Local Food Funding Opportunities

Key Programs Supporting Local Food

• The Local Food Fund – LFF is one part of a Local Food Strategy that

includes the Local Food Bill, Bill 36.

• Growing Forward 2

– Growing Forward 2 is a 5-year federal-provincial-territorial initiative, designed to encourage innovation, competitiveness and market development

Local Food Fund

Program Overview

The Local Food Fund (LFF) is a fund that provides up

to $10 million in funding per year for three years

supporting innovative local food projects that: – reduce barriers to regional economic development;

– result in sustainable regional economic development; and

– have a positive impact on the Ontario economy

Program Goals and Outcomes

Program Goals

• To increase the purchase of Ontario foods; and

• To contribute to increased economic activity (investment, sales and jobs)

• Program Outcomes

• Increased awareness of and celebration of local food

• Influencing Ontarians to demand and choose more local food

• Ensuring local food is identifiable and widely available

• Helping Ontario’s agri-food sector deliver products that consumers want

• Strengthening local food economies from farm to fork

Eligible Applicants

At a minimum, all applicants must meet the following eligibility criteria: • Be a legal entity

• Have the authority to enter into a legal agreement

• Additionally applicants must:

• Provide financial funding to the project.

• Have the experience and knowledge to complete the project.

A legal entity could include corporations, community or not for profit

organizations, primary producers, food processors, distributors, food service,

retail, municipalities, industry associations, economic development associations,

First Nations, Metis and Inuit, and broader public sector organizations.

• Applicant and co-applicant collaborations are not required, but are encouraged

Project Categories

Applicants can apply to one of the four LFF project categories:

1. Regional and Local Food Networks

2. Enhanced Technology, Capacity or Minor Capital

3. Research and Best Practices

4. Education, Marketing & Outreach.

Projects in the four categories are expected to contribute to the goals of the LFF.

1. Regional and Local Food Networks

• Projects that build capacity along the value food chain to improve

access and supply of local foods by information sharing and

collaboration between value chain partners.

• Projects that aim to strengthen the entire supply chain, but in

particular to encourage value chains i.e. individual businesses

collaborating and sharing information to take advantage of an

opportunity.

Regional and Local Food Networks continued

Examples of eligible projects under this category are:

• Projects that support partnerships to promote better understanding between

value chain partners such as: networking or educational events; feasibility

studies; identification of barriers within the value chain; or the creation or

establishment of networks or partnerships along that value chain.

• Projects that undertake business, industry or client intelligence; business

case or strategy development.

Examples of ineligible projects under this category are:

• Projects that are primarily intended to pursue export opportunities.

• Projects that support the continuation of existing business activities or the

pursuit of existing markets (e.g. projects that support business as usual are

not eligible).

2. Enhanced Technology, Capacity or Minor Capital

Projects that focus on increasing the supply, capacity and distribution of

Ontario foods

• Examples of eligible projects under this category are:

– Transportation or delivery related projects (not rolling stock)

– Cold storage related systems

– Information sharing systems such as verification or certification systems for local

foods; tracking systems to measure procurement of local foods.

– Retrofit of existing structures

– Supporting or promoting micro processing and community kitchens, one-time or

short-term costs for regional food hubs, co-packing

• Examples of ineligible projects under this category are:

– Major capital such as building a new storage or manufacturing facility, or buying a

new refrigerated truck

3. Research and Best Practices

Projects that undertake research and analysis that lead to the development and

implementation of recognized best practices.

• Examples of eligible research projects under this category are research that:

– identifies barriers to purchasing local foods

– improves understanding and access to new or improved market opportunities

– leads to the development of best practices among value chain player

– investigates agricultural products and production practices

• Examples of eligible best practices projects under this category are:

– testing or piloting new models or approaches that increase access to or

awareness of local food

– sharing local food best practices (i.e. tools or applications to share knowledge or

communicate recognized best practices).

• Examples of ineligible projects under this category are research topics:

– not directly related to supporting local food (e.g. food safety, lean manufacturing)

4. Marketing, Promotion and Education

• Projects that focus on marketing and promotional activities that

improve consumer awareness and demand for local foods.

• Examples of eligible projects under this category are:

• Promotion, marketing or branding events or activities that promote regional or

local food specialties such as culinary destinations, organic products,

seasonal availability, food festivals.

• Promotion and marketing of new products.

• Educational events.

• Examples of ineligible projects under this category are:

• Marketing/promotional activities focused on markets outside Ontario.

