RFSI Frequently Asked Questions

The purpose of the Resilient Food Systems Infrastructure Program (RFSI) program is to develop and administer state coordinated initiatives to build resilience across the middle of the State’s food supply chain for food crops. Funds will support expanded capacity for the aggregation, processing, manufacturing, storing, transporting, wholesaling, and distribution of locally and regionally produced food products, including specialty crops, dairy, grains for consumption, aquaculture, and other food products, excluding meat and poultry. The State Department of Agriculture will work in partnership with USDA to make competitive subaward investments in middle of the supply chain infrastructure (Infrastructure Grants) to domestic food and farm businesses and other eligible entities.

Please email rfsi@scda.sc.gov.

To find RFSI Scope and Requirements, as well as the AMS Terms and Conditions, please visit ams.usda.gov/rfsi.

• Agricultural producers or processors, or groups of agricultural producers and processors.
• Nonprofit organizations operating middle-of-the-supply-chain activities such as processing, aggregation, distribution of targeted agricultural products.
• Local government entities operating middle-of-the-supply-chain activities such as processing, aggregation, distribution of targeted agricultural products.
• Tribal governments operating middle-of-the-supply-chain activities such as processing, aggregation, distribution of targeted agricultural products.
• Institutions such as schools, universities, or hospitals bringing producers together to establish cooperative or shared infrastructure or invest in equipment that will benefit multiple producers middle-of-the-supply-chain activities such as processing, aggregation, distribution of targeted agricultural product.

• Expand capacity for processing, aggregation and distribution of agricultural products to create more and better markets for producers.
• Modernize manufacturing, tracking, storage, and information technology systems.
• Enhance worker safety through adoption of new technologies or investment in equipment or facility improvements.
• Improve the capacity of entities to comply with federal, state, and local food safety requirements.
• Improve operations through training opportunities.
• Support construction of a new facility.
• Modernize or expand an existing facility (including expansion and modifications to existing buildings and/or construction of new buildings at existing facilities).
• Construction of wastewater management structures, etc.
• Modernize processing and manufacturing equipment.
• Develop, customize, or install equipment that reduces greenhouse gas emissions, increases efficiency in water use, improves air and/or water quality, and/or meets one or more of USDA’s climate action goals.

Infrastructure Grant Application Period:
December 20, 2023 – March 1, 2024

Simplified Equipment-Only Grant Application Period:
December 20, 2023 – February 9, 2024

rfsi@scda.sc.gov

The food supply chain involves the following stages: 1. Production, 2. Processing, 3. Aggregation/Distribution, and 4. Markets/Consumers.

For the purposes of RFSI, “middle-of-the-supply-chain” refers to the middle stages: 2. Processing and 3. Aggregation/Distribution.

An Infrastructure Grant is a subaward that will fund projects to expand capacity and infrastructure for the aggregation, processing, manufacturing, storing, transporting, wholesaling, or distribution of targeted agricultural products.

Minimum of $100,000 and maximum of $2,400,000.

It is unallowable for Infrastructure Grant recipients to issue subawards.

If needed, USDA’s Regional Food Business Centers offer Business Builder Grants in amounts up to $100,000.

For-profit entities operating middle-of-the-supply-chain activities such as processing, aggregation, or distribution of targeted agricultural products, whose activities are primarily focused for the benefit of local and regional producers, and that meet the eligibility requirements of the SBA small business size standards are eligible.

For-profit entities must meet the eligibility requirements of the SBA small business size standards matched to industries described in the North American Industry Classification System (NAICS). For more information on these size standards, please visit SBA’s Size Standards webpage. For a quick check on whether your business qualifies, please use the Size Standards Tool.

No, funds cannot be use for agricultural production activities/costs including farm equipment, tools, supplies, gardening, or production related labor/training.

RFSI funds may be used for improvements, rearrangements, or alterations of an existing building or facility to use a space more effectively and to accommodate new or upgraded equipment and processes.

Funds may also be used for new construction of buildings or structural changes to an existing building/ facility resulting in a square foot expansion or requiring changes to the building’s floor, foundation, and exterior or load bearing walls.

