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The Maryland Department of Agriculture (MDA) has launched the Postharvest Infrastructure Grant Program (PHI), providing $1.6 million in available funding to strengthen cold storage and food distribution infrastructure in rural Maryland communities. The program supports agricultural producers, seafood processors, nonprofits, local governments, universities, and hospitals working to improve postharvest handling and local food access.

With a minimum of $30,000 per award and no maximum award amount, PHI focuses primarily on cold storage, transportation, logistics, and food safety infrastructure. Applications are due June 14, 2026.

What is the Postharvest Infrastructure Grant Program (PHI)?

The PHI program is a new initiative from MDA designed to expand food aggregation, storage, and distribution capacity across rural Maryland. Funded through the Maryland Rural Health Transformation Program, PHI and aims to improve access to fresh, locally sourced food in underserved communities.

According to Maryland Secretary of Agriculture, Kevin Atticks, the initiative will help strengthen local food systems while improving access to nutritious food for rural residents.

The program supports a broad range of food sectors, including fresh produce, herbs, grains for human consumption, dairy, meat and poultry, and seafood.

Who is eligible to apply?

Eligible applicants include:

• Individual agricultural producers
• Organized groups of producers
• Seafood processors
• Nonprofit organizations with 501(c)(3) status
• Municipal and county governments
• Universities and hospitals establishing shared postharvest infrastructure

Agricultural producers and seafood processors are identified as priority applicants.

What projects are eligible for funding?

Funding may be used to strengthen cold chain and food distribution systems across five key areas:

• Cold Storage Infrastructure, such as walk-in coolers and freezers, backup generators, climate control upgrades, smart thermostats and defrost controls.
• Transportation and Fleet Upgrades, such as refrigerated trucks and retrofitting existing distribution vehicles.
• Distribution Logistics and Technology, such as route optimization software, cold chain monitoring systems, and inventory tracking tools.
• Handling and Loading Infrastructure, such as loading dock improvements, material handling equipment, and commercial sanitation stations.
• Food Safety Modernization, such as sanitization systems, storage facility food safety upgrades, environmental monitoring, and traceability software.

Funding Details

Minimum Grant Award: $30,000

Maximum Award: None stated

Match Requirement: None

Administrative Costs: Up to 10%

All projects will be subject to funding availability and final approval by the Centers for Medicare and Medicaid Services.

The PHI initiative is part of the Maryland Rural Health Transformation Program, a five-year federal initiative funded through the Centers for Medicare and Medicaid Services and administered by the Maryland Department of Health. The broader program is intended to strengthen rural communities through investments that improve healthcare access, food systems, and community infrastructure.

How can eligible applicants apply?

Applications are due through Grants.gov no later than June 14, 2026 at 11:59 p.m. Eastern Time. The full Notice of Funding Opportunity can be found here.

Morrison has extensive experience writing successful applications for clients for USDA, DOE, and other programs. For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.