Below is our list of resources for finding loans and grants to help begin your farming business. It is important to be aware that farm business planning is an essential component of developing a new farm enterprise, and having a sound business plan is often a requirement for procuring funding. So we strongly encourage you to use this information in consort with the resources offered on the Farm Business Planning Page of this site.

The page begins with a list of federal loan programs, and resources for helping you understand and apply for these loans

We then list a number of other resources for loans, some of which are region specific.

There are also some links to organizations which provide research grants. Some of these are geared toward academic research, though there are resources for on-farm research grants listed here as well.

Next, there are resources that will allow you to search for finding loans by state. These are often some of the best resources for loan programs, and a number of them include federal loan programs administered through the states.

Finally, you will find links to private lenders and Farm Credit cooperatives offering loans, many of which are specifically geared toward beginning farmers.

• USDA Farm Service Agency (FSA) Loan Programs:

1) General Information on all FSA Loan Programs

2) Beginning Farmer and Rancher Development Loan Program Factsheet

3) Youth Loans

4) Socially Disadvantaged Farmer or Rancher Contract Land Program

5) Emergency Loans

6) A Plain Language Guide to Applying for a Farm Service Agency (FSA) Loan is an excellent resource published by Tufts University’s New Entry Sustainable Farming Project

Also see the Grants, Loans, and Support Page of the USDA’s new Know Your Farmer, Know Your Food Website for an overview of federal grant and loan programs.

And check out the Value-Added Producer Grant (VAPG) program for group projects (farm coops, businesses, associations, etc.) in which some but not all of the beneficiaries are beginning farmers. New terms for this program were recently issued in the Notice of Funding Availability (NOFA) for the VAPG program,

Other Funding Resources:

• The Center For Rural Affairs is a great resource which offers A List of Beginning Farmer Financing Programs

• Cooperative State Research, Extension, and Education Service offers research grants through its Beginning Farmer and Rancher Development Program

• Through the USDA’s Sustainable Argiculture Research and Education Program (SARE) farmers and ranchers can apply for grants that typically run between $500 and $15,000 for various projects. To apply, obtain a copy of a SARE call for proposals from the appropriate region and ask to be put on the regional mailing list for future calls. After you determine the deadline, submit your proposal, following all guidelines specified by the region. Remember! All deadlines are final. Please note: Each region may title its farmer/rancher grant programs differently. For more information on this programs and links to specific reigons visit http://www.sare.org/coreinfo/farmers.htm. For tips on successfully applying for SARE grants visit http://www.nal.usda.gov/afsic/pubs/saregrant.shtml.

• The USDA National Agricultural Library’s Rural Information Center hosts a Small Farm Funding Resources Page which provides information on Developing a Farm Business Plan; Financial and Planning Resources; Funding and Program Assistance; Farm Disaster Assistance; and Links to Organizations and Websites.

• 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. These include reports such as ‘Lessons Learned: The 2009 Microloan Fund for New England Farmers‘ and Are Northeast Small Farmers in a Financing Fix? Research Results on Financing Gaps and Program Opportunities, News Stories relevant to beginning farmer financing, and a quarterly E-Newsletter. Their Farmer Resources Page lists both Farm Financing Options and Farm Business and Financial Planning Resources, some of which are Multi-state, while others are New England (and New York) specific and listed by state. New England (and New York) Farmers can  apply for their Farm Financing Program They also provide Information for Investors interested in using their financial resources in a socially responsible way, by investing in projects that help to foster the growth of new farmers. Definitely a fantastic project that is worth checking out, for anyone interested in procuring loans to help build their farm business, folks who want to help support the growth of small, local beginning farmers, or institutions or groups thinking about starting a similar program in their area.

• The Equity Trust Fund (< click this link to see examples of funded projects as well as loan application procedures) 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.

• The Appalachian Sustainable Agriculture Project (ASAP) offers Farmer Grants for Market Development. Individual farmers can apply to receive up to $1500 of assistance. Farm markets are eligible for up to $2000, and as much as $5000 is available for a group of farmers. Matching funds mean that ASAP will pay for up to half of the anticipated applicants cost for promotion and marketing materials. Current and former tobacco farmers can receive up to 75% of these marketing costs. Funds can go towards advertisements, product labeling, graphic design, posters, business cards, signs, and more. To apply, farmers must be Appalachian Grown Certified. To learn more and apply for matching funds, click HERE.  or contact Megan Ray.
  

