sized farmers, who often struggle to bring their products to market. Many farmers must truck crops and animals long distances for processing, adding significant costs. Supply chain concentration also enables large-scale processors and aggregators to push down prices for farmers. Today, only 14% of every food dollar goes to the farmer. (Link) Larger farms benefit from economies of scale, but smaller farms often cannot afford to compete.
Policies Expanding Middle-Market Development
Policymakers have recognized the need to support small and mid-sized farms. The 2018 Farm Bill created the Local Agriculture Market Program (LAMP) to develop local and regional food markets. A 2023 report to Congress (LAMP Report) found that this program has led to the creation of more than 4,000 food business enterprises and over 5,000 jobs.
Building Support for the Grain Economy
The Colorado Grain Chain has launched several initiatives to strengthen the grain economy:
- Grain Exchange Marketplace (GEM): An online platform connecting farmers and businesses. (Grain Finder)
- Colorado Grown Grains Co-Brand: A branding initiative to raise awareness of locally grown grains. (Colorado Grown Grains)
- Marketing, technical assistance, and educational resources for members.
With USDA funding, CGC has launched an Organic Grains Microgrant Program (Microgrant Program) to help bring locally grown organic grains to market. The current focus is on processors and storage facilities, which are key supply chain bottlenecks.
Creating Pathways Between Growers & Businesses
Processing and storage are major challenges in Colorado’s grain system. A 2022 white paper by Mad Agriculture (White Paper) found that much of today’s storage infrastructure is designed for large commodity farms, making it difficult for smaller growers to find affordable options.
“Heirloom and experimental grain varieties, such as millet, Kernza, or spelt, require specialized equipment,” said Audrey Paugh, Communications & Events Manager, Colorado Grain Chain. “The extra care and infrastructure add costs.”
By prioritizing processing and storage, the Grain Chain aims to create better pathways between growers and businesses. Microgrant applications have included requests for specialty equipment, grain-related education, packaging, and branding support.
The Benefit from Increased Capacity
Strengthening the middle of the supply chain benefits not just farmers but also businesses that rely on a steady, high-quality grain supply. Locally grown grains can help create specialized food and beverage products that appeal to consumers who prefer to support the local economy.
A 2022 Colorado State University survey (Survey) found strong consumer demand for locally grown products, while a 2020 USDA survey (USDA Survey) estimated a $9 billion market for locally grown food within 400 miles of the end-user.
Regional supply chains also provide more resilience to disruptions. Lisa Boldt, who co-owns a brewery in Fort Collins, found that sourcing grain regionally helped her business withstand shocks such as COVID-related supply chain issues and the war in Ukraine, which disrupted global wheat markets.
Regenerative Practices Lessening Climate Impact
Many Grain Chain farmers are adopting regenerative practices to lessen the impact of climate change. Drought-tolerant grains such as millet and rye can thrive in challenging conditions. Rye, in particular, is a beneficial cover crop that improves soil health, reduces erosion, and provides an additional income source.
One Grain Chain member, Dry Land Distillers, recently released 100% Malted Ryman Rye Straight Whiskey, made with regenerative organic rye from Jones Farms Organics (Jones Farms), another CGC member farm.
“The farmer, the distiller, the baker, the miller were all there in the same place,” said Paugh. “That’s how a lot of these connections form.”
Strengthening U.S. Agriculture for the Future
Initiatives like the Colorado Grain Chain and Growing GRASS are paving the way for a more resilient and sustainable agricultural system. By addressing gaps in the supply chain, these programs help small and mid-sized producers access new markets and build long-term partnerships.
This approach supports local economies, strengthens food security, and aligns with climate goals by promoting regenerative practices that improve land health and biodiversity.
As more organizations and communities work together to rebuild these missing links, farmers and ranchers will have greater opportunities to thrive sustainably and profitably.
Get Involved
Want to learn more about advancing the transition to a regenerative food system? Visit ASBN’s Regenerative Agriculture & Justice page (ASBN Regenerative Agriculture). ASBN/ASBC members are welcome to join active working groups. Not a member? Join today! (Join ASBN).
