California Underserved and Small Producers Program (CA-CUSP)

The California Underserved and Small Producers (CUSP) Grant Program funds local organizations to distribute technical aid and relief grants to agricultural producers in CA. At any given time, there may be multiple different offerings from this program. The current offerings are

Direct Drought Relief

California continues to face escalating drought conditions and as a result, Control Section 11.85 of the Budget Act of 2021 allocated $5 million for direct drought relief funds which will be administered through the CUSP program partner organizations throughout 2022. These direct grants will assist small-scale and historically underserved producers to apply for relief grants for those most in need of immediate drought assistance. Producers will apply for the funds through local partner organizations.

Technical Grant Application Assistance

Funding for eligible technical assistance providers to support California agricultural producers in applying for Federal and State drought relief grant programs including the CUSP Drought Relief Direct Producer Grant Program, and assistance with business planning, financial and marketing strategies needed to be resilient and stay in business during the on-going drought in California. 

The Drought Relief Grants administered through the CUSP partner organizations will be reimbursement grants for expenses incurred as a result of the drought. Examples of covered expenses can include but are not limited to:

• Increased electric utility bills of 50% or more due to increased electricity rates

• Surface water costs if increase from year prior

• Cost of hauling water for livestock

• Lowering ag well pumps if a primary source of water is lost

• Emergency upgrades to irrigation system (paired with conservation) if not covered through CDFA OEFI programs or USDA programs and for other emergency scenarios.

• Decreased crop yields/crop loss due to less water available or having to fallow land

Not Covered:

• Drilling new well

• Upgrading pump to a larger size which would draw more water

Reimbursement relief grants paid out through regional partner organizations, not by CDFA directly.

• Ceiling: "Eligible producers may receive up to $20,000 in CUSP Drought Relief funds as well as up to $20,000 in CUSP Extreme Weather Relief funds (for a total of up to $40,000) within a 12-month period." So the two tracks stack.

• Form: reimbursement, not up-front cash — "The Drought Relief Grants administered through the CUSP partner organizations will be reimbursement grants for expenses incurred as a result of the drought." Keep your receipts.

• No match or cost-share requirement is published.

Covered expenses include "Increased electric utility bills of 50% or more due to increased electricity rates," surface water cost increases, hauling water for livestock, lowering ag well pumps when a primary water source is lost, emergency irrigation upgrades not covered by CDFA OEFI or USDA programs, and "Decreased crop yields/crop loss due to less water available or having to fallow land." Explicitly NOT covered: "Drilling new well" and "Upgrading pump to a larger size which would draw more water."

How to get it: "Direct relief producer grants are available through partnering organizations, and available on a rolling basis." CDFA has awarded $17 million to six Direct Assistance Providers for Extreme Weather and Other Climate Impacts relief and $5 million to four providers for Drought relief; each provider runs its own application windows through December 2026, so check the provider serving your region for its current dates.

Check the list of organizations below that are distributing CUSP funds for one that is near you and currently accepting applications. Then, follow the linked information or call them to apply.

• List of Organizations Providing Direct Drought Relief Grants 

• List of Organizations Helping Producers Apply for Covid-19 Relief Programs and Business Support TA 

• CUSP Information Page

• List of Organizations Providing Direct Drought Relief Grants 

• List of Organizations Helping Producers Apply for Covid-19 Relief Programs and Business Support TA