H.R. 5059: Specialty Crop Domestic Market Promotion and Development Program Act of 2025

The Specialty Crop Domestic Market Promotion and Development Program Act of 2025 aims to enhance the commercial market for domestically produced specialty crop commodities in the United States. Here are the key components of the bill:

Overview

The bill directs the Secretary of Agriculture, through the Agricultural Marketing Service, to establish a new program that awards grants to eligible organizations. The purpose of these grants is to encourage the development, maintenance, and expansion of the domestic market for specialty crops grown in the U.S.

Eligibility and Application Process

Organizations wishing to apply for a grant must:

• Submit an application that contains information as required by the Secretary.
• Provide a marketing plan that meets specific criteria.
• Certify that they will use these federal funds to supplement, not replace, funds from non-federal sources.

Marketing Plan Requirements

The marketing plan submitted with the grant application must:

• Describe the advertising and promotional activities planned to increase demand for specialty crops.
• Detail how the funds from the grant, along with other resources, will be used.
• Set specific marketing goals to be achieved through the plan.

Additionally, organizations can amend their plans as needed, pending approval from the Secretary.

Grant Amounts and Matching Funds

The Secretary will determine the amount of the grant awarded, and organizations must provide non-federal matching funds of at least 25% of the grant amount. These matching funds can include in-kind support.

Multi-Year Assistance

The Secretary has the option to provide assistance on a multi-year basis, with annual reviews to ensure compliance with the marketing plans.

Termination and Compliance

The Secretary can terminate grants if organizations fail to adhere to grant terms or do not meet the established marketing goals. There is also a requirement for evaluations of how grant funds are spent and the effectiveness of marketing plans after grants are awarded.

Funding Provisions

The bill proposes an authorization of $75 million annually starting in fiscal year 2026 to support the program and cover administrative costs related to its implementation.

Limitations on Fund Use

Funds from the grants cannot be used to directly support foreign for-profit corporations or larger for-profit corporations that do not qualify as small businesses. Certain exceptions are made for cooperatives, specific associations, and nonprofit trade organizations.

Definition of Eligible Organizations

Eligible organizations for receiving grants include:

• A U.S. agricultural trade organization or a regional state-related organization that promotes U.S.-produced specialty crops without profiting from specific sales.
• A cooperative organization or state agency promoting U.S. specialty crops.
• A private organization identified by the Secretary as significantly contributing to increased domestic purchases of U.S. specialty crops.
• A specialty crop organization operating under federal marketing orders.

Relevant Companies

None found.