Specialty Crop Block Grant Q&A

The purpose of the grant program is to enhance the competitiveness of specialty crops by:

• Leveraging efforts to market and promote specialty crops;
• Assisting producers with research and development relevant to specialty crops;
• Expanding availability and access to specialty crops; and
• Addressing local, regional, and national challenges confronting specialty crop producers.

A specialty crop is defined by the USDA as “Fruits and vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including floriculture). Eligible plants must be cultivated or managed and used by people for food, medicinal purposes, and/or aesthetic gratification to be considered specialty crops. Processed products shall consist of greater than 50% of the specialty crop by weight, exclusive of added water.”

The USDA lists eligible and ineligible crops on their website. This list is not exhaustive, so if you have a question about a crop that is not represented, please contact us before applying.

The amount of federal Specialty Crop funding allocated to Minnesota is based on the reported acreage of specialty crop production and sales. The USDA National Agriculture Statistics Service (NASS) collects this information. However, specialty crop production is often underreported. We encourage all farms to sign up to get future surveys and censuses. (NASS defines a farm as any place that normally produces and sells $1,000 or more of agricultural products in a calendar year.)

Please refer to the Past Projects tab on our SCBG website to see previously funded projects.

Eligible applicants include:

• Nonprofit organizations
• Producer organizations
• Government agencies
• Public and private institutions of higher education
• Private businesses and researchers

It should be noted that projects submitted by individual producers, for-profit businesses, or commercial entities are not eligible for a SCBG if the grant funds will be used for projects that will start or expand a business; solely benefit a particular commercial product; provide a profit to a single organization, institution, or individual; or result in unfair competition with private companies that provide equivalent products or services. Applications from such applicants must benefit a segment of a Minnesota specialty crop industry and not just the applicant organization. They also must provide knowledge that is transferable to other entities and incorporate a clear plan or disseminating the results of their research, production methods, etc., to provide value to the specialty crop industry at large.

Though most grants under this program are awarded to universities and nonprofits, the evaluation criteria treat all entities equally, as long as they are capable of performing the proposed work.

All applications will be reviewed and scored on the extent of external support from specialty crop growers, grower-level groups, processors, and distributors (stakeholders), and how the project may affect and produce measurable outcomes for the specialty crop industry segment and/or the public. These evaluation criteria are often more difficult for for-profit entities to demonstrate. Your proposal may be strengthened by including a plan to share results with a wide audience of beneficiaries, collaborate or partner with a nonprofit or academic organization to broaden your external support from stakeholders, or conduct outreach to collect data on project outcomes.

Producer-owned cooperatives, for-profit entities, and food hubs have been awarded SCBG funding, as seen in the list of past grantees. The program encourages projects from any applicant type that are provide broad industry benefit to Minnesota specialty crops.

We do accept applications from organizations outside of Minnesota, if the proposed project aligns with the grant program’s goals of improving the competitiveness of Minnesota’s specialty crops. For example, we’ve previously funded projects with North Dakota State University involving research on potatoes grown in Minnesota because Minnesota potato producers benefited from the project.

Yes, you may submit a proposal—it can be related to the current grant, but that is not a requirement. It is relatively common for us to fund projects that build upon previously funded work. SCBG will not fund duplicative projects.

Projects that stem from a previous grant need to describe how the projects should become self-sustaining or justify funding an ongoing project. Applicants requesting fund for a previously funded SCBG should indicate how the project complements and further advances the competitiveness of the specialty crop market sector and does not duplicate previous work. Ongoing projects must also list the specialty crop stakeholders, other than those involved in the project, who support the continuation of the project.

The application includes a section of questions for proposals that are related to previously funded efforts. These questions ask about how the proposed project differs from the previous project, the outcomes of the previous project, any lessons learned from the project, and how the lessons learned will be incorporated into the next project.

An eligible proposal needs to demonstrate that:

• The project will result in a significant benefit to the specialty crop industry for crops that are or will be grown in Minnesota (or a segment of the industry—potatoes, for example).
• The project has external support from specialty crop stakeholders; stakeholders include specialty crop growers, grower-level groups, processors, or distributors. The proposal needs to list the farmer(s) or organization(s) and describe the reasons they would like you to conduct this project.
• The project should positively affect and produce measurable outcomes for the specialty crop industry or the public.
• The proposed project will not solely benefit a particular commercial product; provide a profit to a single organization, institution, or individual; or result in unfair competition with private companies that provide equivalent products or services (for example, increase one co-op’s sales of specialty crops at the expense of another co-op).

