USDA Specialty Crop Block Grant Program: $86.6 Million for State Departments of Agriculture (FY 2026)

The U.S. Department of Agriculture's Agricultural Marketing Service (AMS) has opened the FY 2026 Specialty Crop Block Grant Program (SCBGP), making approximately $86.6 million available to State departments of agriculture for projects that enhance the competitiveness of specialty crops. Authorized under section 101 of the Specialty Crops Competitiveness Act of 2004, this is one of the largest annual USDA grant programs exclusively focused on fruits, vegetables, tree nuts, horticulture, and nursery crops — and for FY 2026, no cost share is required.

Program Overview

The SCBGP distributes federal funding to all 50 State departments of agriculture, plus the District of Columbia and five U.S. territories, to carry out projects that enhance specialty crop competitiveness. Each State submits a State Plan containing one or more project proposals, which are reviewed through a State-level competitive process before being forwarded to AMS.

Who Can Apply?

Only State departments of agriculture are eligible to apply directly. The term "State" includes all 50 states plus:

• District of Columbia
• American Samoa
• Commonwealth of the Northern Mariana Islands
• Commonwealth of Puerto Rico
• Guam
• U.S. Virgin Islands

A State department of agriculture is the agency, commission, or department of a State government responsible for agriculture within that State. While individual organizations, universities, and nonprofits cannot apply directly, they can participate as subrecipients by submitting project proposals through their State department of agriculture.

What Are Specialty Crops?

Specialty crops are defined as fruits and vegetables, dried fruit, tree nuts, horticulture, and nursery crops (including floriculture). This covers a wide range of commodities from apples and almonds to ornamental plants and cut flowers. A detailed list of eligible specialty crops and processed products is available on the AMS SCBGP website.

How Funding Is Allocated

Each eligible State receives a base grant of approximately $288,736.67, plus an additional amount based on a formula that considers:

• The average of the most recent available value of specialty crop cash receipts in the State (2024 calendar year estimates)
• The acreage of specialty crop production in the State (2022 Census of Agriculture)

This formula results in significant variation across states. Here are the top allocations:

States that do not apply for or request all available funding during the application period will forfeit unspent allocations. AMS will redistribute those funds pro rata to states that submitted applications.

Eligible Project Types

The SCBGP serves five statutory purposes for enhancing specialty crop competitiveness:

1. Leveraging efforts to market and promote specialty crops
2. Assisting producers with research and development relevant to specialty crops
3. Expanding availability and access to specialty crops
4. Addressing local, regional, and national challenges confronting specialty crop producers
5. Other purposes determined appropriate by the Secretary of Agriculture

States are encouraged to develop projects addressing:

• Food safety enhancement and Food Safety Modernization Act compliance
• Specialty crop research, including conservation and environmental outcomes
• New and improved seed varieties and specialty crops
• Pest and disease control
• Child and adult nutrition knowledge and consumption of specialty crops
• Distribution system efficiency and cost reduction
• Sustainability initiatives

Unacceptable Projects

AMS will not fund projects whose products or services solely benefit a single organization, institution, or individual. For example, a company requesting funds to purchase equipment to expand its own production would not qualify. Similarly, an organization requesting funds only to market itself would be rejected. Projects must produce measurable outcomes for the broader specialty crop industry or public.

Key Requirements

Multi-Entity Benefit

All projects must benefit more than one product or organization. Applications should describe how the project produces measurable outcomes for the specialty crop industry and/or the public, rather than a single entity.

Supplement, Not Supplant

Federal funds must supplement State expenditures in support of specialty crops, not replace them. If a State already budgets $50,000 for a specialty crop program and receives a $100,000 SCBGP award for that same purpose, the total expenditure must be $150,000 — the State cannot redirect the original $50,000 elsewhere.

Competitive Review Process

State departments of agriculture must develop their State Plans through a competitive review process that follows State policies and procedures, uses an independent review panel of experts, and is free from conflicts of interest. All documentation affecting funding decisions must be maintained in a centralized program file.

Administrative Cost Cap

Indirect costs are capped at 8% of total federal funds. This cap applies across the entire State grant — meaning the combination of State department administrative costs and subrecipient indirect costs cannot exceed 8%. The standard 15% de minimis rate does not apply to SCBGP.

