Frequently Asked Questions

Eligible Applicants

• What kinds of projects can be funded?
  Although preference will be given to applicants who use grant funds to purchase refrigerated vehicles, other projects that still accomplish the objectives of the grant will be considered. Objectives of the grant include improving food distribution logistics, expanding delivery of Michigan grown/produced foods, and establishing or expanding partnerships. If there are other budget items that would help you accomplish these objectives, please explain in the application why this alternative project offers a better approach to delivering Michigan grown/produced foods to local communities and institutions. 
• What kinds of activities satisfy the partnership requirement?

  A variety of different activities will satisfy the partnership requirement for the Last Food Mile Grant. There is no strict list of eligible partnership types or objectives. Examples of partnerships include: 

  • Working with a food hub to aggregate products from multiple farmers.
    A food club expanding an existing relationship with a local grower that donates surplus product by transitioning to a purchasing relationship. 

  You can find more examples on page 3 of the Last Food Mile Grant Guidelines.

   
• If our business also serves other states, can the transportation that gets approved from this grant serve those states as well?

  Grant proposals will be considered based on their ability to: 

  • Increase the volume/weight of Michigan grown foods sold in Michigan communities
  • Increase the dollar value of Michigan grown foods sold AND the revenue to Michigan farmers
  • Increase the number of Michigan farmers reached, including those who use regenerative practices
  • Increase local and regional market access for a broader geographic distribution of Michigan farmers
  • Increase the number or types of consumers who have access to Michigan grown foods

  If you will be using the vehicles/equipment that you purchase with this grant to do business in other states, you will not be disqualified from being awarded the grant. However, please keep in mind that proposals must demonstrate impact based on the above metrics.

   
• Would a farmers market wishing to deliver CSAs (Community Supported Agriculture) qualify?
  Yes, CSA (Community Supported Agriculture) delivery would be an example of a “last food mile” activity.
• Is there a definition of regenerative agriculture for this grant opportunity

  Regenerative agriculture is an active approach to land management driven by improving soil health. Principles of regenerative agriculture include:

  • Understand the context of your farm operation
  • Maximize biodiversity
  • Integrate livestock and increase biodiversity
  • Keep soil covered
  • Maintain living roots year-round
  • Minimize soil disturbance

  There are many practices that align with the principles of regenerative agriculture. During the evaluation of grant proposals, preference will be given to proposals that define how regenerative principles are practiced by any producers involved in the project and demonstrate how market channels for regenerative agriculture products will be developed.

   
• If we received funds for the vehicle, do we have to utilize the vehicle in that season, or just complete the purchase of the vehicle in that particular season?

  All reimbursable expenditures must be completed within the one-year grant period that is defined in the grant agreement. In addition, all grantees will be expected to submit a quarterly report on the measurable outcomes of their project, which are defined in the project proposal. Outcomes of the project, measured by the metrics listed below, must be completed within one year. In the event of unanticipated delays in the project, grantees may be required to report on the outcomes and impact of their grant up to three years after the grant period ends.

  • Increase the volume/weight of Michigan grown foods sold in Michigan communities.
  • Increase the dollar value of Michigan grown foods sold AND the revenue to Michigan farmers.
  • Increase the number of Michigan farmers reached, including those who use regenerative practices.
  • Increase local and regional market access for a broader geographic distribution of Michigan farmers.
  • Increase the number or types of consumers who have access to Michigan grown foods.
• Is the Last Mile Food Grant open to all counties or does it prioritize certain counties?
  The Last Food Mile Grant is open to applicants based in any Michigan County. During the evaluation of grant proposals, preference will be given to proposals that describe how the project will serve a geographic area that has limited access to local food value chains. Limited access can occur in rural, urban, and suburban areas and is for the applicant to demonstrate with data and examples.

