H.R. 5030: Specialty Crop Domestic Market Promotion and Development Program Act of 2025

This legislation, known as the Specialty Crop Domestic Market Promotion and Development Program Act of 2025, aims to enhance the market for domestically produced specialty crops in the United States. The primary action of the bill is to establish a program through which the Secretary of Agriculture can award grants to eligible organizations to support the development, maintenance, and expansion of the domestic market for specialty crops. Here’s a breakdown of the main components of the bill:

Grant Program Establishment

The bill directs the Secretary of Agriculture, through the Agricultural Marketing Service, to create a program that provides grants to eligible organizations. These grants are intended to fund initiatives that promote and expand the commercial market for specialty crops produced in the U.S.

Eligibility Criteria for Organizations

Organizations looking to apply for grants must meet specific criteria. Eligible organizations can include:

• A U.S. agricultural trade organization or a regional state-related organization that promotes U.S. specialty crops without profiting from sales directly.
• A cooperative organization or a state agency involved in promoting specialty crops.
• A private organization deemed capable of significantly boosting the demand for U.S.-produced specialty crops.
• A specialty crop organization operating under federal marketing orders.

Application Requirements

To receive a grant, organizations must submit an application that includes:

• A detailed marketing plan that outlines the proposed promotional activities and strategies.
• Certification that federal funds will be used in addition to, and not instead of, funds from non-federal sources.

Marketing Plan Details

The submitted marketing plan must include:

• A description of advertising or promotion activities to be funded by the grant.
• Information on how grant funds will be allocated along with other resources.
• Goals for market growth and additional necessary details.

Organizations can amend their marketing plans with approval from the Secretary.

Grant Funding and Matching Requirements

The bill stipulates that the Secretary must justify the amount of grant funds awarded and requires organizations to provide matching funds of at least 25% of the grant. These matching funds can include in-kind contributions.

Multiyear Assistance and Reviews

Grants can be awarded for multiple years, with annual reviews to ensure compliance with the marketing plans and targets set by the organizations.

Termination of Grants

The Secretary has the authority to terminate grants if an organization fails to adhere to the terms of the grant or does not adequately fulfill the marketing plan's objectives.

Evaluation and Monitoring

The Secretary is tasked with monitoring the program to assess how grant funds are spent and whether marketing plan goals are met. This includes performing audits of the organizations using grant funds if necessary.

Restrictions on Fund Usage

Grant funds cannot be used to provide direct assistance to for-profit corporations promoting foreign products or to any for-profit entity that does not qualify as a small business, with some specified exceptions like cooperatives and nonprofit associations.

Funding Authorization

The bill authorizes appropriations of $75 million annually starting in fiscal year 2026 to support this program, including costs associated with its administration.

Conclusion

The overall goal of this bill is to increase domestic consumption of U.S.-grown specialty crops by providing financial support to organizations geared towards promoting these products within the U.S. market.

Relevant Companies

• None found