Last updated 2 months ago. Our resources are updated regularly but please keep in mind that links, programs, policies, and contact information do change.
Starting a farm or ranch is challenging yet rewarding. For those new to agriculture – defined by the USDA as anyone who has operated a farm or ranch for 10 years or less – navigating available financial assistance can seem overwhelming.
Fortunately, the USDA offers various grant and loan programs specifically designed to help beginning farmers establish and grow their operations. This guide explains these key programs and where to find the resources needed to access them.
Key USDA Agencies Supporting New Farmers
Several USDA agencies play crucial roles in supporting beginning farmers. Understanding which agency does what helps direct your inquiries effectively:
Farm Service Agency (FSA)
Often the first point of contact for direct financial assistance. FSA implements farm policy, manages conservation programs, and administers direct and guaranteed loan programs providing access to capital for land, equipment, and operating expenses. FSA also handles farm registration and acreage reporting, which are often prerequisites for USDA program participation.
National Institute of Food and Agriculture (NIFA)
NIFA focuses on funding agricultural research, education, and extension programs. While NIFA doesn’t typically provide grants directly to individual farmers, it funds crucial programs like the Beginning Farmer and Rancher Development Program (BFRDP), which supports organizations that train and assist new farmers. NIFA also funds the Sustainable Agriculture Research and Education (SARE) program.
Rural Development (RD)
RD aims to improve quality of life and economic wellbeing in rural areas through loans, grants, and technical assistance for housing, community facilities, infrastructure, and businesses, including agricultural enterprises. RD administers the Value-Added Producer Grants (VAPG) program, which helps farmers develop businesses that market value-added agricultural products.
Natural Resources Conservation Service (NRCS)
NRCS provides technical expertise and financial assistance for implementing conservation practices. While not direct start-up funding, NRCS programs like the Environmental Quality Incentives Program (EQIP) can help new farmers implement sustainable practices and improve operations, sometimes with increased payment rates or advance payments for historically underserved producers, including beginning farmers.
Major USDA Grant Opportunities
Grants are highly sought after because they typically don’t need repayment. However, USDA grants often have specific purposes, eligibility requirements, and application processes.
Beginning Farmer and Rancher Development Program (BFRDP)
Purpose: BFRDP equips beginning farmers with knowledge, skills, and tools needed for success by funding education, mentoring, and technical assistance projects. It addresses unique challenges faced in the first ten years, such as accessing capital, land, and essential business and production knowledge.
Administered by: USDA National Institute of Food and Agriculture (NIFA)
Who Gets Funded: BFRDP grants aren’t awarded directly to individual farmers. Instead, they go to organizations forming collaborative networks, such as State Cooperative Extension Services, colleges and universities, community-based organizations (CBOs), non-governmental organizations (NGOs), and tribal agencies. These organizations then deliver training programs, workshops, mentorship opportunities, and technical support to beginning farmers.
How Beginners Benefit: New farmers benefit by participating in programs offered by BFRDP grant recipients. These programs cover business management, financial planning, marketing strategies, sustainable production techniques, and land access strategies.
Where to Find Info:
- NIFA BFRDP Program Page: Primary source for official program details, eligibility for organizations, fact sheets, and funding opportunity links.
- Grants.gov: Funding opportunities (Requests for Applications or RFAs) are posted here. Search for Assistance Listing number 10.311. RFAs are typically released annually.
- FarmAnswers.org: BFRDP-funded online clearinghouse offering educational materials, tools, and resources developed through BFRDP projects.
Value Added Producer Grants (VAPG)
Purpose: The VAPG program helps agricultural producers generate new products, create marketing opportunities, and increase income by moving beyond raw commodity sales into value-added activities. “Value-added” can mean:
- Changing a commodity’s physical state (turning strawberries into jam, wheat into flour)
- Producing the commodity in a way that enhances value (organic certification, grass-fed labeling)
- Physically segregating the commodity to preserve identity (non-GMO crops)
- Using the farm to produce renewable energy from agricultural products
- Marketing agricultural products as locally produced
- Participating in mid-tier value chains linking producers more directly with consumers or institutions
Administered by: USDA Rural Development (RD), specifically the Rural Business Cooperative Service
Key Eligibility: Eligible applicants include independent agricultural producers, agricultural producer groups, farmer cooperatives, and majority-controlled producer-based business ventures. Applicants must currently produce more than 50% of the raw agricultural commodity needed for the value-added project and must own the product from raw state through value-added process. A history of agricultural production and sales is generally required.
