The U.S. Department of Agriculture participates in the federal Small Business Innovation Research (SBIR) program through its National Institute of Food and Agriculture (NIFA), which administers a single annual solicitation funding agriculture-related research and development at small businesses. For the statutory framework, phase structure, and eligibility rules common to SBIR government-wide, see CASRAI’s SBIR dictionary entry and the SBIR/STTR reauthorization guide. This page focuses on what is specific to USDA’s implementation: NIFA’s topic areas, its Phase I/II award structure, and how its solicitation cycle differs from other participating agencies.
USDA runs SBIR only — not STTR
USDA is one of the 11 federal agencies required to operate an SBIR program, but it is not one of the smaller set of agencies (DoD, HHS/NIH, DOE, NASA, and NSF) that also run a companion Small Business Technology Transfer (STTR) program. A university-affiliated researcher cannot serve as PI on a USDA award the way STTR allows at those other agencies — for a USDA SBIR award, the PI’s primary employment must be with the small business, consistent with SBIR’s general eligibility rule. Universities and other research institutions still participate through subcontracting or a formal partnership arrangement, described below, rather than as a co-equal STTR research partner.
Eligibility
Phase I is open to any small business concern that meets the government-wide SBIR eligibility requirements: a U.S. for-profit entity, majority-owned and controlled by U.S. citizens or permanent residents, with fewer than 500 employees including affiliates, and a PI whose primary employment is with the small business at the time of award and during the project. Phase II eligibility is restricted to firms that already hold (or held) a NIFA Phase I award in the same topic area — USDA does not offer a Direct-to-Phase-II pathway that lets a firm skip Phase I using non-SBIR feasibility data.
NIFA’s 10 SBIR topic areas
Each annual solicitation is organized around ten numbered topic areas covering the breadth of USDA’s research mission:
- 8.1 Forests and Related Resources — forest health, productivity, and value-added wood products
- 8.2 Plant Production and Protection — Biology — crop enhancement and pest management
- 8.3 Animal Production and Protection — livestock productivity and disease detection
- 8.4 Management of Natural Resources — soil, water, and resource management innovations
- 8.5 Food Science and Nutrition — food safety, processing, and nutrition technologies
- 8.6 Rural and Community Development — economic and social challenges in rural America
- 8.7 Aquaculture — production efficiency for commercial aquaculture species
- 8.8 Biofuels and Biobased Products — converting agricultural materials into industrial products
- 8.12 Small and Mid-Size Farms — sustainability and profitability of smaller farming operations
- 8.13 Plant Production and Protection — Engineering — engineering solutions for crop production and protection
Applicants select the single topic area their proposal best fits; each topic area’s specific research priorities are re-published in the current-year Request for Applications (RFA), so the general topic description above should be checked against the live RFA before drafting a proposal.
Award amounts and project duration
NIFA sets its own Phase I and Phase II ceilings, which are lower than the government-wide statutory guideline ceiling that applies across all SBIR agencies:
- Phase I: up to $175,000 for most topic areas, or up to $125,000 specifically for topic areas 8.6 (Rural and Community Development) and 8.12 (Small and Mid-Size Farms). Phase I project duration is 8 months. Phase I applicants may also request up to $6,500 in Technical and Business Assistance (TABA) funding, layered on top of the research award, to support commercialization-readiness activities such as market research or IP strategy.
- Phase II: up to $600,000 over a 24-month project period, open only to firms that completed a NIFA Phase I award. Phase II applicants may request up to $50,000 in TABA funding.
Because these figures are agency-set administrative ceilings rather than fixed statutory amounts, they are revised periodically — confirm the current dollar limits against the live NIFA SBIR/STTR program page or the current RFA before using a figure in a proposal budget.
Subcontracting and university partnerships
USDA’s SBIR rules cap how much of the funded work a small business may subcontract out: up to one-third of the Phase I award and up to 50% of the Phase II award. Within that ceiling, NIFA has stated it looks favorably on proposals where the small business subcontracts to a university or enters a Cooperative Research and Development Agreement (CRADA) with a USDA laboratory — a common pathway for an agtech spinout to keep a founding faculty member’s lab involved without that person serving as PI (which, absent an STTR mechanism at USDA, is not available here the way it would be at an STTR-participating agency). Research administrators supporting a spinout with a USDA SBIR award should treat the subcontract to the university as a distinct sponsored-programs transaction, subject to the institution’s own subaward review, F&A treatment, and any applicable Bayh-Dole reporting on IP arising from the subcontracted portion. See CASRAI’s guides on material transfer agreements and patent licensing for adjacent university-side mechanics.
Commercial application requirement
As with SBIR government-wide, NIFA requires that proposed research have a credible path to commercial application as a program goal, not purely basic research for its own sake. Reviewers weigh commercialization potential alongside scientific and technical merit; a small number of USDA topic areas also explicitly welcome proposals built around innovative use of existing, off-the-shelf technology rather than requiring an entirely novel underlying technology, reflecting the program’s applied, near-market orientation.
Application timeline
NIFA issues a single annual SBIR solicitation, rather than the multiple solicitation cycles some other SBIR-participating agencies run per year. The Phase I RFA has typically been released around July, with proposals due roughly 12 weeks later, in early October — but this is a recurring pattern, not a fixed statutory date, and exact release/due dates shift from year to year and can be affected by broader SBIR/STTR reauthorization status (see CASRAI’s SBIR/STTR reauthorization guide for what happens to agency solicitations during a lapse in statutory authority). Applicants should confirm the current cycle’s exact dates directly on NIFA’s SBIR/STTR program page and submit through Grants.gov, in addition to registering in SAM.gov and the SBA’s SBIR company registry, which are prerequisites for any SBIR application regardless of agency.
Frequently asked questions
Does USDA offer an STTR program alongside SBIR?
No. USDA is one of the 11 agencies that runs SBIR, but it is not among the smaller group of agencies (DoD, HHS/NIH, DOE, NASA, NSF) that also run STTR. A USDA award requires the small-business PI to be primarily employed by the small business; there is no USDA mechanism allowing a university-employed PI.
How many topic areas does NIFA’s SBIR program have?
Ten, numbered 8.1 through 8.13 (not all numbers in that range are used), spanning forestry, plant and animal production, natural resource management, food science, rural development, aquaculture, biofuels, and small/mid-size farm sustainability.
What is the maximum USDA SBIR Phase I award?
Up to $175,000 for most topic areas, or $125,000 for topic areas 8.6 and 8.12, over an 8-month project period, plus up to $6,500 in optional TABA funding. These are NIFA’s own administrative ceilings and should be reconfirmed against the current RFA.
Can a university receive a USDA SBIR award directly?
No. As with SBIR government-wide, the small business is always the prime awardee; a university can only participate as a subcontractor (up to one-third of Phase I, up to 50% of Phase II) or through a CRADA with a USDA laboratory, not as a co-recipient the way STTR structures a partnership at other agencies.
How often does NIFA release its SBIR solicitation?
Once per year, typically with a Phase I RFA released around July and proposals due about 12 weeks later, in early October — though exact dates vary by cycle and should be confirmed on NIFA’s own program page.
