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Winning grants from the US Department of Agriculture
There’s a whole world of grants out there for climate startups. Along with the cash, these awards will help you forge partnerships, scale your impact, and boost your credibility - but navigating the application process can be overwhelming.
In our new series, in partnership with Climate Finance Solutions, we’re doing a deep dive into the State and Federal Agencies that offer these transformative grants. First up, here’s how to find, apply, and win grants from the US Department of Agriculture.
What types of grants does USDA offer?
USDA funding of interest to climate tech companies centers on agricultural sciences and programs, and technology development and deployment. The agency’s grants come in three types - research, education, and extension - or might involve a combination of all three.
In the past, USDA has funded projects in areas such as:
- Food security
- Agriculture tech development
- Outreach and education
- Nutrition science
- Climate smart agriculture
Who’s eligible for USDA grants?
The majority of USDA funding goes to universities and for-profit businesses, but organizations including national labs, non-profits, government entities, and tribes are also eligible for many USDA grants.
You’ll also need to consider the partnership criteria for the grants you’re interested in. For some - like the AFRI Foundational and Applied Science program for instance - it’s recommended that climate tech companies partner with a university or have one serving as a lead applicant. For other grant programs, you’ll need to embark on direct partnerships with growers/producers and other major players in the ecosystem, including as far downstream as CPG brands. USDA has also more recently begun releasing programs aimed at historically underserved communities and emphasizing the importance of partnerships with these groups even when they are not explicitly involved in the main objective of the grant program.
How to find current opportunities
USDA offices will post available grants on their website, and it’s also worth signing up to their newsletter for updates. You should also check out Grants.gov, which lists all the current grants offered by federal agencies. Platforms like OpenGrants.io can also be helpful. Most US states also have grant and/or funding aggregator sites, like the California Grants Portal, which can help you identify grants for pass-through USDA funding, such as the Specialty Crop Block Grant Program, that may be geographically aligned with the work that you or your partners are doing.
If you’re finding the search overwhelming, you can also speak to a consultant like Climate Finance Solutions, who’ll be able to identify the grants you have the best chance of success with (and then help you apply for them).
The steps toward applying for a USDA grant
Competition for a USDA grant is fierce. So, once you’ve found a grant that looks like it might be a good fit, go through the criteria with a fine-tooth comb to make sure you’re eligible - you’ll be wasting your time otherwise. If you are sure that you meet the eligibility requirements, start scoping your project. Here, you’ll formulate your plans, lay out the costs, and shape your project to fit both your company’s long-term plans and the agency’s objectives.
Keep in mind that the USDA and the offices under its umbrella will be looking for projects that align with their priority areas. These might not be obvious or laid out in the funding announcement, so you’ll need to do some digging - it’s very much worth reaching out directly to the relevant office’s Program Managers at this stage for better insight into what they’re looking for.
For more insights on how to prepare a winning application, check out our past piece with Diana Dinerman here.
Common mistakes to watch out for
Pitfalls to watch out for when applying for a USDA grant include overlooking basic eligibility issues, neglecting to collaborate with the right partners, and missing the mark in terms of the agency’s priorities. It is essential to review any grant solicitation closely to establish basic eligibility, not only in terms of the type of entities that are eligible to apply, but also specific technical or baseline requirements for the program or (if relevant) the topic area under which you will be applying. Sometimes these eligibility requirements can be buried in sections of the solicitation that are not in the main “Eligibility” section. For many USDA programs, it is required (or highly advisable) to work directly with farmers or growers, not only taking their needs and concerns into account in the project design, but also having them play a substantive role in the project scope. For others, validation or participation of a university is required or highly advisable. Pro tip: if a solicitation ever says that something is “encouraged,” you should definitely do it!
Finally, the high-level program priorities are usually described in the beginning of the solicitation, but they are not all-encompassing of the agency’s priorities. You need to do your research to understand the agency’s overall priorities so you can address those in your application as well. For long-running programs that recur every year or sometimes multiple times per year, they often have a very similar solicitation, but the agency has a different point of emphasis that they may not make clear in the solicitation itself. It is a common mistake to apply for a grant that nominally seems like a fit, but your specific solution has been de-emphasized in this round in terms of the agency’s overall priorities.
How USDA evaluates grant applications
Your USDA grant application will usually be assessed under a peer review process. Three to four subject matter experts look at every application and award them points based on how well they meet criteria such as scientific merit, potential impact, and relevance to the agency’s priorities. The panel then comes to a consensus about where each proposal ranks, and the Program Manager recommends the highest-rated ones for funding.
Typical timelines for a USDA grant
The wait between pressing send on your grant application and the award being announced is generally around 6-9 months long. If you win, and the grant is in the low millions, it might take 4-8 weeks to negotiate and finalize the grant contract. Then, you could have to wait a further two months (or more) before the first reimbursement hits your bank account. With a larger grant - in the tens or hundreds of millions - you can expect a much more arduous contracting process and a longer delay before the first payout.
Additionally, most of these grants are structured on a reimbursement or milestone basis, so you’ll need to have working capital to do the proposed work and then navigate a 30-90 reimbursement cycle before money flows in from the grant. This is where a company like Enduring Planet can bridge the gap and reduce the burden on your corporate balance sheet by advancing you funds against the grant.
Keeping compliant with agency requirements
Each grant will have its own compliance requirements, so make sure you read your contract carefully and engage your assigned Program Manager to chart a grant management plan after you’ve won. One simple, but easily overlooked, task that’s nonetheless important is making sure your registrations on all of the post-award platforms are up to date. Other common responsibilities will require more effort, and include following the terms of the grant and keeping up with the agency’s reporting requirements, which might involve writing technical or financial reports. While this may feel laborious and time-consuming, it’s simply part and parcel of getting the cash, and doing it well will not only ensure you’re paid on time and fulfilling your end of the deal, but help to build a stronger and hopefully ongoing relationship with the agency. If in doubt or feeling overwhelmed, working with expert consultants is the most foolproof way to ensure you stay compliant.
The benefits of receiving a USDA grant - beyond the money
The validation from a funder of USDA’s size and level of technical expertise comes with a profound halo effect, meaning the road to future investment will be a lot smoother. You’ll also develop critical partnerships during the process of getting your project off the ground, and go a long way towards finding your product-market fit.
What to do if your grant application is unsuccessful
If your application is rejected, it’s not the end of the road. Read the feedback from your reviewers and contact the agency for a debrief, where you can discuss in detail the reasons why you didn’t make the cut. Use the info you glean here to potentially revise and resubmit your application - but keep in mind that a rejection is also a sign to reconsider whether the grant you applied for was really right for you in the first place. If the program you applied to does not proactively provide reviewer feedback, you should still reach out to the agency to get feedback and/or request a debrief.
Looking to the future of USDA grant programs
Fortunately, funding for USDA grants is continually increasing, with existing programs being recapitalized while new ones are being established. Plus, with support of agriculture as one of those rare areas of bipartisan agreement, USDA is likely more resilient than other federal agencies to funding cuts arising from changes in political administrations.