USDA to Invest $1 Billion in Climate-Smart Commodities, Expand Markets and Strengthen Rural America

Funding Opportunity Opens to Pilot New Revenue Streams for Climate-Smart Farmers, Ranchers, and Forest Owners in the United States

JEFFERSON CITY, Missouri, February 7, 2022 – Agriculture Secretary Tom Vilsack announced today at Lincoln University that the U.S. Department of Agriculture is delivering on its promise to expand markets by investing $1 billion in partnerships to support climate-smart American farmers, ranchers and forest owners. The new Climate-Smart Products Partnerships Opportunity will fund pilot projects that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices and include innovative and cost-effective ways to measure and verify climate-smart products. benefits of greenhouse gases. The USDA is now accepting project applications for fiscal year 2022.

“America’s farmers, ranchers and forest owners are leading the way in implementing climate-smart solutions in their operations,” Vilsack said. “Through partnerships for climate-smart products, the USDA will provide targeted funding to meet domestic and global demand and expand market opportunities for climate-smart products to increase the competitive advantage of We want a broad spectrum of farmers and foresters to see themselves in this effort, including historically underserved small producers as well as early adopters.

For the purposes of this funding opportunity, a climate-smart product is defined as an agricultural product that is produced using agricultural practices (agriculture, livestock, or forestry) that reduce greenhouse gas emissions or sequester carbon.

Funding will be provided to partners through the USDA Commodity Credit Corporation for pilot projects to engage growers and landowners to:

  • implement climate-smart practices, activities and production systems on farmed lands,
  • measure/quantify, monitor and verify the carbon and greenhouse gas (GHG) benefits associated with these practices, and
  • develop markets and promote the resulting climate-smart products.

How to register

Various public and private entities can apply, including:

  • County, city or township governments
  • Special district governments
  • State governments
  • Small enterprises
  • For profit organizations other than small businesses
  • Native American tribal governments (federally recognized)
  • Native American tribal organizations (other than federally recognized tribal governments)
  • Non-profit organizations with a 501(c)(3) (other than higher education institutions)
  • Non-profit organizations that do not have a 501(c)(3) (other than higher education institutions)
  • Private higher education institutions, or
  • Public and state-controlled higher education institutions.

The lead applicant must be an entity and not an individual.

Funding will be provided in two funding pools, and applicants should submit their applications through by 11:59 p.m. Eastern Time on:

  • April 8, 2022, for the first funding pool (proposals of $5-100 million), and
  • May 27, 2022, for the second funding pool (proposals from $250,000 to $4,999,999).

Proposals should provide plans for:

  • Pilot implementation of climate-smart agricultural and/or forestry practices at scale, including meaningful involvement of smallholders and/or historically underserved producers;
  • Quantify, monitor, report and verify climate outcomes; and
  • Develop markets and promote climate-smart commodities generated as a result of project activities

The USDA is committed to equity in program delivery and specifically seeks proposals from entities serving all types of producers, including small producers or historically underserved producers. Providing sufficient incentives to encourage producer participation and generate both verifiable greenhouse gas reduction and carbon sequestration benefits are critical to the success of the project and will be considered in the evaluation criteria.

More information

The USDA issued a Request for Information in September 2021 seeking public input and feedback on the design of this new initiative and used the nearly 400 comments received to inform this funding opportunity.

Visit for more information, including details on climate-smart product partnerships and resources to support your application.

Under the Biden-Harris administration, the USDA is engaged in a whole-of-government effort to address the climate crisis and conserve and protect our nation’s land, biodiversity, and natural resources, including our soil, air, and water. . Through conservation practices and partnerships, USDA aims to enhance economic growth and create new sources of income for farmers, ranchers, growers, and private foresters. To successfully address these challenges, USDA and our agencies will need to pursue a coordinated approach alongside USDA stakeholders, including state, local, and tribal governments.

The USDA touches the lives of all Americans every day in so many positive ways. In the Biden-Harris administration, the USDA is transforming the US food system with greater emphasis on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe food, healthy and nutritious in all communities, creating new markets and income streams for farmers and producers using climate-smart food and forestry practices, making historic investments in clean energy infrastructure and capacity in the Rural America, and committing to equity across the Department by removing systemic barriers and creating a workforce that is more representative of America. To learn more, visit

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