Business grants can give farmers and ranchers the money they need to fund their operations, especially as the agriculture sector develops and changes over time. Unlike small-business loans, agricultural grants give free money that doesn’t need to be returned.
It might take some time to find and apply for these awards, and there is fierce competition. However, if you are able to obtain free funding for your farm, then the time and work could just be worthwhile. Here is a list of national, state, and private agricultural grants to get you started.
Federal Agricultural Subsidies from the Government
Through the US Department of Agriculture, the federal government provides a range of agriculture grants (USDA). The agency's website allows you to peruse grant alternatives along with details on eligibility and application procedures. Consider the following federal agriculture grants:
Grants for Energy-Improving Systems and Renewable Energy
These farm subsidies, which are a component of the Local Energy for Future Program, assist rural small businesses and agricultural producers in the acquisition and installation of solar and wind power systems or in improving their energy efficiency. Projects that qualify for grants include purchasing, setting up, and/or enhancing systems like:
- Wind power production.
- Solar power production.
- Hydroelectricity
- Insulation.
- Lighting.
- Refrigeration or air conditioning systems.
- Windows and doors.
Additionally, farmers may seek to spend the money on new, energy-efficient machinery for agricultural processing and production. Funding for clean energy systems ranges from a total of $2 to $1 million, while energy efficiency initiatives might get grants between $1,500 and $500,000. The USDA will fund as much as half of your entire qualified project expenditures. Businesses and farmers must be situated in rural regions with 50,000 or fewer inhabitants in order to be eligible.
State Agricultural Subsidies
Looking for funding at the regional, state, and municipal levels may be more successful because federal agricultural awards are few and sometimes very competitive. States will differ in terms of grant availability and programs, however, the following choices can get you started:
State Agriculture Departments
Through their Bureau of Agriculture, some states provide government agricultural assistance. Among other things, these funds may be used to finance energy efficiency, climate action, farm growth and management, agricultural research, marketing, and promotion.
For example, the NY State Grown & Approved Infrastructure, which took place The use of Technology and Development Grant is one of the several grants that the state of New York offers. With the aid of this farm grant, agricultural enterprises can make investments in cutting-edge machinery or technology, undertake research to satisfy customer demand, and build new infrastructure.
As another illustration, Missouri's Agricultural Cost-Share Grant Program is available for application to agribusinesses located in urban areas. With the help of this federal farm grant, urban agricultural initiatives, including community gardens, feasibility studies, and the creation of business and marketing plans are supported.
State-specific subsidies for farms may also be available through regional agricultural networks, community groups, and schools and universities. Funding for farms, both private and community. Farming business grants are provided by a few nonprofits and commercial enterprises.
The Community Fund of FruitGuys
Awards are available from the FruitGuys Social Fund, which is intended only for small and medium-sized farmers. Working producers with at least a year of experience are eligible to apply for these $5,000 scholarships, which are intended to help them enhance their operations.
Through the fund's website, you may submit your application and proposal. Up to 20 competitors will get invitations to submit complete applications. The capacity of the initiative to support farms in operating more ethically and to build community is the basis for evaluating submissions.
Finance-a-Farmer Awards
The yearly Fund-a-Farmer award program, administered by the Food Animal Affairs Trust (FACT), provides financial support to farmers that enhance animal welfare and broaden humane agricultural methods. 87 farmers received over $250,000 from the program in 2023.
While program details may vary slightly from year to year, constructing fences, enhancing water systems, or creating or renovating farm animal housing have been the focal points of many qualified projects. On its website, FACT keeps a record of its previous undertakings.
November 2023 marked the opening to applications for the forthcoming 2024 award cycle, which will remain open until the fifteenth of January 2024. To learn more about upcoming opportunities, visit the FACT website and register for email notifications.
The Brighter Future Fund
American Farmland Trust runs the Brighter Future finance grant initiative, which is aimed at finance programs that assist farmers in expanding and protecting their farms. These farm awards can be given to a farm family or an individual, with a maximum amount of $10,000.
Two types of projects are eligible: 1) professional services; and 2) charges related to equipment or infrastructure. While equipment expenditures can include buying machines to assist in enhancing crop quality or soil health, professional services could include consulting with a company or financial advisor. On the American Land for Farming Trust website, you may check the eligibility conditions and submit an application for these farming awards.
Substitutes for Agricultural Subsidies
Grants might not be the best source of funding for all types of businesses. Here are some more choices to think about if you'd want to look into them:
- These goods can assist you with building farm structures, buying cattle, farm machinery, and farming tools, as well as with covering running costs.
- There are several uses for SBA loans insured by the government in the farming industry. Long payback horizons and competitive interest rates are features of these loans.
- A financing line of credit can be used to cover unforeseen costs, seasonal slowdowns, and gaps in your cash flow.
The Bottom Line!
For farmers, getting the money needed to run their farms can be tough. But here's some good news – agricultural grants provide a way to get free money without having to pay it back. Though it takes time and effort to find and apply for these grants, the benefits for your farm are big.
If you're a farmer wanting to improve your farm, protect your land, or take better care of your animals, checking out these grants could be the key to a better future. Also, don't forget about other options like farm loans, SBA loans, and credit lines for working capital – they can really help support your farm.
