Financing a value-added agriculture enterprise is challenging. While most funds for new businesses come from personal sources, grant and loan programs may also be available. Check out the opportunities below to see if they fit your business needs.
This information is provided for educational purposes only. Program information may change frequently. Be sure to read current program information available from the administrating agency.
Some programs give priority to counties deemed economically distressed or at risk. Learn more about these indicators and find lists of counties in each group here.
Grant and Cost-Share Programs
AgTrack Cost Share Program
Description
This competitive based grant program awards funds to starting or expanding agricultural, food, and forestry businesses; nonprofits, local governments, and other entities in Tennessee, or those whose project will be located in Tennessee. The program focuses on value-added and processing projects that benefit other producers or forest landowners. Farming projects such as livestock, row crop, or horticulture production expansions will not be competitive, but may be supported through the Tennessee Agricultural Enhancement Program (TAEP).
Successful grant recipients must demonstrate a strong potential for impact on local farm income, access to markets, increased capacity or agricultural innovation. Priority will be given to businesses located in at-risk counties, distressed counties, and counties adjoining at-risk or distressed counties.
Maximum Funding Request
The maximum funding request is 25% up to $1 million. Minimum project capital expenditure: $2 million.
Match Required
Applicants must be making an investment into the project. AgTrack funds may not be more than 25% of the project’s total budget.
Funding Agency
Tennessee Department of Agriculture.
Website
Environmental Quality Incentives Program (EQIP)
Description
EQIP provides technical and financial assistance to agricultural producers and forest landowners to address natural resource concerns. Technical assistance is available free of charge.
Targeted EQIP financial assistance is available through several conservation initiatives including:
- High Tunnel Initiative
- Organic Initiative
- Air Quality Initiative
- Landscape Conservation Initiative
- On-farm Energy Initiative
Contact your local NRCS office for details.
Funding Agency
USDA Natural Resource Conservation Service
Website
Farmers Market Promotion Program (FMPP)
Description
FMPP funds projects that develop, coordinate and expand direct producer-to-
consumer markets to help increase access to and availability of locally and regionally produced agricultural products. FMPP achieves this goal through the creation, coordination, and delivery of outreach, training, and technical assistance to domestic farmers markets, roadside stands, community-supported agriculture programs, agritourism activities, online sales or other direct producer-to-consumer (including direct producer-to-retail, direct producer-to-restaurant and direct producer-to-institutional marketing) market opportunities.
Project Types and Funding Available
- 36-month Capacity Building – Minimum of $50,000 and Maximum of $250,000
- 36-month Community Development Training and Technical Assistance – Minimum of $100,000 and Maximum of $500,000
- 24-month Turnkey Marketing and Promotion – Minimum of $50,000 and Maximum of $100,000
- 24-month Turnkey Recruitment and Training – Minimum of $50,000 and Maximum of $100,000
Match Required
This grant requires a cost share equal to 25 percent of the total federal portion of the grant.
Funding Agency
USDA Agricultural Marketing Service
Website
Farmer Veteran Fellowship Fund
Description
The Farmer Veteran Fellowship Fund is a small grant program that provides direct assistance to veterans who are in their beginning years of farming or ranching. The Fellowship Fund does not give money directly to the veteran, but rather to third-party vendors for items the veteran has identified will make a crucial difference in the launch of their farm business.
Maximum Funding Request
Awards range from $1,000 to $5,000.
Funding Agency
Farmer Veteran Coalition.
Website
Local Food Promotion Program (LFPP)
Description
LFPP funds projects that develop, coordinate, and expand local and regional food business enterprises and increase access to locally and regionally produced agricultural products. There are three types of grants in this program 1) Planning 2) Implementation and 3) Farm to Institution.
Project Types and Funding Available
- 24-month Planning – $25,000 to $100,000
- 36-month Implementation – $100,000 to $500,000
- 24-month Turnkey Marketing and Promotion – $50,000 to $100,000
- 24-month Turnkey Recruitment and Training – $50,000 to $100,000
Match Required
This grant requires a cost share equal to 25 percent of the total federal portion of the grant.
