LFPA Plus Frequently Asked Questions

Q1: What expenses are allowable with LFPA Plus funding?

A: LFPA Plus funding may only be used for the purchase of unprocessed or minimally processed food, as well as food storage and food distribution costs directly related to the purchase of food. Food purchases must meet the definitions of domestic and local, as defined in Section 1.2.1 of the LFPA Plus RFA.

Q2: What types of costs are allowable for LFPA Plus under the categories of storage and distribution?

A: Funding is intended to primarily cover food procurement.  Storage and distribution expenses directly associated with food procurement under this program are allowable and can be subsumed in the overall procurement with LFPA Plus funding.  Examples of allowable storage and distribution costs under LFPA Plus if directly associated with the food procurement under this program include lease or rental of delivery trucks or other equipment (forklifts, refrigerators, freezers, etc); payments/fees for common carriers for transporting or storing commodities; lease or rental of warehouse space; or supplies used in the storage and handling of commodity products (boxes, pallets, etc).  

Costs that are not inherent parts of the procurement cannot be covered with LFPA Plus funding.  Examples of costs that cannot be covered include separate coverage of utility costs for leased or owned space; employees to pack food or prepare boxes for delivery; or administrative costs for managing storage and distribution.

Q3: What foods are considered “unprocessed or minimally processed”?

A: Examples of allowable food products include fruits and vegetables (including 100% juices); grain products such as pastas and rice; meats (whole, pieces, or food items such as ground meats); meat alternates such as beans or legumes, and fluid milk and other dairy foods such as cheese and yogurt. Foods in a wide variety of minimal processing states (e.g., whole, cut, pureed, etc.) and/or forms (e.g., fresh, frozen, canned, dried, etc.) are also allowable.

Foods that are generally understood to be significantly processed or prepared are unallowable. Examples of unallowable products would include baked goods such as breads, muffins, or crackers; prepackaged sandwiches or meals; other prepared and/or pre-cooked items that come ready-to-eat or that require no further preparation beyond heating (eg. chicken nuggets, fish sticks, pre-made pizzas, etc).

Q4: For agreements that were awarded in the first round of LFPA funding, what is the process for proposing changes to the original budget, such as changes to administrative costs?

A: Recipients that participated in the first round of LFPA funding may submit amendments to their agreements to propose changes to the original budget (funds authorized by the American Rescue Plan Act).  This may include changes to administrative costs, such as personnel, fringe benefits, supplies, or indirect costs. 

Applicants that had not participated in the first round of LFPA funding are not eligible to propose administrative costs, since the new funding under LFPA Plus is authorized by the Commodity Credit Corporation (CCC).  CCC funds can only be used for the purchase of unprocessed or minimally processed food, as well as food storage and food distribution costs directly related to the purchase of food.

Q5: For agreements that were awarded in the first round of LFPA funding, will recipients have additional time to complete the objectives that were proposed in the original project narrative?

A: Yes, recipients with existing agreements that choose to apply for the new LFPA Plus funding may request to extend their period of performance by up to 1 year.  When completing the Project Narrative for Amended Agreements, recipients must describe how the additional funding will impact their objectives and timeline.

Q6: How will LFPA Plus impact the quarterly reporting requirements?

A: The quarterly reporting requirements will not change.  Recipients that are awarded LFPA Plus funding will continue to submit one financial report and one performance progress report on a quarterly basis.  When reporting purchases and distributions in the performance progress report, the purchases from LFPA Plus do not need to be reported separately; the report would include all purchases and distributions that occurred during a given quarter using LFPA funding.    

Question Added 3/28/2023

Q7.  What are the circumstances in which LFPA Plus funding can be used to pay for processing costs?

A.  Minimal processing costs are allowable when the costs are included in the price of the final product, or if the costs are included as part of the procurement of the final product.