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

Frequently Asked Questions (FAQs)

What is this USDA FAS grant opportunity about?

This USDA Foreign Agricultural Service (FAS) funding opportunity focuses on solving a practical export problem affecting U.S. tree nuts and other durable specialty crops: shipments are often delayed or blocked due to insect pest risk and concerns about pesticide residues. The program supports development and validation of low-oxygen storage and packaging systems intended to meet pest control expectations without leaving chemical residues, while also generating credible records that importers and regulators can rely on.

What export problems is the program trying to address?

The program targets issues that arise when importing countries apply phytosanitary rules and maximum residue limits (MRLs) that vary by market. This can force exporters into a patchwork of different treatments and paperwork, increasing costs, slowing logistics, and potentially reducing returns to growers. The grant aims to advance an approach that reduces reliance on chemical fumigation and helps avoid pesticide residue concerns that can trigger MRL-related shipment problems.

What kinds of commodities does this opportunity focus on?

The notice highlights U.S. tree nuts and also references other durable specialty crops as part of the scope. The central use case described involves post-harvest handling for export markets where pest risk and residue issues can disrupt trade.

What is the core technical approach being emphasized?

The opportunity emphasizes modified atmosphere (MA) and controlled atmosphere (CA) approaches that maintain very low oxygen conditions (under 1 percent by volume) during storage and/or within packaging. These low-oxygen environments are commonly understood to suppress or kill insect pests and can avoid chemical residues because no fumigant is used.

Why are low-oxygen (MA/CA) systems attractive for exporters?

The notice describes several potential benefits:

• Pest management without fumigants: Low oxygen can suppress or kill insect pests without chemical fumigation, reducing the risk of residue-related problems.
• MRL risk reduction: Because the approach avoids chemical residues, it may reduce issues tied to differing MRL requirements across importing countries.
• Quality protection: Low oxygen helps slow lipid oxidation, a key driver of rancidity in nuts.
• Operational advantages: MA/CA could potentially replace or reduce reliance on fumigation and freezing, which the notice characterizes as expensive and capable of creating throughput bottlenecks during peak shipping times.

What gap is USDA FAS trying to close with this funding?

The primary gap identified is verification and traceability. Even when low-oxygen handling is used commercially as a condition of sale, shippers often cannot prove in a rigorous, non-invasive way that the required oxygen level was achieved and maintained for the required duration. Without strong documentation, it is difficult to present low-oxygen handling as a phytosanitary treatment that is comparable in credibility to established methods like fumigation.

What documentation and compliance challenges exist today?

The notice states that current systems often lack key capabilities, including:

• Built-in digital mapping
• Continuous oxygen monitoring
• Seal integrity confirmation (to show the system stayed closed and effective)
• Official record-keeping tied to specific lots or containers

These gaps make it harder to persuade regulators and trading partners that low-oxygen handling should be accepted as a formal phytosanitary measure.

What types of solutions does the opportunity prefer?

The opportunity emphasizes technologies and systems that are:

• Technically sound
• Economically workable at commercial scale
• Verifiable (able to prove oxygen conditions were met over time)
• Traceable (able to tie records to specific lots/containers and share them credibly)

In practical terms, this implies tools that can measure oxygen over time inside gas-impermeable liners or packages, detect leaks or sealing failures, and produce tamper-resistant records suitable for buyers, auditors, and government authorities.

What does "verifiable" mean in the context of this grant?

Based on the notice, "verifiable" refers to the ability to demonstrate, with credible evidence, that low-oxygen conditions were achieved and maintained for the necessary duration. It also implies the ability to confirm seal integrity and detect leak events so that oxygen performance claims can be trusted.

What does "traceable" mean in the context of this grant?

Traceability, as described, means generating records that can be tied to specific lots or containers and shared with external parties (buyers, auditors, and regulators). The notice also points toward record systems that are tamper-resistant, supporting confidence that the data accurately reflects what occurred during storage and/or shipment.

Which export markets are mentioned as examples of strict requirements?

The notice cites markets with strict post-harvest pest management requirements and gives examples including India, Korea, and Japan. It also notes that some markets may not have the strictest government requirements but still have buyers who demand pest treatments as part of purchasing terms.

Is this meant to replace fumigation and freezing?

The notice positions MA/CA as an approach that can potentially replace or reduce reliance on fumigation and freezing. It highlights that fumigation and freezing are commonly used, can be expensive, and may create throughput bottlenecks at peak shipping times, while low-oxygen approaches may avoid chemical residues and support quality preservation.

What is the funding mechanism for this opportunity?

This is a discretionary funding opportunity using a Cooperative Agreement. The notice indicates that, under this structure, the government typically expects substantial involvement or coordination during the project rather than a hands-off grant.

How many awards does USDA anticipate making?

USDA anticipates making one award under this opportunity.

What is the maximum award amount (award ceiling)?

The award ceiling is $2,000,000.

What is the opportunity number and CFDA number?

The opportunity number is USDA FAS 10621 0750 106 27 0001, under CFDA 10.621.

When was the opportunity created, and what is the closing date?

The opportunity was created on 2026-08-24. The original closing date listed is 2026-10-26.

Who is eligible to apply?

Eligibility is broad and includes U.S. academic institutions, state governments, nonprofits (with or without 501(c)(3) status), U.S. trade associations, U.S. agricultural cooperatives, international organizations, foreign entities, private sector businesses, and other entity types as referenced in the notice.

Is SAM.gov registration required?

Yes. A strict eligibility requirement is that applicants must have an active registration in the System for Award Management (SAM.gov) before the award date.

What happens if an applicant's SAM.gov registration is inactive or expired?

If an applicant is inactive, expired, pending, or excluded in SAM.gov, they will be deemed ineligible. The notice states that exceptions, waivers, or extensions will not be considered, making early registration and ongoing maintenance essential for applicants.

Does the notice suggest any key administrative risk to avoid?

Yes. The notice highlights SAM.gov status as a strict gatekeeper requirement. Because no exceptions, waivers, or extensions will be considered for ineligible SAM status, allowing a registration to lapse or remain pending is an avoidable risk that can disqualify an otherwise strong application.

What kind of outcome is USDA FAS seeking?

The outcome described is a pathway where low-oxygen storage/packaging can be accepted broadly for export compliance, including markets with strict phytosanitary treatment expectations and commercial situations where buyers require pest treatments. A central part of that outcome is creating verification and traceability strong enough to be credible with regulators and trading partners.