Yes, as long as the project demonstrates clear benefit to the competitiveness of specialty crops in Minnesota. We know, for example, that some specialty crop growers produce and market specialty and non-specialty crops through the same channels or that research on some production methods may be applied to both specialty and non-specialty crops.

In general, beekeeping projects and projects to enhance the competitiveness of honey are eligible under the SCBGP because of the role bees play in sustaining specialty crop health through pollination, and beekeeping is considered horticulture. Other bee products may be eligible depending on how they will be used or the purpose of the project. Bee products that are used for food or medicine are eligible. Research projects on pollination or education projects to enhance local beekeeping strategies are eligible.

No, neither hemp nor cannabis is considered an eligible specialty crop by the USDA, regardless of its ultimate use.

Yes, as long as the project involves and primarily benefits growers/producers that reside in Minnesota and will enhance the competitiveness of specialty crops grown in Minnesota. Whether inside or outside of Minnesota, any entities that are involved in a grant-funded project must be able to account for the grant-related work separately from their other activities.

All costs covered by this grant program must be direct costs. When determining what is considered a direct cost, you must follow your organization’s normal written policies/procedures. The personnel costs claimed in the budget section of the application cannot normally be included in your organization's overhead costs or included in calculating your organization's indirect cost rate. Direct costs for staff time spent doing a project’s administrative work, like arranging project activities (such as a workshop or outreach event) may be eligible for SCBG funding.

Labor costs must be based upon actual wages, salaries, and fringe costs earned and time worked solely on the awarded project. The work activities must be attributable to the project through payroll documentation, timesheets, or activities logs, which you may be required to submit to the MDA at least once during your project as part of a desk audit.

No — grant funds cannot be used for business start-up or expansion costs. SCBG projects proposed by individual producers, for-profit businesses, or commercial entities need to demonstrate a significant benefit to a segment of the specialty crop industry, and not just the applicant or partner organization.

Yes, subawards and subcontracts by SCBG grantees are allowable and have been a part of previously approved projects.

In the “Contractual/consultant” budget section of the application, you are asked to list the contractors’ names, hourly/flat rates, and total costs, as well as a justification for why contractual/consultant services are being used to meet the anticipated outcomes and objectives of your project.

Contractors' hourly rates may not exceed the salary of a GS-15 step 10 federal employee in your area. If contractor employee and consultant hourly rates of pay will exceed that rate, you need to provide a justification for the expenses. Note that we do not allow indirect costs for contractors and consultants.

When selecting your contractors/consultants, your organization needs to follow the same policies and procedures used for procurements from non-federal sources, which reflect applicable state and local laws and regulations and conform to the applicable federal laws and standards identified in 2 CFR Part 200.317 through 200.326.

You should be aware that if you are awarded a grant, your organization will need to pass down and enforce the requirements of the AMS 2024 General Terms and Conditions Updated (PDF) with any subawardees or contractors/consultants in their subaward or subcontract agreements.

If your organization doesn’t have a federal Unique Entity ID (UEI), request one online from Sam.gov. The Federal Service Desk has a list of the information and documents you will need.

Note: Because SCBGP grants are federal subawards, you are not required to complete a full registration for your entity. You only need to request a UEI. Follow these step-by-step instructions on YouTube or contact us for additional assistance. We recommend doing this now or early in your application process – it’s free.

You may submit proposals to multiple state departments of agriculture, but it can only be funded by one state. It is unallowable to accept funding for the same project activities or costs in multiple states.

Our online application portal uses character limits. We estimate 3,500 characters per page (see other conversions at character limits into estimated word and page counts). The character limits are listed below the text box of each narrative in the online application. Spaces count towards the character limit.

Yes, you may select a later project start date. However, you need to complete your project by the latest possible project end date listed in the RFP.

The word “outcome” in the “Project summary” section is used informally to prompt you to summarize what will be produced/achieved from doing the proposed project. The “objectives” in the “Project purpose” section are the specific, measurable elements of the project that will be completed for your project. If a grant is awarded, you will be required to report on your progress and completion of the objectives.

We prefer a two-word descriptor of each beneficiary. You may provide a more detailed explanation of benefit to beginning farmers if that is a focus of your project.

Stakeholders in the project are not necessarily beneficiaries of the project. A beneficiary is an entity that stands to benefit from the performance of the grant project activities. Examples of SCBG project beneficiaries are the attendees of a grant funded workshop who learn how to write a food safety plan; growers who learn how to detect and control a common plant disease by attending a conference presentation; or children who learn about growing, preparing, and eating specialty crops in a school program.

Stakeholders can be growers, grower-level groups, processors, and distributors involved in the specialty crop industry that support the project by standing to benefit from it, or that are assisting the applicant/grantee in setting priorities, by reviewing and commenting on the project, or implementing the project. For the purposes of this grant, stakeholders are not the project partners or collaborators who are listed in the application.

Describe all support your proposed project has from any specialty crop stakeholders. Describe the specialty crop producers/farmers, producer organizations, processors, or distributors that support this project and why they support it. If a stakeholder has provided (verbal or written) support to you or a collaborator or partner, you may include those specifics in this narrative.

A thorough description of the involvement of each stakeholder in your project in the narrative box of the application is important.

Stakeholder letters of support are not required to be submitted with your application, but are part of the scoring criteria. Including one or more letters by stakeholders may strengthen your proposal by enabling reviewers to better gauge the level of support for your application.

Yes, descriptions of all stakeholders that support your project should be included in your proposal. The USDA requires descriptions of stakeholder support for each project, because letters of support are not included in your project profile that will be submitted as part of the state plan that the MDA submits to USDA (if your project is selected for funding).

Only one outcome is required, but any and all applicable outcomes can be included in your proposal. If an outcome is used, at least one indicator/sub-indicator listed within that outcome must also be used, as well as the method of data collection described for each indicator/sub-indicator. Outcomes and indicators need to be reported in each annual report and the final performance report. Choosing more outcomes and indicators will not impact whether your project receives funding. Focus on choosing only those outcomes and indicators that are achievable and realistic and for which data can be collected and reported.

If you choose a project-specific indicator, it will be submitted with your project profile as part of Minnesota’s state plan to USDA. The approval would come when the USDA reviews and accepts our state plan.

The USDA stresses the importance of including proposal outcomes that fit within the established outcomes listed in the RFP.

Yes, the whole application and all uploaded documents are compiled and sent to the reviewers for evaluation and scoring. There is a section at the end of the application where you can upload additional documents.

A standalone work plan is not a part of the application. Instead, the work plan is built into the budget narratives for the Personnel and the Contractors/consultants budget categories. In the “Justification” sections of both the categories, you should list the activities to be completed by name/title, including approximately when the activities will occur.

We recommend a separate line in the travel budget table for each trip and providing as much detail as you have available. We understand that this level of detail might not be available at the time of application, but if it is not included, USDA is likely to ask for it after they have reviewed Minnesota’s state plan. Further details, including specific or general locations and any equations used to estimate total miles, should be provided in the “Travel justification” section. If exact locations are not yet known, a rough estimate based on region (“SE Minnesota,” for example) can be provided.

Yes, under the Procurement Standards section of Title 2 of the Code of Federal Regulations (2 CFR Part 200.317 to 200.326), grant recipients must have documented policies and processes for purchasing goods and services with federal (SCBG) funding. Additionally, your organization must follow the same policies and procedures for procurements from non-federal sources.

As an example, see the State of Minnesota’s bidding requirements for non-governmental organization grantees. These should conform to most Federal laws and standards for most non-university or government grantee organizations for most typical SCBG grant purchases.

You are not required to submit financial documentation for the pre-award risk assessment as part of the application process. However, if you are selected for an award, you will be required to submit the financial and other documentation required for the pre-award risk assessment (based on your organizational structure) at that time.

The funding priorities are of equal importance. Using the evaluation criteria listed in the RFP, points will be awarded to projects according to how well the application addresses at least one of the funding priorities.

There are no exclusions on who may be the beneficiary of an SCBGP project as long as the project fulfills the program’s purpose of enhancing the competitiveness of specialty crops in Minnesota. However, projects that can demonstrate a benefit to beginning farmers (defined as an individual or entity that has not operated a farm or ranch for more than 10 years and substantially participates in the operation) can receive up to five additional points during the scoring process. We encourage you to review the Evaluation Profile to understand how applications will be scored.