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The California Department of Food and Agriculture (CDFA) has announced a total of $84 million is available for the Healthy Soils Program (HSP) and State Water Efficiency Program (SWEEP) Block Grants. These grants of $2 - $4 million will fund organizations to provide technical assistance to producers, select on-farm projects for financial support, and to manage these projects over an on-farm implementation period of up to three years. CDFA’s Office of Agricultural Resilience and Sustainability (OARS) will award grants through a competitive two-phase application process, with Concept Proposals due May 15, 2026.

What is the purpose of these Block Grants?

In 2024, California voters approved Proposition 4, the Climate Bond, which authorizes $65 million for HSP grants that promote practices on farms and ranches that improve soil health or accelerate atmospheric carbon removal or soil carbon sequestration. The Climate Bond also authorizes $40 million for SWEEP grants to promote on-farm water use efficiency with a focus on multiple-benefit projects that improve resilience to climate change and save water on California agricultural operations.

Who is eligible to apply?

The Climate Bond identifies eligible Block Grant Recipients (BGR) as Public Agencies; Local Agencies; 501 (c) 3 Nonprofit Organizations; Special Districts; Joint Powers Authorities; Public Utilities; Local Publicly Owned Utilities; Mutual Water Companies; and California Native American Tribes.

Each Block Grant must include an eligible Technical Assistance Provider (TAP) who will assist producers with project design and implementation. The Canella Act identifies Resource Conservation Districts (RCDs), University of California Cooperative Extension, California public colleges and universities, Nonprofit organizations, Groundwater Sustainability Agencies, and Irrigation Districts as entities eligible for technical assistance funding. If a Lead Applicant is not one of the organizations that are identified above as a TAP lead organization, they must partner with one of those organization types to lead the technical assistance activities for the project.

What is expected of Block Grant Recipients?

All BGRs will complete eight Common Objectives to achieve their goals and the State’s goals. These Objectives are as follows:

Phase 1. Outreach and On-Farm Project Selection

1. Develop a Process for Selecting On-Farm Projects: In collaboration with OARS, create a fair, transparent and goal-aligned selection process.
2. Perform Outreach: Widely advertise the funding opportunity to the service area identified in the Scope of Work, with a focus on reaching growers who will help the project meet identified goals.
3. Provide Application and Project Design Technical Assistance: Work closely with producers to gather necessary application information and prepare an eligible project design.
4. Select On-Farm Projects: Complete on-farm project selection.

Phase 2. On-Farm Project Implementation and Outcomes

1. Obtain Grant Beneficiary Commitments: Develop written agreements with producers that lay out the responsibilities of both the Beneficiary and the BGR in implementing the on-farm project.
2. Provide Implementation Technical Assistance and Facilitate On-Farm Project Completion: Maintain technical assistance throughout the on-farm project implementation with a commitment to the best possible outcomes for beneficiaries, including recurring site visits as appropriate.
3. Disburse Funds to Grant Beneficiaries in a Timely Manner: Provide advances and/or reimbursements in a timely manner as on-farm projects progress and are verified as complete.
4. Amplify Project Outcomes: During the grant term host at least one demonstration field event and develop case studies and media materials to document the outcomes of on-farm projects.

What is the funding availability and grant duration?

OARS anticipates awarding approximately $50 million for HSP Block Grants and approximately $34 million for SWEEP Block Grants. OARS will offer grant awards of $2M to $4M apiece. Of each grant award budget:

• At least 80% must fund on-farm practices
• Up to 20% will fund Project Administration, the costs to achieve the Common Objectives listed above

Awardees may access up to an additional 3% in Project Administration funds if at least 40% of on-farm projects are awarded to Socially Disadvantaged Farmers and Ranchers.

OARS reserves the right to offer an award different than the amount requested.

The expected block grant term is a maximum of four years (48 months).

What is the application process?

Concept proposals for both HSP and SWEEP are due May 15, 2026. In June, OARS will invite the top scoring proposals, totaling approximately 150 to 200 percent of available funding, to submit a Full Proposal. OARS may also consider geographic distribution and other Portfolio Balancing factors when inviting organizations to submit a Full Proposal. OARS may encourage organizations to form partnerships with other applicants for the Full Proposal. Full proposals will be due in August 2026, and award notification is anticipated for September 2026, with award execution planned for January 2027.

The full application guidelines and Request for Applications can be found here.

For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.