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- What is the Local Food Infrastructure Grant Act?
- How much funding can I apply for?
- What is the timeline for incurring costs under this grant funding?
- Is a match required for LFIG funding?
- Can an organization that received grant funding in Fiscal Year 2026 apply again for funding in Fiscal Year 2027?
- What are the criteria for determining a high need project?
- Should I get Letters of Support?
- Will any other documents or information be required during the grant process other than required application documents?
- If my project is awarded grant funds, are there things I can do to speed up the payment process?
What is the Local Food Infrastructure Grant Act?
The Illinois Local Food Infrastructure Grant Act (LFIG) was enacted on August 2, 2024 (Public Act 103-0772). https://www.ilga.gov/Legislation/ILCS/Articles?ActID=4527&ChapterID=40
The LFIG is intended to assist Illinois applicants with purchasing, leasing to own, renting, building, or installation of infrastructure that will increase market access of Illinois agricultural products to Illinois communities. Funding can support value-added processing, livestock processing, milling, dairy, refrigerated vehicles, food hubs, community kitchens and other critical pieces of the local food supply chain.
Administrative Rules - This Part implements the Local Food Infrastructure Grant Act creating the Local Food Infrastructure Grant Program for the development of local food processing, aggregation, and distribution. https://ilga.gov/agencies/JCAR/EntirePart?titlepart=00800340
How much funding can I apply for?
An individual project is eligible for a grant of $1,000-$75,000 [505 ILCS 92/15(2(B)].
A collaborative project is eligible for a grant of $1,000-$250,000 [505 ILCS 92/15(2(A)]. In a collaborative project, only the entity identified as the lead in the application will receive the grant funds.
What is the timeline for incurring costs under this grant funding?
Grant funding can only be used for expenses incurred after the date of the application [8 Ill. Adm. Code 340.30(d)].
Eligible costs must be incurred by June 30, 2027.
For purposes of this grant funding, an incurred cost is an eligible cost for which the grantee has become committed or obligated to pay. A cost is considered incurred when the grantee has done any of the following:
- Received the goods, services, or other deliverables associated with the cost;
- Ordered the goods, services, or other deliverables associated with the cost and can provide proof of the order, such as a dated purchase order or unpaid invoice; or
- Entered into a binding contract that creates a legal obligation for future performance related to the goods, services, or other deliverables associated with the cost.
A cost does not need to be paid to be considered incurred. The existence of a valid obligation is sufficient.
This grant is funded with State fiscal year 2027 (FY27) funds. Regular FY27 payment processing ends mid-August 2027. If any eligible costs cannot be reimbursed by mid-August when normal payment processing channels close, reimbursement may need to be sought through the Illinois Court of Claims. To expedite reimbursement and avoid collection through the Illinois Court of Claims, we strongly recommend that eligible costs are paid for and submitted for reimbursement by August 1, 2027.
Is a match required for LFIG funding?
Matching funds (i.e. comparable investments) are not required for high need projects.
All other projects require a 25% match.
- The recipient's comparable investments may be provided in cash, cash-equivalent investments, bonds, irrevocable letters of credit, time and labor, or any combination of those matching fund sources.
- Acceptable providers of matching funds include, but are not limited to, commercial, municipal, and private lenders; leasing companies; and grantors of funds. [505 ILCS 92/15(3) and 8 Ill. Adm. Code 340.30(c)]
Points will be awarded for:
- Proposals that demonstrate comparable investments by the anticipated recipient 505 ILCS 92/20(e)(6)]. [8 Ill. Adm. Code 340.60(b)(6)]
- Proposals for high need projects [505 ILCS 92/20(e)(7)]. [8 Ill. Adm. Code 340.60(b)(7)]
Can an organization that received grant funding in Fiscal Year 2026 apply again for funding in Fiscal Year 2027?
Yes — but only if the new application is for a different project.
Under 505 ILCS 92/15(1), a project that receives funding in one grant cycle is not eligible to apply for funding in the very next cycle. This restriction also applies to anyone else who might try to apply for funding for that same project.
However, the rule applies to the project, not to the applicant.
An organization that was funded this cycle may submit a new application next cycle as long as the proposed project is truly different from the one that received funding.
To be considered a different project, the new proposal should have, at a minimum:
- A different purpose and scope
- Different activities and expected outcomes
- Its own distinct budget and expenses
- A clear separation from the previously funded project
In short, a funded project must “sit out” the next cycle, but the organization does not have to.
The Local Food Infrastructure Grant Act provides, “A recipient of grant funding under the Local Food Infrastructure Grant Act whose project is funded in a grant cycle is not eligible to apply for grant funding under the Act for that project in the next funding cycle nor is any other person eligible to apply for grant funding for that project in the next funding cycle.” [505 ILCS 92/15(1)]
What are the criteria for determining a high need project?
For proof of "high need":
A) Identification of the critical infrastructure that is needed in the community: what it is, why it is needed, and what other projects or resources are available in the community in that space; or
B) Explanation of who the proposed project will primarily serve, with specific focus on how the project will serve underserved farmers and underserved communities, and an estimate of what percentage of the project's intended beneficiaries will be underserved.
[See 505 ILCS 92/15(3) and 8 Ill. Adm. Code 340.60(c)(3)]
Should I get Letters of Support?
Points will be awarded for proposals that have established favorable community support [505 ILCS 92/20(e)(1)].
To show favorable community support, the application should include at least two letters of support for the project or business, written in the six months preceding application, from different entities that do work in the community.
Letters of support must include:
A) A summary of the relationship between the entity and the applicant;
B) A description of the entity's operations and community impact;
C) Address of the entity;
D) Description of the geographic area the entity operates in or impacts;
E) A summary of the applicant's proposed project. This can be provided by the applicant to the entity but must be included with and or referenced in the letter; and
F) Anything else identified in the application. [8 Ill. Adm. Code 340.60(c)(7)]
Will any other documents or information be required during the grant process other than required application documents?
To move past the award stage, certification with the Illinois Office of Comptroller is required. If the entity applying for the grant is an LLC, the IRS Letter of Determination is required for certification.
There may be questions, clarification, or changes to the project’s budget required.
The above are just examples. If you are asked for additional information or documents from the Department of Agriculture grant team, try to respond timely, so processes are not held up.
If my project is awarded grant funds, are there things I can do to speed up the payment process?
If your project is awarded, the applying entity must be certified with the Illinois Office of Comptroller before your grant agreement can be issued and before any payment can be processed. To achieve certification, your IRS Form W-9 must be correct; and if you are an LLC, an IRS Letter of Determination must be provided showing the LLC’s entity type for tax purposes. This letter would have been received when you formed your LLC. If you cannot locate the letter, you should contact the IRS for a copy.
Also, you can sign up for direct deposit avoiding mail time. The number to call for direct deposit set up is 217/557-0930.