Funding Opportunities | Center for Profitable Agriculture

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.

Federal grant programs currently require a DUNS number and registration in SAMS.gov. Learn about the process to get a DUNS number in this webinar recording.

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 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

Business Builder Subawards

Description

The focus of the Business Builder Subaward (BBS) program is on providing assistance to small and mid-sized food and farm businesses (producers, processors, aggregators, distributors, and other businesses within the food supply chain) and food value and supply chain coordination.

Business Builder Subawards can be used for: staff time, business planning activities, software implementation, the purchase of specialized equipment (such as food safety or processing equipment), value chain and supply chain coordination, product development, marketing, supply chain analysis and strategy development. Additionally, projects focused on developing shared use kitchens and processing spaces, alternative forms of retail (such as a co-operative), food aggregation or distribution and other mid-tier food-related projects that will serve or are based in a distressed community are also encouraged to apply.

There will be 5 cycles of grant funding beginning in the Fall of 2024 and ending in the Fall of 2027. Each cycle will award approximately $3 million.

Eligible Applicants

Organizations and businesses (organized as either a non-profit or for-profit entity) that are small and mid-sized food and farm businesses (producers, processors, aggregators, distributors, and other businesses within the food supply chain) or support food value and supply chain coordination are eligible to apply for a BBS grant. A “small to mid-sized value chain business” is defined as Small (<$350,000 gross sales) and Midsize (>$350,000 but less than $1 million gross sales).

A “value-chain” business is defined as a for-profit private sector or non-profit organization that is a producer (e.g., commodities, fruits and vegetables or livestock), aggregator, distributor, or food access point (food co-ops, farmers markets etc.).

Maximum Funding Request

Eligible entities are permitted to submit one application per round, and may apply over multiple funding
cycles until the max funding per entity of $100,000 is reached. Proposals must be for a minimum of $5,000.

Two tracks of funding are available:

Planning and Development: Max of $29,999.99

2. Implementation and Expansion: Max proposal of $100,000

Match Required

None.

Funding Agency

Appalachian Regional Food Business Center /United States Department of Agriculture (USDA)

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

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

Resilient Food Systems Infrastructure Program

Description

The purpose of the Resilient Food Systems Infrastructure (RFSI) program is to build resilience in the middle of the food supply chain, to provide more and better markets to small farms and food businesses and to support the development of value-added products for consumers. Funds will support expanded capacity for the aggregation, processing, manufacturing, storing, transporting, wholesaling, and distribution of locally and regionally produced food products, including specialty crops, dairy, grains and other row crops for human consumption, aquaculture, and other food products, excluding meat and poultry.

Maximum Funding Request

Infrastructure Grant has a maximum award of $3 million.

Equipment Only Grant has a maximum award of $100,000.

Match Required

Applicants are required to contribute 50% of the total proposed project.

For historically underserved farmers and ranchers and small businesses that qualify under the Small Business Administration (SBA) including small, disadvantaged businesses, women-owned small businesses, and veteran-owned small businesses, the required match is reduced to 25% of the total proposed project cost.

Funding Agency

USDA and The Tennessee Department of Agriculture.

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

Agricultural Marketing Service (AMS) division of the United States Department of Agriculture (USDA).

Summer/Fall Grants

Dairy Business Planning Grant (for farms and processors)

Specialty Equipment Investment Grant

Winter/Spring Grants

Farm Infrastructure Improvement Grants

Precision Technology and Management Grants

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

Tennessee Agricultural Enhancement Program – Producer Diversification Cost-Share

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 & Vegetable, Honey Bee, Horticulture, Organic and Value-Added Products.

Maximum Funding Request

The maximum funding request is $12,000.

Match Required

Yes. All approved applicants are eligible for 35% (Standard Producer) cost share. To be eligible for 50% (Master Producer), the approved applicant must complete the special requirements for the sector in which their project is eligible. Special requirements focus on education and include conferences, courses, events, master courses, workshops and specific certifications.

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

USDA Farm Service Agency Microloan Program

USDA Farm Service Agency 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: Direct Farm Ownership Microloans and Direct Farm 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.