Computer keyboard with a label "Grants & Loans"
Updated: May 28, 2025
By Shannon Dill , and Ginger S. Myers

Traditional Sources

Show Me the Money-Finding Funding for Your Business

Whether you're a beginning farmer, a food entrepreneur, or managing an established operation, securing funding is often a necessary step in launching or growing your business. From purchasing equipment and land to developing new products or expanding markets, financial resources can help turn your goals into reality.

Understanding Your Funding Options

There are two primary types of external funding for agricultural businesses: loans and grants. While both can provide critical capital, they come with distinct advantages, requirements, and challenges.

Before You Apply: Know Your Debt Tolerance and Reduce Costs

Before applying for any funding—grant or loan—it’s essential to evaluate how much debt you can responsibly carry and how much equity or upfront capital you may need to contribute. You may also explore strategies to reduce your initial costs, including:

  • Renting or leasing land and equipment
  • Starting small or part-time
  • Buying used machinery
  • Outsourcing tasks through custom hiring

These strategies can help reduce your risk while your business grows.

Loans

Loan programs are widely available for farmers and food entrepreneurs, especially through institutions like the USDA Farm Service Agency (FSA), agriculture lenders, and community banks. Loans may help finance operating costs, land purchases, equipment upgrades, or infrastructure improvements.

However, many farmers express frustration with the amount of documentation and time required to apply. Loan applications typically require:

  • A detailed business plan
  • Personal and business financial statements
  • Credit history
  • Collateral (in some cases)

Despite the paperwork, a loan can be a vital tool to help implement critical parts of your business plan.

Resources

Grants

Grants are appealing because they don’t require repayment. However, they are highly competitive, narrow in scope, and often require planning and reporting. Many grants:

  • Require upfront investment before reimbursement
  • Target very specific outcomes (e.g., conservation, food access, education)
  • Are not guaranteed and should not be relied on for core business operations

Before applying for a grant, assess whether your project aligns with the grant’s objectives. Carefully review eligibility requirements, and be prepared to write a strong proposal with measurable goals and a clear budget.

Choosing the Right Grants for Your Farm or Food Business

You have come across a grant opportunity and are wondering whether it’s worth your time to apply. While grant funding can be an excellent resource to support your farm or food business, applying for grants is time-consuming, competitive, and often complex. Your first step should be evaluating whether the opportunity is the right fit for your goals and whether the potential return justifies the effort required.

Step 1: Clarify Your Needs and Funding Goals

Before applying for any grant, define the specific need or project you’re trying to fund. Ask yourself:

  • What are the objectives of this project?
  • How much money will it take to complete it?
  • Is this a one-time cost or part of a larger, ongoing effort?

Having clear, realistic answers will guide you in selecting the most suitable grants and help you craft a focused proposal.

Step 2: Assess Grant Eligibility

Carefully read the eligibility requirements for any grant you’re considering. Funders often target specific applicant types—such as beginning farmers, nonprofits, or businesses in underserved areas. Make sure you:

  • Fully meet the eligibility criteria
  • Can supply all required documentation
  • Understand any restrictions on how funds can be used

Neglecting to meet even one eligibility detail can lead to immediate disqualification.

Step 3: Evaluate Alignment with Grant Objectives

Your proposal will be strongest when your goals align closely with the funder's mission. Look for grant programs that support projects similar to yours and examine their past grantees to see what types of projects were funded. Funders often post these examples on their websites.

Study their language, tone, and structure to better understand what they’re looking for. Then use that terminology in your own proposal to show that your project fits priorities.

Step 4: Start Drafting the Two Core Sections

Begin building your application by working on the Project Overview and Proposed Budget simultaneously. These sections must align—every goal in your overview should be matched by a justified line item in your budget.

Clearly define:

  • What you plan to do
  • Why the project matters
  • How much it will cost
  • What the expected outcomes are

This process will often draw directly from your existing business plan, which is another reason to keep that document current.