• The Organic Farming Research Foundation (OFRF) provides grants for organic farming research. The next deadline for submitting grant proposals is: November 16, 2009. If you have questions, you may write to, call, or e-mail the OFRF office, phone 831-426-6606, e-mail jane@ofrf.org.  Please Note – OFRF now has two separate RFP’s for grant applications: A Request for research proposals, and a Request for education and outreach proposals

• A Summary of Beginning Farmer/New Entrant Financing Programs in Canada, The US, and Japan is available at http://www.law.drake.edu/centers/docs/intlAgLaw/baker.pdf

• Check out the Association for Enterprise Opportunity for information on MicroEnterprise Loans.
  

• Below You Will Find Links to Loan Programs By State. 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: www.stateagfinance.org/types.html or http://www.stateagfinance.org/directory.html for more information about a number of specific state finance programs.
  1. Arkansas has a Beginning Farmer Loan Program offering reduced interest rates administered through the Arkansas Development Finance Authority. For more information on this program visit: http://www.accessarkansas.org/adfa/programs/bflp.html
  2. Colorado offers Beginning Farmer Loans through the Colorado Agricultural Development Authority. For more information visit: http://www.colorado.gov/cs/Satellite/Agriculture-Main/CDAG/1167928162022
  3. Illinois has a Beginning Farmer Bond Program administered through the Illinois Finance Authority, which provides reduced interest rates for purchasing farmland. For more information visit: http://www.il-fa.com/products/agriculture/programinfo.html#B
  4. Iowa has a Beginning Farmer Loan Program administered through the Iowa Agricultural Development Authority. For more information on this program visit: http://www.iada.state.ia.us/BFLP/index.html
  5. Kansas has a Beginning Farmer Loan Program administered through the Kansas Development Finance Authority. For more information visit: http://www.kdfa.org/sites/default/files/uploaded_files/Farming_Application.pdf
  6. Kentucky has a Beginning Farmer Loan Program administered by the Kentucky Agricultural Finance Corporation. For More Information visit: http://kafc.ky.gov/kafc_programs_beginningfarmer.shtml
     
  7. Minnesota offers a number of different loan programs through the Rural Finance Authority. For more information visit: http://www.mda.state.mn.us/grants/loans/aggiebond.aspx
     
  8. Missouri has a Beginning Farmer Loan Program administered through the Agricultural and Small Business Development Authority. For more information visit: http://www.mda.mo.gov/masbda/begfarm.htm
  9. Montana has a Beginning Farm/Ranch Loan Program offered through the Montana Agriculture Loan Authority. For more information visit: http://agr.mt.gov/business/bfrprog.asp
     
  10. Nebraska has a Beginning Farmer and Rancher Loan Program administered through the Nebraska Finance Investment Authority. For information on this program visit: http://www.nifa.org/programs/index.html?topic=desc&ps=choose&prog_name_sent=Beginning+Farmer%2FRancher
  11. New York State has a Beginning Farmer Loan Program administered by the New York State Environmental Facilities Corporation. For more information visit: http://www.nysefc.org/home/index.asp?page=451
      
  12. North Dakota offers Beginning Farmer Loan Programs through The Bank of North Dakota. For more information visit: http://www.banknd.nd.gov/lending_services/farm_ranch_financing_programs/beginning_farmer_loan_programs.html
  13. Oklahoma’s Beginning Farmer Loan Program (OBFLP) helps provide additional credit options for those entering farming. The loan can be used to obtain or improve capital items such as agricultural land and property, depreciable machinery and equipment, and/or breeding livestock. http://pods.dasnr.okstate.edu/docushare/dsweb/Get/Document-1807/F-234web.pdf
      
  14. Pennsylvania has a Next Generation Farmer Loan Program offered through the Pennsylvania Department of Agriculture. For more information visit: http://www.stateagfinance.org/pennsylvania.html
      
  15. South Dakota has a Beginning Farmer Bond Program administered through the Value Added Finance Authority which offers lowered interest rates. For more information visit: http://www.state.sd.us/doa/ag_dev/loan/vafa.htm#Beginning%20Farmer
  16. Washington State has a Beginning Farmer/Rancher Loan Program offered through the Washington State Housing Finance Commission and Northwest Farm Credit Services. For more information visit: http://www.wshfc.org/FarmRanch/index.htm

Private Lenders Offering Special Beginning Farmer Loan Programs:

Information on Farm Credit Cooperatives:

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”

For a a “location” search to find the nearest Farm Credit office, go to www.farmcredit.c0m.  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.

Other Private Lending Options:

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.

Ag Land Lending: Mortgage Sources Corp Agricultural Division “offers loan products with competitive rates to purchase or refinance farm real estate.”

Janus Ag. Finance: http://www.janusagfinance.com/ag-finance.asp

Also see AMERICAN BANKERS ASSOCIATION CENTER FOR AGRICULTURAL AND RURAL BANKING TIP SHEET FOR YOUNG AND BEGINNING FARMERS: HOW TO BUILD SUCCESSFUL FINANCIAL RELATIONSHIPS