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HR 5059119th CongressIn Committee

Specialty Crop Domestic Market Promotion and Development Program Act of 2025

Introduced: Aug 26, 2025
Sponsor: Rep. Valadao, David G. [R-CA-22] (R-California)
Agriculture & Food
Standard Summary
Comprehensive overview in 1-2 paragraphs

H.R. 5059, the Specialty Crop Domestic Market Promotion and Development Program Act of 2025, would add a new program under the Specialty Crops Competitiveness Act of 2004. The Secretary of Agriculture, via the Agricultural Marketing Service (AMS), would award grants to eligible organizations to carry out domestic market development activities designed to grow and expand the market for domestically produced specialty crops. The program emphasizes generic, demand-oriented promotion rather than product-specific marketing, requires cost-sharing from non-Federal sources, and includes strong oversight: annual performance reviews, audits, and strict eligibility rules to prevent use of funds for promoting foreign products or for-profit entities that are not small businesses (with certain exceptions for cooperatives, certain associations, and nonprofit trade groups). The bill authorizes $75 million per year (starting FY2026) for these grants and related administration.

Key Points

  • 1Creation of a new grant program (Specialty Crop Domestic Market Promotion and Development Program) to support domestic market development for U.S.-grown specialty crops, administered by AMS.
  • 2Eligible organizations include US trade or regional organizations, cooperatives or State agencies, certain private organizations, and groups operating under Federal marketing orders; non-profit and small-business-oriented participation is allowed under defined conditions.
  • 3Grant requirements include a formal application, a marketing plan outlining generic domestic promotion activities, and a certification that Federal funds supplement rather than replace non-Federal funds (including private contributions).
  • 4Matching funds: recipients must provide non-Federal matching funds at least equal to 25% of the grant amount, with in-kind contributions allowed; grants may be multiyear with annual progress reviews.
  • 5Oversight and restrictions: grants can be terminated for noncompliance or failure to meet goals; start around a first grant with a requirement for audits and annual evaluations of fund use and program effectiveness; funds may not be used to promote foreign-produced products or to provide direct support to for-profit corporations not considered small businesses (with defined exceptions for cooperatives, certain associations, or nonprofit trade groups).

Impact Areas

Primary: Domestic specialty crop producers and their representative organizations, including cooperatives and non-profit trade associations, that participate in or benefit from market development efforts aimed at increasing U.S. demand for specialty crops.Secondary: Consumers and the broader U.S. agricultural sector through expanded domestic market opportunities; AMS and the Farm Service/Marketing programs, due to added administration, reporting, and audit requirements.Additional impacts: Potential increases in federal outlays for market development (annual $75 million starting FY2026), enhanced public-private cost-sharing, and greater emphasis on generic promotion rather than product-specific campaigns; increased compliance and reporting obligations for eligible organizations.
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