U.S. Department of Agriculture: Local Food Promotion Program

The Local Food Promotion Program (LFPP) funds projects that develop, coordinate and expand local and regional food business enterprises that engage as intermediaries in indirect producer to consumer marketing to help increase access to and availability of locally and regionally produced agricultural products. The program focuses on:

• Supporting and promoting local and regional food business enterprises that engage as intermediaries in indirect producer-to-consumer marketing
• Supporting the processing, aggregation, distribution, and storage of local and regional food products that are marketed locally or regionally, including value-added agricultural products
• Encouraging the development of value-added agricultural products
• Assisting with business development plans and feasibility studies
• Developing marketing strategies for producers of local food products and value-added agricultural products in new and existing markets
• Facilitating regional food chain coordination and mid-tier value chain development
• Promoting new business opportunities and marketing strategies to reduce on-farm food waste
• Responding to changing technology needs in indirect producer-to-consumer marketing
• Covering expenses relating to costs incurred in obtaining food safety certification and making changes and upgrades to practices and equipment to improve food safety

LFPP offers Planning and Implementation project types:

Planning projects are used in the planning stages of developing, coordinating, or expanding a food business that supports locally and regionally produced agricultural products and food system infrastructure. Activities include developing, coordinating, and expanding such businesses. Projects may include:

• Completing a feasibility study for a new intermediary food channel (i.e., food hub)
• Hiring experts for technical assistance to implement a local/regional food transportation system
• Hiring experts for training on managing a local/regional food storage or processing facility
• Devising a business development plan associated with the processing/marketing of local/regional agricultural products, including value-added agricultural products

Implementation projects are used to establish a new food business or to improve or expand an existing food business that supports locally and regionally produced agricultural products and food system infrastructure. Activities include developing, coordinating, or expanding, such businesses. Projects may include:

• Developing or expanding food incubator programs or mid-tier value chains
• Instituting group-based Good Agricultural Practice (GAP) certification for sellers of food into institutional or wholesale marketing channels, including providing financial support for making changes and upgrades to practices and equipment to improve food safety
• Cultivating new wholesale market channels through online portal or virtual marketplace
• Investigating and implementing more cost-effective means of transportation for food supply chains through backhaul, route optimization, and/or other operational efficiencies

Priority consideration will be given to projects that benefit communities located in areas of concentrated poverty with limited access to supermarkets or locally or regionally grown food.

Amount: Approximately $11,500,000 is available to fund Planning grants ranging from $25,000-$100,000 for a project period of 18 months; and Implementation grants ranging from $100,000-$500,000 for a project period of 36 months.

Eligibility: Agricultural businesses, agricultural cooperatives, producer networks, producer associations, community supported agriculture (CSA) networks, CSA associations, local governments, nonprofit corporations, public benefit corporations, economic development corporations, regional farmers market authorities, food councils, and Tribal governments.

Link: https://www.grants.gov/web/grants/view-opportunity.html?oppId=315002

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