Government grants for land purchase and Farm Equipment – Agriculture and farming today require equipment like tractors that cost hundreds of thousands of dollars. A lot of farmers in the United States of America find it difficult to buy farm equipment or purchase land to start their farming and agriculture practices. Fortunately, there are government assistance programs available for farmers who want to purchase farm equipment or land.
A lot of time getting farm equipment or purchasing land becomes challenging after a poor harvest or when you are dealing with financial hardship. Government grants assist farmers to get the right assistance and provide funding for land purchase and farm equipment. This guide will provide an overview of programs that help you find the purchasing of land and farm equipment.
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Highlights of this Post
What Are Farm Equipment Grants And Land Purchase Assistance Programs?
Agricultural equipment grants and land purchase assistance programs refer to government-funded programs and initiatives that provide financial support to eligible low-income farmers who require assistance to purchase agricultural equipment or landfills from the grants that help to cover a wide area of purchase including the following.
- Building and land for the farm
- Farm equipment and machinery
- Upkeep and repair costs related to agricultural equipment
- Transportation costs that are associated with farming activities
- Other expenses associated with the purchase of agricultural equipment
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What Are The Benefits of Farm Equipment Grants and Land Purchase Assistance Programs?
Following are the benefits of getting agricultural equipment grants and land purchase assistance programs.
- Farm equipment grants can be given to a business or individual to purchase agricultural equipment. This grant is often used to purchase agricultural products such as tractors, farm trucks, and other farm-related equipment.
- Farm equipment grants can also be given to a farmer to purchase new or used agricultural machinery. The grant will usually provide a discount on the price of the machinery, as well as assistance with purchasing.
- Improved quality of life for low-income farmers as a result of improved productivity as well as safety during agriculture-associated activities.
- Increased income for farmers as a result of increased production and sales opportunities.
- Easier access to more capital when required
- Reduced interest rate on loans available through government-funded programs
- More affordable prices on farm items and agricultural machinery.
What Are The Eligibility Criteria To Qualify For Grants To Purchase Land And Agricultural Equipment?
To get a grant to purchase land or agricultural equipment you need to meet certain eligibility criteria set by the government or other sources.
- Be a citizen of the United States or a lawful resident of the state from where you are applying for assistance
- Meet the number of employer threshold
- Meet the farming business criteria set by the program
- You can get special emphasis if you belong to a socially disadvantaged, minority, veteran or women farmer and rancher group
- Must meet the income requirements of the program
- Must make sure your business aligns with the objectives and mission of the program you’re applying for
- Grants are available for projects within the United States and US protectorates
- Must have an agricultural business in operation with a robust business plan to submit with your application.
- 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.
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What Documents Do I Need To Apply For Farm Equipment Grants And Land Purchase Assistance Programs?
The specific documentation that you need to submit may vary depending on the program you are applying to and other factors. Following are the commonly requested official documents to apply for female farm grants.
- Personal identification documents like state ID, passport, Social Security card
- Detailed personal 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
- Most recent business tax return
- Business certificate along with permits, licenses, legal business documents, articles of incorporation etc.
- 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 farm or ranch.
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How To Apply For Government Grants For Farm Equipment And Land Purchase?
Individuals who are looking for farm equipment grants and land purchase assistance can take a look at the below-mentioned application procedure.
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Create A Robust Business Plan
You can get a grant to purchase land or farm equipment by creating a robust business plan that shows your proposal and business goals clearly.
Make sure to explain how grant funding can benefit your farm business, the style of farming that you’re planning to employ and the crops that you will be farming. A lot of grants are limited to particular farming approaches for instance small farms or organic farming.
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Research Available Grant Opportunities
Many agricultural organizations offer direct funding or serve as a helpful guide or information source to find and apply for suitable government grants for farming equipment and purchasing land.
For instance, SARE website offers a wealth of grant programs and useful information supported by the USDA. You can also look for local Cooperative Extension offices to find suitable government grants for farm equipment.
