Funding Resources for Farmers (Loans/Grants)

Funding Resources For Farmers (Loans and Grants) are often crucial to starting a new farm business. This page contains comprehensive information about finding financial help for starting your farm business. It is also important to be aware that farm business planning is usually an essential component for obtaining funding, for either loans or grants for farm enterprise. We encourage you to visit our Farm Business Planning Page to learn more about how to develop a business plan.

farming loans

How the Funding Resources for Farmers Page is Organized:

1) We begin with a list of information resources about federal loan programs administered through the USDA’s Farm Service Agency (FSA).

2) Next we provide information about other federal funding options.

3) Then we list a number links to other public and private organizations which provide information about loans, grants and financial management both for farming and for research (on-farm and academic). Some are specific to beginning farmers, while others are not. And some are focused on particular geographical regions, while most are not.

4) The next section lists beginning farmer loan and development programs administered by individual States.

5) We then provide information about the Farm Credit Cooperative system and how it may assist beginning farmers.

6) Finally, we have links to several private lenders, several of which offer loans specifically geared toward beginning farmers.

1) USDA Farm Service Agency (FSA) Loan Programs:

2) More on Federal Financing Options

The National Sustainable Agriculture Coalition’s Guide to USDA Funding for Local and Regional Food Systems is a great resource which discusses Grants and Loans from: the Community Outreach and Assistance Partnership Program; Specialty Crop Block Grants; Farmers Market Promotion Program; Federal State Marketing Improvement Program; Beginning Farmer and Rancher Development Program (also see above); Community Food Projects Competitive Grant Program; Sustainable Agriculture Research and Education (SARE); Value Added Producer Grants; Rural Business Enterprise Grants; Rural Business Opportunity Grants; Rural Cooperative Development Grants; Community Facilities Grant Program; Small, Socially Disadvantaged Producer Grants; Business and Industry Guaranteed Loan Programs; Outreach and Assistance to Socially Disadvantaged Farmers and Ranchers; as well as Regional Resources.

The Conservation Stewardship Program, administered through the Natural Resources Conservation Service (NRCS) provides important funding resources for farmers with areas that are not in agricultural production. And a list of all NRCS programs which provide funds for a wide variety of conservation projects, initiatives, and activities, can be found at: https://www.nrcs.usda.gov/programs/

The National Sustainable Agriculture Information Service (ATTRA) provides a list of federal, state, and local grant programs, regional funding sources, private lenders, with more opportunities listed at https://attra.ncat.org/funding/

The USDA National Agricultural Library has resources on small farm funding, information about grants and loans for farmers, as well as a General Funding Resources Page.

Find a list of USDA Rural Development Programs at https://www.rd.usda.gov/page/all-programs

Search for Grants from the USDA National Institute of Food and Agriculture

GovernmentLoans.gov is a gateway to Federal agricultural loan information.

Through the USDA’s Sustainable Agriculture Research and Education Program (SARE) farmers and ranchers can apply for grants that typically run between $500 and $15,000 for various projects. Different SARE grants are available in different regions. To learn more about available SARE grants, or apply, visit the Apply for a Grant SARE website. For tips on successfully applying for SARE grants visit the National Agriculture Library Applying for a SARE Grant page.

If you are a farmer or rural entrepreneur in the Midwest, you are invited to use a free Grants Advising service of the Michael Fields Agricultural Institute. Their Grants Advisers help you decide whether a grant would be the best way to achieve your goals. If so, he or she will help you identify a grant program that best fits your goals and help you outline a plan of work for you to follow to meet the application deadline and all application requirements. If not, the Adviser will suggest other funding resources for farmers. Examples might be federal, state or local loan programs, loan guarantees, as well as resource information and resource persons. Check out https://www.michaelfields.org/grants-advising for more information.
 
cash money

3) Other Funding Resources for Farmers:

