Agricultural Hobby Farm Grant for Farmers for Farming – Starting an agricultural farm out of a hobby or passion can be the beginning of a rewarding career for numerous individuals in the agricultural industry. Unfortunately, the high upfront cost may pose a barrier for a lot of individuals in the United States of America that prevents them from pursuing their favorite hobby. Fortunately, there are ways to obtain grants and funding opportunities to continue your passion and enter a rewarding agricultural career with the help of governmental and non-governmental grants.
Agricultural hobby farm grants are better than loans since you are not required to repay them with interest. In addition to other costs, you can purchase seed, land, livestock, equipment, machinery and hire hands to assist you with the eventual harvest. This guide will provide an overview of agricultural hobby farm grants for farming including the eligibility criteria, the application procedure and other pertinent information.
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Highlights of this Post
How To Get Started With Agricultural Hobby Grants For Farming?
Nowadays hobby farming has become much more popular and there are many people who are looking for organic alternatives and want to return to a simpler way of life. It is very important to know the basics of agriculture before starting a farm. The U.S. Internal Revenue Service has excluded hobby farms from receiving any tax breaks specially for the smallholders.
Under Section 183 of the U.S. Tax Code it is explained that it is important to provide each details of hobby farming tax allowances. Hobby farmers often face financing challenges that they need to overcome. They need to show their business records and also their income from hobby farming. The documentation should include business plans, detailed planned revenue and expenses reports.
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What Are The Eligibility Criteria To Qualify For Agricultural Hobby Farm Grants For Farming?
To qualify for the agricultural hobby farm grants for farming you need to meet the following eligibility criteria.
- You must operate a farm or ranch for a specified number of years depending on the program
- You must prove you are substantially participating in the farming and agricultural operation in the farm or ranch
- Must demonstrate that a majority of your income comes from farm-related activities
- Provide proof of your race, ethnicity and/or gender on the grant application
- Applicants must fulfill the limitations set on the number of people employed on the farm or ranch
- Applicants must have a registered farm or ranch
- You must be a practicing farmer or rancher in the United States of America
- Applicants should be citizens of the United States or permanent residents and have income within a particular threshold.
- Must not be a delinquent on government debt
- Must prove you are operating or having an existing business based in the United States of America. Your farm or ranch should be in the United States.
- Must use the grant award for the particular purpose mentioned by the program and demonstrate the robust need for grant funding
- All the taxes must be correct and in good standing and the agribusiness must not have any outstanding tax liens or legal judgments unless exempt.
- Applicants must prove they are currently operating an active female-owned or operated farm or ranch.
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What Are the Documents Required To Qualify For Agricultural Hobby Farm Grants For Farming?
The documentation that you need to submit may vary depending on the program and other factors. Following are the commonly requested official documents to apply for agriculture hobby farm grants for farming.
- Identification documents like state ID, passport, Social Security card
- Financial information such as tax return forms, bank statements, recent pay stubs
- A full year of business bank statements
- Balance sheet, profit and loss statement and cash flow statement.
- Tax ID or EIN IRS letter for reference
- Details of accounts payable and receivable
- Business debt schedule if applicable
- Most recent business tax return
- Business certificate along with permits, licenses, legal business documents, articles of incorporation etcetera.
- Complete business plan for instance a detailed description of the type of business you are running, the structure, the service or products, the marketing plan, business management and financial projections.
- A detailed budget showing how you are planning to use the grant for your farms and ranches
- A completed application or resume.
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What Are The Available Agricultural Hobby Farm Grants for Farming?
Starting a farm out of passion or expanding an existing farm, even a small one, requires a huge investment. No matter whether you are looking for an agriculture hobby farm grant or a small farm grant there are resources and grant opportunities to take your career to the next level.
Government Agricultural Hobby Farm Grants for Farming
Sustainable Agriculture Research & Education (SARE)
Sustainable Agriculture Research & Education or SARE, has funded over 4,200 projects for more than 34 years. First of all you should get an idea that SARE is a sponsorship program that helps in promoting sustainable agriculture all over America.
There are many successful SARE grant recipients consisting of educational nonprofits, researchers and producers. For example, a small farmer in Vermont who has used rapeseed fields to produce biofuel. Besides, it also covers hobby farmers who sell out by producing rapeseed meal as fodder that offers him profitability of his hobby and business start up.
Beginning Farmer and Rancher Development Program
No matter whether you are starting as a hobby farmer or have been involved in a small farm for less than 10 years the Beginning Farmer and Rancher Development Program might be a very useful source to you. The program offers grants that can help to improve your business.
The funds are used to assist the farmers or ranchers. It helps them with entire farming planning, crop production practices, basic livestock and with land purchase. But remember that this project funding is limited to three years and the farm grant application should not exceed US $450,000 annually.
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Renewable Energy System And Energy Efficiency Improvement Grant
The Renewable Energy System And Energy Efficiency Improvement Grant is a federal initiative that guarantees loans and also provides funding opportunities to rural small businesses. This program provides funding opportunities to those who are participating in renewable energy projects.