Funding Details: VAPG offers two types of grants:
- Planning Grants: Up to $75,000 for feasibility studies, business plan development, and marketing plan development
- Working Capital Grants: Up to $250,000 for eligible operating expenses associated with processing and marketing the value-added product
Ineligible Uses: Grant funds generally cannot be used for buying land, constructing or repairing buildings, or purchasing major equipment.
Matching Requirement: Applicants must provide a 1:1 match for requested grant funds, using non-federal sources. Matching funds can be cash or eligible in-kind contributions.
Priority: USDA gives priority to applications from beginning farmers, socially disadvantaged farmers, veteran farmers, small or medium-sized family farms, farmer cooperatives, and projects proposing mid-tier value chains.
Where to Find Info & Apply:
- USDA RD VAPG Program Page: Official source for program information, fact sheets, eligibility details, current funding announcements, state RD office contacts, and application portal access.
- VAPG Application Portal (GAP): Applications must be submitted electronically through RD’s Grant Application Portal. Access typically requires a USDA eAuthentication Level 2 account via eAuth.usda.gov.
- SAM.gov: All entities applying for federal grants must be registered here with a Unique Entity ID (UEI). Registration can take several weeks.
- Grants.gov: The funding opportunity may be listed here (Assistance Listing 10.352).
- Agricultural Marketing Resource Center: Provides useful background information and resources.
VAPG represents a significant opportunity for producers ready to take the next step in business development. The substantial planning and matching fund requirements mean it’s typically suited for farmers who have established their core production operations and have a clear vision for a value-added enterprise.
Sustainable Agriculture Research and Education (SARE) Grants
Purpose: SARE funds farmer-driven research and education projects advancing sustainable agricultural practices. The focus is on innovation, environmental stewardship, farm profitability, and quality of life.
Administered by: SARE operates through four regional offices (North Central, Northeast, South, and West), each hosted by a land-grant university and guided by a regional administrative council.
Key Eligibility & Use: Eligibility varies by specific grant program within each region, but generally includes farmers and ranchers, researchers, extension educators, non-profits, and graduate students. Popular programs include:
- Farmer Rancher Grants: Directly fund farmers/ranchers to conduct on-farm research, demonstrations, or education projects exploring sustainable solutions
- Partnership Grants: Fund agricultural professionals to conduct on-farm projects in collaboration with farmers
Crucial Limitation: SARE grants cannot be used to start a farm, purchase land, buy major equipment, or cover large capital investments. They are intended for project-specific costs related to research and education.
Funding Details: Grant amounts vary by region and specific program. North Central Farmer Rancher grants offer up to $15,000 for individual farms or $30,000 for teams, while Northeast Farmer Grants range from $5,000 to $30,000. Projects cover diverse topics such as cover cropping, rotational grazing, pest management, soil health, marketing innovations, season extension, and on-farm energy.
Where to Find Info & Apply:
- National SARE Website: Provides overview, searchable project database, educational resources, and regional site links
- SARE Grants Page: Starting point for understanding different grant types
- Regional SARE Websites:
- North Central SARE (IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI)
- Northeast SARE (CT, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT, WV, DC)
- Southern SARE (AL, AR, FL, GA, KY, LA, MS, NC, OK, SC, TN, TX, VA, PR, VI)
- Western SARE (AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY, territories)
SARE grants offer a unique opportunity for farmers to receive funding to test innovative sustainable practices. They are not start-up capital but support for knowledge generation and problem-solving within sustainable agriculture.
Complementing Grants with USDA Loans
While grants provide valuable non-repayable funding, they often have specific limitations, may not cover all operational needs (especially large capital costs), and can be highly competitive. Some grants, like VAPG, require significant matching funds. This is where USDA loan programs, primarily through FSA, become essential.
Farm Service Agency (FSA) Loan Programs
FSA serves as a crucial lender, particularly for family-sized farms and those who may not yet qualify for commercial credit. FSA emphasizes supporting beginning farmers, setting aside dedicated loan funds specifically for this group each fiscal year. The agency often acts as a lender of first opportunity, providing temporary credit to help producers build a financial track record and eventually “graduate” to commercial credit sources.
