Introducing the New Governor's AFID Infrastructure Grant Program

The Governor's Agriculture and Forestry Industry Development (AFID) Infrastructure Grant Program is a new initiative to support community infrastructure projects that promote local food production and sustainable agriculture. Through this program, local governments can access funding to enhance their economic development efforts in the agriculture sector. The AFID Fund offers Facility Grants and Planning Grants to encourage agribusiness growth and industry innovation at the local level. Additionally, the new AFID Infrastructure Grant aims to boost capital investment in local food production and sustainable agriculture, with a focus on supporting small-scale enterprises and infrastructure projects such as farmers' markets, food hubs, and processing facilities.

• Governors AFID Program
• Infrastructure Grant
• Agriculture Development
• Sustainable Agriculture
• Community Projects

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1. Introducing the new Introducing the new Governor s Agriculture and Forestry Industry Development AFID Infrastructure Grant Program A new tool for local governments to support community infrastructure development projects that support local food production and sustainable agriculture 4

2. AFID Fund AFID Fund Background Background In 2012, the General Assembly created Governor s Agriculture & Forestry Industries Development Fund (AFID) Goal: To encourage localities to better incorporate Ag & Forestry into their overall economic development efforts Created two programs: AFID Facility Grant Country cousin to the COF - Economic development incentive for new or expanding agribusinesses creating new jobs, investment and markets for Virginia grown products. AFID Planning Grant Smaller grants helping the broader Ag & Forestry industry through new plans, policies, initiatives and studies at the local level.

3. New AFID Infrastructure Grant New AFID Infrastructure Grant Background Background In 2020, the General Assembly expanded the AFID Grant program to include the new AFID Infrastructure Grant HB 2068 Local Food and Farming Infrastructure Grant Program Introduced by: Delegate Sam Rasoul Goal: To encourage capital investment in local food production and sustainable agriculture to help strengthen local food systems

4. New AFID Infrastructure Grant New AFID Infrastructure Grant Key Features Key Features Reimbursable grants of up to $25,000 Awarded to Counties, Cities, IDAs/EDAs, PDCs to support projects by those entities, non-profits, private businesses or other groups Only one active AFID Infrastructure grant at a time Grant funds must primarily be used for capital expenditures Reduced match for projects in economically distressed localities, underserved communities or for those benefiting multiple small-scale producers

5. AFID Infrastructure Grant AFID Infrastructure Grant Priority Grant Areas Priority Grant Areas Focus is on supporting new infrastructure benefitting multiple, small food and farming enterprises From the Code: Guidelines shall favor projects that establish or maintain: farmers markets food hubs processing facilities that are primarily locally-owned projects that create infrastructure in proximity to small-scale agricultural producers

6. AFID Infrastructure Grant AFID Infrastructure Grant Administration Two grant rounds annually (for now) October 1 November 15; awards announced in December April 1 May 30; awards announced in June Grant period of up to 2 years Up to 75% of funds paid out during grant period; final 25% paid at closeout Reporting requirements: Interim report after 1 year (if needed) Final report at close of project period Administration

7. AFID Infrastructure Grant AFID Infrastructure Grant Matching Funds Matching Funds The Big Picture: Program is meant to be flexible, but to ensure we are supporting high-quality projects, we require there to be strong local support Strong local support is evidenced by applicant s letter of support from applicant s chief administrative official and tangible local match Every AFID dollar must be matched by a dollar brought to the project by the applicant (known as Total Match) To make the program more accessible, reduced match options exist And now into the Weeds!

