MGFSP Frequently Asked Questions | Agricultural Marketing Service

Updated 5/10/2022

Program Overview:

Question: What is the purpose of the Microgrants for Food Security Program (MGFSP)?

Answer: The purpose of MGFSP is to increase the quantity and quality of locally grown food through small scale gardening, herding, and livestock operations in food insecure communities in areas of the United States that have significant levels of food insecurity and import a significant quantity of food.

Question: What type of grant is the MGFSP?

Answer: MGFSP is a non-competitive grant program available to eligible States and territories for the distribution of funds through a sub-grant program to eligible entities.

Eligibility:

Question: Who is considered an eligible State or territory for MGFSP?

Answer: MGFSP is available only to state or territory departments of agriculture in Alaska, Hawaii, American Samoa, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the Federated States of Micronesia, Guam, the Republic of the Marshall Islands, the Republic of Palau, and the United States Virgin Islands.

Question: Who is considered an eligible entity for a MGFSP sub-grant?

Answer: The term "eligible entity" means an entity located in one of the eligible states or territories. Eligible entities are:

An individual
An Indian tribe or tribal organization
A nonprofit organization engaged in increasing food security (E.g., food bank, food pantry religious organization)
A federally funded educational facility, or
A local or Tribal government that may not levy local taxes under State or Federal law.

More information on eligible entities can be found in the MGFSP Request for Applications (RFA).

Question: If I live outside the list of eligible states and territories, can I apply for a MGFSP sub-grant?

Answer: No. Only eligible entities located in a MGFSP recipient state or territory can apply for a sub-grant.

Question: Who is a grant recipient and sub-recipient for MGFSP?

Answer: A grant recipient is an eligible state or territory department of agriculture who has applied for and received a MGFSP award, then uses their award to hold a competitive process to select sub-recipients in their state or territory.

A sub-recipient is an eligible entity that has applied for and received a sub-grant directly from an eligible state or territory through the state or territory’s competitive process.

Question: Is a sole proprietorship, LLC or L-Corp eligible to apply for a sub-grant?

Answer: No, a sole proprietorship and/or LLC are not eligible to apply for a MGFSP sub-grant.

Application/Submission:

Note: This section discusses the general administration of the program. The sub-grant program offered in each eligible state or territory may vary. Please contact the respective state or territory department of agriculture for more information.

Question: How can eligible organizations and individuals apply to MGFSP sub-grants?

Answer: Interested entities should contact the respective state or territory department of agriculture to learn more about the MGFSP competitive sub-grant application process.

Once an eligible state or territory receives an MGFSP grant, the state or territory has up to one year to conduct a competitive sub-grant process to award funding to eligible entities within that state or territory. Each state or territory is responsible for defining specific details of its program, announcing the availability of funding, and conducting public outreach.

Question: What eligible states or territories are currently offering MGFSP sub-grants?

Answer: MGFSP sub-grant programs are currently being offered in Alaska, American Samoa, Guam, Hawaii, Northern Mariana Islands, and the U.S. Virgin Islands.

Question: Why does my eligible state or territory not offer MGFSP sub-grants?

Answer: Not every eligible state or territory applies for their share of MGFSP funding. This decision is entirely up to the state or territory.

Funding Priorities:

Question: What funding priorities are available under MGFSP?

Answer: MGFSP funds are only available to the eligible states and territories. A state or territory may prioritize eligible entities that have not previously received a MGFSP sub-grant, or that are in a community or region of that state or territory with the highest degree of food insecurity.

Question: If I have received an MGFSP sub-grant, can I apply for another one in the future?

Answer: Yes. However, the state or territory in which you are applying for the additional sub-grant has the option to prioritize funding for new recipients.

Matching Funds:

Question: Is there a match requirement for MGFSP?

Answer: There is not a match requirement for an eligible state or territory to apply for MGFSP. However, there is a 10% cash match requirement for eligible entities applying for a sub-grant.

Question: Can the match requirement be waived?

Answer: The state or territory can waive the match requirement for an individual. The match requirement cannot be waived for non-individual eligible entities.

Question: What is considered a cash match?

Answer: A cash match is the eligible entity’s cash funds, or cash donations received from other non-federal resources.

Question: Can an eligible entity provide matching contributions above the requirement?

Answer: Yes. However, any exceeding amount will be considered voluntary and must be documented and secured at the time of the award.

Grant Administration:

Question: Is there a minimum or maximum sub-grant amount for MGFSP?

Answer: The eligible state or territory will determine sub-grant amounts offered for each eligible entity type. Sub-grant amounts may not exceed $5,000 per individual and $10,000 per non-individual entity.

Question: What is the project period for an MGFSP sub-grant project?