Key FSA loan types for beginners include:
Direct Operating Loans
These loans cover costs associated with running a farm, such as purchasing feed, seed, fertilizer, fuel, paying for repairs, hiring labor, and covering family living expenses. They can also support diversification efforts or market access.
Direct Farm Ownership Loans
Used to purchase or enlarge a farm or ranch, construct or improve farm buildings, and implement soil and water conservation. The maximum loan amount is currently $600,000.
Microloans (Operating or Ownership)
Designed for smaller, beginning, niche, or non-traditional operations, Microloans offer smaller amounts (up to $50,000) with streamlined application processes and less stringent requirements. They can be used for either operating or ownership purposes.
Down Payment Loan Program
A specialized Direct Farm Ownership loan available only to beginning farmers and socially disadvantaged producers. It makes purchasing a farm more accessible by reducing the down payment requirement to 5% of the purchase price. FSA finances 45% of the purchase price (up to $300,150), and the remaining 50% must come from other sources like commercial lenders, private parties, state programs, or cooperatives.
Eligibility Basics
General eligibility for FSA direct loans typically includes meeting the beginning farmer definition (if applying for targeted funds), being unable to obtain credit elsewhere at reasonable rates, having acceptable credit history, possessing sufficient managerial ability or agreeing to receive training, being a U.S. citizen or qualified legal resident, and having legal capacity to incur debt.
Where to Find Info & Apply:
- FSA Beginning Farmer and Rancher Loans Page: Overview and links specific to beginners
- FSA Farm Loan Programs Page: Comprehensive information on all FSA loan types
- Farm Loan Assistance Tool: Helps explore loan options, understand eligibility criteria, and navigate application forms
- Local USDA Service Center: Visiting to speak with an FSA loan officer is highly recommended for personalized guidance
For many beginning farmers, securing an FSA loan is a foundational step. It provides capital for land acquisition, equipment purchases, and initial operating costs—expenses that grants rarely cover.
Your Roadmap to USDA Resources
Navigating various USDA programs and agencies can feel complex, but the department has established several key resources to help farmers, especially beginners, find assistance.
Central Hubs & Human Help
Farmers.gov: Your Digital Front Door
This website is USDA’s primary online portal designed specifically for farmers and ranchers. It serves as a central hub for information on programs across different agencies, disaster assistance, conservation, and farm loans. You can find links to helpful tools, locate your state coordinator and local service center, read success stories, and create an account to manage USDA business online.
Local USDA Service Centers: Personalized, In-Person Help
Across the country, USDA Service Centers house staff from key agencies like FSA and NRCS, and sometimes RD. These local offices provide one-on-one assistance to:
- Discuss your farm goals and challenges
- Identify relevant USDA programs
- Understand eligibility requirements
- Register your farm and obtain a farm number
- Complete application forms and paperwork
- Access free language translation services
It’s recommended to make an appointment before visiting. Find your nearest office using the Service Center Locator.
State Beginning Farmer Coordinators: Your State-Level Guide
USDA established a network of Beginning Farmer and Rancher Coordinators in each state. These coordinators are experienced USDA staff who serve as dedicated points of contact to help beginners understand USDA processes, navigate programs, and connect with relevant resources.
Find your coordinator in the State Coordinator Directory.
Helpful Online Tools
USDA offers several online “discovery tools” designed to help explore program options based on your specific situation:
- Farm Loan Assistance Tool: Guides you through FSA loan options, helps assess eligibility, and assists with application forms
- Disaster Assistance Discovery Tool: Helps identify potential disaster assistance programs based on disaster type and losses
- Conservation Concerns Tool: Identifies potential natural resource concerns on your land and relevant NRCS conservation practices
This multi-pronged approach—combining online resources, local offices, dedicated coordinators, and self-service tools—provides multiple pathways to access information and support.
