1. (1) State and local organizations, producer associations, academia, community-based organizations and other eligible specialty crops stakeholders are eligible to apply.

2. (2) Projects shall enhance the competitiveness of eligible specialty crops and benefit the eligible specialty crop industry as a whole and may include, but are not limited to, projects such as:

   1. (i) Increasing child and adult nutrition knowledge and consumption of specialty crops.
   2. (ii) Participation of industry representatives at meetings of international standard setting bodies in which the Federal Government participates.
   3. (iii) Improving efficiency and reducing costs of distribution systems.
   4. (iv) Assisting all entities in the specialty crop distribution chains in developing good agricultural practices, good handling practices, good manufacturing practices and in cost-share arrangements for funding audits of such systems for small farmers, packers and processors.
   5. (v) Investing in specialty crop research, including organic research to focus on conservation and environmental outcomes and enhancing food safety.
   6. (vi) Developing new and improved seed varieties and specialty crops.
   7. (vii) Pest and disease control.
   8. (viii) Sustainability.
3. (3) To be considered an eligible specialty crop, a specialty crop must meet the parameters established by the secretary. Processed products shall consist of greater than 50% of the eligible specialty crop by weight, exclusive of added water.
4. (4) Grants may not be awarded to projects that directly benefit a particular commercial product or provide a profit to a single organization, institution or individual.
5. (5) Grants may be awarded to recipients and projects for up to two years.

The following eligibility criteria shall apply to applicants and grant projects: