The Specialty Crop Block Grant (SCBG) program, administered by the Minnesota Department of Agriculture (MDA), is designed to enhance the competitiveness of specialty crops grown in Minnesota within both domestic and international markets. This program is funded through a cooperative agreement between the United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS) and the MDA. Specialty crops are defined by USDA as fruits and vegetables, tree nuts, dried fruits, horticulture and nursery crops, floriculture, and processed products that contain at least 50% specialty crop content by weight, excluding added water.

Eligible applicants for this grant include nonprofit organizations, producer organizations, government agencies, universities, tribal organizations, and other agricultural groups. Individual producers, for-profit businesses, or commercial entities may apply only if their proposed projects provide a substantial benefit to the broader specialty crop industry rather than serving individual commercial interests. The grant is intended to fund projects that increase the competitiveness of specialty crops by supporting marketing and promotional efforts, facilitating research and development, improving distribution systems, expanding consumer access, and addressing regional challenges facing specialty crop producers.

For the 2025 SCBG cycle, the MDA is prioritizing projects that focus on improving distribution systems, promoting and marketing specialty crops, enhancing nutrition education to increase specialty crop consumption, researching pest and disease control, developing new specialty crop seed or plant varieties, and advancing sustainable production techniques. Additionally, projects that support beginning farmers—defined as individuals or entities operating a farm or ranch for less than 10 years—will be given priority consideration.

The program anticipates awarding approximately $1.25 million through a competitive review process, with a minimum award amount of $25,000 and a maximum of $125,000 per project. An estimated 12 to 15 grants will be awarded, depending on the size of approved projects. There is no matching requirement for applicants. The application period begins in February 2025, with the final submission deadline set for 4:00 p.m. Central Time (CT) on March 19, 2025. Applicants must submit their proposals online, and new users must create an account before applying.

Key dates for this funding opportunity include a March 12, 2025 deadline for applicant questions, followed by the March 19, 2025 application submission deadline. The MDA will review applications from March to April 2025, with provisional approval and denial notifications sent out in mid-April 2025. The USDA will conduct its review over the summer, and final award notifications and grant contracting agreements will be issued in the fall of 2025. Funded projects are expected to start on November 1, 2025, and must be completed by April 30, 2028, with a final completion deadline of September 29, 2028.