Passionate agricultural farmers must prove they are running a business in an eligible rural area and showcase that a minimum of 50% of their revenue comes from agriculture. The grant funding from this program may range between $2500 to $1 million for renewable energy systems and $1500 to $500,000 for energy efficiency projects.
Environmental Quality Incentives
Conventional agricultural producers can receive assistance up to $20,000 annually to switch to organic farming from the Environmental Quality incentive program from USDA.
It is open to all Individuals who are certified in organic farming and want to expand their operations either due to livelihood or because of their hobby. Grant recipients can apply for assistance up to $80,000 over a period of six years and must meet the agricultural marketing service set by the USDA
Rural Business Development Grants
Individuals who are starting a farm as a hobby and contributing to the area’s economic development can be eligible for the Rural Business Development Grants.
These USDA-funded grants are used for technology-based economic development and other areas. Individuals who have training in starting a farm or business and can prove their farm is consistent with local economic development have a better chance of securing the funding.
For instance, individuals who are starting local organic farms out of passion or winery, agricultural operation, community-supported agricultural programs and consistent with local economic development have a good chance to secure this grant funding.
Specialty Crop Block Grants
The federally funded Specialty Crop Block Grant Program enhances the competitiveness of specialty crops and enables farmers who are pursuing agriculture out of passion or as a livelihood to grow specialty crops like fruits, tree nuts, vegetables, horticulture, dried fruits, floriculture and nursery crops. The grants also cover herbs, annual bedding plants, medicinal herbs, Christmas trees, potted flowering plants, shade trees, evergreens and flowering trees.
Farmers Market Promotion Program
The Farmers Market Promotion Program helps in the development of new market opportunities for the farm as well as ranch products through the development, expansion or improvement of farm markets as well as through community-supported agriculture, roadside stands, direct producer and agritourism activities to expand consumer market opportunities. The objective is to boost local farm production and broaden local farmers’ reach.
Value Added Producer Grant Program
The Value-Added Producer Grant Program supports farmers who help in production or expand farming operations to add value to the agricultural farming industry. Individuals can use the funds for researching, writing business plans or marketing their new products. You can cover the working capital expense or planning cost with these funds.
Farmers who belong to disadvantaged communities will receive a priority to get approval for the funding. Those who are looking for an agricultural hobby farm grant should also demonstrate how financing their idea can help them expand into the new market. USDA will review your project before approving so you need to make sure your goals align with the purpose of USDA.
USDA Farm Service Agency
Apart from grants, individuals looking for agricultural hobby farm resources for farming can also consider low-interest affordable loans to start their business operation. It is easier to qualify for low-interest loans from USDA compared to grants and you can contact your local USDA office to learn more about the eligibility criteria and application procedure.
Let’s take a look at the following FSA-sponsored loans that you can qualify for to fulfill agricultural operation
- Microloans: FSA Microloans are designed to meet the needs of beginning and small farmers, specialty crop and niche operations, and non-traditional operations by fulfilling less paperwork and eligibility criteria.
- Direct Operating Loans: The Direct Operating Loans help passionate farmers to purchase feed, livestock, fuel, farm equipment, insurance, farm chemicals, general farm operating expenses and other expenses associated with their farm.
- Minority And Women Farmers And Ranchers Loans: The Minority And Women Farmers And Ranchers Loans set aside some money particularly to provide women and minority farmers so that they can purchase or operate a farm or ranch in the United States of America.
- Direct Farm Ownership Loans: The Direct Farm Ownership Loans are used for purchasing or expanding a farm or ranch in America and to put up new buildings for water and soil conservation and protection.
- Native American Tribal Loans: The Native American Tribal Loans are provided to eligible Native Americans so that they can increase farm operations and also preserve their cultural farmland for future generations.
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State Agricultural Hobby Farm Grants for Farming
Government farm grants including agriculture hobby farm grants are provided by a lot of states through their Department of Agriculture.
New York State Grown And Certified Infrastructure Technology Research And Development Grant
The state government of New York provides farm grants to agricultural businesses in the form of New York State Grown And Certified Infrastructure Technology Research And Development Grants so that they can purchase technology, equipment, and machinery, and research to meet the demand of the consumers.
Urban Agriculture Cost Share Grant Program
Agribusinesses situated in urban areas in Missouri can apply for the Urban Agriculture Cost-share Grant Program where grant funds are provided to promote urban agriculture and support projects like marketing plan development, community gardens, feasibility studies etc.
Few more grant programs are as follows
- Missouri Value-Added Agriculture Grant Program
- Show Me Entrepreneurial Grants For Agriculture
- Missouri Value Added Agriculture Farm To Table Grant
Agri Beginning Farmer Farm Business Management Scholarship
The Agri Beginning Farmer Farm Business Management Scholarship is also available in Minnesota by the Department of Agriculture to those who want to start a farm out of their hobby and want to acquire good management techniques or classes by attending a college or university in Minnesota.