No. It is unallowable to use grant funds for the acquisition of buildings, facilities, or land.

Special purpose vehicles relevant to the scope of work on an Infrastructure Grant project, such as delivery vehicles or refrigerated trucks, are allowable. However, the purchase of a general use vehicles is not allowable.

Yes. Funds may be used to repair or update existing equipment.

Eligible retail related activities can include creating distribution channels to new retail opportunities, or expanding processing and packaging capacities, including adding product types, increasing production volumes, and supporting new retail product lines.

Yes. These projects offer a simplified application to fund smaller grants between $10,000 and $100,000 for equipment purchases. The Simplified Equipment-Only option is a Fixed Price Grant, meaning it will fund only equipment purchases (and not associated facility upgrades, staffing, or other costs), and the amount awarded will be equal to the cost of the equipment up to $100,000. No match is required for this grant type.

Yes, however the equipment must be new to the applicant and in good working condition.

Equipment only grants do not have a minimum requirement of $5,000 for each piece of equipment. You can purchase multiple pieces of equipment as long as it remains under $100,000/ meets the $10,000 minimum in total, the purchases are made at the same time, and they support middle of the supply chain efforts. All pieces of equipment must fit under one project.

If your equipment purchases are greater than $100,000, you must be able to prove you are able to pay the overage.

Minimal installation and delivery fees that are included within the equipment total from the vendor/manufacturer can be allowable if it is included within the quote/invoice from the vendor/manufacturer. However, please note, hiring a contractor that will buy the equipment and do the installation and any of the modifications (i.e. electrical) would not be allowable under the Equipment Only Grants.

Food banks are included in the definition of ‘Institution’ in the RFSI Scope and Requirements, thus eligible to apply for RFSI funding, contingent on the types of activities they are doing. The definition of ‘institution’ includes that they must be “bringing producers together to establish cooperative or shared infrastructure or invest in equipment that will benefit multiple producers middle-of-the-supply-chain activities such as processing, aggregation, distribution of targeted agricultural product.” Food banks may also qualify as a ‘nonprofit organization’ or another entity type, again with the requirement that they meet the second part of each eligible entity description. For instance, in ‘nonprofit organization’ that includes only those that are “operating middle-of-the-supply-chain activities such as processing, aggregation, distribution of targeted agricultural products.”

Yes, if the activities are primarily focused on the middle-of-the-supply-chain and will increase market opportunities for local and regional producers.

Projects that expand capacity for the middle of the supply chain of aquaculture products are eligible for funding. USDA defines aquaculture as the production of aquatic organisms under controlled conditions throughout part or all their lifecycle. Wild-caught seafood is an ineligible product.

No. Meat and poultry products are not eligible under RFSI.

Yes. Honey, eggs, and dairy are allowable. However, the cultivation/extraction of honey is considered harvesting, and not eligible for related infrastructure or equipment grant funding.

Yes, this is considered a post-harvest activity.

No.

Yes, if used for storage or another specialized purpose.

No. Greenhouses are considered to be production activities.

Cost sharing or matching is the portion of project costs not paid by the Federal funds, which could be cash and/or in-kind contributions. Cash can be a financial outlay, or cash donations from non-Federal third parties. In-kind can be the value of non-cash contributions typically in the form of value of personnel, goods, and services, including direct and indirect costs. Other Federal funds cannot be used as match. (See 2 CFR §§ 200.1 and 200.306.)

Yes, applicants may apply for both an Infrastructure Grant and/or an Equipment-Only Grant, however, will only receive grant funding from one grant program, not both.

Yes, Infrastructure Grant Recipients require a match. The program requires cost sharing or matching of 50% of the project cost as a match to federal funding. For underserved farmers and ranchers, a reduced match contribution is required at 25% of the project costs.

Qualifying applicants for the Infrastructure Grant projects will self-certify their eligibility for the 25% reduced match to 25%. For historically underserved farmers and ranchers, or for other businesses that qualify under SBA categories of Small disadvantaged business, women-owned small business, or veteran-owned small business, the required match funding Resilient Food Systems Infrastructure Grant (RFSI) contribution or cost share is reduced to 25% of the project cost. States must require that applicants self-certify in their RFSI Infrastructure Grant Proposal Template applications that they are eligible for this reduced match.