High-Level Program Parameters

Local Food Definition

• For the purpose of the LFF, “local” means:

a) food produced or harvested in Ontario, and

b) food and beverages made in Ontario if they include one or more

ingredients produced or harvested in Ontario.

In-kind Costs

• No in-kind contribution eligible for reimbursement, can be used to

demonstrate commitment for a project

Reimbursement Levels

• Generally up to 50 per cent provincial investment

• Reimbursement of invoices submitted

Caps

• No cap on the amount of funding per approved eligible project under the LFF

Stacking

• No stacking allowed with provincial government funding programs (e.g. Green Belt Fund – Broader Public Sector Grant Stream or Market

Access Grant Stream, Growing Forward 2, Northern Ontario Heritage Fund,

Eastern Ontario Development Fund, Southwest Ontario Development Fund,

Communities in Transition, Ontario Trillium Foundation, etc.)

• Stacking is allowed with federal government funding programs up to

75 per cent of eligible costs from both federal and provincial

government sources.

• Proof of special need must be provided in the application once a

request is made for more than 50 per cent provincial funding.

Eligible Costs

• Project Management in the form of:

– Consultant fees

– Business planning development

– Professional fees such as legal, architectural, accounting, etc. that are

project related.

• Training

• Marketing or promotions costs

• Travel costs associated with project development and

implementation, subject to Provincial directives

• Studies and research

• Administrative costs directly related to project implementation

• Wages for new hires to work 100 per cent on project related activities

Eligible Costs continued

• Minor capital including:

– Sub-contractor fees

– Equipment (e.g. reefer units, cold-storage, washing), structural

modifications to accommodate the installation of equipment

– Architectural design work, engineering work (studies, environmental

assessments, etc.)

– Renovations and retrofits to existing structures (materials or supplies and

labour to renovate existing space)

– Technology upgrades such as computer hardware, software, and network

cables

– Production expansion (e.g. a new product) to increase local food sales to

local markets

Ineligible Costs

• Hospitality costs (unless public-facing)

• Direct wage subsidies for existing staff.

• In-kind contributions. An in-kind contribution is identified as goods

and services that are contributed to a project by the applicant and co-

applicants that would otherwise have to be purchased or contracted

in order to complete the project.

• Debt restructuring, fundraising or financing.

• Normal or on-going business and production operations not directly

related to the project.

• Trucks or other vehicles (although refrigeration unit could be eligible).

• HST, value added tax or other cost for which a refund or rebate is

received.

Ineligible Costs continued

• Major capital including:

– Land, buildings and major infrastructure

– Additions to buildings, teardowns or rebuilds

– Leasing

– Power lines, plumbing, telecommunications lines or equipment, water lines, etc.

outside of the building

• Costs incurred prior to the approved project start date or after

December 31, 2015

• Costs incurred in preparing an application

• Costs of alcohol, international travel, per diems or gifts

Application In-Take Periods

Complete applications received during the in-take periods listed

below will be assessed and presented to the Rural Economic

Development Advisory Panel as a group. These dates align with the

RED program in-take periods.

2013 2014 2015 November 1 - December 31 January 1- February 28 January 1 - February 29

March 1 - April 30 March 1 - April 30

May 1 - June 30 May 1 - June 30

July 1 - August 31

September 1 - October 31

November 1 - December 31

Growing Forward 2

Growing Forward 2 is a 5-year federal-provincial-territorial

initiative, designed to encourage innovation,

competitiveness and market development

Flexible and practical programming options to help

producers, processors, organizations and collaborations to

grow profits, expand markets and manage risk

Focused on innovation, Growing Forward 2 (GF2) is

designed to contribute to the economy, help the agri-food

industry be more competitive and enable you to reach your

business goals

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From Ideas to Success

Environment and Climate Change Adaptation

Animal and Plant Health

Market Development

Labour Productivity Enhancements

Assurance Systems (Food Safety, Traceability, Animal

Welfare)

Business and Leadership Development

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• Innovation is a key component of all areas of focus

Program Framework: Areas of Focus

Use best business and leadership practices

Use energy, water and other inputs efficiently

Better able to adapt to climate change

Maximize labour productivity

Access new and emerging markets

Retain and expand existing markets

Market products by adopting assurance systems and/or

adding value such as agri-products and food for health to

meet buyer demand

Ability to respond quickly and effectively to risks

Reduce key risks

Program Framework: Desired Outcomes

No-cost Education:

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Program Components

Funding Assistance:

Environmental Farm Plan

Growing Your Farm Profits

Food Safety Workshops

Traceability Assessments

Biosecurity Workshop

Capacity Building: (Skills development, training,

audits, assessments, planning)

Project Implementation

Are those who produce agriculture commodities and

file business and/or farm income/loss taxes in Ontario.

