Resilient Food Systems Infrastructure Grants: Paving the Way for Food Resilience

Small farmers and food businesses are the backbone of our local food systems. To support these vital operations, the USDA's Resilient Food Systems Infrastructure (RFSI) Grants program offers significant funding opportunities. This article will guide you through the application process, eligibility requirements, and key tips for a successful submission

Introduction to Resilient Food Systems Grants

The Resilient Food Systems Infrastructure Program (RFSI) was developed by the United States Department of Agriculture (USDA) and Agricultural Marketing Service (AMS) to ensure fair prices and value-added products for consumers, safe jobs, and fair wages for workers, and a more vibrant and accessible market scene for small farms and businesses related to the food system. 

The program addresses critical gaps in the middle of the food chain supply, including processing, aggregation, and distribution. It also supports climate-resilient landscapes and rural economic systems by encouraging applicants to incorporate goals related to climate change mitigation and adaptation.

The program includes two key components:

• Infrastructure Grants: Funding for projects related to processing, storing, transporting, aggregating, wholesaling, and distributing locally produced food products, excluding meat and poultry.
• Supply Chain Coordination: A portion of funds can be used to strengthen supply chain coordination and market development services for local and regional products.

Related: Understanding NRCS High Tunnel Funding

Eligibility and Application Know-How

Who Qualifies for the Resilient Food Systems Grants?

Schools, agricultural producers, non-profits, and tribal entities in the middle of the supply chain may apply. Support for growing, harvesting, post-harvest, or retail activities is not eligible. The middle of the supply chain relates to anything that happens to agricultural products after they’re grown and harvested, including processing, storing, preserving, and distributing them to consumers.

Navigating the Application Process with Ease

• Do your research 
• Use local resources 
• Attend available webinars 
• Mark your calendar with pertinent dates and deadlines 
• Thoroughly review and complete your application early to account for last-minute changes or updates
• Adhere to wordcount requirements and be concise
• Before applying, visit SAM.gov to obtain a Unique Entity Identifier (UEI) number. When applying, provide the UEI, EIN/TIN, or business NAICS, whichever are applicable.

Ask yourself:

• Are my goals realistic?
• Is my plan justifiable? 
• Can I complete my project within the required timeframe? 

Crafting a Winning Proposal

Aligning Your Project with Grant Priorities

RFSI grants focus on the middle of the food chain, with a recent emphasis on climate change mitigation and planning for the next supply chain disruption. Applicants are encouraged to examine their community and explore ways to improve their infrastructure and business to align with the RFSI goals and priorities. Applications that receive investment should have a lasting impact. Proposals should demonstrate lasting community impact and alignment with RFSI goals, such as worker safety and expanding local food systems.

Necessary Documentation for a Strong Application

• Supply matched funds documentation 
• Letter of match verification for each matching source
• Disclosure of use of an independent grant writer 
• Some states allow letters of support but are not required 
• Include catalog prices, applicable contracts, and quotes 
• Project title, budget narrative, and a clear, concise project summary 
• In-kind and cash-match documentation 

Utilizing Funds Effectively

Allowable vs. Ineligible Activities for Grant Use

*Meat and poultry receive funding through other USDA programs and are excluded from this grant program. 

Investing in the Middle of the Supply Chain

RFSI aims to target gaps, identify opportunities, and strengthen the processing of locally and regionally produced food. 

There are two grant tracks, and each applicant can only receive one. 

How Can I Use a Resilient Food Systems Grant?

Examples of applicable infrastructure projects include:

• Improvements in operation through training
• New storing and packing facilities 
• Upgrading to more modern, safer equipment 
• Installing climate-mitigating equipment
• Distribution expansion 
• Solar installation 

Examples of applicable equipment include: 

• Cold storage 
• Chilled transport vehicle for deliveries
• Labeling equipment
• Packing equipment 
• Canners 
• Egg-packing machines 

Equipment-only applicants should clearly explain how funding will enhance the middle of the supply chain workflow and justify all requested expenses. They should also provide a clear price for the requested model equipment.