Step 5: Develop a Proposal Timeline and Checklist

Grant applications often require more than just a proposal. You may need to gather:

  • Financial statements
  • Letters of support
  • Partner agreements
  • Proof of eligibility or business documentation

Build a timeline that allows for writing, editing, gathering documents, and submitting before the deadline. If submitting online, register in advance and upload early to avoid technical problems. Missed or late submissions are rarely accepted.

Step 6: Write a Strong, Clear Proposal

When writing your grant narrative, keep your language simple, direct, and persuasive. Be sure to:

  • Follow the funder’s required format and outline
  • Use measurable outcomes (e.g., “increase vegetable production by 25% on 1 acre”)
  • Show how the grant will make a real impact
  • Describe your capacity and partnerships that support success

Use the grant’s own language to describe your goals. For example, if the grant supports "expanding access to local produce,” your proposal might say:

“Funding from this grant will be used to install raised beds on our farm, increasing our seasonal vegetable yields. This will enable us to expand product offerings at our farm stand and local farmers market, directly supporting community access to fresh, local produce.”

This technique—called mirroring language—makes it easier for reviewers to connect your proposal to the grant’s goals.

Step 7: Edit and Review

Once your proposal is written, set aside time for thorough editing. Check for:

  • Grammar, punctuation, and spelling errors
  • Inconsistent fonts or formatting
  • Gaps in logic or unclear objectives

Ask a friend or mentor to review your application. A second set of eyes can catch issues you may have missed and ensure clarity for reviewers who may not know your project in depth.

Don’t Be Discouraged

Grant funding is competitive, especially in agriculture and food entrepreneurship. Many successful applicants were denied on their first try. The more grants you apply for, the better your understanding of the process and the stronger your applications will become over time.

Resources
  • Grants.gov – Central source for federal grant opportunities across all agencies.
  • USDA Grants and Loans – Information on USDA programs, including conservation, marketing, and rural development.
  • SARE (Sustainable Agriculture Research and Education) – Offers competitive grants to farmers, educators, and researchers pursuing sustainable ag projects.
  • Resources in Maryland

Grant and Loans for Farmers and Food Entrepreneurs

The following list of potential funders and grant opportunities is provided for informational purposes only. We do not endorse, promote, or guarantee the accuracy, availability, or outcomes of any specific funding source listed. This information was compiled from publicly available resources and is shared solely to assist individuals and organizations in exploring possible funding options. We encourage all applicants to conduct their own due diligence and review the specific requirements and criteria for each opportunity before submitting an application.

