Infrastructure Grants Now Open for Producers

**Update to post since original release. Applications are now open and will be accepted through March 10, 2024 at 11:59 pm CT.

Please review the Request for Proposals here:

DANR will host two Office Hours meetings for interested applicants to learn more about the program :


Exciting news regarding a significant investment in South Dakota’s agriculture industry. The United States Department of Agriculture’s Agricultural Marketing Service (USDA AMS) is partnering with states to fortify our food supply chain, enhance market access for farm and food businesses, and promote the development of value-added agriculture. Under the Resilient Food Systems Infrastructure program (RSFI) South Dakota has been allocated a generous funding of $3,267,865  which is to be administered by South Dakota Department of Agriculture and Natural Resources (DANR).

The RFSI program aims to enhance the resilience, security, and diversity of our local food system through financial and technical assistance, fostering partnerships and collaboration. This targeted investment in the middle of the food supply chain addresses critical gaps, benefiting producers, consumers, and rural communities alike.

In March under the RFSI program, DANR will be opening up accepting applications for the Infrastructure Grants with award amounts starting at $100,000. Application templates are currently available online to preview.  

These grants provide an opportunity for producers and businesses to secure funding for projects that expand capacity and infrastructure in various areas such as aggregation, processing, manufacturing, storing, transportation, wholesaling, or distribution of agricultural products. DANR survey respondents the highest need for “Expanding processing capacities, including adding product types, increasing production volumes, and supporting new wholesale/retail product lines.”

Infrastructure grant recipients are required to contribute 50% of the total proposed project cost as a match to federal funding. However, for historically underserved farmers and ranchers, or businesses qualifying under SBA categories (small disadvantaged business, women-owned small business, or veteran-owned small business), the match funding contribution is reduced to 25%.

Infrastructure project activities may include, but are not limited to:

  • Expanding processing capacities
  • Modernizing manufacturing, tracking, storage, and information technology systems
  • Enhancing worker safety through technology adoption or facility improvements
  • Improving compliance with federal, state, and local food safety requirements
  • Facilitating operations through training opportunities
  • Supporting construction of new facilities
  • Modernizing or expanding existing facilities

Simplified Equipment-Only Grants: Streamlining Support

Additionally, the RFSI program offers Simplified Equipment-Only Grants ranging from $10,000 to $100,000. Unlike infrastructure grants, no match is required for this grant type. These grants specifically fund equipment purchases, excluding associated facility upgrades, staffing, or other costs. The awarded amount will be equivalent to the cost of the equipment, up to $100,000.

Eligible industries for these grants include specialty crops, dairy, grains for human consumption, aquaculture, and other food products, with the exclusion of meat and poultry.

For detailed information on eligibility criteria, application processes, and timelines, please visit the South Dakota Department of Agriculture and Natural Resources website or contact their dedicated team for assistance.