Texas Young Farmer Grant Program

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Availability: Twice a year (spring and fall)

Pursuant to the Texas Agriculture Code, Section 58.091, the Texas Department of Agriculture (TDA) administers the Texas Young Farmer Grant program (YFGP). The YFGP is administered by TDA under the direction of the Texas Agricultural Finance Authority (TAFA). 

The purpose of this program is to provide financial assistance in the form of dollar-for-dollar matching grant funds to young agricultural producers that are engaged or will be engaged in creating or expanding an agricultural business in Texas. 

TAFA’s Texas Young Farmer Grant Program aims to: 

•  Grow and support Texas agriculture 
•  Help meet a financial need that is otherwise not met 
•  Help grow an operation that also impacts the community 

Who can apply? 
Texas Young Farmer Grant Program applications will be accepted from any individual person 18 years or older, but younger than 46 years of age as of the application deadline, who is engaged or will be engaged in creating or expanding agriculture in Texas. Applications that merely propose to sustain an existing agricultural business are not eligible for an award under this program. Corporations, limited liability companies, partnerships or other types of foreign or domestic entities are not eligible for awards under this program. TDA will immediately disqualify any application filed on behalf of a corporation, limited liability company, partnership or other types of foreign or domestic entity. The applicant must be able to make dollar-for-dollar matching expenditures to sustain, create or expand the proposed project.

Applicant must be a U.S. Citizen and applicants must reside and operate in Texas.

Grant recipients that have a current, open grant may not receive a new grant during this cycle. 

Grant funds will not be awarded to multiple family members for the same project.  Each individual grant applicant must clearly describe a distinct project and demonstrate how the individual grant applicant will independently benefit from the Young Farmer Grant.


Texas Young Farmer Grant Program Highlights

• Grant recipients that have a current, open grant may not receive a new grant during this cycle.  
• Grant awards range from $5,000 to $20,000 
• Grant funds may not be used toward capital purchases (Personal property or other capital items with a unit cost of more than $5,000) 
• Applicant must be able to make dollar-for-dollar matching expenditures Grant funds are paid to grant recipients on a reimbursement basis. Funds will be distributed to the grant recipient  upon TDA’s receipt of documentation, such as cancelled checks, paid invoices or properly issued vendor receipts evidencing that the grant recipient:  (1)  has expended the required amount of matching funds for the project; and (2)has incurred and paid out total expenses for the project in an amount equal to at least the full amount of the project budget. 
• Costs must be within the term of the grant award. 
• Successful applicants will be issued a legally binding grant agreement that will outline the grant period of performance (start and end dates). Expenses incurred before the grant approved start date or after end date of agreement. Look at the timeline in the Request for Application to help plan expenses related to your project. 

What does a matching grant mean? 
Matching funds are the amount of funds you are pledging in the matching column of the grant application and there is a 1:1 matching requirement.   For examples, if you are seeking a grant for $10,000 you will be expected to document a match of at least $10,000 for a total project of $20,000. In other words, for every $2 you spend you will be reimbursed $1, or 50% of each invoice your submit for payment if awarded the grant. 

Applicants that indicate a higher matching amount on their grant application will be required to expend/document the amount listed in the budget section of application during the grant term. For example, if you are seeking a grant for $10,000 and said you would match $40,000 it would be the same as saying for every $5 you spend you will be reimbursed $1, or 20% of each invoice your submit for payment if awarded the grant.

Find more resources on farm financing, funding, and grants at https://www.beginningfarmers.org/funding-resources/