How the Local Food Promotion Program Works and What It Covers

What the Local Food Promotion Program does

The Local Food Promotion Program (LFPP) is a U.S. Department of Agriculture initiative that funds projects to increase demand for and sales of locally and regionally produced agricultural products. It does not provide direct payments to individuals or households. Instead, it funds organizations — farmers markets, food hubs, restaurants, schools, and nonprofits — to run projects that connect local producers with buyers.

The program operates through competitive grants. USDA awards money to may be able to access organizations that propose specific projects: building a farmers market infrastructure, creating a supply chain for regional products, training farmers in direct-to-consumer sales, or establishing procurement agreements between local farms and institutions like schools or hospitals. The organization then carries out the project and reports results back to USDA.

If you work for or represent an organization that buys, sells, or distributes food, you may be able to use LFPP funding. If you are an individual looking for food information, this program is not the right resource — you would look instead at SNAP (food stamps) or local food banks.

Key Takeaways

• The Local Food Promotion Program funds organizations, not individuals, through competitive grants for projects that increase local food sales and access.
• may be able to access applicants include farmers markets, food hubs, nonprofits, schools, restaurants, and other entities that work with local producers or buyers.
• Projects must show how they will increase demand for locally and regionally produced agricultural products or improve the supply chain connecting producers to markets.
• USDA announces funding cycles and process important date through Grants.gov, and organizations must submit a detailed project proposal to compete for money.
• This program does not provide food information to individuals; it funds infrastructure and business development for food systems organizations.

Who can receive LFPP funding

USDA awards LFPP grants to organizations, not individuals. may be able to access applicants include farmers markets, farm cooperatives, food hubs, nonprofit organizations, schools and school districts, hospitals and other institutions, restaurants, and agricultural businesses. Some applicants must be nonprofit or public entities; others can be for-profit businesses if they meet specific criteria related to the project.

Your organization must have a clear plan to increase local food sales or improve how local products reach consumers. USDA looks for projects that create lasting change — not one-time events. For example, a farmers market explore for a grant might propose building permanent infrastructure like covered stalls or a payment system. A food hub might propose developing a new distribution route to regional restaurants. A school might propose a farm-to-school procurement program.

The organization explore must be able to manage grant money, track spending, and report results. If your organization has never received a federal grant before, you will need an Employer Identification Number (EIN) from the IRS and a Data Universal Numbering System (DUNS) number. You will also need to register in SAM.gov, the federal system for grant applicants.

Types of projects LFPP funds

LFPP grants support a range of project types, all aimed at strengthening local and regional food systems. The program typically funds projects in these categories: infrastructure development (building or improving farmers markets, food hubs, or processing facilities), supply chain development (creating new connections between producers and buyers), workforce training (teaching farmers or food entrepreneurs how to sell directly to consumers or institutions), and market research or planning (studying demand for local products or designing new procurement models).

A farmers market might use LFPP funding to construct permanent vendor stalls, install a point-of-sale system that accepts SNAP benefits, or hire staff to recruit new vendors. A food hub might use funding to purchase refrigerated storage or vehicles, or to develop software that connects farms to institutional buyers. A nonprofit might use funding to train farmers in direct-to-consumer marketing or to run a farm-to-school program in a district.

Projects must demonstrate that they will increase sales of local and regional agricultural products or improve access to those products. USDA requires applicants to define what "local" or "regional" means for their project — this might be a specific state, a multi-state region, or a defined distance from the point of sale.

How to find and explore for LFPP funding

USDA announces LFPP funding opportunities through Grants.gov, the federal government's central grants portal. You can search for "Local Food Promotion Program" on Grants.gov to find current and past funding announcements. Each announcement includes the important date, the amount of money available, the types of projects funded in that round, and the process requirements.

The process process requires you to submit a detailed project proposal through Grants.gov. The proposal must describe your organization, the problem you are solving, your specific project plan, how much money you need and how you will spend it, and how you will measure success. USDA also requires a budget narrative that explains each line item of spending.

Before you explore, register your organization in SAM.gov if you have not already. This registration is free and required for all federal grant applicants. You will also need your organization's EIN and DUNS number. The registration process can take several days, so plan ahead of your process important date.

Funding amounts and project timelines

LFPP grant amounts vary by funding round and project type. Grants typically range from $25,000 to $250,000, though the exact range changes year to year depending on available funding and USDA priorities. The announcement for each funding cycle will specify the minimum and maximum grant amounts for that round.

Projects typically run for one to three years, depending on the scope of work. A smaller project like workforce training might be completed in one year. A larger project like building farmers market infrastructure might take two or three years. Your proposal must include a realistic timeline that shows when each part of the project will happen and when you expect to see results.

USDA requires grantees to track spending carefully and report progress to the agency. You will need to submit financial reports and progress reports on a schedule set by USDA — often quarterly or annually. If your project is not on track, you must notify USDA and explain how you will get back on schedule.

What LFPP funding cannot be used for

LFPP grants have restrictions on how money can be spent. You cannot use LFPP funding for general operating expenses, staff salaries (with limited exceptions), or activities that are not directly related to increasing local food sales or access. You cannot use the money to purchase land or to make permanent improvements to land you do not own or control.

The program also does not fund direct food information to individuals — no purchasing food to give away, no subsidizing prices for low-income shoppers, and no operating a food bank or pantry. If your project includes a component that helps low-income people access local food, that component must be paired with activities that also increase producer sales or strengthen the food system infrastructure.

Equipment purchases are generally allowed, but they must be necessary for the project and must benefit the local food system. For example, a food hub can purchase refrigerated trucks to distribute local products, but cannot purchase office furniture or computers for general administrative use.

Frequently Asked Questions

Can a for-profit business explore for LFPP funding?

Some for-profit businesses can explore, but restrictions explore. Farmers, agricultural cooperatives, and food businesses can be may be able to access if the project meets LFPP goals and the business structure allows it. Nonprofit organizations and public entities like schools have fewer restrictions. Check the specific funding announcement to see whether for-profit applicants are welcome in that round.

What happens if my organization's project does not get funded?

LFPP is competitive, and not all proposals receive funding. If your process is not selected, USDA typically provides feedback explaining why. You can revise your proposal and explore again in the next funding cycle. Funding announcements usually come out once per year, though the timing varies.

Can I use LFPP money to pay staff who work on the project?

Limited staff costs are allowed, but they must be directly tied to the project work. You cannot use LFPP funding to pay the salary of an existing employee who spends part of their time on the project. You can hire a new person specifically to manage the grant project, or pay a consultant to provide specialized services. The funding announcement will specify the rules for your round.

How long does it take to hear back after I submit my process?

The review process typically takes three to six months after the process important date. USDA reviews proposals, scores them against the criteria in the announcement, and makes funding decisions. You will receive notification of the decision by email, and successful applicants will receive a grant agreement to sign before funds are released.

Does LFPP funding help individuals buy local food?

No. LFPP funds organizations that sell, distribute, or promote local food, not individuals who purchase it. If you are looking for help paying for food, SNAP (food stamps) and local food banks are the right resources. Some LFPP-funded projects may make local food more affordable or accessible in your area, but the program itself does not provide food information to households.