Farm grants

Add a header to begin generating the table of contents

Page written by Chris Godfrey. Last reviewed on April 22, 2025. Next review due October 1, 2026.

Read this article to me

Farm grants can provide crucial financial support to farmers and organizations that operate in the US agricultural industry. Provided by Government departments, corporations, foundations and other organizations, farm grants are effectively free money. There is no need to repay the funds if you spend them where you said you would. Use your farm grant to buy agricultural land and property as well as cover other costs such as livestock, equipment, vehicles, seeds, feed and more.

Key benefits of farm grants include:

No need to repay the money
Improved liquidity
Expand, innovate, or improve your farm to increase production
Increase purchasing power – buy raw materials in bulk to achieve higher savings for your farm
Seize good business opportunities

Swoop helps farmers explore a range of funding solutions, including grants when available. We can match you with the best funding opportunities for your business.

Add a header to begin generating the table of contents

Top farm grants

There are many types of farm grants, each with varying award amounts, eligibility criteria, and funding purposes. Below are some of the top grants available to farmers in the U.S.

Sustainable Agriculture Research and Education (SARE) Grant

Best for: Farmers, ranchers, researchers, and educators working on sustainable agriculture projects
Grant size: Up to $250,000
Coverage: Funds research and education on renewable energy, conservation tillage, pest management, pollinator health, and other sustainable farming initiatives
Why it’s valuable: Enables the transition to more sustainable farming methods, helping farmers reduce costs while improving environmental impacts
Eligibility: Open to U.S.-based farmers, ranchers, researchers, graduate students, and educators in sustainable agriculture

Beginning Farmer and Rancher Development Program

Best for: Farmers in their first 10 years of operation
Grant size: $50,000 – $750,000
Coverage: Supports training, technical assistance, and education to help new farmers establish and sustain their businesses. Covers production skills, business planning, and marketing
Why it’s valuable: Provides the crucial resources, training, and mentorship for new farmers to ensure long-term success in a competitive industry
Eligibility: Available to U.S.-based farmers in their first 10 years of operation
More details: Beginning Farmer Program

Renewable Energy Systems & Energy Efficiency Improvement Grant

Best for: Farmers investing in renewable energy or energy efficiency improvements
Grant size: $1,500 – $1 million (covers up to 50% of total eligible project costs)
Coverage: Funds the purchase and installation of renewable energy systems like solar panels, wind turbines, and biomass energy. Also supports energy efficiency upgrades such as lighting, heating, cooling, and insulation
Why it’s valuable: Reduces long-term operational costs and dependence on traditional energy sources, improving profitability and sustainability
Eligibility: Available to farms and agricultural producers in rural areas with populations of 50,000 or fewer.
More details: USDA Renewable Energy Grant

Farmers Market Promotion Program (FMPP)

Best for: Farmers looking to sell directly to consumers
Grant size: $50,000 – $500,000 (requires a 25% matching fund)
Coverage: Supports marketing, outreach, business development, and expansion of local and regional food markets. Helps increase direct sales through farmers’ markets, food hubs, and other direct-to-consumer channels.
Why it’s valuable: Helps farmers diversify their income streams by connecting them directly with consumers, reducing reliance on traditional distributors.
Grant Types:
- Capacity Building Grants: Funds market analysis, strategic planning, producer education, and consumer outreach
- Community Development, Training, and Technical Assistance Grants: Supports marketing, promotion, and technical assistance for regulatory and buyer compliance
- Turnkey Marketing and Promotion Grants: Requires participation in at least three marketing and promotional activities
Eligibility: Open to U.S.-based farms and agricultural businesses.

Value-Added Producer Grant (VAPG) program

Best for: Farmers expanding into value-added products or new marketing opportunities
Grant size: Up to $250,000 (requires a 100% matching fund)
Coverage: Helps develop new products, processing, packaging, and business planning. Supports increased revenue streams by turning raw agricultural products into higher-value goods
Why it’s valuable: Allows farmers to access new markets and increase profitability by creating value-added products from their raw materials
Grant Types:
- Planning Grants: Up to $75,000 for business feasibility studies, marketing plans, and economic analysis
- Working Capital Grants: Up to $250,000 for operating expenses, processing, and production-related activities
Eligibility: Open to independent producers, agricultural producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based business ventures. Special priority is given if you are:
- A beginning farmer or rancher
- Socially-disadvantaged farmer or rancher
- Small or medium-sized farm
- Ranch structured as a family farm
- Farmer or rancher cooperative
- Proposing a mid-tier value chain

While government grants can be competitive, don’t let that discourage you! A wealth of other funding opportunities exists for US farmers, including flexible business loans, valuable tax credits, and affordable low-interest options. Swoop is your one-stop platform to explore all these possibilities. Ready to see what’s available?

Other farm grants

FruitGuys Community Fund (TFGCF)

Best for: Small farms and agricultural nonprofits.
Grant size: Up to $5,000.
Supports farm improvements, sustainability projects, and infrastructure upgrades.

Patrick Leahy Farm to School Grant Program

The US Department of Agriculture’s Patrick Leahy Farm to School Grants are designed to help state, regional, and local organizations as they initiate, expand, and institutionalize farm to school efforts – which is a fancy way of saying ‘we connect kids to farmers’.

Best for: Schools, farms, and organizations promoting farm-to-school programs
Grant size: Varies from a few thousand dollars to six figures
Funds school meal programs, farm partnerships, and agricultural education

Farm Bureau Ag Innovation Challenge

If you’re an innovator in the agricultural industry, the Farm Bureau Ag Innovation Challenge may be the perfect fit for you. Open to startup farming businesses that are bringing new solutions to the many challenges faced by the US agricultural sector

Best for: Startups and entrepreneurs in agriculture
Grant size: $165,000 in total grants, with a $50,000 grand prize.
Supports innovative business solutions for agriculture-related challenges
Applicants must be Farm Bureau members to qualify for the prize-giving round. Applicants who are not Farm Bureau members can qualify by joining a state Farm Bureau of their choice

Fund-a-Farmer Grants

The Food Animal Concerns Trust (FACT) provides Fund-a-Farmer Grants, which are aimed at improving farm animal welfare and supporting the expansion of humane farming practices.

