How AAFC Evaluates Large-Scale Food Infrastructure Projects

By GrantHub Research Team · · Lire en français

How AAFC Evaluates Large-Scale Food Infrastructure Projects

Large food infrastructure projects are complex. They often take years to plan and require millions of dollars to build. If you want to apply to the Local Food Infrastructure Fund – Large Scale Projects stream, it’s important to know how Agriculture and Agri-Food Canada (AAFC) reviews applications. AAFC funds projects that show clear community benefits, strong plans, and lasting improvements for Canada’s food system.


How AAFC Assesses Local Food Infrastructure Fund Large-Scale Applications

AAFC uses a step-by-step process to review large-scale project applications. These projects are usually national or regional. They involve big capital investments such as new buildings, processing plants, or food hubs.

1. Organizational Eligibility Comes First

Before looking at your project, AAFC checks if your organization is eligible.

For the Local Food Infrastructure Fund – Large Scale Projects, eligible applicants include:

  • Non-profit organizations
  • Charitable organizations
  • Indigenous organizations
  • Community or food system organizations based in Canada

For-profit businesses are usually not eligible as lead applicants for this stream.

AAFC also reviews:

  • Your organization’s legal status
  • Governance and leadership structure
  • Financial controls and past project experience

If your organization does not qualify, the project will not move forward.


2. Strategic Alignment With Program Objectives

AAFC checks how well your project supports the goals of the Local Food Infrastructure Fund.

Projects score higher if they:

  • Increase community access to safe, nutritious, and local food
  • Strengthen local and regional food systems
  • Improve food security for underserved or vulnerable groups
  • Focus on long-term infrastructure, not just short-term activities

Large-scale projects should help communities for years, not just meet a short-term need.


3. Project Scope, Scale, and Readiness

AAFC looks closely at how ready your project is.

Assessors want to see:

  • Clear project activities and timelines
  • Proof of site control (ownership or long-term lease)
  • Engineering plans, designs, or feasibility studies
  • Realistic construction and procurement schedules

Large-scale projects can receive multi-year, non-repayable contributions. AAFC funding for these projects can range from $1 million to $5 million, depending on the project and available federal budget. Projects that are still just ideas or missing key approvals usually do not score well.


4. Financial Viability and Budget Credibility

AAFC checks if your project can be built and operated as planned.

They look for:

  • Complete capital and operating budgets
  • Confirmed and pending funding sources
  • Reasonable costs for equipment, construction, and renovations
  • Proof your organization can manage the money

Eligible expenses include:

  • Construction or renovation of food infrastructure
  • Cold storage, processing, or distribution equipment
  • Specialized food handling or safety systems

Operating costs not related to infrastructure are usually not eligible.

GrantHub’s eligibility matcher can help you search for infrastructure programs by project size, province, and organization type.


5. Community Impact and Measurable Outcomes

AAFC expects large-scale projects to show clear, measurable results.

Strong applications include:

  • Numbers showing increases in food capacity or storage
  • How many communities or regions will benefit
  • Partnerships with food banks, food hubs, or Indigenous communities
  • Long-term improvements in food access, not just temporary help

Projects with strong partnerships or that help more than one group often score higher.


6. Risk Management and Governance

AAFC also checks how you will handle risks.

This includes:

  • Risks with construction and procurement
  • Possible cost overruns or supply chain problems
  • Governance and decision-making plans
  • Reporting and compliance abilities

Having clear accountability and an experienced team improves your chances.


Common Mistakes to Avoid

  1. Submitting an idea instead of a ready project
    AAFC wants large-scale projects to be well-developed, not just concepts.

  2. Underestimating total project costs
    Budgets missing details or contingencies raise concerns during review.

  3. Weak proof of community need
    Claims about food insecurity should be backed by data or partner letters.

  4. Assuming funding covers operations
    The Local Food Infrastructure Fund supports capital assets, not ongoing program costs.


Frequently Asked Questions

Q: How much funding can a large-scale project receive?
Large-scale contributions usually range from $1 million to $5 million and are often paid out over several years. The amount depends on your project and available federal funds.

Q: Is funding from the Local Food Infrastructure Fund repayable?
No. Funding under the large-scale stream is non-repayable if you meet the program’s terms and conditions.

Q: Can food banks or food hubs apply?
Yes. Food banks, food hubs, and similar non-profit organizations can apply if they meet all requirements.

Q: Are construction and renovations eligible expenses?
Yes. Capital costs like construction, renovations, and specialized food infrastructure equipment are eligible.

Q: Is LFIF funding taxable?
LFIF funding is considered government assistance. How it is treated depends on your organization’s accounting, so professional advice is recommended.

GrantHub tracks active grant programs across Canada. You can see which ones fit your organization’s size, sector, and project stage.


Next Steps

If you are planning a large food infrastructure project, review AAFC’s evaluation criteria carefully. Make sure your application shows project readiness, strong finances, and clear community benefits. GrantHub helps organizations compare infrastructure funding programs and check eligibility before applying.


See Also

  • How to Know If Your Business Qualifies for Broadband, Infrastructure, or Energy Rebates
  • How to Fund Infrastructure Projects with Provincial Loans and Repayable Contributions
  • How to Increase Child Care Spaces Using Government Infrastructure Funding

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