Start or Expand Your Farm With These Loan and Grant Options

Starting or running a farm takes grit, but grit alone won’t pay for land, equipment, or fencing. Maybe you’re dreaming of your first acre. Maybe your family’s been farming for generations. Either way, one challenge shows up fast: financing.

But worry not, there is financial help for farmers like you. In 2023, the USDA’s Farm Service Agency backed about 22,600 farm loans, putting $4.7 billion into the hands of growers, helping nearly 1 in 10 farms across the country.

But it is true, sorting through the options and following all the requirements to apply can feel overwhelming. That’s why we created this guide.

We break down USDA loan types, available grants, and support programs for new farmers, small-scale operations, and underrepresented groups. You’ll also learn who qualifies, how to apply, and where to turn if you need help. Let’s dig in.

USDA Farm Loan Programs and Who Qualifies

If you’re looking for financial help to start or grow a farm, the USDA’s Farm Service Agency (FSA) is usually the best place to begin. 

Their loan programs were created to support farmers who might struggle to get approved through traditional banking institutions, especially small-scale growers, new farmers, and underserved communities. Let’s break down the main types of loans they offer:

Farm Ownership Loans

These help you buy or expand farmland. That could mean purchasing your first land or property, expanding what you already have, or building housing or infrastructure like barns or irrigation systems.

• Loan limit: Up to $600,000 (as of 2025)
• Who it’s for: Farmers who plan to work the land themselves
• Repayment term: Up to 40 years
• Interest Rate: Fixed; currently around 4.5%
• Good to know: There’s also a down payment loan option if you can put 5% down. FSA may cover up to 45% (max $300,150), while the rest comes from a lender or seller.
• To qualify: You’ll need decent credit score to buy land, some farm management experience, and a family-sized operation. 

Operating Loans

Need cash for seeds, feed, repairs, or farming equipment? That’s what operating loans are for. They cover day-to-day costs and help keep things moving during the growing season.

• Loan limit: Up to $400,000 for direct operating loans.
• Who it’s for: Any eligible farmer with a need for short-term or annual expenses.
• Repayment term: 1 to 7 years, depending on the loan purpose and repayment ability.
• Interest Rate: Rates are set monthly; as of May 2025, the rate for direct operating loans is 5.125%.
• Uses: You may use the funds to buy livestock, equipment, feed, seed, fuel, farm chemicals, insurance, and other operating expenses. Minor improvements to buildings, land and water development, family living expenses, and refinancing certain farm-related debts can be covered, excluding real estate.
• To qualify: You must be a U.S. citizen or legal resident, have a reasonable credit history, and show you can’t get funding elsewhere. You’ll also need at least one year of recent farm management experience, the ability to repay the loan, and no federal debt delinquencies or prior loan forgiveness with FSA.

Microloans

The microloans, as their name clearly suggest, are perfect for small operations, niche farms, or beginners. Simpler to apply for and with less paperwork and fewer credit requirements, this is a great option if you are just getting started in the farming realm.

• Loan limit: Up to $50,000
• Who is it for: Farmers with modest capital needs, such as those operating vegetable plots, engaging in beekeeping, or starting local Community Supported Agriculture (CSA) programs.
• Repayment Terms: Up to 7 years for operating microloans and up to 25 years for ownership microloans, depending on the loan purpose.
• Interest Rate: Rates are set monthly; as of May 2025, the rate for direct operating microloans is 5.125%.
• To qualify: Applicants must meet general FSA loan eligibility requirements, including U.S. citizenship or legal residency, a reasonable credit history, and the ability to repay the loan. 

Emergency Loans

If you have experienced a flood, drought, or a hurricane, this is the type of farm loans you need to apply for to get back on your feet. These loans are only available in areas with an official federal disaster declaration.

• Loan limit: Up to $500,000, depending on the scale of the loss.
• Who is it for: Farmers in declared disaster zones who’ve suffered loss and can’t get credit elsewhere.
• Covers: Repairing or replacing lost livestock, equipment, and buildings; replanting crops; covering family living costs; or refinancing farm-related debt caused by the disaster.
• Good to know: You have 8 months from the date of the disaster declaration to apply.

How to Get Started

Before applying, it helps to use the USDA’s Loan Assistance Tool. It walks you through the basics, helps you figure out which loan fits, and shows you what documents you’ll need.

Then, you should contact your local FSA office, where your actual application will be reviewed and submitted. To apply for one of these loans, you’ll usually need:

• A photo ID.
• Your most recent tax returns.
• A basic outline of your farm or business plan.
• Proof of any farm experience or training.
• A simple balance sheet (if you have one).

