Specialty Crop Block Grant Program

The South Dakota Specialty Crop Block Grant Program, administered by the South Dakota Department of Agriculture and Natural Resources (SD DANR), provides funding to projects that enhance the competitiveness of specialty crops within the state. This program is part of a broader initiative authorized under the USDA Agricultural Marketing Service (AMS), which grants funds to state agricultural departments as stipulated by the Specialty Crops Competitiveness Act of 2004, amended in the 2018 Farm Bill. These grants are designed to support activities that improve specialty crop marketing, research, access, pest control, food safety, sustainability, and seed development. The Specialty Crop Block Grant Program is implemented annually by SD DANR to support projects that benefit the state's specialty crop sector, defined to include fruits, vegetables, tree nuts, horticulture, floriculture, and nursery crops. For 2026, SD DANR anticipates distributing up to $325,000 in total project funding, pending allocation from USDA AMS. While there is no strict cap on individual project budgets, the department prioritizes proposals under $75,000. Awards typically range between $5,000 and $150,000, and the average award in the prior year was approximately $74,771. Projects will be funded for a period of up to three years, beginning on September 30, 2026, and ending no later than September 29, 2029. Applications are due by March 22, 2026, at 11:59 PM Central Time. Costs are reimbursed quarterly, and with prior written approval from SD DANR, subrecipients may incur pre-award costs up to 90 days before the performance period begins, as long as such costs are included in the approved budget. Eligible applicants include a wide array of non-federal entities involved in the South Dakota specialty crop industry. This includes state, local, or tribal governments, nonprofit organizations, higher education institutions, research institutions, for-profit businesses, and individual producers. However, to qualify for funding, projects must benefit the broader specialty crop industry and cannot solely benefit a single entity. Applicants must submit proposals that clearly define distinct project goals, outcomes, and measurable indicators. Ineligible projects include those that focus on ineligible crops, supplant existing efforts, or promote unfair competition within the industry. Applicants are required to submit three components: an application cover sheet, a completed USDA Project Profile Template in fillable PDF format (which includes the project narrative, objectives, budget, and measurable outcomes), and a SAM.gov Unique Entity Identifier (UEI). Optional letters of support may be submitted to strengthen applications. The USDA template and submission materials are available through the SD DANR website. Completed applications must be emailed to Timothy Schoonhoven at [email protected]. Proposals will be reviewed by an impartial panel of industry experts who will score each submission based on relevance to program priorities, work plan viability, potential impact, budget justification, and alignment with outcomes such as access expansion, consumption increase, and environmental sustainability. The Secretary of Agriculture and Natural Resources will finalize selections based on the panel's recommendations, and SD DANR will submit the state’s full proposal to USDA AMS for final funding approval. Performance reporting is required annually by November 15 of each year during the grant period, and final invoices and reports are due by October 31 and November 15, 2029, respectively. This grant opportunity is issued annually, and SD DANR encourages participation from both new and returning applicants. Those previously funded must demonstrate the distinctiveness of their new proposals and show compliance with prior performance expectations. While no cost share is required, indirect costs are capped at 8% of the total project budget. All proposals must include at least one USDA outcome and associated indicator, and research projects must show producer engagement and dissemination plans for findings. The 2026 priority areas for SD DANR include increasing access and production, consumer purchasing, and environmental sustainability.

Focus on South Dakota priority outcomes; demonstrate broader industry benefit; differentiate from prior projects if returning applicant.