Conservation Innovation Grants
Agency: USDA-NRCS
Type: Grant
Source: Federal
Website: https://www.nrcs.usda.gov/wps/portal/nrcs/main/national/programs/financial/csp/
Description: The Conservation Innovation Grants are aimed to help encourage the development and implementation of innovative conservation practices on agricultural land. About 10% of the funding for these grants is designated towards historically under-served and veteran farmers.
Amount:
Matching Requirement: 50% or more of the total cost of the project.
Special Requirements: Must be eligible for Environmental
Quality Incentive Program (EQIP).
Application Period: Ongoing
Farm to School Grant Program 
Agency: USDA-FSA
Type: Grant
Source: Federal
Website: https://www.fns.usda.gov/fm/grant-opportunities
Description: Provides funding to groups that initiate or implement farm-to-school programs.
Amount: Varies
Matching Requirement: 25% match
Special Requirements: Schools eligible for planning & implementation grants. Producers, producer networks, and agencies are eligible for support service training grants.
Farmer Grants 
Agency: Northeast SARE
Type: Grant
Source: Nonprofit
Website: https://northeast.sare.org/grants/get-a-grant/farmer-grant-program/
Description: Provides funding to "commercial producers who have an innovative idea they want to test using a field trial, on-farm demonstration, marketing initiative, or other technique."
Matching Requirement: 
Special Requirements: Producers must have a technical advisor that is an extension agent, crop adviser, or another professional.
Application Period: Call for proposals will be released in late summer with a fall application deadline.
Farmer Veteran Fellowship Fund 
Agency: Farmer Veteran Coalition
Type: Grant
Source: Non for profit
Website:  https://farmvetco.org/fvfellowship/
Description: This fund is for veterans who are getting started in farming or ranching. The monies of this fund are not given directly to the farmers, but instead to third parties for the purchase of items essential for getting started in farming and ranching, such as equipment.
Amount:
Matching Requirement:
Special Requirements: 1) Applicants must have served or are currently serving in the U.S. Armed Forces, 2) for veterans, the applicant must have had an honorable discharge, 3) for active service members, must have a letter of command support, 4) all applicants must have a farm plan, 5) all applicants must be willing to participate fully in the fellowship program activities such as reporting progress, mentoring other aspiring veteran farmers, and representing the Farmer Veteran Coalition at events, 5) all applicants must have a desire to make a positive impact on the veteran community involved in farming.
Fund-a-Farmer Grants Agency: Food Animal Concerns Trust (FACT)
Type: Grant
Source: Nonprofit
Website: https://foodanimalconcernstrust.org/grants/
Description: Funds grants for raising animals humanely. Two types of projects are eligible, (1) Animal Welfare Certification Projects; (2) Pasture Improvement Projects.
Amount: Up to $2,500
Matching Requirement: None
Special Requirements: Farms must be animal welfare-oriented.
Application Period:  Opens in the fall
Kickstarter (online fundraising) 
Agency: Kickstarter
Type: Grant
Source: Crowdfunding
Website: https://www.kickstarter.com/
Description: Raise funds for any project by attracting online donations.
Amount: Any amount
Matching Requirement: None
Special Requirements:
Application Period: Anytime
Local Food Promotion Program (LFPP)
Agency: USDA-AMS
Type: Grant
Source: Federal
Website: https://www.ams.usda.gov/services/grants/lfpp
Description: Helps to fund the establishment or expansion of a "local or regional food business enterprise."
Amount: $100,000 - $500,000
Matching Requirement: 25% match
Special Requirements: Eligible entities may apply if they support local and regional food business enterprises that process, distribute, aggregate, or store locally or regionally produced food products.
Application Period: opens early spring
Farmers Market Promotion Program (FMPP)
Agency: USDA-AMS
Type: Grant
Source: Federal
Website: https://www.ams.usda.gov/services/grants/fmpp
Description: Helps fund the planning stages of a "local or regional food business enterprise"
Amount: $25,000 - $100,000
Matching Requirement: 25% match
Special Requirements: Eligible entities may apply if they support local and regional food business enterprises that process, distribute, aggregate, or store locally or regionally produced food products.
Application Period: opens in early spring
Maryland Agriculture and Resource-Based Industry Development Corporation (MARBIDCO) 
Agency: MARBIDCO
Type: Grants and Loans
Source: State
Website: http://www.marbidco.org/
