There is no USDA grant that buys you a tractor, a baler or a skid steer. The grants farmers can win are built for projects, and several of them say outright that general equipment is off limits. What USDA does have for equipment is low-rate loans, plus a few programs that help with specific kinds of equipment: storage and handling gear, and energy-saving upgrades.
Here is what is real, so you do not waste time on what is not.
Why grants will not buy your tractor
- SARE farmer grants pay for on-farm research, not farm costs. Northeast SARE says its grants cannot be used to “purchase durable equipment like tractors or computers,” and Southern SARE excludes operating expenses “such as Equipment, buildings, animals, or fences.”
- EQIP pays a share of conservation practices, like fencing, watering systems or high tunnels, under a plan with NRCS. It is not a fund for general machinery.
- “Equipment grant” websites that charge a fee are scams. Real federal grants are listed for free at grants.gov.
What actually helps you buy equipment
FSA microloans: up to $50,000
FSA’s operating microloans go up to $50,000 for livestock, equipment, feed, seed and supplies, with a simpler application than a full loan. They are built for small and beginning farms. The rate was 5.375% on October 1, 2026, and terms run from one to seven years depending on what you buy. See our FSA microloan guide.
FSA operating loans: up to $400,000
For bigger needs, FSA’s direct operating loans go up to $400,000, and guaranteed operating loans through your bank go up to $2,558,000. Equipment is one of the listed uses. Terms typically run one to seven years.
Farm Storage Facility Loans: drying and handling equipment
If the equipment is for storing or handling a crop, FSA’s Farm Storage Facility Loan covers more than bins. FSA lists drying and handling and storage equipment as eligible, including storage and handling trucks (up to $100,000), and new or used gear, permanent or portable. Facility loans go up to $500,000, with terms of 3 to 12 years. See our Farm Storage Facility Loan guide.
REAP: energy-saving equipment, under new rules
USDA’s Rural Energy for America Program can pay up to 25% of the cost of an energy efficiency upgrade like a more efficient grain dryer or irrigation pump, up to $250,000. Under the rule USDA published in October 2026, you install the equipment first, run it for 12 months, and then apply with your before-and-after energy numbers. As of mid-October 2026, USDA had not opened the next REAP grant window. See our REAP efficiency post.
Young farmers: FSA youth loans
4-H and FFA members ages 10 to 20 can borrow up to $10,000 for an income-producing project, and FSA lists buying, renting or repairing tools and equipment as uses. See our young farmer loans guide.
Before you borrow for equipment
- Price used. Farm Storage Facility Loans can cover used equipment, and a used machine can cut the loan you need.
- Run the payback. A loan has to come out of the farm’s income. If the machine does not save time, fuel or hired help, it may not pencil out.
- Ask about sharing or custom hire. For a tool you use a few days a year, renting or hiring the work done can beat owning it.
Frequently asked questions
Are there USDA grants for farm equipment? Not for general equipment like tractors. USDA lends for equipment through FSA microloans (up to $50,000) and operating loans (up to $400,000 direct), and helps with storage and handling equipment through Farm Storage Facility Loans.
Can EQIP pay for equipment? EQIP pays a share of approved conservation practices under a plan with NRCS, not general farm machinery. Ask your NRCS office what practices fit your resource problem.
Can REAP pay for a grain dryer? A more efficient grain dryer can be a REAP energy efficiency project. Under the October 2026 rule, the grant covers up to 25% of the cost and you apply after the dryer has run for 12 months. As of mid-October 2026, USDA had not opened the next window.
What is the FSA microloan interest rate? 5.375% for operating microloans as of October 1, 2026. FSA updates rates monthly.
The bottom line
Nobody is going to give you a tractor. But FSA will lend you the money at a fair rate if the farm can carry the payment, storage and handling gear has its own loan, and energy-saving equipment can earn back part of its cost through REAP after it proves itself.
Want to see what your operation qualifies for? Run our free eligibility checker or browse the deadline calendar.
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