AFID Facility Grant

The Governor’s Agriculture and Forestry Industries Development Fund (AFID) Facility Grant is established under Chapter 3.1 of Title 3.2 of the Code of Virginia. The AFID program is designed to support political subdivisions, or localities, within the Commonwealth of Virginia, either individually or collaboratively, in attracting new or expanding agriculture and forestry processing and value-added facilities that utilize Virginia-grown products. The program is managed by the Office of the Secretary of Agriculture and Forestry through the Virginia Department of Agriculture and Consumer Services on behalf of the Governor. AFID Facility Grants are discretionary performance-based awards aimed at facilitating the creation of new or expanded facilities that process or add value to Virginia-grown agricultural and forestal products. The grants are typically not used for upfront project financing. Each grant is capped at $500,000, though exceptions can be made for projects deemed to have statewide or regional significance. A critical eligibility requirement is that at least 30 percent of the products processed by the facility must be sourced from within Virginia. The grants require a dollar-for-dollar match from the localities, which can include in-kind contributions. Eligibility is limited to projects that produce value-added agricultural or forestal products, such as those that change physical state, enhance value, or contribute to renewable energy. Preference is given to projects that have not received funding from the Commonwealth Opportunity Fund. Multijurisdictional applications are encouraged, and multiple applications per locality are permitted. Business beneficiaries must comply with annual reporting requirements related to job creation, capital investment, and sourcing of Virginia-grown products. Applications for AFID Facility Grants must include letters from both the locality and the business beneficiary. The locality’s letter should provide project details, funding needs, and potential economic impacts. The business beneficiary’s letter should explain the critical role of AFID funding, sourcing strategies for Virginia products, and affirm compliance with job creation and investment expectations. Additional financial documentation may be required, especially for startups or new divisions. Performance agreements between the locality and business beneficiary are mandatory and enforce conditions related to the use of Virginia-grown products, job creation, and capital investment. Grants are distributed in thirds across these categories. If performance targets are not met, clawbacks are enforced, and substantial underperformance can result in a full return of funds. Extensions may be granted under certain conditions. Public announcements of funded projects must be coordinated with the Secretary. Business beneficiaries are also encouraged to share corporate income tax information for program evaluation purposes.

The application process requires detailed information from both the locality and the business beneficiary, including project descriptions, capital investment amounts, job creation numbers, and financial statements.