Description: MARBIDCO is a quasi-public economic development organization chartered by the State of Maryland and headquartered in Annapolis.  Its mission is to help Maryland's (typically small and family-owned) farm, forestry, and seafood businesses to prosper through the provision of targeted financial and other services that helps retain existing resource-based industry production and commerce, promote rural entrepreneurship, and nurture emerging or expanding agricultural enterprises.
Amount:
Matching Requirement:
Special Requirements: Depends on type of loan or grant
Application Period: Variable
Organic Certification Cost Share Programs 
Agency: USDA-AMS
Type: Grant
Source: Federal
Website: https://www.fsa.usda.gov/resources/programs/organic-certification-cost-share-program-occsp
Description: Helps fund part of the cost of organic certification
Amount: Up to 75% of certification cost, not to exceed $750
Matching Requirement: 25% match
Special Requirements:
Application Period: Application opens in late summer. 
Organic Farming Research Foundation 
Agency: Organic Farming Research Foundation
Type: Grant
Source: Nonprofit
Website: http://ofrf.org/home
Description: OFRF offers funding for research on organic farming and food systems and the dissemination of these research results to organic farmers and the greater agricultural and research communities. Proposals must involve farmers or ranchers in project design and implementation and must take place on certified organic land, ideally on working organic farms or ranches.
Amount: Up to $20,000
Matching Requirement:
Special Requirements:
Application Period: Every year, the grant cycle begins when the request for Letters of Intent (LOI) is posted on the OFRF website and announced in an OFRF newsletter, typically in July. The LOI submission period is 6-8 weeks long.
Partnership Grant Program 
Agency: Sustainable Agriculture Research & Education (SARE)
Type: Grant
Source: Nonprofit
Website: https://northeast.sare.org/grants/get-a-grant/partnership-grant-program/
Description: "Partnership Grants are reserved for agricultural service providers--extension staff, nonprofits, consultants, state departments of agriculture, and others working in the agricultural community--who want to conduct on-farm demonstrations, research, marketing, and other projects with farmers as active cooperators."
Amount: Up to $30,000
Matching Requirement:
Special Requirements:
Rural Energy for America Program: Renewable Energy Systems & Energy Efficiency Improvement Loan & Grants 
Agency: USDA Rural Development
Type: Grant
Source: Federal
Website: https://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency
Description: The Rural Energy for America Program "provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements."
Amount: Up to $20,000
Matching Requirement:
Special Requirements: 50% of gross income must come from the agricultural operation.
Application Period:
Small Business Innovation Research Program (SBIR) 
Agency: USDA-NIFA
Type: Grant
Source: Federal
Website: https://nifa.usda.gov/funding-opportunity/small-business-innovation-research-program-phase-i
Description: Awards grants to small businesses to partake in research that could be of benefit to the public. American-owned, independently operated, for-profit businesses with 500 employees or fewer. Looking for "innovative ideas and technology, resulting in more jobs and long-term commercial value."
Amount: Phase I: Up to $100,000
Matching Requirement:
Special Requirements:
Application Period: opens in August, and the submission deadline is usually in October.
Value-Added Producers Grants Agency: USDA Rural Development
Type: Grant
Source: Federal
Website: https://www.rd.usda.gov/programs-services/value-added-producer-grants
Description: "The VAPG program helps agricultural producers enter into value-added activities related to the processing and/or marketing of bio-based, value-added products. Generating new products, creating and expanding marketing opportunities, and increasing producer income are the goals of this program. You may receive priority if you are a beginning farmer or rancher, a socially-disadvantaged farmer or rancher, a small or medium-sized farm or ranch structured as a family farm, a farmer or rancher cooperative, or are proposing a mid-tier value chain. Grants are awarded through a national competition. Each fiscal year, applications are requested through a notice published in the Federal Register and through an announcement posted on Grants.gov."
Amount: Up to $75,000 for planning grants and $250,000 for working grants.
Matching Requirement: 50% of the total project cost
Special Requirements:
Application Period: Applications are normally due in March.

