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Farm Grants in 2024: Business grants can give farmers and ranchers money to help run their farms, especially as farming changes and grows. Unlike loans, farm grants are free money that you don’t have to pay back.
However, finding and applying for these grants can take a lot of time, and there is a lot of competition. But it might be worth it if you can get free money for your farm.
To help you begin, here is a list of federal, state, and private farm grants.
Federal government farm grants
The federal government offers many farm grants through the Department of Agriculture (USDA). You can check out the grant options on their website, which has details on who can apply and how to do it. Here are a few federal farm grants to look into:
Renewable Energy Systems & Energy Improvement Grants
Part of the Rural Energy for America Program, these farm grants help farmers and rural small businesses buy and install renewable energy systems or make energy-saving improvements. Eligible projects include:
- Wind generation
- Solar generation
- Hydropower
- Insulation
- Lighting
- Cooling or refrigeration units
- Doors and windows
Farmers can also use the funds to buy new energy-efficient equipment for farming and processing.
Grants range from $2,500 to $1 million for renewable energy systems and $1,500 to $500,000 for energy efficiency projects. The USDA will cover up to 50% of the total project costs.
To qualify, businesses and farms must be in rural areas with populations of 50,000 or fewer.
Farmers Market Promotion Program
The Farmers Market Promotion Program offers grants to help increase access to locally and regionally produced products. These grants can go to farms, agricultural businesses, Community Supported Agriculture (CSA) networks, and regional farmers’ market authorities, among others.
There are three types of grants based on their use:
- Capacity Building Grants: For projects like market analysis, strategic planning, education for producers or market managers, and consumer outreach.
- Community Development Training and Technical Assistance Grants: For marketing and promotion help, and technical assistance for regulatory and buyer compliance.
- Turnkey Marketing and Promotion Grants: Applicants must conduct at least three marketing and promotion activities.
Grant amounts range from $50,000 to $500,000, depending on the type. You’ll need to provide a 25% match to qualify.
Specialty Crop Block Grant
To apply for the Specialty Crop Block Grant from the U.S. Department of Agriculture, you must submit your application to your state department of agriculture. There is no matching requirement for this grant. State departments can submit applications until May 2, 2024.
Value-Added Producer Grant
The Value-Added Producer Grant (VAPG) provides funding to help agricultural producers develop new products, expand marketing opportunities, and boost income. There are two types of grants: Planning grants, up to $75,000, and working capital grants, up to $250,000.
These grants are open nationwide and can be especially beneficial for new farmers, socially disadvantaged farmers, and small-scale farmers, who may receive priority in the application process. The most recent application deadline was April 11, 2024.
State farm grants
Federal farm grants can be tough to snag due to high competition and limited availability. That’s why it’s smart to explore grants at the regional, state, and local levels. Here are some options to kickstart your search:
State Departments of Agriculture
Many states offer their own farm grants covering various needs like farm management, research, marketing, energy efficiency, and technology. For example, New York State offers the New York State Grown & Certified Infrastructure, Technology, Research, and Development Grant, while Missouri has the Urban Agriculture Cost-Share Grant Program to support urban farming projects.
Local Resources
Look into local colleges, universities, community organizations, and agricultural networks; they might have specific grants tailored to your state.
Sustainable Agriculture Research and Education (SARE) Grants
SARE, funded by the National Institute of Food and Agriculture, provides grants and education across the country. They have four regions, each with its own grant programs. For instance, the Western SARE division currently offers Farmer/Rancher grants to help farms adopt sustainable practices. These grants can go up to $25,000 (or $29,000 for group projects), and applications typically close in October.
Check your region’s SARE website or contact your state coordinator for more details on available grants and deadlines.
Private and community farm grants
Private companies and nonprofit organizations also offer business grants tailored to farming. Check out these options:
Sky High Farm Grants
This microgrant program targets farmers from diverse backgrounds, including Black, indigenous, Latinx, Asian, Pacific Islander, migrant, and refugee farmers. Applications closed on April 22, 2024.
Farm Bureau Ag Innovation Challenge
If your business is innovating in agriculture, consider this competition. The Farm Bureau awards up to $165,000 to 10 businesses, with the winner receiving $50,000. Applications close on June 15, 2024.
Texas Rural Woman Grant
Offered by Texas Woman’s University, this grant supports rural Texas businesses. Eligible projects include farm implements and machinery. Applications open from May 28 to July 5, 2024.
Brighter Future Fund
American Farmland Trust offers grants of up to $10,000 for projects aiding farmers. This includes professional services and equipment or infrastructure costs. The next cycle opens in July 2024.
Fund-a-Farmer Grants
The Food Animal Concerns Trust (FACT) provides funding to farmers improving animal welfare. Projects might involve fencing, water systems, or housing. Applications open on Oct. 10, 2024.
The FruitGuys Community Fund
For small- and medium-sized farms seeking grants up to $5,000. The 2024 cycle has closed; next cycle starts in January 2025.
Young Farmer Grant Program
The National Young Farmers Coalition offers $5,000 grants to young farmers each spring. Applications for the latest cycle closed in January 2024. Priority is given to traditionally underserved groups.
Veteran farm grants
Supporting veterans in farming and agriculture is important, and several grant programs are designed specifically for them:
Farmer Veteran Fellowship Fund
Offered by the Farmer Veteran Coalition, this program assists veterans starting careers in farming or ranching. Rather than giving funds directly to veterans, the program pays third-party vendors for items identified by the individual to launch their farm business. Grants range from $1,000 to $5,000 and can cover purchases like livestock, fencing, tractors, and feed. To qualify, you must be a member of the Farmer Veteran Coalition, have served or are serving in the U.S. Military, received an honorable discharge, operate an agricultural business, and submit a business plan with your application.
Alternatives to farm grants
If grants aren’t the best fit for your farming business, there are other funding options to explore:
Farm Loans
These loans can cover operating expenses, livestock purchases, farm machinery, equipment, and building construction.
SBA Loans
Government-backed SBA loans are versatile and can be used for various farming needs. They often come with competitive interest rates and long repayment terms.
Working Capital Lines of Credit
Maintaining a line of credit can help manage cash flow gaps, seasonal slowdowns, and unexpected expenses effectively.
