Can You Get a Grant to Start a Farm? What Actually Exists

“Grants to start a farm” is one of the most-searched farming topics online. And almost every result either overpromises or gives bad information.

So let’s be straight about it: there is no USDA program that writes you a check to go start a farm from scratch. That program doesn’t exist. If a website tells you otherwise, they’re misleading you.

But real programs do exist that help people get into farming. They just work differently than most people expect.

Why “start a farm grants” don’t exist (the way people think)

When people search for grants to start a farm, they usually picture something like: fill out a form, get $50,000 deposited in your account, use it to buy land and equipment.

USDA programs don’t work that way for a few reasons:

Cost-share programs (like EQIP) reimburse you for specific approved activities on land you already farm. You need to be operating before you can use them.

Competitive grants (like VAPG) fund specific projects with clear business plans and usually require matching funds. They’re designed for established operations developing new products.

Loans are the closest thing to “startup money” USDA offers. You borrow at favorable terms and pay it back over time.

This frustrates a lot of people. But understanding how USDA funding actually works saves you from chasing programs that won’t help and points you toward the ones that will.

What actually exists for people who want to start farming

Money to buy land: FSA Farm Ownership Loans

If your biggest barrier is land, this is probably your starting point.

FSA Direct Farm Ownership Loans let you borrow up to $600,000 to purchase farmland. Interest rates are below what any commercial bank will offer. Beginning farmers get reserved funds, meaning less competition for approval.

The Down Payment Loan Program is even more accessible. FSA covers up to 45% of the purchase price. You finance the remaining 55% through a commercial lender. Combined, this can get you into land with very little cash down.

Yes, these are loans. You pay them back. But the terms are designed specifically for farmers who can’t get conventional financing.

FSA Farm Ownership Loan details →

Money for operating costs: FSA Microloans

Need seeds, equipment, livestock, or cash to get through your first season? FSA Microloans go up to $50,000 with a simplified application.

The qualification requirements are flexible on purpose. Farming education, apprenticeships, internships, and self-directed experience all count toward the management requirement. FSA has issued over 50,000 of these. They exist specifically because banks won’t touch new farming operations.

You apply at the same USDA service center where you’d get your farm number. Many new farmers get both a Microloan and a Farm Ownership Loan through the same office.

FSA Microloan details →

Money for infrastructure: EQIP (once you have land)

Once you’re on land and operating, EQIP becomes available. And for beginning farmers, it’s extremely generous.

Beginning farmers get up to 90% cost-share on conservation practices. That means USDA pays 90% of the cost of things like:

High tunnels/hoop houses ($20,000-$35,000 covered)
Fencing for livestock ($1.50-$3.00 per linear foot)
Cover crop establishment ($5-$15 per acre)
Irrigation improvements
Soil health practices

You can also request advance payments of up to 50%, so you’re not fronting everything out of pocket.

You don’t need years of experience. You don’t need a perfect conservation plan. You just need to be farming and willing to work with your local NRCS office.

Read our EQIP Application Guide →

Training and mentorship: BFRDP-funded programs

The Beginning Farmer and Rancher Development Program (BFRDP) funds organizations that train new farmers. You can’t apply for BFRDP directly, but you can attend the programs it supports, often for free or low cost.

These cover business planning, production techniques, marketing, financial management, and navigating USDA programs. Search for BFRDP-funded programs in your state through your Extension office or USDA’s beginning farmer page.

BFRDP details →

Small research grants: SARE

SARE Farmer/Rancher grants fund on-farm research projects. Grants run $2,000 to $30,000 depending on your region. No matching funds required.

If you want to try something new on your farm and document the results, SARE is worth looking into. New farmers have successfully used SARE grants for cover crop trials, season extension experiments, direct marketing research, and pollinator habitat projects.

SARE details →

The realistic path most successful new farmers follow

Based on how USDA programs are actually structured, here’s the sequence that works:

Year 1:

Get your farm number from FSA (free, one visit)
Secure land through FSA Farm Ownership Loans or private lease
Apply for an FSA Microloan for operating costs
Visit NRCS and apply for EQIP with beginning farmer status (90% cost-share)

Years 2-3:

Implement EQIP conservation practices
Build your product line and customer base
Start applying for SARE grants for on-farm research

Years 3-5:

Apply for VAPG if you’re developing value-added products ($75K-$250K)
Transition from EQIP to CSP for ongoing annual payments
Stack programs to maximize total funding

Over a 5-year period, a beginning farmer can realistically access $100,000+ in cost-share and grant funds (money you keep) plus favorable loans for land and operations.

What about state programs and private grants?

Federal programs are the backbone, but don’t overlook smaller opportunities:

State beginning farmer programs vary widely. Iowa has a Beginning Farmer Tax Credit. New York’s FarmNet provides business counseling. California has farm incubator programs. Check your state’s page for what’s available near you.

Private grants from organizations like the Farmer Veteran Coalition ($1,000-$5,000 grants), Farm Aid, and local community foundations can fill gaps. They’re smaller but often less competitive.

Land access programs from organizations like the National Young Farmers Coalition and American Farmland Trust help connect new farmers with available land, sometimes at below-market rates.

The bottom line

You can’t get a grant to start a farm in the way most people imagine. But you can get:

Below-market loans for land and operating costs (FSA)
90% of your infrastructure costs covered (EQIP)
Free training and mentorship (BFRDP programs)
Small grants for on-farm research ($2,000-$30,000 through SARE)
Larger grants once you’re established ($75,000-$250,000 through VAPG)

The money is real. The path just looks different than most people expect.

Your first step: Find your local USDA service center and schedule a visit. Tell them you’re interested in starting a farm. They deal with new farmers every day and will point you toward the right programs.

Browse all program deadlines → | Beginning farmer resources →