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Contact The Grant Administrators
The next step is to make a list of government grants that fund farm equipment and land purchases and perform in-depth research by calling the grant administrators directly. You will find phone numbers and other contact information on their official website.
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Apply For The Grants
Complete the grant application as per the instruction of the agency and apply for multiple grants to secure your chance in at least one.
There are specialized grants that are available for minority farmers, new farmers as well as female farmers so research properly about the available grants. Submit relevant documents along with your application before the deadline date.
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Wait For Approval
The next step is to wait patiently to get a response from the grant administrators. Do not forget to follow up with the grant administrators to inquire about the status of your application form. You can reapply with the agency if you are rejected on any grounds.
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What Are The Available Government Programs That Help With Farm Equipment And Land Purchase Assistance?
It is important to note that USDA does not provide grants for purchasing land and most of the available grants are low dollar amounts or must be used for specific purposes.
If you’re looking for a grant for a specified purpose then check with your Local Service Centre as they are aware of state grant opportunities.
The Value Added Producer Grant Program is designed to support disadvantaged farmers with their business goals and expand farming operations or boost production to add value to the farming industry.
Farmers can use the funding opportunities to purchase equipment to market their new product, write business plans, research or apply towards planning or working capital expenses. If you belong to a disadvantaged community then you will receive a priority in the funding opportunity.
The Sustainable Agriculture Research and Education Program provides funding opportunities for research about sustainable agriculture.
The grant is funded by the National Institute for Food and Agriculture and is designed for particular projects such as testing new agricultural methods. If you’re purchasing land and want to practice sustainable farming then these grants will be useful for you.
The grant can’t be used to start a farm or use it to meet farm operating expenses; however, businesses can use it on a limited basis to purchase items for the project. It is important to carry out the project in the United States or its island territories.
Being a part of the Rural Energy for America program the Renewable Energy System And Energy Improvement Grants assist agricultural producers as well as rural small business owners to purchase renewable energy equipment and install energy equipment systems. Farmers can also make energy efficiency improvements if they want.
The eligible grant projects comprise purchasing, installing or improving systems like the following
- Insulation
- Doors and windows
- Lighting
- Cooling or refrigeration equipment
- Wind generation and solar generation
- Hydropower
Farmers can use these grants to buy new energy-efficient equipment for agricultural production and processing. Eligible farmers can get grants up to $2500 to $1 million for buying renewable energy systems and grants that range between $1500 to $500,000 for energy efficiency projects. To qualify agricultural producers and businesses must be located in an eligible rural area and have a population of less than $50,000.
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The USDA Socially Disadvantaged Group Grants is a program that is designed particularly to help rural socially disadvantaged populations expand or start their agricultural businesses.
Grants are awarded by the program to eligible businesses and individuals so that they can purchase equipment, land, and supplies or receive technical assistance and training to prosper in the agricultural industry.
The objective of the program is to assist socially disadvantaged farmers and ranchers access opportunities to succeed and thrive in rural communities. If you’re not able to get a grant directly from this program then look for organizations that have received money directly from this program and are redistributing it to eligible farmers.
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To purchase land you can consider Beginning Farmers And Ranchers Loans from FSA for instance a down payment loan and farm ownership loans.
If you’re connected with your local farming community then you can purchase land from owners looking to return land to production through the Transition Incentives Program. The USDA Beginning Farmer And Rancher Development Program is designed to help farmers in the first ten years of their farming journey.
It is an excellent option for you if you are beginning your farming career. The program helps to fund projects that train and educate beginning farmers to build long-lasting businesses and succeed. To be eligible for the grant farms must be a part of the for-profit or nonprofit collaborative group.
The Farm Service Agency loans are competitive low-interest government loans that are used for farming and ranching small businesses for those who are unable to access credit elsewhere. No matter whether you are looking to purchase equipment or purchase land for farming, Farm Service Agency loans will help you to fulfill your needs.
Various types of FSA loans are available to cover operational costs or buy farmland. You can opt for USDA FSA Rural Youth Loans that are available for young people aged between 10 to 20 years for purchasing equipment, seeds, livestock, and supplies or for buying/renting/ repairing tools and equipment that are paying operating expenses.
