The Colorado Department of Agriculture (CDA) has opened its second round of funding for the Climate Smart Market Expansion Project, inviting proposals for pilot projects that aim to boost demand and create price premiums for agricultural products grown using climate smart practices. These practices include improving soil health, optimizing water use, fostering diverse ecosystems, and reducing greenhouse gas emissions.
Amanda Laban, CDA’s Markets Division Director, said, “Our producers deserve to capture more of each food dollar and we know there is untapped potential in the marketplace to drive regenerative products forward. By tailoring the Climate Smart Markets program to give producers higher premiums and find new markets we are working to create better livelihoods for our farmers and ranchers and meet the ever-changing market landscape.”
A total of $120,000 will be distributed to initiatives that either increase demand for climate smart agricultural products at any stage in the supply chain or develop market premiums for producers. Eligible applicants include manufacturers or brands sourcing from Colorado—such as those in food, beverage, or clothing—as well as processors, commodity handlers, farm product dealers, buyers, and distributors. Proposals are being accepted through the Colorado Vendor Self Service (VSS) website.
In April, CDA awarded $90,000 in its first round of grants to three projects focused on expanding markets for climate smart commodities. One recipient was Root Shoot Malting. Todd Olander, Founder and Farmer at Root Shoot Malting said: “This award gave us the resources to prove that climate smart barley production is both possible and profitable. Our project not only positions our on-farm malting facility to expand business with breweries seeking verified sustainability data, it also demonstrates that Colorado’s malt barley growers can replicate this model to strengthen their operations while caring for the land. We’re proud to share a framework that benefits farmers, maltsters, and brewers alike.”
Among the first-round projects were:
– A partnership between Olander Farms, Root Shoot Malting, New Belgium Brewing, and Downforce Technologies demonstrated how verification systems could connect farmers using climate-smart practices with breweries needing documented sustainability credentials.
– Tumbleweed Bread joined Jones Organics Farms and Colorado State University Extension to purchase equipment increasing processing capacity for local rye and millet; they also launched a marketing campaign around a new whole-grain snack.
– Centennial Ag Trading expanded storage capacity by purchasing a 4,000-bushel bin for drought-tolerant grains—a move expected to increase output by up to 40% per month.
The maximum award per proposal in this round is $30,000. Projects should outline how their activities will achieve outcomes such as increased purchasing volume of climate smart commodities; documented price premiums; enhanced processing or storage capacity; new buyer contracts; effective marketing strategies; or development of new packaged products featuring climate smart ingredients.
Interested parties can review submission details by searching Documented Quote number *2026*0001* on the Colorado VSS website. An optional virtual information session will be held October 17 at 11 a.m., with proposals due by October 29 at noon.
Questions about the solicitation should be directed to Kathy Chang before the deadline.