8. AFID Infrastructure Grant AFID Infrastructure Grant Match Requirements Total Match - Every project must have a dollar-for-dollar match and is comprised of Applicant Match and Other Match Match Requirements Total Match = Applicant Match + Other Match Applicant Match - At least half of local matching funds must come directly from applicant locality(ies) and can be made up of 2 sources Local Cash Match - 50% of the Applicant Match mustbe cash Local In-Kind Match Up to 50% of the Applicant Match can be in-kind contributions, such as staff time, use of locality-owned facilities, etc. Other Match Up to half of Total Match can come from the following eligible sources of cash or in-kind funds: Federal funding Foundation or non-profit contributions, including volunteer hours Tobacco Commission

9. AFID Infrastructure Grant AFID Infrastructure Grant Match Requirements Match Requirements Regular Match Requirements AFID grant Applicant Match: Cash Applicant Match: In-Kind Other Match (Federal funding, foundation/non- profit contributions, Tobacco Commission)

10. AFID Infrastructure Grant AFID Infrastructure Grant Reduced Match Reduced Match The AFID Infrastructure Grant offers two types of match reduction 1. Reduced Applicant Match for Projects in Economically Distressed Localities Provides relief to local governments supportive of the project, but who have limited public dollars to commit by allowing other funders to provide match 2. Reduced Total Match for projects located in under-served areas or projects benefitting multiple producers Incentivizes these desired categories of projects by reducing required Total match by half.

11. AFID Infrastructure Grant AFID Infrastructure Grant Reduced Applicant Match Reduced Applicant Match 1. Reduced Applicant Match for Projects in Economically Distressed Localities Applications still require dollar-for-dollar Total Match, but only 10% of match must be Applicant Match Up to 90% of match can come from Other Match sources (i.e. Federal grants, non-profit contributions, Tobacco Commission funds) Of the required 10% Applicant Match, up to half may be Local In-kind Match (i.e. staff time), at least half must be local cash

12. AFID Infrastructure Grant AFID Infrastructure Grant Reduced Match Reduced Match Reduced Applicant Match Economically Distressed Localities AFID Grant Applicant Match: Cash Applicant Match: In-Kind Other Match (Federal funding, foundation/non- profit contributions, Tobacco Commission)

13. AFID Infrastructure Grant AFID Infrastructure Grant Reduced Total Match Reduced Total Match 2. Reduced Total Match for Projects Benefitting Multiple Producers or Projects in Underserved Communities Applications require only $1 of Total Match for every $2 of AFID Funds requested Projects Benefitting Multiple Producers are those projects directly and tangibly benefitting at least two or more small, independent producers Underserved Communities* identified using USDA Food Research Atlas mapping tool https://www.ers.usda.gov/data-products/food-access-research-atlas/ *Underserved Communities are defined as Low-income census tracts where a significant number of residents is more than 1 mile (urban) or 10 miles (rural) from the nearest grocery store, or a census tract that is adjacent to such a tract that has a poverty rate of 20% or higher or a median family income less than 80% of median family income for the state or metro area

14. AFID Infrastructure Grant AFID Infrastructure Grant Reduced Applicant Match Reduced Applicant Match Reduced Total Match: 2 to 1 *Serving 2+ small producers or underserved communities Reduced Total Match: 2 to 1 *Economically distressed and serving 2+ small producers or underserved communities AFID Grant Applicant Match: Cash Applicant Match: In-Kind Other Match (Federal funding, foundation/non-profit contributions, Tobacco Commission)

15. and now for an educational trip to the City of and now for an educational trip to the City of Exampleton Exampleton and surrounding Example County and surrounding Example County Example County is not economically distressed, while the City of Exampleton is Economically Distressed We will review three projects: 1. New packaging equipment for a meat processing facility 2. Additional coolers for a farmers market 3. New pasteurizer for small dairy

16. AFID Infrastructure Grant AFID Infrastructure Grant Sample Project Sample Project Example #1: Vacuum-pack & labeling machine for local abattoir Example County s favorite meat processing facility needs new packaging equipment that will make local meat producers products look nicer and keep product fresh longer. Total needed for the project: $12,000 $7,000 purchase price of vacuum packing equipment $3,000 purchase price of labeling machine $2,000 for delivery and installation Example County is not economically distressed, but this project will directly benefit multiple small producers