Answer: The eligible state or territory will determine sub-grant project periods offered to eligible entities. An MGFSP sub-grant may not exceed 3 years in length.

Question: What are MGFSP grantee requirements and grant reporting timelines?

Answer: Reports are due on an annual basis. The grantee’s administrative duties for MGFSP (including reporting requirements) are outlined in the AMS General Terms and Conditions (pdf).

Question: What are MGFSP sub-recipient requirements and grant reporting timelines?

Answer: Reports are due on an annual basis. The eligible state or territory will provide reporting requirement information to their sub-recipients.

Question: Are the MGFSP sub-grants considered taxable income?

Answer: Yes, the MGFSP sub-grant may be taxable. Please contact your state or territory for more information.

Allowability of Costs:

Question: Can MGFSP funds be used to purchase land or buildings?

Answer: No. Funds cannot be used for the purchase of land or buildings.

Question: Can MGFSP sub-grant funds be used for construction costs?

Answer: Construction costs (such as the purchase of building materials such as wood, nails, bolts, screws, rebar, gravel, sand, etc.) may be allowable under MGFSP if used to complete activities that increase the quality and quantity of locally grown food. Such activities may include but are not limited to, erecting greenhouse structures, grow houses, high tunnels, chicken coops, apiaries or bee boxes, etc.

Note: AMS offers architectural design technical assistance at no cost. For more information, visit https://www.ams.usda.gov/services/local-regional/facility-design.

Question: Are production costs allowable for MGFSP sub-grants?

Answer: Yes. Farm, gardening, and production costs are allowable costs under MGFSP. These may include but are not limited to, compost, composting units, soil, soil amendments, seeds, plants, feed, wiring, shovels, farm or gardening tools, grow towers, hoop houses, high tunnels and high tunnel kits, and greenhouses.

Question: Is the purchase of animals allowable for MGFSP sub-grants?

Answer: Yes. The purchase of animals is allowable under MGFSP. Animals may include but are not limited to, chickens, ducks, bees, fish, and livestock, such as cows, pigs, goats, sheep, etc.

Question: Is the purchase of processing equipment allowable for MGFSP sub-grants?

Answer: Yes. Processing equipment may be an allowable cost under specific conditions. Refer to the AMS General Terms and Conditions, Section 8, for special purpose equipment.

Question: Is hydroponic and/or aeroponic farming allowable for MGFSP sub-grants?

Answer: Yes. Hydroponic and/or aeroponic farming are allowable under MGFSP.

Question: Are tools and equipment used to store food allowable for MGFSP sub-grants?

Answer: Yes. Tools and equipment used for the purpose of storing food are allowable costs under MGFSP. These may include but are not limited to, canning equipment, refrigeration units, freezers, etc.

Question: Are subsistence activities, such as hunting and fishing, allowable for MGFSP sub-grants?

Answer: Yes. Subsistence hunting and fishing operations, including fish farming, are allowable activities under MGFSP.

Question: Are hunting and fishing tools and equipment allowable for MGFSP sub-grants?

Answer: Yes. Hunting and fishing supplies or equipment may be allowable costs under MGFSP. However, the purchase of any classification of firearm, gun or ammunition is unallowable.

Question: Is fencing allowable for MGFSP sub-grants?

Answer: Yes. Building, buying, erecting, or repairing fencing for livestock, poultry, or reindeer is allowable under MGFSP.

Question: Are slaughterhouse facilities allowable for MGFSP sub-grants?

Answer: Yes. Purchasing and/or equipping a slaughter and processing facility is allowable under MGFSP.

Question: Can MGFSP sub-grant funds be used to purchase vehicles?

Answer: No. Vehicles may be leased, but not purchased. Lease agreements to own (i.e., lease-to-own or rent-to-own) are unallowable. The lease or rental agreement must terminate at the end of the grant period of performance. A signed copy of the lease agreement will be required prior to the first payment approval.

Question: Can MGFSP sub-grant funds be used to repair and/or upgrade existing equipment?

Answer: Yes. Funds may be used to repair or upgrade existing equipment that is not available and readily usable in its current condition.

Question: Are shipping costs allowable for MGFSP sub-grants?

Answer: Yes. Shipping costs to pay for the shipping of purchased items relating to growing or raising food for local consumption or purchase are allowable under MGFSP.

Question: Are indirect costs (facilities and administrative costs) allowable for MGFSP?

Answer: MGFSP allows for the inclusion of indirect costs as part of the project budget for eligible states and territories. For sub-grant projects, MGFSP allows for the inclusion of indirect costs for eligible organizations and non-individual entities. However, individuals cannot include indirect costs as part of their sub-grant project budget.