Funding Agency
USDA Agricultural Marketing Service
Website
National Grant for Historically Underserved Farmers and Ranchers
Description
American Farmland Trust (AFT) is excited to announce the Brighter Future Fund’s National Grant for Historically Underserved Farmers and Ranchers to assist farmers in successfully launching, growing, and sustaining farms in the face of forces impacting the food and agricultural system, changing markets, severe weather, and climate change. AFT seeks to uplift, support, and amplify the work of a wide range of farmers through this program.
Maximum Funding Request
Grants will be awarded up to $5,000 per project.
Match Required
None.
Funding Agency
U.S. Department of Agriculture.
Website
Organic Market Development Grant (OMGD)
Description
The goal of this grant is to increase the availability and consumption of organic agricultural goods with promoting the development of new and expanded organic markets. Priority given to five main organic target markets: grains, legumes, ingredients, fibers, and dairy.
Project Types and Funding Available
- 24-month Equipment Only – $10,000 and $100,000
- 3-year Marketing Developent – $100,000 and $3,000,000
Match Required
Market development and promotion require 50 percent matching funds of total grant cost. Reduced match funds of 25 percent to historically underserved farmers/ranchers and applicable small businesses. Smaller equipment-only projects require no cost sharing or matching.
Funding Agency
USDA Agricultural Marketing Service
Website
Rural Energy for America Program
Description
The REAP 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.
Loan Guarantee Percentage
Published annually in a Federal Register notice. REAP loans approved in Fiscal Year 2023 will receive an 80 percent guarantee.
Maximum Funding Request
Renewable Energy System Grants: $2,500 minimum, $1 million maximum.
Energy Efficiency Grants: $1,500 minimum, $500,000 maximum.
Match Required
Applicants must provide at least 60 percent of the project cost if applying for a grant only.
Applicants must provide at least 25 percent of the project cost if applying for loan.
Funding Agency
USDA Rural Development.
Website
Southern Sustainable Agriculture Research and Education (SARE) Producer Grants
Description
The overall objective of SARE is to position agricultural communities so the most sustainable approaches available permeate U.S. agriculture. The result is food, fiber and animal products are sustainably produced in healthy communities in an environment where farmers are respected, rewarded and encouraged to innovate.
Maximum Funding Request
Individual farmers, $15,000; Farmer groups, $20,000 for a two-year project.
Match Required
None.
Funding Agency
Southern Sustainable Agriculture Research and Education (SARE).
Website
Southeast Dairy Business Innovation Initiatives (DBII) Grant
Description
The Southeast Dairy Business Innovation Initiative (SDBII), with support from USDA AMS, offers grants to dairy businesses in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia, and Puerto Rico. The program provides grant awards to revitalize and spur innovation in the dairy industry across the Southeast. This includes grants to support precision technology investment, farm infrastructure improvement, specialty processing equipment investment, exploration of alternative revenue, transition planning, and business management.
Maximum Funding Request
Dairy Business Planning Grant: $30,000
Specialty Equipment Investment Grant: $150,000
Farm Infrastructure Improvement Grant: $100,000
Precision Technology and Management Grant: $150,000
Match Required
Yes. Precision Technology and Management Grants, Farm Infrastructure Improvement Grants and Specialty Equipment Investment Grants require a 25% match Funding Agency.
Funding Agency
University of Tennessee (through funding provided by USDA)
Website
Specialty Crop Block Grant
Description
Specialty Crop Block Grant Program funds are granted to enhance production and competitiveness of specialty crops, including fruits and vegetables, dried fruits, tree nuts, honey, floriculture and other nursery crops. Eligible organizations include universities, institutions, cooperatives, producers and industry or community-based organizations. The programs aims to support projects that directly affect multiple Tennessee producers and have a positive, long-lasting impact on Tennessee agriculture.
Maximum Funding Request
First-time recipients have a funding limit of $25,000.
Match Required
None.
Funding Agency
Tennessee Department of Agriculture administers the grants, which are authorized through the USDA.
