About Farm Grants
Farm grants are offered by state and federal agencies to preserve the agricultural industry in the United States. Since the 1920 census, when a majority of Americans lived in cities for the first time, the federal government has sought ways to protect America's rural landscape. Millions of dollars in farm grants are assigned each year to pay for farmhouse mortgages, agricultural research and educational opportunities for future farmers. American farmers should be familiar with farm grants, subsidies and low-interest loans that have preserved agricultural lands for the past century.
Other People Are Reading
-
History
-
The history of farm grants issued by the federal government can be linked to President Woodrow Wilson's election in 1912. President Wilson promoted demonstration farming, agricultural extensions and other educational opportunities for farmers funded through the Smith-Lever Act of 1914. The U.S. Department of Agriculture (USDA) under President Franklin Roosevelt offered grants to farmers for crop management, irrigation projects and farm mechanization to improve productivity. Since the end of World War II, the USDA and state agricultural agencies have used grants to increase pest control and fertilization projects on farms of all sizes.
Function
-
Farm grants serve to keep hardworking American farmers financially stable while encouraging research into more efficient methods of farming. State governments throughout the Midwest and Great Plains offer grants to low and middle-income farmers who need assistance with equipment rental, home mortgages and farming supplies. Agricultural extensions at land-grant university systems like the University of Wisconsin offer courses, publications and one-on-one assistance to farmers interested in testing out new techniques.
-
Types
-
States receive block grants each year from the federal government to assist farmers and agricultural agencies. These grants are distributed for research, demonstration and project purposes to farmers who apply on time. Research grants fund seeds, land and labor for new techniques in irrigation, fertilization and land management. Farmers who have been successful in agricultural research can apply for demonstration grants which fund travel, supplies and labor for demonstrations in front of other farmers. State agricultural agencies also provide project grants to farmers who seek funding for long-term experiments on a specific crop, type of soil or style of farming.
Size
-
The size of the typical farm grant depends on the activity or research funded by the granting agency. The Farm Labor Housing Loan and Grant program offered by the USDA is authorized to fund between $100,000 and $400,000 worth of loans to farm owners. This range is necessary to help farmers pay off massive debts accrued from purchasing property, equipment and housing. The Sustainable Agricultural Research and Education grant program, on the other hand, distributes funds between $500 and $15,000 to each participant. These funds are low because the costs of demonstrations and planting experiments pale in comparison to home and farm mortgages.
Considerations
-
Farmers need to research the limitations on farm grants along with the length of the application process before proceeding. While the lure of assistance can be tempting for some farmers, state and federal farm grants are narrowly defined to encourage legitimate research and educational efforts. The grant process requires careful budgeting and reporting that may not be appealing to farmers who can acquire loans or grants through private institutions. The application process takes months for most grants as agricultural agents review materials and weed out applicants who do not meet minimum qualifications. While grant applications are in progress, farmers in dire need of financial assistance look to banks for refinancing and other assistance to keep their businesses alive.
-
Resources
- Photo Credit Flickr
