Maryland – On-Farm Organics Diversion and Recycling Grants

  • Apr 10, 2026
  • Sophia Jones
    •
  • State Policy
  • Composting for Community
  • On-farm Composting
  • Climate and Environmental Justice
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    In 2026, the Maryland Legislature passed HB 429/SB 599 “On-Farm Organics Diversion and Recycling Grant Program,” establishing an annual grant program for on–farm organics recycling and compost use, wasted food prevention, and food rescue. HB 429 was sponsored by Delegate Regina T. Boyce, along with 21 co-sponsors, and the Senate cross-file, SB 599, was sponsored by Senators Katie Fry Hester and Shelly Hettleman. 

    The Grant Program would begin on July 1, 2028, managed by the Maryland Department of Agriculture (MDA), with an annual appropriation of $250,000 from the State budget starting in fiscal year 2028. MDA is also charged with identifying and applying for additional funding for the grant program, such as federal funding.

    The bill’s fiscal note assumes that the FY2028 appropriation of $250,000 would cover administrative costs for MDA to develop the Grant Program so that subsequent appropriations can be used for grant awards starting on July 1, 2028. The fiscal note also clarifies that annual grant awards totaling $250,000 represents the minimum amount of funding needed for a viable grant program, and that additional general funds would be needed to cover MDA’s costs to administer the grants.

    Eligible Projects and Priority Funding

    The bill outlines a variety of entities, projects, and costs eligible for grant funding, as follows:

    “(E) The following persons are eligible for a grant under the Grant Program: 

    (1) A farmer, an urban farmer, or an urban agricultural producer; 

    (2) A soil conservation district; 

    (3) An institution of higher education as defined in §10–101 of the Education Article; 

    (4) A nonprofit organization; 

    (5) A business in the State that is in: 

    (i) Good standing with the State Department of Assessments and Taxation; and 

    (ii) Partnership with a farmer, an urban farmer, or an urban agricultural producer; and 

    (6) A consortium of any entities under this subsection.

     

    (F) A project is eligible for a grant under the Grant Program if the project develops, maintains, or expands infrastructure, collection programs, education, or technical assistance in the state that: 

    (1) Reduces the amount of wasted food generated; 

    (2) Rescues edible food for purposes of redistribution; 

    (3) Recovers wasted food as animal feed if the feed is registered and treated in accordance with regulations implemented by the Department; 

    (4) Composts or recycles food residuals that are separated from packaging prior to collection, including at–home, community, and on–farm composting; 

    (5) Provides labor and wages in support of wasted food prevention, food rescue, and on–farm organics recycling and compost use; 

    (6) Provides best management practice training in relevant fields by a reputable training program; 

    (7) Studies the impacts of compost application on on–farm nutrient and water quality management; or 

    (8) Assists in the payment of applicable permit application costs.”

    – HB 429/SB 599

     

    The bill also stipulates priority awards for projects that maximize benefits to the local community, serve overburdened or underserved communities, and produce minimally-contaminated compost (for example, by processing source-separated materials, avoiding depackaging, and meeting the USCC’s Seal of Testing Assurance). 

     

    “(G) In awarding grants under the Grant Program, the Department, in consultation with the Department of the Environment, shall prioritize projects: 

    (1) For which the applicant clearly describes how the project will: 

    (i) Provide direct, meaningful, and assured benefits to the community; and 

    (ii) Address important community needs; 

    (2) That prevent, rescue, and divert wasted food within a local community; 

    (3) That plan to produce compost that meets the classification of “General Use” under COMAR 15.18.04.05; 

    (4) That plan to produce minimally contaminated compost through: 

    (i) Processing organic materials that are separated from packaging prior to collection; 

    (ii) Not using depackagers; and 

    (iii) Meeting the U.S. Composting Council’s Seal of Testing Assurance; 

    (5) That serve an overburdened or underserved community as defined in §1–701 of the Environment Article; 

    (6) That minimize negative impacts to the local community; and 

    (7) That maximize benefits to the local community, including: 

    (i) The creation of jobs; 

    (ii) Increasing job training; and

    (iii) Increasing hiring and leadership development practices that are inclusive and provide a living wage.”

    – HB 429/SB 599

     

    These priority factors were designed in alignment with ILSR’s Hierarchy to Reduce Food Waste & Grow Community, elevating distributed and community-scale composters that follow best management practices over other organics recycling options like commercial composting or anaerobic digestion, though all options are still eligible for grant funding.

    Previous Versions & Evolution

    During Maryland’s 2026 legislative session, the version of HB 429/SB 599 that was originally introduced included three grant programs: Wasted Food Reduction and Diversion Grants, Block Grants for Counties, and the On-Farm Organics Diversion and Recycling Grants. The original bill did not include dedicated funding. It placed the responsibility of identifying funding on the Departments of Environment and Agriculture, with a placeholder for additional funding that may have been allocated in the future. 

    The amended bill was originally passed by the House Environment and Transportation Committee, paring the original version of HB 429 down to just the On-Farm Organics Diversion and Recycling Grant Program under the Department of Agriculture. The amendment also allocated a $250,000 annual budget appropriation for the program. An identical amendment was adopted by the Senate Energy, Education, and Environment committee for SB 599.

    Four previous versions of this bill (see HB 1070 (2022), HB 1139 (2023), HB 1318 (2024), and HB 42 (2025)), included a disposal surcharge as a funding mechanism that would have generated over $14 million for the grant programs, though none of those versions passed.

    Stakeholder Advocacy

    ILSR played a leading role in the development of the language of this bill, drawing lessons learned and best practices from other states with grant programs funding waste diversion and composting. The On-Farm Organics Diversion and Recycling Grant Program’s detailed eligibility guidelines and priority award factors were refined over the course of five years leading up to the bill’s passage by a wide array of stakeholders, including ILSR, the Maryland Departments of Agriculture and Environment, the Maryland Association of Counties, Maryland Clean Water Action, U.S. Composting Council’s Maryland-DC Chapter, Full Circle Future, and many others. This stakeholder input and collaboration ensured that this bill was tailored to fit Maryland’s needs and to fill gaps in existing State Agency programming.

    ILSR also led the advocacy behind the 2026 bill, in close collaboration with Maryland Clean Water Action and Full Circle Future, which built on the advocacy efforts from the four previous legislative sessions. ILSR’s testimony in support of the original bill included sign-ons from 24 organizations, and ILSR submitted additional testimony supporting the amended version.

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