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Indiana Health Department cancels nearly million dollar grant to Bloomington farmers market over financial misconduct

According to a report in the Bloomington Herald Times, the Indiana Department of Health has terminated an $800,000 contract with the People’s Cooperative Market (PCM) in Bloomington, following revelations of financial improprieties. This decision has sparked controversy and left local farmers struggling to cope with the fallout.

The People’s Cooperative Market was formed in 2019 in response to the inclusion of a vendor with white supremacist beliefs at the Bloomington Community Farmersโ€™ Market. PCM was created to foster a more inclusive and anti-racist space for local vendors. Last year, the Indiana Department of Health awarded PCM an $800,000 grant under the U.S. Department of Agricultureโ€™s Local Food Purchasing Assistance (LFPA) program. The grant was intended to help socially disadvantaged farmers grow crops for local food banks, addressing food insecurity and supporting underrepresented farmers.

The health department terminated the contract in February due to unmet grant requirements and the submission of unallowed expenses, according to spokeswoman Lisa Welch. PCM received $484,572 before the contract was dissolved. Despite repeated inquiries, PCM did not respond to emails, phone calls, or text messages seeking comment.

The termination of the grant has had a profound impact on local farmers. Brandi Williams, owner of Primally Inspired Eats and Solidago Acres, reported losing over $10,000 due to unpaid contracts and a canceled LFPA contract worth $15,000. Williams, who had based part of her farmโ€™s financial planning on the expected grant funds, expressed concern about the future of her farm.

Former PCM members and co-founders revealed that several farmers were owed tens of thousands of dollars. When these farmers began asking questions, they faced accusations of racism, homophobia, and transphobia, further complicating an already tense situation.

Susan Welsand, a co-founding member of PCM known locally as The Chile Woman, highlighted issues such as unpaid invoices and inflated billing. She reported these discrepancies to the Indiana Department of Health, leading to the discovery of financial irregularities. Welsand shared a message from a farmer who claimed to be owed $27,340 for produce delivered between July and October, a claim that underscored the extent of the financial mismanagement.

The dispute has caused significant unrest within the local farming community. Farmers who questioned PCMโ€™s financial practices were ostracized and faced hostility. Brandi Williams described the atmosphere as โ€œhostile and abusive,โ€ leading her to eventually leave the organization.

The controversy also reached social media, with PCM posting on its Facebook page, defending itself against accusations and labeling critics as racists. This post generated extensive discussion and debate within the Bloomington community.

Julio Alonso, executive director of the Hoosier Hills Food Bank, confirmed that the food bank received nearly 50,000 pounds of food through the LFPA program last year. This year, the food bank is working directly with farmers to ensure transparency and accountability, bypassing PCM.

The Indiana Department of Health is currently seeking a new vendor to manage the LFPA funds for the southwestern region. The goal is to finalize this selection within the next few months, ensuring that the program continues to support disadvantaged farmers and provide quality food to local food banks.


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