Labor/personnel time may be used as a match for the percentage of time the person is working on the project. For example, if someone is only spending 15% of their time working on the project, then you can only bring that 15% to the project as a match. Also, you must ensure that what you would normally pay that individual is reasonable according to standard personnel rates for similar positions in your geographic locality.

Yes, it is allowable to use unrecovered indirect costs as part of cost sharing or matching. Unrecovered indirect cost means the difference between the amount charged to the Federal award and the amount that could have been charged to the Federal award under the potential recipients approved negotiated indirect cost rate.

Yes and No. Acquired real property, including land, is an unallowable cost and therefore cannot be used to meet the match requirement.

Rental costs are an allowable cost and may be used to meet match requirements.

Yes, any application that may have ground disturbing activities needs to comply with NEPA, Section 106 of the National Historic Preservation Act, and other state, local and tribal laws.

Build America, Buy America (BABA) Overview: Any public infrastructure project funded under RFSI must coordinate with AMS to ensure adherence to BABA guidance. For such projects, the recipient must comply with the Buy America Sourcing requirements outlined in the Build America, Buy America (BABA) provisions of the Infrastructure Investment and Jobs Act.

For-Profit Entities: BABA is not applicable to for-profit entities (either prime or subrecipient) particularly for infrastructure projects. AMS will review facilities owned by public entities to determine whether BABA requirements apply, following USDA guidance to exempt de minimis grant awards and other inapplicable activities. All other Infrastructure Grant entities that surpass the $250,000 threshold of applicable procurement costs must adhere to BABA.

Small Grants Waiver: The small grants waiver will apply to awards with total federal funding below the Simplified Acquisition Threshold, which is currently set at $250,000. BABA is not applicable to Equipment Only Grants as they do not surpass this threshold of $250,000.

Resource: 2 CFR Part 184 – BUY AMERICA PREFERENCES FOR INFRASTRUCTURE PROJECTS: https://www.ecfr.gov/current/title-2/part-184

National Environmental Policy Act (NEPA) Overview: All activities funded under this RFA must comply with the National Environmental Policy Act (NEPA) and related applicable agency regulations and instructions, Section 106 of the National Historic Preservation Act (NHPA), the Endangered Species Act (ESA), other laws and regulations as outlined therein, and any applicable state, local, or tribal laws. A review for NEPA compliance is required prior to the award of grant funds. If selected for an award, applicants must provide all requested information to support compliance with NEPA, NHPA, ESA, and all other federal environmental laws and regulations.

Resource: A Citizen’s Guide to NEPA (doe.gov) is a relatively short guide that provides an overview of NEPA requirements.

Yes, Subawardees are required to obtain a UEI in SAM.gov prior to being issued a subaward.

No, there is NO cost to register in SAM.gov. If you receive notification on having to pay to renew your account beware that it is likely a SCAM and should be reported to the appropriated authorities.

Yes. A non-profit can also be considered for underserved if their board of directors and/or owners/operators meet at least 51% underserved status.

Upon notification of inclusion in the accepted State Plan, pre-award costs are allowable, if necessary, for efficient and timely performance of the scope of the project work up to 90 calendar days prior to the start date without prior approval.

All costs incurred before the award is made are at the applicant’s risk. The incurrence of pre-award costs in anticipation of an award imposes no obligation on SCDA to award funds for such costs.

A group of producers would need to be a part of a cooperative or LLC. The applicant entity will need to have a UEI in order to apply.

Government entities and institutions cannot qualify for the reduced match as they do not meet any of the criteria listed under section 1.5.3 of the Program Scope and Requirements.

Transportation to the market would be allowable, however, cold storage/aggregation at the end of the supply chain (i.e. grocery stores/markets, food pantries/banks, farmers markets, etc.) would not be allowable. Projects should be focused on creating more and better market opportunities for local and regional producers within middle of the supply chain activities.