  • The National Institute of Food and Agriculture (NIFA) offers research grants through its Beginning Farmer and Rancher Development Program
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  • A number food system organizations across the country have been supported with small grants, many over several years. Note that there are strict eligibility requirements (for example, individuals are not eligible) and non-fundable program activities. Applications are reviewed three times yearly. The next due date is Monday, October 1st, 11:59 PM EST. The website has an extensive list, by state, of previously funded organizations. Learn more here
  • RAFI USA has a publication called The Farmer’s Guide to Agricultural Credit. This guide was written to help farmers understand agricultural finance, and to help them be better prepared for the credit application process.  It introduces some effective planning tools farmers can use to increase their opportunities in accessing capital.  Also offered are appendices containing resources for further learning.
  • Building Sustainable Farms, Ranches, and Communities “is a guidebook written for anyone seeking help from federal programs to foster innovative enterprises in agriculture and forestry in the United States. Specifically, the guide addresses program resources in community development; sustainable land management; and value-added and diversified agriculture and forestry.”
  • Karen Klonsky, an Extension Specialist at University of California, Davis has written a simple, but excellent document called How to Finance a Small Farm and Kent D. Olson, a UC Davis Cooperative Extension Economist has written one called Farm Leases and Rents. Both publications are valuable resources, and are part of the University’s excellent Family Farm Series of publications.
  • The Carrot Project “is a non-profit organization dedicated to creating financing solutions for small- and midsized farms, limited-resource farms, and those using ecologically sound practices. Our singular program model is designed to incubate and establish alternative financing programs in combination with business technical assistance.” Although their loan programs are focused specifically on farmers in New England, (and now expanding to New York) they do have a great deal of information that may be applicable and useful to beginning farmers everywhere. 
  • The Equity Trust Fund is capitalized by socially motivated investors and donors. It uses its capital to make low-interest loans for community development, educational or agricultural projects: That promote the long-term interests of local communities as well as their individual members; That demonstrate the efficacy of land ownership models that balance the interests of individuals and communities; That promote social and economic justice; That promote environmentally conscious, economically sustainable land use; and that would be unlikely to receive financing from conventional sources.
  • Kiva microloans are available to farmers all over to the world to expand enterprises and fund specific projects. These interest free loans are available as direct loans through PayPal for U.S. farmers, or through partners for farmers in other parts of the world. Get started at https://www.kiva.org/about/impact/labs/financingagriculture.

4) Links to State Loan Programs (listed alphabetically):

Wyatt Fraas, from the Center for Rural Affairs (CFRA) has kindly pointed out that most of these programs are run by State Departments of Agriculture. If your state isn’t listed, contact your Dept. of Ag. to see if they have a new program, and to make them aware that there is demand for beginning farmer loan programs in your state.

Please also check out: the National Council of State Agricultural Finance Programs  and navigate to the “Types of State Ag Loan Programs” drop-down menu for more information about specific state beginning farmer financing programs and other funding resources for farmers including Beginning Farmer Aggie Bond Programs.

Farm Business Planning

5) Farm Credit Cooperatives:

Farm Credit Cooperatives are often a great option for funding resources for farmers including farm loans and other financial services for new and beginning farmers. For a nice overview article explaining what farm credit cooperatives are, and how they might assist you, check out the guest post written for us by Gary Matteson, VP for Young, Beginning Small Farmer Programs and Outreach at The Farm Credit Council: https://beginningfarmers.org/farm-credit-cooperatives-offer-loan-options-for-young-beginning-and-small-farmers/

Every Farm Credit institution has some kind of enhancement program for young, beginning, and small (YBS) farmers. Since each of those 90 institutions is independently operated, their YBS programs are not the same–they are tailored to local needs.  Many Farm Credit institutions have what they offer on their websites, but many do not go into the specifics unless a local office is contacted. To find your nearest Farm Credit office, go to https://www.farmcreditnetwork.com/about/locations.

AgCountry Farm Credit Services “works to support the successful entry of young and beginning farmers into production agriculture through specialized credit underwriting, educational/informational programs and other activities; The Farm Credit Council “serves young, beginning, and small farmers and ranchers”; Greenstone Farm Credit Services has “special programs for young and beginning farmers”

6) Commercial Lenders

Loans.com is a web portal to 750 commercial lenders.

Mortgage 101 provides a list of lenders, a mortgage calculator, information on mortgage rates, and more.

The American Bankers Association has a Agriculture Banking page.

Bank of America: Agriculture Loans: Finance equipment, land, or production expenses related to farming and ranching, with various repayment terms.

Janus Mortgage has loan packages for purchasing agricultural land.

Investors Resource Alliance provides agricultural business plan funding and borrower or investor loans for the purchase of goods and services to produce agricultural products.

 

Find additional farming resources from beginningfarmers.org at https://www.beginningfarmers.org/additional-farming-resources/

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