Best for: Farmers focusing on humane and sustainable animal welfare
Grant size: Up to $3,000
Funds infrastructure improvements like fencing, watering systems, and animal shelters

Sky High Farm grants

The Sky High Farm Grants aim to extend the existing agricultural circle by helping farmers and groups who are often excluded from traditional farm and business funding.

Best for: Farmers from historically excluded communities
Grant size: Limited number of microgrants available
Supports agricultural projects led by Black, Indigenous, Latin, Asian, migrant, and refugee farmers

Young Farmer Grant program

The National Young Farmers Coalition offers the Young Farmer Grant Program.

Best for: Young farmers starting or expanding their operations
Grant size: 75 grants of $5,000 each, plus membership to the National Young Farmers Coalition
Funds general farm operation costs with no restrictions on use

Swoop connects farmers with a range of funding solutions – including grants where available. Register to explore your options.

What are the alternatives to farm grants?

There are more ways than one for farmers to fund their operation. Business loans can fill the gap if your grant award is too small or if your grant application was not approved:

Term loans

Best for: Larger, one-time expenses or long-term investments
Loan Amount: Up to $5 million
Repayment: Fixed monthly installments over a term (up to 25 years)
Collateral: Often required
Why it’s helpful: Secure funding for significant investments like land, farm buildings, or machinery

Business line of credit

Best for: Flexible access to funds for ongoing expenses
Loan Amount: Typically up to $500,000
Repayment: Pay only on the amount you draw
Collateral: May be required
Why it’s helpful: Ideal for managing fluctuating expenses or unforeseen costs, with access to capital whenever needed

See if you qualify for a business loan

Invoice factoring

If your farm is waiting on payments from customers, invoice factoring may help you quickly access cash flow without having to wait for invoices to be paid.

How it works: Borrow against unpaid invoices to get up to 95% of their value within a few days or even hours
Collateral: The invoices themselves act as security—no additional assets required
Why it’s helpful: Quickly get cash flow moving without taking on extra debt, ideal for farms with delayed customer payments.

Equipment financing

If you need new machinery or farm equipment, equipment financing allows you to finance agricultural tools and machinery needed for your operations.

Loan Amount: Typically covers up to 100% of equipment costs
Collateral: The equipment itself is used as collateral
Why it’s helpful: Get access to the tools you need to grow your operation, without having to make a large upfront payment. Once the loan is paid off, the equipment is yours.

See if you qualify for equipment financing

Commercial Real Estate Loans

For farms looking to purchase or expand agricultural properties (including income-producing properties such as factories, offices and farms), a commercial real estate loan (also known as commercial mortgages) could be the best option.

Loan Amount: Varies depending on the property
Repayment: Paid over 10 to 25 years
Why it’s helpful: Ideal for financing the purchase of land, farmhouses, barns, and other properties necessary for farm operations.

Commercial real estate loans are similar to the residential mortgages used to buy homes, they differ in some key areas. Click here to learn more

Commercial Construction Loans

If you are building or expanding farm structures like barns, silos, or processing facilities, commercial construction loans can provide the necessary capital.

Loan Amount: Based on the project size, typically paid out in installments as each phase of the work is completed
Repayment: Typically paid upon project completion or through conversion to a commercial mortgage
Why it’s helpful: Fund the construction or renovation of farm infrastructure, with payments typically deferred until the project is completed.

See if you qualify for commercial loans

SBA loans

The U.S. Small Business Administration (SBA) offers various loan programs for farmers, including options to help finance growth and operational needs.

SBA 7a business loans
- Best for: Large investments or expansion projects
- Loan Amount: Up to $5 million
- Repayment: Up to 25 years
- Collateral: May be required
- Eligibility: Must be in business for 4+ years, with $180,000+ annual revenue and 680+ personal credit score
- Why it’s helpful: Lower interest rates and longer terms make SBA 7a loans a favorable choice for farmers

See if you qualify for an SBA 7a loan

SBA express loans
- Best for: Quick access to funding compared to SBA 7a
- Loan Amount: Up to $500,000
- Repayment: Shorter terms, typically 7 years, Interest rates and fees higher than SBA 7a
- Collateral: May be required
- Why it’s helpful: Get fast decisions and quick access to capital, ideal for urgent expenses or opportunities

SBA microloans
- Best for: Small funding needs, especially for newer or smaller farms
- Loan Amount: Up to $50,000
- Collateral: Sometimes not required
- Eligibility: Relaxed qualifying rules, FICO scores as low as 500, or even with no credit score
- Why it’s helpful: Easier to qualify for, and available with less stringent requirements than traditional loans
- Be aware that these types of business loans often require a personal guarantee that makes you personally responsible for the debt

Ready to explore which funding options are right for your farm? Click here to get started.

Get started with Swoop

💡 Beyond grants: Discover a wider world of funding, including loans, tax incentives, and private investment opportunities tailored for US agriculture

📢 Access available capital: Get matched with the funding solutions that best fit your farm’s specific needs and goals in the current market

🔔 Never miss an opportunity: Stay informed with alerts on new grants and financial programs relevant to US farmers.

Don’t let fluctuating grant availability hold you back. Swoop simplifies the process of finding and securing the right funding to help your business thrive.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

Swoop promise

At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

Find out more about Swoop’s editorial principles by reading our editorial policy.