USDA Navigation Resources & Tools
| Resource Name | Description | URL |
|---|---|---|
| Farmers.gov Portal | Central USDA website for farmers | https://www.farmers.gov/ |
| USDA Service Center Locator | Finds local FSA, NRCS, and RD offices | https://offices.usda.gov/ |
| State BFR Coordinators List | Directory of state-level USDA staff for beginning farmers | https://www.farmers.gov/your-business/beginning-farmers/coordinators |
| Farm Loan Assistance Tool | Helps explore FSA loan options | https://lat.fpac.usda.gov/ |
| Disaster Assistance Tool | Identifies potential disaster assistance programs | https://www.farmers.gov/protection-recovery/disaster-tool |
| Conservation Concerns Tool | Helps identify resource concerns and conservation practices |
Beyond the USDA: Additional Support Networks
While USDA agencies are the primary source for federal grants and loans, a broader network of organizations provides crucial support to beginning farmers.
Cooperative Extension System
Affiliated with land-grant universities in every state, the Cooperative Extension System offers research-based information, workshops, training programs, and technical assistance on all aspects of agriculture. Extension educators often have deep knowledge of local conditions and frequently partner in delivering BFRDP-funded training programs.
Search online for “[Your State] Cooperative Extension” or find the land-grant university partners directory on the NIFA website.
Non-Profit Organizations
Numerous non-profit organizations work at national, regional, and local levels to support farmers, often focusing on beginning, sustainable, organic, or historically underserved producers. These organizations may offer:
- Specialized training and workshops
- Assistance with business planning and financial management
- Guidance on navigating USDA grants and loans
- Networking opportunities with other farmers
- Policy advocacy
Examples include:
- National Sustainable Agriculture Coalition (NSAC): A national alliance providing valuable resources like detailed USDA program guides and farm bill analysis. Visit sustainableagriculture.net.
- ATTRA / National Center for Appropriate Technology (NCAT): Provides free, practical information and technical assistance focused on sustainable and organic agriculture through publications, webinars, and a toll-free hotline. Visit attra.ncat.org.
Look for community-based organizations, state or regional sustainable agriculture groups, organizations focused on specific farming types, or groups supporting specific farmer demographics. USDA staff may suggest relevant local organizations.
Farm Credit System
This nationwide network of borrower-owned lending institutions specializes in agricultural credit and financial services. While distinct from USDA’s direct loan programs, Farm Credit institutions are a major source of commercial agricultural loans and may partner with FSA, for instance, by providing the non-FSA portion of a Down Payment Loan.
This support ecosystem is vital. USDA programs often rely on these partners for outreach and implementation. For beginning farmers, these organizations can offer specialized, localized assistance that federal agencies might not provide directly.
Key USDA Funding Opportunities for Beginning Farmers
| Program Name | Administering Agency | Type | Primary Purpose | Key Eligibility (Direct Applicant) | Max Funding (Approx.) | Matching Required? | Where to Find More Info |
|---|---|---|---|---|---|---|---|
| Beginning Farmer & Rancher Dev. (BFRDP) | NIFA | Grant | Funds orgs providing education to new farmers | Organizations | Varies (up to $750k) | Yes (25% or waiver) | BFRDP Program Page |
| Value Added Producer Grant (VAPG) – Planning | RD | Grant | Develop plans for value-added products | Producer, Producer Group, Co-op | $75,000 | Yes (1:1) | VAPG Program Page |
| Value Added Producer Grant (VAPG) – Working Capital | RD | Grant | Pay expenses for processing/marketing value-added products | Producer, Producer Group, Co-op | $250,000 | Yes (1:1) | VAPG Program Page |
| FSA Direct Operating Loan | FSA | Loan | Cover operating expenses | Individual Farmer / Entity | Varies | No | Operating Loans Page |
| FSA Direct Farm Ownership Loan | FSA | Loan | Purchase/enlarge farm | Individual Farmer / Entity | $600,000 | No | Farm Ownership Loans Page |
| FSA Microloan (Operating/Ownership) | FSA | Loan | Smaller loans with simplified process | Individual Farmer / Entity | $50,000 | No | Microloans Page |
| FSA Down Payment Loan | FSA | Loan | Assist beginners purchase a farm with low down payment | Beginning Farmer / Entity | 45% of price (up to limit) | 5% down payment | Farm Ownership Loans Page |
| SARE Farmer/Rancher Grant | SARE (Regional) | Grant | Fund on-farm research/education projects | Individual Farmer / Group | Varies by Region | Varies by Region | SARE Grants Page |
Our articles make government information more accessible. Please consult a qualified professional for financial, legal, or health advice specific to your circumstances.
