Healthy Food Financing Fund

The Healthy Food Financing Fund (HFFF) grant program, with $250,000 allocated for fiscal year 2025 (FY25), aims to provide financial tools and technical support to food and agricultural enterprises that promote the production, processing, and distribution of fresh, healthy, and locally sourced food. The grant specifically targets rural and underserved communities, seeking to improve access to healthy food through expanded retail and institutional market channels within the state. With a strategic focus on value chain investments, the HFFF supports projects that enhance food supply infrastructure, workforce development, and market access for small and mid-sized operations. No matching funds are required, and funding is provided upfront, making it easier for applicants to implement their projects quickly. The application period for the FY25 grant opens on October 16, 2024, at 9 am MST and closes on November 13, 2024, at 11:59 pm MST. To help applicants navigate the process, an informational webinar is scheduled for October 22, 2024, at 11 am MST. Resources such as eligibility criteria, a sample application form, and the scoring rubric are available to guide applicants in preparing strong proposals. The program encourages the use of the Business Model Canvas as a tool for structuring business ideas and aligning them with the fund’s priorities. The fund prioritizes projects that increase access to healthy food in historically underserved communities, create and retain jobs in the food and agricultural supply chain, and enhance market access for small and mid-sized food producers. Additionally, it seeks to support infrastructure improvements in food storage, aggregation, and transportation, while also encouraging regenerative agricultural practices. By addressing these areas, the fund aims to strengthen regional food networks and improve the sustainability of food systems in the state. Eligible applicants include political subdivisions of the state, Indian nations, tribes, and pueblos, as well as for-profit business enterprises (such as corporations, LLCs, sole proprietors, and social enterprises), cooperatives, and nonprofit organizations. Small farmers and ranchers with gross farm incomes under $250,000, whether operating commercially or non-commercially, are also eligible to apply. This broad eligibility ensures that a variety of stakeholders within the food system can benefit from the program. Projects eligible for funding fall into several key categories: food retail (e.g., grocery stores, co-operatives, mobile grocery initiatives, farmers' markets), processing and value-added products (e.g., meat, dairy, fruits, vegetables), aggregation and distribution (e.g., food hubs, cold storage facilities), and New Mexico-grown production (e.g., farms, ranches, cooperatives, hydroponic or aquaponic systems). This wide array of project types reflects the program’s intent to support multiple stages of the food value chain. Eligible costs under this grant include expenses related to predevelopment activities such as business planning, market analysis, and site plans, as well as more tangible costs like construction, facility renovations, and the purchase of equipment and supplies. Marketing, business upgrades, and training/certifications may also be funded. However, the program excludes costs related to staffing, labor, real estate transactions, non-durable goods, charitable food projects, and restaurant operations primarily focused on prepared foods. Furthermore, entities that intend to use the funds for lending or regranting purposes are not eligible to apply. Overall, the HFFF offers a significant opportunity for food and agricultural enterprises in New Mexico to expand their operations, improve market access, and contribute to a more robust local food system, particularly in underserved areas. The focus on infrastructure development and market growth makes this grant ideal for organizations and businesses seeking to build sustainable and equitable food networks.