It also helps to start thinking through how you’ll use the loan and how you plan to pay it back. The USDA look at credit scores, yes, but they also want to see that you have a plan and the ability to follow through.

Pro tip: These loans take time to process (typically weeks). Starting early gives you breathing room, especially if you’re applying ahead of a planting season or trying to close on a piece of land.

Agricultural Grants That Can Make a Difference

Unlike loans, grants don’t have to be paid back. That alone makes them a huge deal for new or small-scale farmers trying to get off the ground without going into debt. 

However, grants are also harder to get. Most of the pograms are highly competitive, or tied to specific goals like sustainability, education, or research. 

Therefore, you need a solid plan and, in many cases, a good story to qualify. Keep reading to learn more about grant programs that can be a good fit for you:

SARE Grants

SARE stands for Sustainable Agriculture Research and Education. These grants back projects that improve farming while protecting the environment. Think cover crops, composting systems, pollinator plots, and on-farm trials that test new conservation methods. 

• Who it helps: Farmers, ranchers, educators, and researchers. Even graduate students cand give it a try.
• What it covers: On-farm trials, community education, conservation practices (not major equipment or land purchases). 
• How to apply: Each region (North Central, Northeast, South, and West) runs its own programs with a different set of deadlines and rules. Check the SARE website to find your region’s opportunities and specific next steps.

Beginning Farmer and Rancher Development Program (BFRDP)

If you’re new to farming (less than 10 years in) the BFRDP might already be working for you behind the scenes. This USDA-backed program doesn’t hand out grants to individuals directly. 

Instead, it funds nonprofits, universities, farm schools, and community groups that offer training, mentorship, and other hands-on support for beginning farmers and ranchers.

• Who it helps: New farmers and ranchers (farming for under 10 years), with a focus on underserved groups like veterans, women, and socially disadvantaged producers
• What it supports: On-farm apprenticeships, business planning help, workshops on land access, sustainable practices, legal basics, and more
• How to access it: Look for local programs or ag organizations that have received BFRDP funding. Many offer free or low-cost classes, technical assistance, and mentorship. You can find a list of funded groups at their website. 

REAP (Rural Energy for America Program) Grants

Thinking about adding solar panels, wind turbines, or making your farm more energy-efficient? The USDA’s REAP grants can help ease the costs. These funds are meant to support farmers and rural small business owners who want to save energy, lower their bills, and run more sustainable operations.

• Who it’s for: Agricultural producers (earning at least half their income from farming) and rural small businesses
• What it covers: Renewable energy systems like solar, wind, and geothermal, as well as energy-saving upgrades such as high-efficiency lighting, insulation, or HVAC systems
• How it works: You can apply for a grant, a loan guarantee, or both. Grants can cover up to 50% of your project costs, and combined loan + grant assistance can go up to 75%.

Many farmers don’t realize this program also offers help with things like energy audits and application support, so you’re not navigating it alone. Projects can take time to plan, so it’s worth looking into before your next big upgrade.

To get started or check if your farm qualifies, head to the official grant website or connect with your local USDA Rural Development office. Ans remember, the REAP program follows an annual application cycle.

Tips for Applying

Grants take prep. You’ll need a clear plan, realistic numbers, and the ability to explain how your project helps more than just your own operation. Most grantors want impact, something they can measure or share. Before applying, make sure to:

• Read the guidelines slowly and as many times as you need.
• Keep your goals practical, not wishful.
• Be honest about your timeline and budget.

For additional help and guidance, don’t hesitate to reach out to your local cooperative extension office. They can help great deal with your process and often know what funding is available in your region.

Support for New, Minority, and Underserved Farmers

Farming isn’t a level playing field. If you’re just starting out, don’t come from a farming family, or belong to a group that’s been historically excluded from agricultural funding, you’ve probably noticed the barriers.

That’s exactly why some USDA loan and grant programs offer special support. They’re meant to help new and underserved farmers get the same shot at building something lasting.

Beginning Farmers and Ranchers

If you’ve been running a farm or ranch for 10 years or less, the USDA officially considers you a “beginning farmer.” And that label comes with more than encouragement it opens real doors. You may qualify for:

1. Priority access to USDA loan programs, including special funding set aside just for beginners
2. Down payment assistance to help you buy land through the FSA’s Down Payment Loan program
3. Mentorship opportunities, including free business coaching through USDA partners like SCORE

On top of that, many states offer technical support, from help writing your first farm plan to guidance on conservation practices and applying for cost-share programs like EQIP.

