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Page written by Ashlyn Brooks. Last reviewed on July 2, 2025. Next review due October 1, 2026.
Turning a hobby farm into a thriving side business, or simply keeping one running sustainably, can be rewarding, but it can also be expensive. For small-scale farmers who don’t always qualify for commercial ag loans, finding hobby farm grants can be a game-changer.
While the term “hobby” might suggest something casual or low-stakes, the truth is, many hobby farmers are serious about their land, animals, and long-term impact. And increasingly, there are funding programs, both public and private, that recognize this commitment. Here’s how to find the right grant for your farm, what to expect during the process, and how Swoop can help you explore even more funding solutions tailored to your goals.
At its core, a hobby farm is a small-scale agricultural operation typically run by individuals or families who earn their primary income from other sources. Unlike commercial farms, hobby farms aren’t focused solely on profitability — they often blend lifestyle, sustainability, and a passion for growing or raising food.
That said, many hobby farmers generate revenue by selling eggs, vegetables, goat milk soap, or offering agritourism experiences. The line between “hobby” and “business” can blur fast, especially as demand grows. For this reason, hobby farmers are increasingly seeking formal support to expand and professionalize their efforts.
Yes — but with caveats. Hobby farms don’t always meet the typical definition of an agricultural business in the eyes of federal agencies like the USDA. However, if your operation shows a clear business model, conservation impact, or educational value, you may still qualify for a range of public and private farm grants.
In many cases, it comes down to how you frame your farm’s purpose.
If so, you’re likely already aligned with the goals of many grant providers. The key is understanding where your operation fits into larger agricultural and community priorities.
Not all grants are created equal, and that’s actually good news. Hobby farmers today can tap into a variety of funding programs depending on what they’re growing, building, or envisioning. Whether you’re focused on sustainability, looking to diversify your farm income, or need a hand upgrading your infrastructure, there are grant options that match those goals. Here’s a breakdown of the most relevant categories to explore.
Many grants support environmentally responsible practices, even on small farms. Programs like the USDA’s EQIP (more on that below) can fund composting setups, rotational grazing systems, and erosion control measures.
Hobby farmers who focus on organic production, native plant restoration, or low-impact livestock management often qualify for conservation cost-share programs. These aren’t always called “grants,” but they function similarly by reimbursing approved expenses.
If you’re exploring income beyond crops or livestock — say, farm stays, u-pick berry patches, or educational workshops — you may be eligible for grants tied to rural development or tourism. Some state-level initiatives support farm-based diversification to attract visitors and stimulate local economies.
For example, hosting school tours or teaching sustainable gardening could unlock funding from nonprofit education partners or community grants.
Need fencing for a pasture rotation system? A walk-in cooler to keep greens crisp before market? There are grants and cost-sharing programs for that as well.
Programs like the Value-Added Producer Grant (VAPG) or Brighter Future Fund support small producers making smart investments in tools, buildings, or processing equipment. These grants often prioritize underrepresented groups and small farms with limited access to traditional credit.
While hobby farms may not operate at industrial scale, that doesn’t mean they’re excluded from meaningful financial support. Many federal, state, and nonprofit-backed programs are designed with smaller, sustainable operations in mind.
From USDA-backed reimbursements to state-specific development initiatives and grassroots grants, these options can offer real traction — if you know where to look. Let’s explore some of the most promising pathways.
EQIP remains one of the most accessible USDA programs for small-scale and hobby farmers. It offers technical assistance and financial reimbursement for projects that improve natural resource conditions, like fencing for rotational grazing, cover cropping, or installing wildlife-friendly barriers.
Though the paperwork can be involved, many EQIP recipients report that the effort is worth it. Your local NRCS (Natural Resources Conservation Service) office can walk you through the planning and application process.
Many states offer their own agricultural support grants, often through their Departments of Agriculture. These programs vary widely, from urban farming funds in Missouri to infrastructure grants in New York to support for women in rural Texas.
Even small amounts ($2,500 to $10,000) can go a long way on a hobby farm. These state-level programs are often less competitive than federal ones and may include technical assistance, networking support, or help with marketing your products.
Several nonprofit organizations provide microgrants specifically for small and sustainable farms. For instance:
These opportunities often fly under the radar, so it’s worth subscribing to newsletters from organizations aligned with your mission.
Each grant comes with its own rules, but some common eligibility factors include:
Some grants specifically exclude purely recreational operations, so it helps to document your goals and the impact of your work, whether that’s food production, education, or conservation.
Once you’ve identified a grant that fits your goals, the real work begins. Applying for funding isn’t just about filling out forms — it’s about clearly showing how your project aligns with the program’s mission. That means gathering the right documents, telling your farm’s story with clarity, and avoiding common pitfalls that could delay or derail your application. Here’s what to keep in mind as you prepare.
A strong grant application typically includes:
You’ll also need to register with your local USDA office if you’re applying for EQIP or other federal support — this includes obtaining a farm number.
Rushing the application or skipping details can hurt your chances. Here are a few red flags that could sink your proposal:
If grants feel out of reach or you need funds faster, don’t overlook alternative financing options.
Low-interest microloans from the USDA’s FSA (Farm Service Agency) are tailored for beginning and small-scale farmers. Programs like REAP offer help for energy-efficient upgrades. And private financing tools, including business loans or lines of credit, can support expansions when grant cycles don’t align with your timeline.
Platforms like Swoop allow you to compare multiple funding options in one place, including loans designed for agricultural operations that aren’t “traditional” in scale.
Hobby farms may start small, but their ambitions are often anything but. Whether you’re working toward a local CSA, a regenerative grazing plan, or a fully off-grid greenhouse, having access to the right funding can make all the difference.
With Swoop, you can explore tailored business funding options that fit your operation, without the guesswork or jargon. From government-backed loans to flexible financing for infrastructure or marketing, we make it easy to see what’s available, compare terms, and move forward when you’re ready.
Register your business with Swoop today and see what support your farm could be eligible for. It might be the step that turns your side project into something even bigger.
Written by
Ashlyn is a personal finance writer with experience in business and consumer taxes, retirement, and financial services to name a few. She has been published in USA Today, Kiplinger and Investopedia.
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