States need to show how they will prioritize projects that benefit: 

• Worker safety 
• Underserved communities
• Small and medium-scale operations with value-added choices
• Veterans
• New or young farmers
• Emphasize local retailers, wholesalers, and distributors
  

Related: How Food Hubs Can Help Local Foods Get to Market

Match Funding Strategies: Meeting Matching Fund Requirements

For applicants of the Resilient Food Systems Infrastructure (RFSI) grants, understanding and preparing for match funding requirements is a critical step in securing funding. Here’s an in-depth guide to navigating this aspect effectively.

Simplified Equipment-Only Projects
Simplified equipment-only grants do not require any match funding, making them a straightforward option for applicants looking to invest in specific equipment like salad greens washers, packing equipment, or other tools to improve supply chain efficiency. This track eliminates the need to secure additional funds and focuses solely on the impact of the equipment.

Infrastructure Grant Projects
Applicants for infrastructure grants must provide matching funds, depending on their eligibility:

• Standard applicants are required to match 50% of the project cost.
• Historically underserved farmers or ranchers can qualify for a reduced match requirement of 25%. Applicants can self-certify their eligibility for this reduction when applying.

For example, a $100,000 project would require:

• $50,000 in matching funds for standard applicants.
• $25,000 for underserved applicants.

Securing Additional Funding
If your project falls under the infrastructure grant category, here are some effective strategies to meet match requirements:

• In-Kind Contributions
  These non-monetary contributions can make up a significant portion of your match. Examples include:
• Expert advice provided pro bono or at reduced rates.
• Fringe benefits, such as tools, meals, or trainings that are offered to employees as part of their project-related activities.
• Paid time off (PTO) is used for activities like vacation, family leave, or military service that directly supports the project.
• Materials and Services
  Donations of materials or technical services from partners can help fulfill match requirements. Examples include construction supplies, equipment, or operational support.
• Travel
  Travel-related expenses such as transportation, lodging, or meals for project activities may qualify as part of your match funding.

Allowable and Ineligible Matches
Understanding what counts toward your match is essential for compliance:

• Eligible matches include contractor fees, salaries, equipment costs, and services directly tied to the project.
• Ineligible matches include land purchases, general-use vehicles, and expenses unrelated to the grant’s objectives.

Fringe Benefit Contributions
There is no cap on fringe benefits, but contributions exceeding 50% of the total match may require additional justification. Be prepared to provide detailed documentation for these contributions to ensure compliance with USDA requirements.

You can meet match requirements by effectively leveraging in-kind contributions and aligning your funding sources with allowable matches while minimizing out-of-pocket expenses. Proper documentation and alignment with grant guidelines will strengthen your application and increase your chances of success.

After Submission: What Comes Next?

Estimating the Funding Timeline

Each state has individualized deadlines, review processes, funding payout, and completion dates. Review your state’s RFSI website for important deadlines and accounts you must create during the application process. Inquire with your state program contact for details about possible advanced payments. Payouts will adhere to state policies. 

Preparing for Possible Follow-Up Requests

Reviewers may contact the applicant to clarify or remove prohibited activities or costs. If they agree to proceed with the application, they will work with the applicant to modify it to align with the requirements. 

States may require progress reports throughout the process and annually at the end of the year, while others, including equipment-only grants, require notification and proof of project completion. 

Common Mistakes to Avoid

Ineligible Activities That Could Derail Your Application

• Expenses incurred before the contract's effective date or falsifying proof of purchase 
• Direct-to-consumer activities 
• Advertising 
• Lease agreements 
• Not previously approved or justified activities like renovations or electrical system upgrades 
• Submitting duplicate applications for the same project 

Oversight in Match Funding Calculations

• Include personnel hours in the budget summary of those working to complete the project. 
• Document in-kind and cash-match donations to decrease out-of-pocket expenses.
  • Cash matches include investments, money markets, bank loans, and savings account statements. 

