How to Get a

Government Grant for

a Farm in the U.S.

March 25, 2021

Converted by:
Kristal Cay Lambating
 Farming requires a large investment in land, labor, and equipment. Federal and state governments recognize that
farming must be supported to maintain our food supply. As a result, the government provides grants to farmers
throughout the United States. Unlike a loan, a grant does not have to be repaid. However, the government grants
process is extremely competitive. You want to make sure to properly complete all relevant application forms. Farmers
also need to report on how the grant is being used each year.
Part 1 of 4:
Planning Your Farm Business
Consider your farming background
1 and geographic location. It’s critical
to start with a business plan for your farm.
The planning process will help you address
most of the issues you’ll encounter in your
business. Your experience in the farming
industry has a big impact on your plan,
along with the types of crops grown in your
area of the country.[1]
• Evaluate your level of expertise as a farmer. If
you’re new to farming, you may be able to find
grants that pay for training and mentoring
programs.
• Think about your available resources. Do you
have access to enough land to farm? Consider
what equipment you’ll need and how many people
it will take to operate your farm.
• Take a look at the types of crops grown in your
area of the country. You may be able to apply for
grants that support organic farming, or specialty
crop farming (fruits, vegetables, tree nuts). Analyze
whether or not your area can support these types
of farming.
2 Write a business plan.A comprehensive
business plan will show a potential grantor
that you should be considered for a grant.
Your plan should include a discussion of how
you will market and sell your crop. The plan
should also explain how you will generate a
profit and manage cash.
• Compute the initial costs you’ll incur to open
your farm for operation, if you’re starting from
scratch. If your farm is already in operation,
explain why you need financing. In both
instances, you’re explaining how you will use the
grant proceeds.
• You may use the grant proceeds to purchase
land, seeds, or new equipment. Your grant
proposal may include your need for more labor, or
improved housing for your labor force.
• The business plan should include a projection
of the income you’re going to generate and the
expenses you will incur each year. A good
business plan will also include projections of
cash inflows and outflows. Most business plans
include at least three years of business
projections.
• You may need to change your plan to meet the
requirements of the grant application. Every
grant, however, will require you to create a
business plan in some form.
 1 Understand the different types of farm
grant options available. Government farm
grants are given based on a wide range of
relatively specific criteria. For example, many
government farm grants are only provided to
those farms that qualify as a “small farm.” A
small farm is typically defined as those farms
bringing in gross receipts of less than
$250,000 annually. Some of the main types of
government grants include:[2]
• Farm labor grants, which can be used to locate, hire
and pay farm employees.
• New farmer grants, which are used to help those
looking to start operating a new farm.
Decide which components of your plan • Environmental quality incentive grants, which are
3 may qualify your farm for a particular
provided to those farmers who agree to employ
environmentally friendly farming processes in
grant. Once you get your plan on paper, read exchange for grant money.
through it. You may find a facet of your plan
that relates to a specific grant. If you can
connect your business plan to the purpose of
the grant, you can make a compelling case to
be awarded the grant.
• Say, for example, that you manage a profitable farm.
You have more available land to farm, but you need
capital (money) to hire more workers and expand
production. You may be able to find a grant that exists
to help disadvantaged workers find jobs.
• Assume that you have expertise in organic farming,
but you don’t have the capital to expand your
operation. There are grant programs specifically
designed to help the organic farmer produce more
crops. That type of grant may be a great fit for you.
Part 1 of 4:
Researching Available Government 2 Use the USDA website to research federal
Grant Opportunities farm grant opportunities.The website
explains all of the different grant programs
available and provides details on eligibility
requirements and application procedures.[3]

3 Explore grant opportunities in your state.
Call your state Department of Agriculture or
access their website for more information about
farm grants provided by your local or state
government. If you live in a rural or tribal
location, you might be able to get grants from
your regional government as well.
Look for new and proposed funding
4 opportunities. Oftentimes additional grants
are made on a needs basis when funding is
available to help in the areas of pest
management, water conservation, and energy.
Check the USDA's website, or www.grants.gov for
opportunities that are only available during
specific years or for specific communities.
Part 3 of 4:
Choosing the Appropriate Grants
Start your farm by applying for the
1 Beginning Farmer and Rancher
Development Grant. The USDA’s National
Institute of Food and Agriculture provides farm
grants so that new farms can receive up to
$250,000 for training, education, and technical
assistance. The USDA's National Institute of Food
and Agriculture provides money to both state and
local governments and to nonprofit organizations.
Those organizations dispense the grant funds to
new farmers. Contact your local, regional or tribal
agricultural office to access grant money through
this program.[4]
2 Apply for Farm Labor Housing Grants.

Labor Housing Grants are provided to farmers
who want to build, remodel, or sustain housing for
the farm workers they employ. The grant funds are
given to nonprofit organizations, public agencies,
and farm worker associations, who then dispense
the funds directly to farmers.[5]
3 Qualify for an Environmental Quality
Incentive Grant. These grants are provided to
all farmers, but for those who switch or transition
to organic farming, the wait for funds can be
much shorter. The same goes for socially
disadvantaged farmers. In addition to receiving
up to $20,000 per year, your farm can also
qualify for $80,000 in grants over a period of six
years. Get standards from the USDA's Agricultural
Marketing Service.[6]
Apply for the Small Business Innovation
4 Research Program. Farms are considered
small businesses for the purpose of this grant,
which gives money to any business engaged in
research that can solve scientific agriculture
problems.[7]
Part 4 of 4:
Applying for a Grant, Reporting
Results
1 Complete the grant application. The grant
application can require a large amount of
information. On a basic level, you need to make
a strong case as to why you are a great
candidate for the grant. You’ll explain exactly
how you will use the grant dollars, and the results
you hope to achieve.[8]
• The application will require many of the components
of your business plan. You’ll include projected
financial statements.
• Most grant applications will include information
about your background. You will document your
education and work experience, including any farming
experience.
• The goal is to prove to the grantor that you can use
the grant funds to meet the objectives or mission
statement of the grantor.

2 Provide annual financial reports. A
grantor will require periodic financial reports,
usually annually. These reports help the
grantor monitor how you are using the grant
proceeds.
• You may be asked to provide annual financial
statements for your farm, as well as the farm’s federal
tax return.
• You will provide a balance sheet, which lists the
assets and liabilities for your farm. Your income
statement shows the revenue and expenses, and your
farm’s profit or loss for the year. The farm’s cash flow
statement lists the cash inflows and outflows for the
year.
3 Send in grant reports.
All grants will require you to complete and
submit reports to explain how you use using
the grant funds to meet the grantor’s
mission. These reports are provided to the
grantor at least annually.[9]
• Say, for example, that your grant’s purpose is to
provide improved housing for farm workers. You will
need to document how the grant funds were spent on
housing.
• A grantor is also focused on how their grant dollars
are meeting a need over a period of years. If you
receive a grant to farm organic crops, for example,
your grantor wants to see their grant dollars have an
impact over the long-term. Your grant reports should
explain that impact.
• If you use the grant responsibly and generate
results, you may be able to apply and receive more
grants in the future.
Tips
Consider looking into grants from
nonprofit organizations and
foundations as well as the
government. The Organic Farming
Research Foundation and the Quaker
Simple Farmer Education Fund
makes grants to farmers.
Get pre-qualified for government farm
grants by contacting the USDA or
your state government. Each grant
will have a different application
process, and the grant managers in
each government agency can help
you understand your eligibility and
other requirements.