The NC1198 multi-state group evolved to address a disconcerting structural change in United States (US) agriculture: the decline of midscale family farms. We have referred to this phenomenon as the disappearing “Agriculture of the Middle (AOTM).” Midsized family farms (defined by the US Department of Agriculture’s Economic Research Service, USDA ERS, as having gross cash farm income between $350,000 and $999,999) included 107,316 US farms and ranches in 2020, representing 5.3 percent of all operations (Witt et al. 2020), down from 123,009 (5.7 percent of all operations) in 2011 (Hoppe 2014).

The decreasing numbers of midsized family farms is troubling given research that these operations are important to the overall well-being of U.S. rural communities, the economy and the environment (e.g., Kirschenmann et al. 2008). For example, previous research suggests that small and midscale farms spend a relatively higher amount of input dollars locally and have a higher multiplier effect than do larger operations (Schmit et al. 2016). Further, midscale operations operate almost 23 percent of all agricultural land (Witt et al. 2020), which can result in a number of important ecological impacts, as well as socio-cultural impacts in the places where these operations are located.

Changes within global agricultural markets, notably consolidation, contracting, and vertical integration, have made market access difficult for small, mid-scale, and beginning farmers and ranchers (Constance et al. 2014, Lobao and Meyer 2001, Hendrickson et al. 2019, Howard 2021, Sexton 2010). For example, in U.S. pork production, large pork producers own processors and grain elevators, while supermarket behemoths Walmart and Costco are using backward integration in dairy, beef and chicken. Kroger continues its strategy of backward integration in dairy and is supplying competing retailers (Hendrickson et al. 2020).

Recent disruptions to the global food system caused by the COVID-19 pandemic and social distancing measures have brought new and heightened attention to the structure and resilience of U.S. food systems, and particularly the role of midscale operations. For example, in response to the pandemic the Biden administration created a Supply Chain Disruptions Task Force. One of its recommendations was to: “Rebuild America’s production and innovation capabilities. Long-term competitiveness will require an ecosystem of production, innovation, skilled workers, and diverse small and medium-sized suppliers” (White House 2021).

We define resilience within the context of the food system as its ability to respond and react to shock and stress (economic, social, environmental, or institutional) without failing to perform its function as a system (e.g., Meuwissen et al. 2019, Walker et al. 2004). Previous research by members of this multi-state group has demonstrated the importance of values-based food supply chains (VBFSCs) in supporting both AOTM and more resilient systems (e.g., Stevenson et al. 2011). A recent AFRI project led by NC1198 members defined the value(s)-added food and agriculture sector to incorporate three key features: (1) consumers make purchases that simultaneously provide utility and enable a price premium; (2) the shared principles among firms and their relational arrangement support the distribution of the value, and thus the premium, across the chain and between owners and employees; and (3) supply chain actors have a demonstrated commitment to the community (Clark et al. 2020). In short, VBFSCs can be differentiated from other food supply chains by key characteristics such as shared values, risks and profits by participating firms as well as greater community investment, which in turn, contribute to higher value products and benefits such as increased local ownership. A separate USDA AFRI project led by NC1198 members identified and created a database of over 250 VBFSCs in the US that distinguish themselves in the marketplace based on particular attributes related to food quality, environmental practices, distribution of economic benefits, and/or social relationships (Peterson et al. 2016).

The challenges that resulted from the COVID-19 pandemic with the conventional food system provided opportunities for innovation within the VBFSC sector including within the local and regional food sector. AOTM producers participating in alternative value chains showed great flexibility in pivoting to meet new demands and new marketing arrangements (Thilmany et al. 2021a,b). Many midscale operations pivoted to online ordering and reoriented their supply away from restaurants and to retail or delivery (Thilmany et al 2021). For example, Greg Gunthorp of Gunthorp farms reported that the almost total disappearance of food service markets upon which his business depended initially appeared catastrophic. However, he had a large human capital base, flexibility in equipment, and the management ability to change processing and packaging in his USDA inspected on-farm slaughter and processing plant, allowing him to switch to individual retail customers and grocery stores (Hendrickson 2021). He has since made further changes in his livestock operation to continue diversifying markets and distribution channels (Bowman 2020).

The NC1198 project is well equipped to investigate opportunities to support AOTM, particularly emerging markets and policy opportunities resulting from the pandemic and policymakers’ interest in fostering more resilient food systems. Over the course of the NC1198 project, the team members have produced numerous case studies, peer reviewed publications, lesson plans, and presentations to professional meetings and received many extramural grants to support the work. Moreover, the group has congealed into a dynamic community of scholars, collaborating on a variety of topics and developing deep expertise in the field of values-based food supply chains and strategic partnerships. 

We request approval to continue this work. We anticipate conducting research to meet three objectives: 1) examine the governance structures of values-based food supply chains and the internal and external constraints on their ability to preserve values along the supply chain; 2) investigate the effects of systemic disruptions (i.e., COVID, climate change, natural disasters) on mid-scale food supply chain resilience, including on social equity (marginalized populations, racial equity) and environmental justice; and 3) build the capacity of project members to collaboratively investigate, address, and communicate policy issues surrounding mid-scale producers and supply chains, considering commodity and information flows, and shared risks and benefits. It is critical this work be conducted as a multi-state project, given the diversity of the scholars and settings in which we work, and our ability to research collaboratively, as well as learn together and share lessons across contexts. The research is technically feasible: we employ well-established research methods with which our team has established expertise. Our objectives will lead to improved opportunity and viability for mid-sized farms and increased resilience of our food system and rural communities.