Project Criteria

• Are there requirements around the type of vehicle allowed for this grant? Does the vehicle have to be refrigerated? Can it be a used vehicle?
  Vehicles purchased with grant funds must be valued at $100,000 or less and must be used to transport food. Alternatives to refrigerated vehicles may be considered. If there are other transportation methods (box truck, insulated trailer, cargo bikes) that would be a better fit than a refrigerated van, please include an explanation as to why the item you are requesting is the best solution for bridging the last food mile. Used vehicles will be only considered if justification is provided in the application for why a used vehicle is a better choice than a new vehicle. If a used vehicle is justified, we will give strong preference to certified used vehicles purchased from a dealership.
• Can I include salaries and wages in my application budget for Last Food Mile
  Within the eligible costs, up to 10% of the budget can be used for administrative costs. Contractual costs are also allowed. Salaries, wages, staff benefits, and travel costs are not eligible costs under this grant.
• Would you consider awarding a partial grant to proposals that include lower-priority budget items, or would it be all or nothing?
  Yes, partial awards may be granted. 
• Can grant funds be used for promotional/business wraps, decals, or logos for the vehicle?
  Yes. Grant funds can be used for wraps, decals, and logos as long as the proposal includes adequate justification for why the wraps, decals, logos are necessary to help market activities related to local food distribution.
• If I am interested in purchasing a vehicle valued at more than $100,000 (program maximum), can I pay the additional amount above $100,000?
  Preference will be given to budget proposals that include a refrigerated vehicle valued at $100,000 or less, and to budget proposals in which grant funds pay for the entire cost of the vehicle. If the cost of the vehicle you seek to purchase exceeds the maximum award amount of the Last Food Mile grant, please connect with Farm to Family staff prior to submitting your application to ensure your project will be a good fit for this grant program. The Farm to Family team can be reached at MDARD-FarmtoFamily@michigan.gov. 
• If there is not a need for fleet costs or operations (e.g., physical vehicles) can funds be used for backhauling and/or other demonstrated route expansion?
  Yes, this would be an eligible cost under the Last Food Mile Grant provided that it still achieves the objectives of expanding delivery of Michigan grown/produced foods and addressing last food mile distribution and logistics challenges. During the evaluation of grant proposals, preference will be given to proposals that include a refrigerated vehicle in the budget.
• Should we have a specific vehicle in mind when writing the grant proposal?
  Grant proposals must include itemized costs for all budget items listed in the proposal. Vehicle costs should be based on documented quotes and/or market research for a specific vehicle. If vehicle prices change by the time the grant period begins, MDARD will work with affected grantees to amend the budget in the grant agreement, while maintaining the total amount of funding awarded.

Eligible Costs

• How do I know if I am eligible for this grant?
  • If you can answer “yes” to the following questions, then the Last Food Mile Grant is a good fit for you.
  • Am I a farmer or a business/organization that directly works with farmers? Examples of eligible applicants include:
    • Individual growers or producers
    • Nonprofits that purchase from local growers
    • Food businesses and value add producers that purchase from Michigan farmers
    • Food service institutions or restaurants that purchase from Michigan farmers
  • Does my project increase the volume, amount (lbs./units), and dollar value of Michigan grown/produced foods reaching consumers?
  • Does my project help improve food distribution logistics across the value chain or address transportation challenges of getting Michigan grown foods to the final destination?
  • Does my project establish or expand partnerships to address local food distribution challenges?

   
• Can I still apply for this grant if I already have another active and open MDARD grant?
  While current MDARD grantees can apply for the Last Food Mile Grant, these applicants will be given a lower priority than new or first time MDARD grant recipients. An active grant is an award that has not reached the end of the grant period listed on your grant agreement with MDARD.
• Is the USDA Resilient Food System Infrastructure (RFSI) grant considered an “active grant” with MDARD for the purposes of this program?
  Yes. If you received a Resilient Food System Infrastructure (RFSI) grant and the grant period that is listed on your grant agreement has not ended, then you have an active grant with MDARD.
• If a grant application includes a partner who is a recipient of an active MDARD grant, will the application be marked or deducted because of the open grant with the partner?
  No. If the primary applicant for the Last Food Mile Grant does not have an active MDARD grant, they would qualify for preference even if their proposal includes a partner with an active MDARD grant.

Reporting and Payments

• Is there a match required for the Last Food Mile Grant?
  There is no match required for the Last Food Mile Grant. All MDARD-approved budget items listed in grant agreements will be reimbursed after cost documentation is submitted and approved.
• What does the reimbursement schedule look like? Is it 25% each quarter?
  Costs can be submitted as incurred. Once approved, MDARD will reimburse total expenditures in the quarter in which they are submitted via the SIGMA system. Grantees may be reimbursed the entire award before the end of the grant period, but they will be required to continue submitting reports on the impact of their project quarterly until the end of the grant period.
• Given the uncertain climate surrounding grants and funding, what are the guarantees that after applicants have spent the money, they will actually get reimbursed?
  After a grant agreement has been signed by both parties, those funds are considered to be encumbered and set aside for the grant project for which they are programmed in the grant agreement. Each grant agreement serves as a contract, and MDARD is obliged to reimburse any approved costs for the grant, as long as the grantee remains in compliance with the terms and conditions of the agreement.
• Can payments be made directly to vehicle vendors instead of as a reimbursement to grantees?
  No.
• Who is the contact person for pre- and post-award technical assistance?
  The Farm to Family Program Coordinator, Elena Aleman will be the contact for all grant related questions pre-and post-award. Please feel free to direct any questions to MDARD-FarmToFamily@michigan.gov or visit the Bookings page to schedule a time to connect virtually.