Please Note:
As with ANY business, there are generally NOT grants to start a farm or ranch. In general, most funding available to individuals/businesses for start-up is in the form of loans. However, a few grant programs are open to farmers that are willing to do research and/or value-added product development related to their operations. Grant programs open to farmers and ranchers (as businesses or individuals) require applicants to meet specific criteria and serve a specific purpose as outlined in the grant.
Before you apply for a grant, you should also consider:
- The grant process is competitive. Grant announcements must be monitored, grant proposals must be prepared and planned for, and applications must meet exact guidelines and be submitted on time. Grants are not a fast procedure, so plan in advance.
- Most grants will only pay a percentage of costs, not 100%. You must be able to make up the difference.
- Once awarded, grant recipients must meet outcomes, record keeping, reporting, and activity requirements associated with their grant.
- Any grant funds you receive from the USDA and other organizations will be reported to the IRS on a form 1099. Therefore, you will need to report the income and associated expenses on your farm income tax return.
Remember, before pursuing financing of any type, farm and ranch business owners should have a detailed business plan and have carefully reviewed all financial requirements, including, if borrowing, their ability to repay.
