Federal Agencies Offering Financing & Grants for Beginning Farmers

There are many federal resources available to beginning farmers today.

The federal government offers many financing programs specifically aimed at beginning farmers. One of the best places to begin a search for information about federal programs to help fund new farms is at the Department of Agriculture's Rural Development website, which offers a Small Farm Funding Resources page. There you can find information about virtually every federal program available for beginning farmers. You can find grants and loans for everything from help with seed stock to the purchase of farms from retiring farmers and certification of your farm as organic.

Farm Service Agency Loans

The Department of Agriculture's Farm Service Agencies offer local advice and loans to new farmers. Agriculture image by Pascal Bourgier from Fotolia.com

The United States Department of Agriculture (USDA) runs the Farm Service Agency (FSA) which has locations in all states. This agency helps farmers meet legal requirements and gives local advice. It also offers loans to beginning farmers and ranchers. The FSA offers loans to socially disadvantaged farmers and ranchers, which includes women, African Americans, American Indians, Alaskan Natives, Hispanics, Asian Americans and Pacific Islanders. You can find the FSA nearest you using the online service center locator.

The Beginning Farmer and Rancher Individual Development Account

The USDA Beginning Farmer and Rancher Individual Development Account matches funds in farmer savings accounts. stack of cash image by jimcox40 from Fotolia.com

The USDA runs the Beginning Farmer and Rancher Individual Development Account (BFRIDA), which "is designed to help beginning farmers and ranchers of limited means finance their agricultural endeavors through business and financial education and matched savings accounts." The USDA provides an online Farmer and Rancher Self-Determination Tool, which lists programs to help farmers with limited resources.

Helping New Farmers Buy Land

Federal programs help new farmers buy farms from retiring farmers. farmer image by JCVStock from Fotolia.com

The Downpayment Farm Ownership Loan Program run by the USDA is a "special down payment farm ownership loan program to help beginning farmers and ranchers and socially disadvantaged applicants buy a farm or ranch. This program also helps retiring farmers transfer their land to a future generation of farmers and ranchers." The USDA also offers the Direct Farm Ownership and Operating Loans "to provide financing and assistance to family farmers and ranchers to establish farms and ranches, achieve financial success, and graduate to commercial credit or self-financing." The USDA offers the Guaranteed Farm Ownership and Operating Loans to new farmers "to help family farmers obtain commercial credit to establish or maintain a family farm or ranch."

Sustainable Agriculture Grants

There are federal grants for farm-based renewable energy. windmills image by Einar Bog from Fotolia.com

There are grants to help promote sustainable agriculture from the federal government, run through the Sustainable Agriculture Research and Education Program (SARE). These grants are for things such as producer grants to promote "research, marketing and demonstration projects and share the results with other farmers and ranchers," and on-farm research and sustainable community innovation. The USDA also offers Value-Added Producer Grants "to be used for planning activities and for working capital for marketing value-added agricultural products and for farm-based renewable energy."

References

• United States Department of Agriculture Farm Service Agency: Farm Loan Programs Beginning Farmers and Ranchers Loans
• United States Department of Agriculture Farm Service Agency: Farm Loan Programs Socially Disadvantaged Farmers and Ranchers
• United States Department of Agriculture Farm Service Agency: Service Center Locator
• United States Department of Agriculture: Beginning Farmer and Rancher Individual Development Account
• United States Department of Agriculture: Downpayment Farm Ownership Loan Program

Resources

• United States Department of Agriculture Rural Development: Small Farm Funding Resources
• United States Department of Agriculture Sustainable Agriculture Research and Education
• United States Department of Agriculture: Limited Resource Farmer and Rancher Self-Determination Tool
• United States Department of Agriculture Rural Development: Value-Added Producer Grants
• United States Department of Agriculture: Guaranteed Farm Ownership and Operating Loans