Hobby farm grants: funding support for small-scale farming ventures

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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.

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      What is a hobby farm?

      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.

      Can hobby farms get government grants?

      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. 

      • Are you contributing to soil restoration? 
      • Supporting local food systems? 
      • Preserving pollinator habitats? 

      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.

      Types of grants available to hobby farmers

      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.

      Sustainability and conservation funding

      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.

      Diversification and agri-tourism support

      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.

      Equipment and infrastructure 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.

      National and state-level funding programs

      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.

      USDA Environmental Quality Incentives Program (EQIP)

      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.

      State Department of Agriculture and local grants

      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.

      Non-profit and charitable funding opportunities

      Several nonprofit organizations provide microgrants specifically for small and sustainable farms. For instance:

      • The FruitGuys Community Fund offers up to $5,000 for environmental sustainability projects.
      • Fund-a-Farmer Grants (via Food Animal Concerns Trust) help cover fencing, shelters, and water systems to improve livestock welfare.
      • Brighter Future Fund (from American Farmland Trust) supports beginning, socially disadvantaged, limited resource, women, and veteran farmers investing in farm viability and regenerative farming practices. 

      These opportunities often fly under the radar, so it’s worth subscribing to newsletters from organizations aligned with your mission.

      Eligibility criteria for hobby farm grants

      Each grant comes with its own rules, but some common eligibility factors include:

      • Having a registered farm or business entity (LLC, sole proprietorship, etc.)
      • Demonstrating income or planned revenue from your operation
      • Operating in a rural or qualifying geographic area
      • Aligning with the funder’s priorities (e.g., sustainability, education, equity)

      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.

      How to apply for hobby farm grants

      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.

      Documents and information required

      A strong grant application typically includes:

      • A written project plan or proposal
      • A simple business plan, especially for value-added or income-generating projects
      • Recent tax returns or proof of farm-related activity
      • A budget estimate for the grant-funded project
      • Supporting documents (like farm photos, maps, letters of support)

      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.

      Common application mistakes to avoid

      Rushing the application or skipping details can hurt your chances. Here are a few red flags that could sink your proposal:

      • Vague goals: (“We want to grow more”) instead of specific outcomes (“Install 300’ of fencing to support a managed grazing rotation for 12 goats”).
      • Missing budget breakdowns: Many reviewers want to see cost estimates.
      • Not addressing the grant’s purpose: Read the program’s priorities and mirror their language where appropriate.

      Other funding options for hobby farmers

      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.

      Get started with Swoop's business funding platform

      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 Brooks

      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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