Starting a farm is a big leap, and no one’s expected to figure it all out alone. These programs exist to give you a boost early on, so you can focus more on building a future and less on navigating the red tape.

Minority and Women Farmers

Many farmers from historically underserved communities have faced hurdles when trying to access credit. The USDA’s Farm Service Agency (FSA) recognizes this and offers targeted support through its programs for Socially Disadvantaged Applicants (SDA). This includes:

• African Americans
• Hispanics
• Native Americans
• Alaskan Natives
• Asian American
• Native Hawaiians and Pacific Islanders 
• Women.

These programs are designed to level the playing field by offering:

• Priority funding for SDA applicants.
• Personalized support from loan officers who can guide you through the process.
• Access to direct loans for buying land, equipment, or covering day-to-day farm expenses.
• Microloans for smaller operations or those just getting started.

To be considered, you’ll need to voluntarily identify your race, ethnicity, or gender when applying.

A good place to begin is the FSA’s Minority and Women Farmers page, or visit your local FSA office to know first-hand what’s available in your area.

Youth Loans

Since big dreams tend to start small, USDA’s Farm Service Agency (FSA) offer young people between the ages of 10 and 20 their Youth Loans. This is a first push to take their first steps into agriculture through real, income-producing projects.

We’re talking about up to $5,000 in direct loans meant to fund supervised projects tied to ag-based youth programs like 4-H, FFA, Tribal youth groups, or similar organizations. 

• What it teaches: Responsibility, budgeting, and follow-through. These loans need to be repaid once the project earns money.
• What’s required: A solid plan, a clear budget, and an adult supervisor from your program. Parental consent is also part of the process (naturally).
• Who’s involved: The loan is taken out in the youth’s name, but it’s supported by local FSA staff and a program advisor who helps guide the project to completion.

The goal is give teens the monetary help they need, but also a real-world experience. Through these loans, they build confidence, and start thinking about farming as a long-term future. For details about youth loans get started on the program website. 

State and Private Funding Sources Worth Checking Out

While most support for farmers comes from Washington, there are other options. Some funding is closer to home, or through nonprofits and private organizations that quietly do the work. Below you’ll find resources to expand your search beyond federal programs:

State-Level Grants and Loans

States run agricultural support programs, which can vary considerably. Some of the programs offer cost-share funding for conservation efforts, while others help with infrastructure like fencing, irrigation, or greenhouse construction. 

There is the Texas Department of Agriculture’s Young Farmer Grant Program offering dollar-for-dollar matching grant funds for young Texan farmers, or the Florida’s Agricultural Cost-Share Program, that helps farmers pay for ways to save water and stop fertilizer from polluting waterways. 

This is what’s often available:

• Cost-share funding to help cover things like infrastructure and good practices.  
• Grants for young or beginning farmers, matching funds for age-related business plans.
• Support from local conservation districts for improving the use of land, reducing runoff, or restoring habitats.
• Help through land trusts or regional nonprofits, which sometimes offer startup funds, land access support, or mentorships tied to sustainable agriculture.

Checking your state’s Department of Agriculture website is a good first step. You’ll usually find details on open programs, deadlines, and how to apply. Some water districts and conservation agencies offer additional programs, especially if you’re working to reduce environmental impact.

Tip: These state programs tend to fill up fast and some only open for a few weeks at a time. If you’re serious about applying, join their email lists or check their updates regularly. A little prep now can mean a big boost later.

Private Foundations and Nonprofits

Several nonprofit groups and community foundations offer grants, low-interest loans, or business support to farmers. While the amounts can be smaller, the competition is often less intense, and many groups are more interested in your mission than your margins. A few worth looking into: 

• The FruitGuys Community Fund: Small grants (around $5,000) for projects that make your farm more sustainable, like pollinator habitats or water-saving systems
• Kiva U.S.: Crowdfunded, 0% interest loans up to $15,000 with no fees or credit score requirements
• Farm Aid: Offers emergency mini-grants to help farmers through crises, plus a network of resources for long-term support
• Heifer International: Occasionally supports small U.S. farms through livestock, training, or market access programs

Also check with local land trusts, farming co-ops, and nearby universities. These organizations often have regional programs or can point you to grants, mentorships, or affordable land access opportunities that don’t make the national radar.

Tip: Many of these programs open for short periods or on a rolling basis, so get on their mailing lists and keep an eye out. A little timing and curiosity can go a long way.