Loans

Beginning Farmers and Ranchers Loans Agency: USDA-FSA
Type: Loan
Source: Federal
Website: https://www.fsa.usda.gov/resources/beginning-farmers-and-ranchers-loans
Description: The Farm Service Agency Loans for Beginner Farmers and Ranchers are aimed to help those who have not been operating for less than 10 years and owns an operation that is 30% of the typical size in America. The "Farm Ownership loans can provide access to land and capital. Operating loans can assist beginning farmers in become prosperous and competitive by helping to pay normal operating or family living expenses; open doors to new markets and marketing opportunities; assist with diversifying operations; and so much more. Through the Microloan programs, beginning farmers and ranchers have an important source of financial assistance during the start-up years."
Amount: Ownership and operating loans: $300,000; Microloans: $50,000
Matching Requirement:
b Depends on the type of loan. You will need to refer to the website or speak with your local FSA representative. The ownership loans should not exceed 45% of the purchase price or appraisal value of the ranch or farm.
Application Period: Ongoing
Disaster Loans
Agency: USDA Small Business Administration
Type: Loan
Source: Federal
Website: tps://www.sba.gov/funding-programs/disaster-assistance
Description: SBA Disaster Loan program is open to businesses, homeowners, nonprofit organizations, and renters for the use towards things like repair and replacement of things such as business assets, equipment, inventory, machinery, personal property, and real estate in a declared disaster event.
Amount: Up to $2 million
Matching Requirements:
Special Requirements: Must pertain to a declared disaster
Application Period: Ongoing
Emergency Farm Loans
Agency: USDA FSA
Type: Loan
Source: Federal
Website: https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/emergency-farm-loans/index
Description: "The Emergency loan program is triggered when a natural disaster is designated by the Secretary of Agriculture or a natural disaster or emergency is declared by the President under the Stafford Act. These loans help producers who suffer qualifying farm related losses directly caused by the disaster in a county declared or designated as a primary disaster or quarantine area. Also, farmers located in counties that are contiguous to the declared, designated, or quarantined area may qualify for Emergency loans.
For production losses, a 30% reduction in a primary crop in a designated or contiguous county is required. Losses to quality, such as receiving a 30% reduced price for flood damaged crops, may be eligible for assistance, too."
Amount: Up to $500,000 but depends on actual production or physical loss.
Matching Requirements:
Special Requirements: Declaration of a natural disaster or emergency such as in the case after a tornado, flood, drought, or quarantine. Must be repaid within 12 months.
Application Period: After a declaration of a natural disaster or emergency.
Farm Loans 
Agency: Horizon Farm Credit
Type: Loan
Source: Private
Website: https://www.horizonfc.com/loans
Contact: https://www.horizonfc.com/locations
Description: Whether you need money for fertilizer, seed purchases, labor costs or animal purchases, a farm operating loan can help you manage your purchases more efficiently.
Amount:
Matching Requirements:
Special Requirements:
Application Period: Ongoing
Farm Operating Loan 
Agency: USDA-FSA
Type: Loan
Source: Federal
Website: https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/farm-operating-loans/index
Description: "FSA’s Direct Farm Operating loans are a valuable resource to start, maintain and strengthen a farm or ranch. For new agricultural producers, FSA direct farm operating loans provide an essential gateway into agricultural production by financing the cost of operating a farm. All FSA direct loans are financed and serviced by the Agency through local Farm Loan Officers and Farm Loan Managers. The funding comes from Congressional appropriations as part of the USDA budget."
Amount: $400,000
Matching Requirements:
Special Requirements:
Application Period: Ongoing
Farm Ownership Loans 
Agency: USDA FSA
Type: Loan
Source: Federal
Website: https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/farm-ownership-loans/index
Description: The Farm Service Agency Loans "help farmers and ranchers become owner-operators of family farms, improve and expand current operations, increase agricultural productivity, and assist with land tenure to save farmland for future generations." No previous ownership of a farm or ranch is required.
Amount: Up to $600,000 (300,150 for Beginning Farmer Down Payment)
Matching Requirements:
Special Requirements: Loan will not exceed 45% of the farm or ranch purchase price or appraisal value. Also, financing from FSA and other sources must not exceed 95% of the purchase price.
Application Period: Ongoing
Farm Storage Facility Loan Program (FSFL)
Agency: USDA-FSA
Type: Loan
Source: Federal
Website: https://www.fsa.usda.gov/programs-and-services/price-support/facility-loans/farm-storage/index
Description: The FSA Farm Storage and Facility loans are geared towards producers looking to build or upgrade any facilities that would be used for storage of commodities, as well as portable units and trucks used in the handling of the commodities in storage.