Website
Regional Food Systems Partnerships (RFSP)
Description
The purpose of the RFSP program is to support partnerships that connect public and private resources to plan and develop local or regional food systems. Eligible applicants are partnerships established through an official agreement between at least one eligible entity and at least one eligible partner, as described in the request for applications (RFA)
Project Types and Funding Available
- 24-month Planning and Design – $100,000 to $250,000
- 36-month Implementation and Expansion – $250,000 to $1,000,000
Match Required
The program requires cash-only cost share contributions in an amount equal to 25 percent of the total Federal portion of the grant
Funding Agency
USDA Agricultural Marketing Service
Website
Tennessee Agricultural Enhancement Program: Producer Diversification Cost-Share
Description
The goal of the Producer Diversification program is to encourage agricultural producers to expand or improve their working farm/existing operation through the production of diversified agricultural products. This program provides cost share opportunities for industry sectors of Agritourism, Fruit and Vegetable, Honey Bee, Horticulture, Organic and Value-Added Products.
Maximum Funding Request
The maximum funding request is $12,000.
Match Required
Yes. The approved applicant is responsible for a 50% cost share and must complete educational requirements for the sector in which their project is eligible. View educational requirements here.
Funding Agency
Tennessee Department of Agriculture.
Website
Tennessee Agricultural Enterprise Fund
Description
The Ag Enterprise Fund (AEF) awards grants to starting or expanding agricultural, food and forestry businesses; nonprofits, local governments and other entities in Tennessee, or those whose project will be located in Tennessee. The program focuses on value-added and processing projects that benefit other producers or forest landowners. Successful grant recipients must demonstrate a strong potential for impact on local farm income, access to markets, increased capacity or agricultural innovation.
Maximum Funding Request
AEF funds may not be more than 25% of the project’s total budget.
Match Required
Yes, AEF funds may not be more than 25% of the project’s total budget.
Funding Agency
Tennessee Department of Agriculture.
Website
Value-Added Producer Grant
Description
The Value-Added Producer Grant program helps agricultural producers enter into value-added activities related to the processing and marketing of new products. The goals of this program are to generate new products, create and expand marketing opportunities and increase producer income. Priority may be received for beginning farmers, socially-disadvantaged farmers or small or medium-sized farms structured as a family farm, a farmer cooperative or those proposing a mid-tier value chain.
Maximum Funding Request
Planning Grants $75,000; Working Capital Grants $250,000.
Match Required
Yes, there is a statutory cost share match requirement of 100 percent of the grant amount.
Funding Agency
USDA Rural Development. Find your area office.
Website
Loan Programs
Farm Ownership Loan
Description
Farm Ownership Loans may be used to purchase a farm, enlarge an existing farm, construct new farm buildings and/or improve structures, pay closing costs, and promote soil and water conservation and protection. FSA may loan funds directly or guarantee loans through participating lenders.
Maximum Funding
Maximum loan of $600,000 with a maximum repayment period of 40 years
Funding Agency
USDA Farm Service Agency
Website
Farm Storage Facility Loan (FSFL)
Description
The Farm Storage Facility Loan Program (FSFL) provides low-interest financing so producers can build or upgrade permanent and portable storage facilities and equipment. Eligible commodities include grains, oilseeds, peanuts, pulse crops, hay, hemp, honey, renewable biomass commodities, fruits and vegetables, floriculture, hops, maple sap, maple syrup, milk, cheese, yogurt, butter, eggs, meat/poultry (unprocessed), rye and aquaculture. Eligible facility types include grain bins, hay barns, bulk tanks, and facilities for cold storage. Drying and handling and storage equipment is also eligible, including storage and handling trucks. Eligible facilities and equipment may be new or used, permanently affixed or portable.
Funding Agency
USDA Farm Service Agency
Website
Microloan Program
Description
The focus of Microloans is on the financing needs of small, beginning farmer, niche and non-traditional farm operations, such as truck farms, farms participating in direct marketing and sales such as farmers’ markets, CSA’s (Community Supported Agriculture), restaurants and grocery stores, or those using hydroponic, aquaponic, organic and vertical growing methods. There are two types of microloan programs available: Ownership Microloans and Operating Microloans.
Maximum Funding Request
Applicants may apply for microloans totaling a combined maximum of $100,000: Up to $50,000 for a farm ownership loan and up to $50,000 for an operating loan.
Funding Agency
USDA Farm Service Agency – Contact your local office.