Must have a Premise Identification Number for the

farm property where the proposed Capacity Building

activity applies and have a valid Farm Business

Registration Number or equivalent.

Producers

Established producers:

Are new entrants to the agricultural production industry

and have business projections that demonstrate

potential annual gross business income of $7,000 or

more within three years of applying.

File personal income taxes in Ontario and have not

filed taxes as a farm business in the two years

previous to applying for GF2 funding.

New producers:

Are currently actively engaged and directly involved in the processing,

modification, and/or transformation of agricultural commodities, food,

beverage or agricultural based bioproducts in Ontario

File business and/or farm income/loss taxes in Ontario; and

Have a Premises Identification Number

Processors

Processors are businesses that:

Are new entrants to the food and agri-products processing industry and have

business projections that demonstrate potential annual gross business income

of $30,000 or more within 3 years of applying

File personal income taxes in Ontario

Have not filed taxes as a food or agri-products processing business in the two

years previous to applying for GF2 funding

Have a Premises Identification Number (if processing facility is established)

• First Nation food and bioproducts businesses that meet the above criteria

are eligible

New food and bioproducts agri-product processors:

Are any not-for-profit, Ontario-based, legal entity involved in the

agriculture, agri-food and agri-based products sector capable of

entering into a contract, including, but not limited to:

• Associations

• Marketing boards

• Aboriginal groups

Organizations must have a membership comprised primarily of

Ontario residents.

Federal, provincial, territorial government departments or

agencies, and academic/research institutions are not eligible

organizations.

Organizations

Combinations of two or more legal for-profit businesses and/or

non-profit associations/organizations, and/or academic/research

institutions in the agriculture, agri-food, agri-products sector,

primarily located in Ontario.

Collaboration funding is intended to support projects that

demonstrate benefit beyond the collaboration members.

Collaborations are strongly encouraged to involve organizations

in the project to ensure results are shared broadly.

Collaborations

Lead Applicant:

Be an organization or business located in Ontario

Be the primary point of contact with AAC and enter into a

legal agreement with AAC on behalf of the other

collaboration members

Have an arm’s length relationship from the lead applicant

and from the other collaboration members

• Organizations and businesses located outside of

Ontario may be collaboration members, as long as the

supply chain is primarily located in Ontario. The project

outcomes must demonstrate benefit to the Ontario

agriculture, agri-food and agri-products sector.

Collaboration Members:

Collaborations

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Funding Assistance: Intake Dates Year 1

Capacity Building Project Implementation Contact

Producers June 26th, ongoing Sept 9 - Oct 24

Dec 16 - Jan 30/14 OSCIA

Processors June 26th, ongoing Sept 9 - Oct 24

Dec 16 - Jan 30/14 OMAF

Organizations

and

Collaborations

June 26th, ongoing

June 26 - Sept 5

Sept 9 - Oct 24

Oct 28 - Dec 12

Dec 16 - Jan 30/14

AAC

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Cost-share and Funding Caps

Capacity Building

Cost-share

Percentage

Project

Implementation

Cost-share

Percentage

Project

Implementation

Innovation

Cost-share

Percentage

Total Funding

Cap over Five

Year Program

Producers 50% 35% 50% $350,000

Processors 50% 35% 50% $350,000

Organizations

and

Collaborations

75% 50% Up to 75% $3 Million

(Flexible)

Enrol through GF2 Client Portal to create your profile using the link at: ontario.ca/growingforward2

Complete application(s) online through the same link

Guidebooks, enrolment and application forms are available online

Ministry staff and delivery partners are available to help

Website: www.ontario.ca/growingforward2

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How to Apply

ontario.ca/growingforward2

1-877-424-1300

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Contacts

Producers

Ontario Soil and Crop Improvement Association (OSCIA)

1-800-265-9751

ontariosoilcrop.org

Processors

Ontario Ministry of Agriculture and Food (OMAF)

1-877-424-1300

ontario.ca/growingforward2

Organizations

and

Collaborations

Agricultural Adaptation Council (AAC)

519-822-7554

adaptcouncil.org

Karen Fischer

Agriculture and Rural Economic Development Advisor

Ontario Ministry of Agriculture and Food

Ministry of Rural Affairs

Belleville

613-962-2655

karen.fischer@ontario.ca