Urban Micro-Grant Frequently Asked Questions (FAQ)
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Question: How is “urban producer” defined for grant eligibility?
Answer: An area will qualify as urban if it contains at least 2,000 housing units or has a population of at least 5,000.
See USDA Census Bureau, Urban and Rural Definition: https://www.federalregister.gov/documents/2022/03/24/2022-06180/urban-area-criteria-for-the-2020-census-final-criteria
Question: How long is the grant application period?
Answer: The Grant application is open from January 20, 2026 through 5:00pm on February 19, 2026.
Question: Who or what organizations can apply?
Answer:
- Agricultural producers, political subdivisions of the state or local government, Tribal entities and agencies, and non-profit organizations are eligible to apply for projects which increase or improve healthy food access in urban areas, Tribal communities, and small towns (populations over 5,000 people or 2,000 households).
- Applicant(s) must be producing healthy and/or preparing to produce healthy food in urban areas within the state of New Mexico.
- Producers with gross cash farm income under $250,000 are eligible (commercial and noncommercial farms). If you have applied individually, the $250K applies to grants and all income. If the non profit is the applicant then the $250K applies to the applicant. If the non-profit is a fiscal sponsor, then the $250K applies to the farm or the farm program and or the program.
- Must not be a previous grant recipient; producers will be eligible to receive a Micro-Grant only once. If you have received an NMFIP Micro-Grant from either at any time you do not qualify to apply for the other.
- Implement conservation practices that will improve resilience to climate change and on-farm sustainability practices.
- Increase underserved farmers’ capacity for growing food, expanding operations, implementing climate-friendly practices, and building resilience to a changing climate.
- Provide supplies, equipment and technical assistance to farmers.
Question: What can these funds NOT be used for? d
Answer: These funds cannot be used for personnel costs, repayment of loans or costs not directly related to the project or farm.
Question: Are farmers/producers whose farms are outside of New Mexico and sell in New Mexico eligible?
Answer: No, applicant(s) must be producing healthy and/or preparing to produce healthy food in urban areas within the state of New Mexico.
Answer: The limit is the old amount of $5K
Answer: Funds can only be used to cover the cost of new purchases and cannot be used to pay off previously financed purchases.
Question: For producers that operate on multiple leases, does the on farm infrastructure have to be permanent or can it be mobile like, stock trailers or temporary corrals?
Answer: The equipment can be permanent or mobile.
Question: Does USDA to do Assessment before award? How long does that take?
Answer: The environmental review is done for beneficiaries prior to signing of the grant agreement and funding released. This process could take up to a month.
Question: Does “farm” include orchards?
Answer: Yes, orchards are included.
Question: Does the applicant have to reside in an urban area themselves even if they are planning to travel to an urban area to sell the product and use a commercial kitchen in the urban area?
Answer: The Farm must be in an urban area defined in the application.
Question: If I use a microscope for soil, compost and inoculant testing, can I apply for equipment related to the microscope testing? Like a hemocytometer?
Answer: Yes, if the equipment is directly related to the project and the farm’s agricultural production.
Question: Can the funds be used for farm rent?
Answer: No, funds cannot be used for farm rent, and must be used for a project directly related to agricultural production.
Question: How about contract labor expenses to build farm infrastructure?
Answer: Contract labor for farm improvements directly related to an agricultural production project is allowed.
Question: Can we use funds for something like a BCS walk behind tractor?
Answer: Yes, if the equipment is related to an agriculturally related project.
Question: Does this grant include ranchers who raise cattle to sell beef to preschools, public schools and senior centers?
Answer: Yes if the ranch falls with an urban area as defined in the application.
Question: Can applications include items for several ongoing projects?
Answer: No, the application must be for a specific farm project that has a beginning and end date and that is directly related to agricultural production. The project must be complete by November 30, 2026.
Question: Are we allowed to receive funds through a fiscal sponsor?
Answer: If the fiscal sponsor is completing the application. The applicant is the person responsible for the taxes and the grant agreement. Producers with gross cash farm income under $250,000 are eligible (commercial and noncommercial farms). If you have applied individually, the $250K applies to grants and all income. If the non-profit is the applicant then the $250K applies to the applicant. If the non-profit is a fiscal sponsor, then the $250K applies to the farm or the farm program and or the program
Question: If the farm is technically outside city limits, but bordering a city do they qualify?
Answer: If the farm falls within the urban definition provided in the application packet.
Question: Since these are reimbursements, how do they address the needs of individuals, new programs, or startups in urban and underserved communities that are historically undercapitalized?
Answer: In certain circumstances a request for an advance for funding can be submitted to NMFIP.
Question: If a cattle operation is located in a zip code with <5,000 people, but sells cattle in a city, are they eligible?
Answer: No the ranch or farm must be in an urban area under the definition provided in the grant packet.
Question: Would there need to be visible food production in the project of the grant or can it be only future fruit trees or improved canning and processing entities?
Answer: The project must have a beginning and an end date within the allowed term.
Question: Would earthworks qualify? Building berms and swells for example.
Answer: If it is part of the farm or ranch project directly related to agriculture production.
Question: If I am an individual in the process of forming an LLC, could I include my prospective LLC name as the applying entity as well?
Answer: Yes, but the application and grant agreement will need to be the same for the tax documents submitted.
Question: A 2-3 month project is an acceptable timeline?
Answer: Yes.
Question: Can seeds and starts qualify under the supplies category?
Answer: Yes.
Question: Would requesting funding to help complete an NRCS contract fit the “matching funds” aspect?
Answer: Yes, as technical support.
Question: Is it a requirement that they are part of the ASP program?
Answer: This is not a requirement, but is a score bonus.
Question: What proof of land occupancy is required?
Answer: This can be a lease, ownership or other written agreement that clearly gives the producer access to land for agricultural use for the project period.
Question: Is an FSA # required?
Answer: No it is not required, but we encourage you to obtain one through your grant term and will assist you in obtaining one.
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