Performance Measures

Each project must include target numbers for at least one of the seven outcomes and at least one indicator listed in the SCBGP performance measures. Progress is reported in Annual Performance Reports and results are captured in the Final Performance Report.

Coordinator Meeting Travel

Recipients are expected to attend an AMS-sponsored grants management meeting during the project period. Budgets must include travel funds for a 3-day, 2-night stay for the Project Coordinator and key personnel.

Application Components

The complete application package must include:

1. SF-424 — Application for Federal Assistance (via Grants.gov)
2. SF-424A — Budget Information for Non-Construction Programs (Sections A and B only)
3. Grant Administration Narrative — using the required AMS template, with an Executive Summary of no more than 250 words
4. Project Profile Template — one per project included in the State Plan
5. State Plan — submitted as a PDF Portfolio combining the Grant Administration Template (once at the beginning) and all Project Profiles

The acceptable font size is 11 or 12 point with 1-inch margins on all sides. Start date on the SF-424 should be September 30, 2026, with an end date of September 29, 2029 (maximum 36 months).

What Changed in FY 2026

• Funding increased to $86.6 million — all State and territory allocations have been increased based on the statutory formula
• AMS General Terms and Conditions updated to reflect changes to the Uniform Guidance (2 CFR Part 200) published December 31, 2025
• USDA General Terms and Conditions for Federal Awards also updated — both sets are applicable

Tips for a Competitive Application

1. Engage Stakeholders Early

AMS encourages State departments of agriculture to consult with specialty crop growers, processors, and distributors through a transparent public comment process before developing their State Plans. Applications with documented stakeholder input and justified public support are stronger.

2. Focus on Multi-Entity Impact

Projects that clearly demonstrate benefit across multiple producers, regions, or commodity groups are more likely to be approved. Frame each project profile in terms of industry-wide or public impact, not individual gain.

3. Use the Right Templates

AMS requires specific templates for the Grant Administration Narrative and Project Profile. Download them from the SCBGP website and follow the format exactly. Applications that do not use required templates may be deemed non-responsive.

4. Plan for Sustainability

AMS encourages States to examine projects for self-sustainability — ensure that proposed activities are likely to continue beyond the grant period and are not indefinitely dependent on public funding.

5. Budget for the Coordinator Meeting

Don't forget to include travel costs for the AMS grants management meeting in your budget narrative. Estimate flight, hotel, per diem, and ground transportation for a 3-day, 2-night stay. If the conference ends up being virtual, those funds can be reallocated.

6. Take Advantage of No Cost Share While It Lasts

FY 2026 is the last year without a cost share requirement for subawards. Starting in FY 2027, every subaward will require a 25% non-Federal match. This makes the current round especially attractive for projects that might struggle to secure matching funds.

Contact Information

• Program Email: SCBlockGrants@usda.gov
• SCBGP Website: https://www.ams.usda.gov/scbgp
• Mailing Address: Specialty Crop Block Grant Program, USDA AMS, 1400 Independence Avenue SW, Room 1510-S, Stop 0264, Washington, DC 20250-0269
• Grants.gov Help: 1-800-518-4726 or support@grants.gov

How Avila Can Help

The Specialty Crop Block Grant Program requires State departments of agriculture to coordinate stakeholder outreach, manage competitive review processes, develop detailed State Plans with multiple project profiles, and ensure compliance with complex Federal cost principles — all within a limited application window. For State agriculture teams managing multiple USDA programs simultaneously, building a complete and compliant SCBGP application is a significant administrative undertaking.

Avila's AI-powered platform helps government agencies streamline the grant application process by:

• Analyzing NOFOs to identify compliance requirements and eligible project categories
• Helping draft project narratives that align with program priorities and performance measures
• Tracking deadlines across multiple federal and state grant programs
• Managing the complete grant lifecycle from discovery to closeout

Ready to see how Avila can support your SCBGP application? Book a demo to learn more about our platform.

For more information on federal grant applications, see our guides on federal grant writing, SAM.gov registration, and Grants.gov registration. For other federal funding opportunities, check out our guides to the FTA Ferry Grant Programs and the SS4A Grant Program.