Pennsylvania Publishes $460,000 Specialty-Crop Grant Rules Covering Hemp, Honey and Grains

Pennsylvania has published guidelines for a $460,000 state specialty-crop grant program, setting out which agricultural projects can seek funding and when applications must be filed. The Department of Agriculture will begin accepting full proposals on November 16, 2026, with a deadline of 5 p.m. on December 18. Hemp, honey and certain grains used in brewing, distilling and malting are among the products covered by the new application round.

The grants are intended to support projects that improve the competitiveness of eligible agricultural sectors, rather than ordinary operating subsidies for individual farms or businesses. Applicants must show how the proposed work would benefit the specialty-crop industry beyond a single commercial product or organization. The state will distribute the money on a funds-available basis and reimburse approved project costs under grant agreements.

The program is separate from, and designed to supplement, the federal Specialty Crop Block Grant Program. Pennsylvania gives priority to crops that are not eligible for federal specialty-crop payments, as well as other high-priority products identified by its agriculture secretary. The November 14 Pennsylvania Bulletin notice establishes the qualifying crops, evaluation standards and two-stage application process for the 2026-27 state program.

Hemp and honey qualify, but grain uses are restricted

The eligible list covers hemp, hardwoods, honey and hops. It also includes horticulture and floriculture crops used in public gardens, flax grown for fiber, and specified fruits intended for particular processed products. This is not a grant program open to every crop grown in Pennsylvania. The designation matters because an otherwise useful agricultural project will not qualify unless it is tied to at least one crop or product on the published list.

For barley, rye and wheat, eligibility is limited to grain used for distilling, brewing or malting. Tree and pome fruits qualify only when intended for juice or cider, while vine crops must be for juice. Flax is eligible for fiber uses. Those limits distinguish the program from general commodity support and make the planned end use of a crop material to an application, rather than simply the identity of the plant being grown.

The rules also address processing. When a proposed project concerns a processed eligible specialty crop, that product must contain more than 50% of the eligible crop by weight, excluding added water. The condition could be important for applicants working on food, beverage or other value-added products. It is a defined eligibility test, not a general guarantee that projects meeting the composition requirement will receive funding.

Eligible applicants include state and local organizations, producer associations, universities, community-based organizations and other stakeholders in specialty crops. The notice does not reserve grants exclusively for individual growers. In practice, the industry-wide benefit requirement makes the project design especially important for producer groups, researchers and organizations proposing activities that multiple farms or processors could use.

Examples of potentially eligible work include improving distribution systems, developing crop varieties, pest and disease management, research on growing practices and food safety, and efforts to strengthen agricultural sustainability. Projects may also address recognized industry practices or consumer knowledge. The state identifies these as possible activities, not as automatic approvals. A proposal still needs a clear relationship to an eligible crop and a measurable benefit to the sector.

How the $460,000 will be awarded

The $460,000 figure represents the amount available for grants under the program, not an award for each applicant. Pennsylvania will use reimbursement grants, meaning successful applicants must document qualifying work and expenses under their grant agreements. Projects must be completed no later than June 30, 2030. The notice does not announce individual awards or identify winning applicants for this new solicitation.

Some funding is earmarked by location. The program reserves 6.2% for recipients and projects in qualifying rural municipalities with long-standing poverty, and 3.8% for comparable qualifying urban municipalities. The definition requires at least 20% of the population to have been below the federal poverty line since 1990, according to the state notice. After those allocations and permissible administrative costs, the remaining money is to be distributed with an aim of spreading assistance among eligible crop types and, where practicable, across Pennsylvania.

Applicants do not have to provide matching funds. However, the department says a match or in-kind contribution can demonstrate industry commitment and may be considered when proposals are evaluated. Reviewers will also look at whether a project budget is reasonable, whether the planned work can be completed and whether the idea addresses a defined need within the specialty-crop industry. Promising a broad benefit without a workable way to measure it is unlikely to satisfy the published evaluation framework.

Each proposal must identify at least one outcome and a corresponding indicator from the measures used by the federal specialty-crop program. The applicant needs to explain the expected quantifiable result and how data will be collected. That requirement connects the grant decision to demonstrable changes, such as stronger production practices or market development, instead of judging projects solely on their proposed activities. The notice does not set a universal numerical improvement target for every type of project.

Selection begins with a full proposal. The department will assess eligibility, relevance, project design and the proposed outcome before notifying applicants by email whether they have cleared the first stage. Only successful first-stage applicants will be invited to submit a final proposal, using instructions supplied by the state. The final review applies the same substantive criteria along with the program’s funding-allocation rules.

Applications open Monday; July awards were a separate announcement

Applications for this solicitation must be submitted electronically through Pennsylvania’s Electronic Single Application system. The opening date is November 16 and the final deadline is December 18, 2026, at 5 p.m. Applicants should use the current Bulletin notice for those dates because older program information can refer to previous rounds. The state’s instructions call for a complete full proposal at the first stage, rather than an informal expression of interest.

Even after selection, grant funding is not an unrestricted cash payment. A written or electronic agreement must be signed before the state releases money, and the project must meet its agreed conditions. Within 30 days after completion, the recipient must provide invoices for directly related goods or services and a certificate signed by the organization’s president or treasurer. The documentation is intended to substantiate the work completed and the reimbursement sought.

Pennsylvania has already used the specialty-crop program to support research and market-development projects. In a July 31 announcement, the Department of Agriculture said it had awarded $460,000 to five projects. Those awards included $80,000 to Penn State to study a parasite affecting barley grown for malting, $70,000 to the Planet Bee Foundation for beekeeper training, and $100,000 to the Rodale Institute for work on cover crops in fiber hemp production.

The earlier awards also included $60,000 to Penn State for specialty-crop pathogen research and $150,000 to the Team Pennsylvania Foundation to study demand and production capacity for mass timber. These examples show the kinds of research, training and market information that have received state support. They should not be confused with approvals under the application rules published in November: the new notice sets out a solicitation and selection process, not a list of recipients.

For groups considering an application, the immediate requirements are to confirm that the proposed crop and its use qualify, develop an industry-wide benefit that can be measured, and submit the complete initial proposal by December 18. The next formal step for successful applicants will be an emailed invitation from the Department of Agriculture to provide a final proposal. The November notice does not give a specific date for award decisions.