Few other grants available by the Minnesota Department of Agriculture for farmers are as follows
- Agri Good Cultural Practices/ Good Handling Practices Certification Cost Share
- Agri Livestock Investment Grant
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California Underserved And Small Producers Program
The California Department of Food and Agriculture provides a wide area of grant programs to startup grants or those having existing farms.
The California Underserved And Small Producers Program provides small or midsize farmers and ranchers who are socially disadvantaged including those who want to start their agricultural career out of their passion and earn a livelihood out of it.
Private Agricultural Hobby Farm Grants for Farming
Young Farmer Grant Program
The Young Farmer Grant program is financed by the National Young Farmers Coalition in collaboration with Chipotle and awards funding up to $5000 to young farmers. Around 50 farmers from 2020 to 2022 received the grant funding while in 2023 the program helped nearly 75 farmers.
Although a majority of the recipients of the program were those who had established farms, individuals who want to enter the agricultural sector out of their hobby or passion can also apply for this program.
Sky High Farm Grants
The Sky High Farm Grants from 2022 provide light areas of micro-grants to eligible farmers. The grant program covers underserved communities like blacks, light Indigenous, refugees, Asians, migrants and other groups who are excluded from traditional privileges and funding opportunities.
Farmers who are pursuing agricultural operations out of their hobby and wish to expand their activities can receive grants by demonstrating how their farm operation aligns with an overarching mission.
Fund-a-Farmer’s Grants
Fund-a-Farmer’s Grants is sponsored by the Food Animal Concerns Trust which provides funding opportunities to $3000 for expanding pastures to improve the farm animals’ welfare.
To be eligible, passionate farmers must prove they are raising beef cattle, bison, dairy cows, broiler chickens, ducks, goats, geese, pigs, laying hens, turkeys and sheep. The specification of the program may change from one year to another however projects that focus on building fences, building or improving farm animal housing or improving the water system can receive the grant award.
Farm Bureau Ag Innovation Challenge
Farmers who want to start agricultural operations out of their hobby and enter a rewarding career can apply for this startup grant competition known as the Farm Bureau Ag Innovation Challenge.
To be eligible you need to prove that your business is developing unique solutions in the agricultural industry. The grant award ranges up to 165,000 and is provided to eligible 10 businesses and the winner gets an opportunity to win a $50,000 grant award.
The FruitGuys Community Fund
Grant funding is provided to small and medium-sized farmers including those who are looking for agricultural hobby farm grants by the FruitGuys Community Fund. The grant provides funding up to $5000 for working farms that have a minimum of one year of experience and are willing to improve their operation.
Nearly 20 finalists will be selected to submit their full application and will be evaluated based on their project ability. If your project idea is related to water conservation, energy efficiency, natural pest control or expanding low-cost or free community-supported agriculture shares then you can apply to The FruitGuys Community Fund.
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Brighter Future Fund
The Brighter Future Fund Grant Program is administered and managed by American Farmland Trust to fund projects that assist farmers to grow as well as sustain their farmers.
The farm grants are available up to $10,000. Your project must fall into one of these two categories: professional service and equipment or infrastructure cost. With the funding opportunities, passionate farmers can cover the cost of purchasing machinery or equipment to improve their crop quality or soil health.
Farmer Veteran Fellowship Fund
Veterans who are entering the agricultural sector out of their passion or hobby and are the members of the Farmer Veteran Coalition can apply for the Veteran Fellowship Fund Program. The program sponsored by the Farmer Veteran Coalition assists eligible veterans who have served or currently serving in any branch of the United States Military and have received an honorable discharge status from the military.
The grant funding may range between $1000 to $5000 and helps in purchasing livestock, storage fees, fencing, feed, tractors and equipment. The annual program assists veterans who are beginning their careers in ranching or farming out of their hobby.
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Conclusion
If you want to start a farm out of your hobby then there are good funding and grant opportunities in place to help you get started. With a robust business land and sweat equity, you can become a part of the future generation of farmers. The United States Department of Agriculture or USDA provides tons of grants for farmers to alleviate the cost of starting or expanding the farm. It is important to check the eligibility criteria, the application procedure and deadlines carefully for all the competitive grants mentioned above. These grants will help you pay for your space, livestock, machinery, infrastructure, equipment, seeds etc.
Read about Farm Grants For Females Available at the Get Government Grants’ section today. Our resources will help you to find the right type of support based on your needs and requirements.
Frequently Asked Questions
What is a Farm Labor Grant?
A Farm Labor Grant is a well known USDA program that offers grants to the farm workers to build, buy and repair the housing for workers on the farm.
Are there any federal agricultural hobby grants available for farming?
Yes, the federal government offers agricultural hobby grants to farmers and ranchers but remember your property must be eligible for it. You can simply visit Grants.gov website and find all the information related to agricultural hobby grants.
How to qualify for agricultural hobby grants for farming?
There are several agricultural hobby grants for farming with different eligibility criteria. You need to meet the eligibility requirements in terms of citizenship, income and property where your farm is located to qualify for the grants. Besides you can also find low interest loans that can support your agricultural hobby for farming.