Dear Colleagues,
USDA NRCS has announced the Building Markets and Investing in America's Climate-Smart Farmers, Ranchers & Forest Owners to Strengthen U.S. Rural and Agricultural Communities funding opportunity.
In response to the climate crisis, USDA is pursuing actions within the agriculture sector to support the production of climate-smart commodities. Through this new program, USDA will finance partnerships to support the production and marketing of climate-smart commodities via a set of pilot projects lasting one to five years. Pilots will provide technical and financial assistance to producers who implement climate-smart practices on a voluntary basis on working lands; pilot innovative and cost-effective methods for quantification, monitoring, reporting and verification of greenhouse gas benefits; and market the resulting climate-smart commodities. For the purposes of this funding opportunity, a “climate-smart commodity” is an agricultural commodity that is produced using agricultural (farming, ranching, or forestry) practices that reduce greenhouse gas emissions or sequester carbon.
All projects must be tied to the development of markets and promotion of climate-smart commodities. Markets for climate-smart commodities may include companies or processors sourcing climate-smart commodities to meet internal targets or other supply chain goals, biofuel and renewable energy markets, companies seeking to sell branded consumer products, or other opportunities that could provide a premium or additional revenue for participating producers and land owners. Adoption of these practices can produce other associated environmental benefits.
USDA will support a set of pilot projects that provide voluntary incentives through partners to producers and land owners, including early adopters, to:
- Implement climate-smart production practices, activities, and systems on working lands;
- Measure/quantify, monitor and verify the carbon and greenhouse gas benefits associated with those practices; and
- Develop markets and promote the resulting climate-smart commodities.
Funding for Partnerships for Climate-Smart Commodities will be provided in two funding pools. USDA is committed to equity in program delivery and will ensure that all projects in both funding pools benefit small and/or historically underserved producers. Projects are also encouraged to include early adopters.
- First Funding Pool – April 8, 2022, by 11:59 p.m. ET
Proposals from $5 million to $100 million are in the first funding pool and should include large-scale pilot projects that emphasize the greenhouse gas benefits of climate-smart commodity production and include direct, meaningful benefits to a representative cross-section of production agriculture, including small and/or historically underserved producers. - Second Funding Pool – May 27, 2022, by 11:59 p.m. ET
Proposals from $250,000 to $4,999,999 are in the second funding pool and are limited to particularly innovative pilot projects. These projects should place an emphasis on:
o Enrollment of small and/or underserved producers, and/or
o Monitoring, reporting and verification activities developed at minority-serving institutions.
Projects may be between 1 and 5 years in duration, with up to two years of no-cost extensions considered on a case-by-case basis. Anticipated start dates are Summer 2022. The agency expects to make approximately 30-50 awards, depending on proposals received. There is not a specific match requirement for this NFO.
The primary applicant must demonstrate an existing relationship with and/or prior experience working with producers or land owners. Additionally, at minimum one project partner must have existing experience working with underserved producers or land owners. This information will be used when evaluating the application in the equity criteria.
To review the full application requirements, please see the program's website: https://www.usda.gov/climate-solutions/climate-smart-commodities
Thank you.
Kathleen Nolan, Director, ANR Office of Contracts & Grants (OCG)