The Indiana State Department of Health will use the money to connect school corporations with local farmers and producers beginning next year.
Indiana farmers could have a harder time determining crop prices this year because the USDA is not releasing a report that tracks supply and demand.
Corn yields are expected to be 64 percent higher than they were last year.
Nearly 80 percent of Indiana's corn has been rated good or excellent.
Farmers in Indiana are having one of the worst crop yields in decades, and they are trying to figure out how to deal with their financial losses.
With 71 percent of Indiana’s corn crop rated in poor to very poor condition, farmers are looking for whatever help they can get.
USDA officials spent Wednesday in northern parts of the state and will head to Johnson County Thursday.
The USDA has declared 55 counties in Indiana natural disaster areas because of the lack of rain.
The USDA is closing an office in Martinsville that offers farmers assistance in applying for loans and complying with federal regulations.
Indiana produces a significant amount of biofuels that could potentially be used in commercial and military airplanes.