Credit Unions and Farm-Focused Lenders

If you’ve been turned down by a big bank, smaller lenders, especially those with agricultural roots, might take a more personal approach. These include:

• Local farm credit associations
• Community development financial institutions (CDFIs)
• Agricultural credit unions

They’re often more open to creative repayment terms or smaller-scale operations.

How To Apply for Farm Loans and Grants Without Getting Lost

Let’s be honest: applying for farm funding can feel pretty daunting. Between forms, deadlines, and trying to guess what reviewers actually want, it’s easy to stall out before you even hit “submit.” The key here is breaking the process down into easy-to-follow steps.

Step 1: Get Clear on What You Need

Your first step is shouldn’t be filling out paperwork. You should start by sitting down with a notebook. What are you trying to do, exactly? Buy affordable land? Pay for a new walk-in cooler? Launch a hydroponic greenhouse?

Write down exactly what do you want to do and be specific. This will help you figure out which programs are worth your time.

Step 2: Research Programs That Fit

Now that you’ve figured out what kind of support you’re looking for, it’s time to dig into the programs that match your needs. Start with:

• USDA loans through the Farm Service Agency (FSA)

• State ag departments, which often offer their own grants or cost-share programs
• Nonprofits and private lenders that support small or sustainable farms

Stick to trusted sources like official federal websites or your state’s Department of Agriculture are solid places to begin. But also talk to people. 

Extension agents, farm organizations, and even neighboring farmers often know about opportunities that haven’t hit the web yet. 

Step 3: Gather Your Documents

Now it’s time to talk paperwork. Most lendes and grant programs essentially want to confirm the farm is real, that your goals make sense, and you can follow through. Read below for a list of documents you’ll most likely need: 

• Tax returns from the past 1–3 years.
• Proof of farm ownership or a lease agreement.
• Credit history or a summary of any existing loans or debts.
• A farm plan or basic business plan.

Depending on what you’re applying for, you may also need:

• A photo ID and proof of legal residency.
• A list of assets and liabilities (think equipment, livestock, land, loans).
• Collateral info if the loan requires it.

If you’re applying for a grant, expect to explain how your project helps more than just you, community impact, sustainability, or education often matters.

Step 4: Fill It Out Carefully

This part takes time so consider blocking at least an afternoon to pull this off. Read every instruction, even the fine print. Missed signatures or skipped pages can get your application tossed.

And yes, it’s okay to ask for help if you need it. Most USDA offices will extend a helping hand and walk you through it. So will many nonprofits and state agencies.

Step 5: Don’t Miss the Deadline

Mark your calendar and set a reminder a week before it’s due. If you’re applying online, submit early in case of tech issues. If it’s by mail, send it tracked.

Step 6: Follow Up

You won’t always get a response right away. If it’s been a few weeks, calling or emailing and asking for a status update is fine. Be polite, but firm. And if you’re denied, ask why; you might be able to improve and reapply.

Where To Go From Here (Resources That Actually Help)

You’ve got the basics, and now it’s time to take the next step. Whether you’re ready to apply or just need more guidance, here are trusted places to turn:

Official USDA and Federal Resources

Farmers’ Loans Website

Covers every USDA loan type, plus a loan assistance tool that helps you figure out which option makes sense.

USDA Grant Portal 

Details on competitive grants, eligibility rules, and key deadlines.

Database of Federal Grants 

The master database for federal grants across all agencies (not just agriculture). Create an account to start applying.

Helpful Tools and Templates

Farm Answers 

Offers sample business plans, budgeting templates, and educational materials for farmers.

ATTRA Sustainable Agriculture Program 

A trusted nonprofit with how-to guides, training videos, and planning tools for small and sustainable farmers.

Local Help Is Closer Than You Think

FSA Office Locator

Looking for FSA office near me? Use this locator. In your local office they’ll help you understand what you’re eligible for and assist with paperwork.

County Extension Services 

Usually tied to land-grant universities, these offices are full of experts who offer free or low-cost help with farm planning, funding, and education.

State Departments of Agriculture

Look for loan programs, grants, and cost-sharing opportunities in your region. A quick web search like “[Your State] Department of Agriculture grants” usually brings you right there.

Final Thoughts: Making Farm Funding Work for You

Getting funding for your farm takes patience, persistence, and a little grit. It’s not always easy, but you’re not alone, and it’s absolutely possible.

If you’re just starting out or working to keep your operation moving forward, there are real programs and people out there who want to see you succeed.

We hope this guide helped you feel a little more confident, a little more prepared, and a lot less overwhelmed. Use the tools, reach out to your local resources, and don’t hesitate to apply more than once.

You’ve got something worth building. The right support can help you get there.