Eligible Project Cost Types
Projects should be ready for implementation, or ‘shovel-ready,’ when applying for HFFF funding and should be completed by December 2027. A project budget may include costs from more than one category. Proposed costs could include, but are not limited to, the following.
Predevelopment
Feasibility studies, market analysis, site or location analysis, appraisals, architectural or design assistance, training, and other project planning or contractual services. Predevelopment costs are not eligible for Production projects.
Construction or Renovation
Building, renovating, or expanding a facility, including permanently installed fixtures. Applicants must show legal authority to use and improve the site, such as ownership, landlord authorization, a shared-use agreement, or Tribal land authorization.
Capital Assets
One-time purchases of large, durable assets, such as refrigerated vehicles, tractors, trailers, walk-in coolers or freezers, machinery, equipment, hardware, or existing business assets. This category does not include facility construction or renovation. An asset installed or kept on property the applicant does not own requires signed owner or landlord authorization.
Durable and Non-Durable Goods
Smaller project-related purchases and supplies, such as agricultural tools, seeds, compost, soil amendments, carts, baskets, shelving, food-safety supplies, crates, delivery containers, and one-time inventory.
Value-Added Product Materials
Packaging and labeling for eligible value-added packaged foods, such as jars, bottles, bags, lids, labels, food-safe packaging, and seals. Ingredients and materials may be eligible for test batches, initial production, or a one-time expansion. Ongoing ingredient purchases are not eligible. Put professional product-development services under Other Soft Costs.
Other Soft Costs
One-time professional and project-support services, including training, community engagement, consulting, project management, marketing, design, food-safety planning, product development services, testing, and impact assessment. Necessary project-related software subscriptions may be considered for the grant period. Operating or staff costs directly tied to project implementation cannot exceed 20% of the total project budget.
Research and Development — Climate-Smart Pre-Production projects only
Testing, designing, or developing climate-smart agricultural inputs, products, or technologies that directly support regenerative production, soil health, water conservation, agricultural efficiency, or long-term sustainability.
This independent, third-party guide is not an eligibility determination. Review the full FY27 criteria before applying.