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Private And Community Farm Grants
Besides the government, there are nonprofit organizations and private companies that provide a wide area of grants for farmers that help them with machinery, equipment and other types of assistance.
Businesses that are developing new solutions in the American agriculture industry can receive funds through the Farm Bureau Ag Innovation Challenge competition.
It provides startup grants to farm businesses that are creating innovative solutions for addressing problems that are faced by rural communities, ranchers and farmers. The competition award ranges up to $165,000 to eligible 10 businesses and the winner receives a grant award of up to $50,000.
The semifinal is a great opportunity to attend networking events and live pitch competitions. This enables them to present their ideas to investors, Farm Bureau members and industry representatives. With this grant funding, you can purchase equipment and improve your business.
The FruitGuys Community Fund provides grant funding of up to $5000 to eligible working farms, small and medium-sized farms with a minimum of one year of experience and wishing to improve their operation or purchase machinery and equipment.
You have to submit your application and project proposal through the official website of the program and 20 finalists will be invited to submit their full application. If your project is related to energy efficiency, natural pest control or expanding low-cost or free community-supported agriculture shares then you have a chance to secure this funding.
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Veteran farm grants are provided by Farmer Veteran Coalition through its Farmer Veteran fellowship program. The objective of the program is to help veterans start their careers in ranching or farming.
Unlike other types of grant funding, this program does not provide funds to veteran farmers directly. Instead it pays funds to third party vendors for items the individual has identified so that they can launch their farm business.
The farm grants may range between $1000 to $5000 and finance purchases like storage, freezers, fencing, livestock, equipment, machinery, tractors etc. To qualify you must be a farmer, prove that you have served or presently serving in any branch of the U.S. military and have an honorable discharge status.
The Young Farmer Grant Program is provided by the National Young Farmers Coalition in collaboration with Chipotle. The program offers grants of up to $5000 to young ranchers and farmers in America in addition to a year-long membership with the National Young Farmers Coalition.
To be eligible for the grant you have to fulfill the age limitation between 18 to 40 years and must show how the grant funding will take you closer to your career goals as a farmer.
Farmers who belong to traditionally underserved groups can consider this grant as an excellent option to get assistance with machinery, equipment or other needs. The coalition provides 50% of its grant to indigenous, black and people of color including female-identifying, trans and non-binary farmers.
The Brighter Future Fund Grant Program designs projects to assist farmers so that they can grow their farms and sustain as well. The farm grants range up to $10,000 and are awarded to eligible individuals or farm families.
Brighter Future Fund targets eligible projects that fall into two categories: equipment or infrastructure costs and professional services. The grant award of the program helps you to pay for professional services or purchase machinery and equipment to improve crop quality or soil health.
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Conclusion
Purchasing farm equipment and finding land for your farm business can be challenging for disadvantaged and low-income farmers. Fortunately, USDA assists new producers with a lot of programs. Being a new rancher or farmer, access to capital, equipment and land can be the biggest hurdles for you. No matter whether you are looking for a small amount of funding to purchase equipment for your farm or a large sum of money to invest in your business operation, there are a variety of resources and loan programs for you.
Learn more about government grants and programs at 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 are the different types of farm equipment grants?
You can find different types of grants like agricultural research grants, land purchase grants, agricultural hobby grants and many others. It is important for you to know your requirements and apply for the right grants that are suitable for you. Apart from these programs you can also find state programs that offer loans and grants to the farmers.
What are the things I need to know before buying farmland?
There are a few things you need to keep in mind before buying farmland. First of all you need to check out the mortgage lenders and know about the guidelines and requirements. You also need to plan how you are going to generate income from the farmland. You also need to check the soil quality and water facilities available on that particular farmland.
What are the traditional ways to borrow money to purchase farmland?
There are four traditional ways to borrow money to purchase farmland: you can borrow money from your relatives, landowner, government and other commercial lenders like banks. But remember you need to have a good reputation so that they can know you will repay the money.