17. Example #1 Example #1 - - Budget Budget To complete the project, Exampleton needs $12,000 in cash Because the project is serving multiple producers, it only requires 2-1 in Total Match, so the AFID award is $8,000 and Total Match requirement is $4,000 Because the project is not in an economically distressed area, the Applicant Match requirement is at least 50% - or $2,000 The project is also being supported by a $2,000 grant from the non-profit United Ag Boosters of Exampleton INCOME SOURCES AMOUNT AFID AWARD $8,000 APPLICANT MATCH Local Cash $2,000 Local In-kind Subtotal Applicant Match $2,000 OTHER MATCH Foundation/Non-profit Cash $2,000 In-kind Tobacco Commission Other $0 Subtotal Other Match $2,000 TOTAL INCOME $12,000

18. AFID Infrastructure Grant AFID Infrastructure Grant Sample Project Sample Project Example #2: New coolers for farmers market City of Exampleton s farmers market is in need of additional refrigerated cooler space for products to support new local foods initiative Total needed for the project: $30,000 $20,000 purchase price of cooler $5,000 contractual to install $5,000 for supplies/materials to outfit the space City of Exampleton is economically distressed and this project will directly benefit multiple producers participating in initiative

19. Example #2 Example #2 - - Budget Budget INCOME SOURCES AMOUNT To complete the project, Exampleton needs all of the funding in cash Because the project is serving multiple producers, the AFID award is $20,000 and the match requirement is $10,000 Because the project is in an economically distressed area, the Applicant Match requirement is reduced to 10% - or $1,000 Additional matching funds have come from Federal Local Food Promotion Grant AFID AWARD $20,000 APPLICANT MATCH Local Cash $1,000 Local In-kind Subtotal Applicant Match $1,000 OTHER MATCH Foundation/Non-profit Cash In-kind Tobacco Commission Other $9,000 Subtotal Other Match $9,000 TOTAL INCOME $30,000

20. AFID Infrastructure Grant AFID Infrastructure Grant Sample Project Sample Project Example #3: New pasteurizer for small dairy Example County s oldest dairy is expanding its direct marketing efforts and needs a larger milk pasteurizer to continue this growth. Total needed for the project: $20,000 $20,000 to purchase and install the new milk pasteurizer Example County is not economically distressed, this project will only serve this one producer and it is not located in an Underserved Community.

21. Example #3 Example #3 - - Budget Budget INCOME SOURCES AMOUNT To complete the project, Example County needs all of the funding in cash Because the project is serving just one producer and is not located in an underserved community, there is a dollar-for-dollar Total Match requirement of $10,000 in Total Match for an AFID award of $10,000 There are no additional funds going to this project (and the dairy is not allowed to contribute to the Total Match) AFID AWARD $10,000 APPLICANT MATCH Local Cash $10,000 Local In-kind Subtotal Applicant Match $10,000 OTHER MATCH Foundation/Non-profit Cash In-kind Tobacco Commission Other Subtotal Other Match $0 TOTAL INCOME $20,000

22. AFID Infrastructure Grant AFID Infrastructure Grant Project Evaluation Project Evaluation Projects will be evaluated for funding on the following: Is the application clear about the problem, why it is important to be addressed and explain how grant funds will be used to address it? Expected impact on the ag and forestry industry, individual producers Likelihood of success in achieving the promised deliverables Demonstration of support from the agricultural community Does project support sustainable agricultural practices and provide needed infrastructure to smaller producers

23. AFID Infrastructure Grant AFID Infrastructure Grant Applying for the Grant Applying for the Grant For interested businesses and non-profits, reach out to your local government representatives (like economic development) to explore local support for the program For local governments, write-up your project idea, sources of funding and share with AFID program staff for feedback Draft, revise and refine application, gather letters of support Submit application and attachments by November 15 Applicants can request additional to obtain support letters If timeline too tight for you this year, next application round opens April 1, 2022 (awards made by June 30, 2022)

24. To learn more or discuss a project idea, To learn more or discuss a project idea, please contact: please contact: Stephen Versen Ph: (804) 786-6911 Stephen.Versen@vdacs.virginia.gov or Jen Perkins Ph: (804) 786-1906 Jennifer.Perkins@vdacs.virginia.gov Virginia Department of Agriculture and Consumer Services http://www.vdacs.virginia.gov/agribusiness