Illinois Local Food Infrastructure Grant

The Local Food Infrastructure Grant (LFIG) Program, administered by the Illinois Department of Agriculture, was established under the Local Food Infrastructure Grant Act [505 ILCS 92]. The grant aims to support the development and expansion of local food systems across Illinois by enhancing infrastructure for processing, aggregation, storage, and distribution of value-added agricultural products. The fund may also be administered through a subcontracted 501(c)(3) nonprofit organization representing farmers. LFIG targets a broad spectrum of entities involved in the food supply chain, including small farms, food cooperatives, food hubs, local governments, and nonprofit organizations operating within Illinois. Funding under this program can be used for purchasing, leasing, renting, constructing, or installing equipment or facilities that facilitate value-added processing or improve cold chain logistics, among other eligible infrastructure needs. Examples include creamery equipment, refrigerated trucks, syrup evaporators, mobile slaughter units, and aggregation tools such as labeling or sorting systems. However, funds may not be used for wages, marketing, agricultural production infrastructure, or facility/land purchases. Eligible proposals must center on post-production infrastructure that enhances access to Illinois agricultural goods. Entities must meet specific eligibility criteria including being an Illinois-based business, nonprofit, or governmental unit with fewer than 50 employees. Applicants must be registered and compliant with both SAM.gov and the Illinois GATA portal. Collaborative proposals are allowed but must designate a lead entity responsible for reporting. High-need projects—those filling critical infrastructure gaps or serving underserved communities—may qualify for waivers of the 25% matching requirement otherwise required for all projects. Applicants must submit a detailed project proposal, financial records, ownership information, proposed budgets including matching fund sources, and notarized attestations. The grant application must also detail whether the project is new or existing and if it has received or applied for other public funding. For collaborative efforts, additional documentation is needed to show past partnerships and the roles of each participant. Applications will be evaluated on criteria such as their potential to increase access to Illinois-grown products, financial soundness, alignment with grant goals, community support, and the degree to which they benefit underserved communities or farmers. Extra points may be awarded for projects that demonstrate long-term economic development potential, prior establishment in the industry, and provision of comparable investments. All applicants will receive written notification of acceptance or denial. Awardees will enter into a formal grant agreement, and funds will be disbursed on a reimbursement basis with quarterly reporting requirements. Grants are capped at $75,000 for individual projects and $250,000 for collaborative efforts, and the program will distribute up to $1.8 million total. This grant is recurring, with rules adopted in October 2025, and applications expected to reopen annually.

Projects that prioritize underserved communities, show realistic budgets, or provide high-need justification are prioritized.