Amount: The maximum loan amount for storage facilities is $500,000; The maximum loan amount for storage and handling trucks is $100,000.
Matching Requirements:
Special Requirements:
Application Period: Ongoing
KIVA Zip Loans 
Agency: KIVA
Type: Loan
Source: Crowdfunding
Website: https://www.kiva.org/ 
Description: Raise funds for a 0% interest loan by attracting online lenders.
Amount: $25 - $10,000
Matching requirement: None
Special requirements:
Application period: Anytime
Maryland Agriculture and Resource-Based Industry Development Corporation (MARBIDCO) 
Agency: MARBIDCO
Type: Grants and Loans
Source: State
Website: http://www.marbidco.org/
Description: MARBIDCO is a quasi-public economic development organization chartered by the State of Maryland and headquartered in Annapolis. Its mission is to help Maryland's (typically small and family-owned) farm, forestry, and seafood businesses to prosper through the provision of targeted financial and other services that help retain existing resource-based industry production and commerce, promote rural entrepreneurship, and nurture emerging or expanding agricultural enterprises.
Amount:
Matching Requirement:
Special Requirements: Depends on the type of loan or grant
Application Period: Variable
Microloan Program 
Agency: USDA Small Business Administration
Type: Loan
Source: Federal
Website: https://www.sba.gov/funding-programs/loans/microloans
Description: The SBA Microloan program provides loans to help small businesses cover start-up and expansion fees. These loans can be used as working capital and for things like equipment, fixtures, inventory, and supplies.
Amount: Up to $50,000
Matching Requirements: 
Special Requirements:
Application Period: Ongoing
Microloans Program 
Agency: USDA FSA
Type: Loan
Source: Federal
Website: https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/microloans/index
Description: The USDA-FSA Microloan program is aimed at helping new, nontraditional, and small farms participate in direct and wholesale marketing. In terms of the Direct Farm Ownership, microloans can help with down payments on a farm, improving farm facilities, and SWCD projects. Direct Farm Operating microloans can be used towards the cost of things like beekeeping equipment, fencing, fertilizer, GAP certification, irrigation, land rent, livestock, maple syrup equipment, milking equipment, organic certification, OSHA compliance, and seeds.
Amount: Up to $50,000
Matching Requirements:
Special Requirements: 1) Must have no criminal record, 2) must have ability to obtain legal counsel, 3) have a good credit record, 4) be a US citizen, 5) have no forgiveness of previous debt, 6) owe no taxes to the IRS, or 7) have a previous violation to any FSA crop insurance.
Application Period: Ongoing
Rural Energy For America Program Renewable Energy Systems Energy Efficiency Improvement Loans & Grants
Agency: USDA Rural Development
Type: Loan
Source: Federal
Website: https://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency
Description: The Rural Energy for America program provides loans and grants to help agricultural producers and small businesses of rural areas invest to purchase and install renewable energy systems and/or improve their energy efficiency.
Amount: Loans: greater than $5,000. Grants up to $500,000
Matching Requirements: Loans: at least 25% of total cost. Grants: 75% of total project costs. Loan and Grant Combined: at least 25% of total project costs.
Special Requirements: 1) Agricultural producers must have at least 50% of gross income coming from their agricultural operation. 2) Small business must be in one of the eligible regions. 3) Applicants must not owe any money to the federal government.
Application Period:
Small Business Loans 
Agency: USDA Small Business Administration
Type: Loan
Source: Federal
Website: https://www.sba.gov/funding-programs/loans
Description: Primarily, SBA is a guarantor of loans made by private and other institutions. These loans are geared towards helping businesses out and are determined by things such as ownership, place of operation, and practices.
Amount: Up to $5 million
Matching Requirements:
Special Requirements: 1) Must be for profit, 2) be a small business as defined by SBA, 3) do business in the USA, 4) have invested equity, 5) have a demonstrated need for a loan, 6) must the funds solely for the business, and 7) don't owe any money to the US government.
Application Period: Ongoing
Youth Loans
Agency: USDA-FSA
Type: Loan
Source: Federal
Website: https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/youth-loans/index
Description: The FSA Youth Loans are directed towards youth who are involved in 4-H, FFA, and other agricultural youth groups. These loans provide funds that allow youth to start and operate projects aimed at producing income. All projects require an adult adviser with appropriate experience to oversee the youth projects and provide help whenever needed.
Amount: Up to $5,000
Matching Requirements:
Special Requirements: 1) An adult adviser with appropriate experience to oversee the project, 2) involvement in 4-H, FFA, or another agricultural youth group, 3) Parental consent for the loan closing, 4) project must contain an agricultural and educational component, 5) project must make enough to repay loan an interest.
Application Period: Ongoing

Financial Matters Module