To conduct a pilot program in support of efforts to increase purchases of local fresh fruits and vegetables for schools and service institutions by giving several States the option of receiving a grant from the Secretary of Agriculture for that purpose instead of obtaining commodities under Department of Agriculture programs.

Directs the Secretary of Agriculture to conduct a pilot program under which a participating state, in lieu of obtaining any or a portion of the state's allotment of specialty food crops for use in the school lunch and breakfast programs, receives a grant in an amount equal to the value of the commodities for FY2011 and FY2012.

Requires the grant funds to be used solely to purchase fresh fruits and vegetables for distribution to schools and service institutions participating in the school lunch and breakfast programs.

Limits pilot program participation to three states.