Resources and Assistance for RFSIP

Where to Find Application Assistance and Program Contact Information

• AMS website 
• USDA AMS Resilient Food Systems Infrastructure Program - Scope and Requirements 
• Your state’s corresponding RFSI website 
• The National Environmental Protection Act (NEPA) Website
• Overview of Environmental Compliance Awareness Training

Past Webinars and Other Application Resources

• Alabama Department of Agriculture & Industries Virtual Outreach Meeting and RFSI Application Writing Workshop
• Minnesota Department of Agriculture Webinar
• Massachusetts RFSI Listening Session
• Idaho State Department of Agriculture RFSI Grant

FAQs on Resilient Food Systems Grants

How can I determine if my project is eligible for funding?

Eligible applicants must be domestically owned agricultural producers or processors that support the middle of the food chain. They must meet RFSI program requirements, have all the necessary documentation, and have a robust application that aligns with program goals. 

What are common reasons for application rejection, and how can I avoid them?

Consider these federal, state, and local regulations: 

• National Environmental Policy Act (NEPA)
• Endangered Species Act (ESA)
• Clean Air Act (CAA)
• Clean Water Act (CWA)
• Toxic Substances Control Act (TSCA)
• Noise Control Act (NCA)
• Food Quality Protection Act (FQPA)
• National Historic Preservation Act (NHPA)

Failure to adhere to these regulations may result in application rejection. 

Unallowable projects: 

• Projects that have previously received funding
• The purchase of land, buildings, or general-use vehicles  
• Projects including previously listed ineligible products

Eligible parties must select one grant track only and submit one application. This FAQ page clarifies the program scope and gives examples of questionable projects.  

Are there any particular focus areas or priorities for this year’s grants?

Current applications focus on underserved farmers and ranchers, new farmers and ranchers, veterans, and socially disadvantaged farmers, producers, and ranchers, as defined by the Small Business Administration (SBA). Projects that create jobs and have significant community impact may receive priority. 

How does matching funding work, and what counts toward it?

Matches can be any combination of in-kind contributions and cash matches. 

Building Resilience with the Right Tools and Funding

The Resilient Food Systems Infrastructure (RFSI) program offers a unique opportunity to fortify the middle of the food supply chain. By supporting small farmers and food businesses, the program enables improved processing, storage, and distribution of locally produced goods. Applicants can align their projects with RFSI goals to create a more sustainable and resilient food system, focusing on impactful post-harvest activities such as upgrading processing facilities, enhancing storage capabilities, or optimizing distribution networks.

Ready to strengthen your food system’s infrastructure? Start your application today and take the first step toward creating a more resilient future for your community. Visit the USDA RFSI website for details and resources to get started!

FAQ

Why are resilient food systems important?

A resilient food system ensures access to healthy, affordable food, even amid climate change, economic downturns, and other unforeseen challenges. The RFSI program recognizes this need and provides crucial funding to strengthen the middle of the food supply chain. By investing in processing, aggregation, and distribution infrastructure, RFSI empowers small farmers and food businesses to build resilience, create jobs, and revitalize rural communities.

Managing how we respond to these disruptions from a governmental standpoint will keep food accessible. A resilient food system anticipates surmounting issues like an upcoming drought or labor strike, keeps small farms viable, transporters in business, and healthy food on tables, even in times of unrest. By ensuring healthy communications within organizations and increased mental health awareness, teams will be ready to face the next inevitable crisis, as indicated in the article Preparing for the Next Pandemic by Tom Inglesby.  

What states qualify for resilient food system funding? 

RFSI has awarded funding to 56 states and territories. When a state submits its application for funding through the USDA, its plan should be backed by public and local support after researching community needs. 

Once approved for financing, states reach out to target parties interested, willing, and able to apply and complete the projects, who are historically underserved and would benefit greatly from this funding. If you’re wondering if you fit into this category, read more about it on the NRCS website here. Approved states then distribute funds through competitive sub-awards to projects that improve supply chain infrastructure for domestic food and farm businesses.

This program is authorized under Section 1001(b)(4) of the American Rescue Plan Act of 2021 to maintain and improve food and agricultural supply chain resiliency.