Assisting Specialty Crop Exports: Low Oxygen Storage and Packaging Systems for U.S. Tree Nuts with Phytosanitary Traceability

The U.S. Department of Agriculture, Foreign Agricultural Service is offering the Assisting Specialty Crop Exports: Low Oxygen Storage and Packaging Systems for U.S. Tree Nuts with Phytosanitary Traceability funding opportunity through the Assisting Specialty Crop Exports Initiative. The program is intended to enhance U.S. specialty crop market access in key export markets and support producers through cost-effective approaches to post-harvest pest control and product quality during storage and export. The project specifically addresses barriers associated with insects, pesticide residues, phytosanitary requirements, and maximum residue limits. USDA/FAS anticipates one cooperative agreement with total available federal funding of $2,000,000, contingent on funding availability, and a project duration of up to five years. The recipient will develop technically and economically viable methods for verifying that low-oxygen conditions of less than 1 percent oxygen by volume are maintained in packaging for U.S. tree nuts and can be certified by third parties. Technologies and processes should document conditions when packaging is filled or sealed, confirm seal integrity, support digital mapping or record keeping throughout the handling and logistics chain, and permit verification by handlers and external entities such as third-party or USDA inspectors. Solutions must address bulk and retail packaging and should be readily implementable, commercially available within one year, and cost effective for U.S. tree nut processors and handlers. The recipient will work with commercial low-oxygen technology providers, including sensor developers, and may provide project funding to partners. Additional subawards for targeted technology solutions or research may be proposed, subject to final USDA/FAS review and approval. The principal deliverable is a project report presenting project results and a compilation of verification processes for each packaging or technology type for which an oxygen verification process can be established. Solutions must be addressed separately for relevant technology and packaging categories and differentiated by commodity, including different tree nuts, when verification processes differ. The report must estimate per-unit and capital costs and explain how the technologies can be incorporated into contemporary commercial tree nut processing and handling systems. The recipient must also establish and coordinate a technical group involving U.S. tree nut industry associations, handlers, and relevant USDA experts and collaborate with USDA Agricultural Research Service and Animal and Plant Health Inspection Service personnel. Recycling options must be available for some proposed liners and packaging materials to address European Union Packaging and Packaging Waste Regulation requirements. Eligible applicants include U.S. academic institutions, state governments, nonprofits with or without 501(c)(3) designation, U.S. trade associations, U.S. agricultural cooperatives, international organizations, foreign entities, and other entities including private sector businesses. Applicants must satisfy the applicable SAM.gov requirements, provide a valid Unique Entity ID, and use USDA's ezFedGrants system for submission. An applicant may submit only one application and may not receive more than one award under this opportunity. Cost sharing is not required but is encouraged. Federal funds must be used for the authorized award purpose and may not be used for prohibited activities such as matching contributions for other federal awards, lobbying, intervention in federal regulatory or adjudicatory proceedings, or suing the Federal Government or another government entity. Indirect costs are eligible, subject to the applicable documentation and federal requirements. A complete application includes a signed SF-424 showing the Unique Entity ID, SF-424A, a detailed budget narrative, and a detailed project narrative or plan of operation of no more than 10 single-spaced pages. The narrative must address project activities, locations, timelines, personnel, capacity to develop and manage subawards, proposed low-oxygen storage and packaging technology partners, anticipated export benefits and markets, experience with tree nut processing and export logistics, and capacity to coordinate industry and technical expertise. Applicants should include relevant partner commitment and support letters. The application instructions require support from at least one U.S. tree nut industry organization and a commitment letter from each packaging or technology company involved, while the merit review criteria specifically evaluate whether applicants provide at least two low-oxygen or modified-atmosphere packing technology company support letters and at least two U.S. tree nut industry organization support letters. Applications must be submitted through ezFedGrants. USDA/FAS will first conduct an eligibility threshold review covering applicant eligibility, timely submission, and application completeness. Eligible applications will then undergo panel review. Scoring consists of Technical and Commercial Issues Awareness at 20 points, Project Implementation Plan at 30 points, External Project Support and Collaboration at 25 points, Budget at up to 15 points, and Professional Formatting, Spelling, and Grammar at 10 points. The selecting official may select applications out of rank order based on strategic program priorities, and final selection determinations cannot be appealed. Risk review will also consider financial stability, management systems, federal award performance history, audit findings, and the applicant's ability to comply with applicable requirements. Applications are due October 26, 2026, at 11:59 p.m. Eastern Daylight Time, and late applications will not be accepted. USDA/FAS advises submission one to two days early and strongly encourages applicants needing ezFedGrants or other USDA system assistance to contact the agency at least five business days before the deadline. The program contact is Angel Gonzalez at Angel.Gonzalez@usda.gov or 202-615-1742. Applicants will be notified of application or award status by email, but successful notification is provisional until the award document is signed by authorized USDA/FAS and recipient officials. Financial and performance reports are required semi-annually, with final reports due within 120 calendar days after the period of performance ends. Extensions are permitted subject to approval, and USDA/FAS reserves the right to make no award or additional awards if additional funding becomes available.

Prioritize a credible, time-bound implementation plan because it carries 30 points. Demonstrate technical and commercial awareness of low-oxygen packing, traceability, phytosanitary treatment, tree nut processing, technology costs, and adoption. Include strong external collaboration: the review criteria specifically look for at least two low-oxygen or modified-atmosphere packing technology company support letters and at least two U.S. tree nut industry organization support letters. Provide a detailed, justified, cost-effective budget. Keep the proposal professionally organized, readable, and nearly error-free. Explain commercial privacy and intellectual property handling where relevant, and clearly describe any process and criteria for selecting additional partners or subawards.