How to Apply For Agricultural Startups Grant in America 2024
Agricultural startups are key to innovations in farming and its long-term sustainability in America. Scarier still is the fact that raising funds to scale operations, develop new technologies, or simply ‘pivot’ towards more sustainable practices can be elusive. Luckily, there are numerous grants that help agricultural startups take off. Herein is a list of the top 10 grants, complete with details on eligibility criteria, application procedures, and a little human touch in the review to guide your judgment.
USDA Small Business Innovation Research (SBIR) Program.
The USDA SBIR program is one of the most respected and competitive grant opportunities available to small businesses involved in agriculture. It is designed to support research and development efforts that have the best potential for commercialization and making major contributions to U.S. agriculture.
Who May Apply?
Eligibility: The competition is open to U.S.-based for-profit small businesses with less than 500 employees. Startups focused on innovative technologies or solutions in agriculture, food, and forestry are especially encouraged to apply.
Key Focus Areas: These include but are not limited to areas like plant production and protection, animal production and protection, food science and nutrition, renewable energy, and natural resource conservation.
How to Apply?
Application Process: Applications are due through the SBIR portal during specific solicitation periods, generally announced once a year. This application will require detailed research with a proposal that explains the problem to be addressed, the proposed solution, potential for commercialization, and a detailed budget.
Phased Approach: There are two phases to the SBIR program:
Phase I: Awards to fund feasibility-related research up to $100,000; this usually is about 6-12 months in duration.
Phase II: Further R&D and prototype development, with awards up to $600,000, lasting up to two years.
Phase III: This stage is not SBIR-funded. Commercialization of the innovation generally occurs during this phase, usually through private investment or other non-SBIR federal funding.
Website
You can visit https://www.rd.usda.gov/programs-services/business-programs/value-added-producer-grants to apply.
Review:
The USDA SBIR program presents an excellent opportunity for startups that have a strong R&D focus. This is probably one of the most competitive grants out there, as the number of applications far exceeds the number of applications that do end up being funded. The successful applicants usually have a good track record in research or have some completely new idea that helps overcome one large problem facing agriculture. The funding amount is large and can be transformative, exactly what a startup with an innovative agricultural technology would need to bring to market. The detailed process of applying requires sensitive planning, a clear view of commercial potential for a product, and therefore time and effort put into the proposal.
Value-Added Producer Grants (VAPG)
Value-added producer grants are an excellent opportunity for agricultural producers looking to increase the value of their products. The grant helps farmers, ranchers, and other agricultural producers create new products and expand marketing opportunities that result in increased income.
Who Can Apply?
Eligibility: Any independent agricultural producers, farmer or rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures are all eligible to participate in the program. Applicants need to justify how their project will enhance the value of their agricultural products.
Examples of Eligible Projects: Projects that add value to agricultural products through processing (e.g., turning milk into cheese), marketing (e.g., branded farm-to-table products), or product differentiation (e.g., organic labeling).
How to Apply?
Application Process Applications are submitted through the USDA Rural Development online portal. A good business plan, feasibility study, and marketing strategy should be included in the application. The process is competitive; hence, the USDA offers application toolkits among other resources to support the application process.
Types of Grants
Planning Grants: For the development of business plans and feasibility studies in the processing and marketing of a value-enhanced product.
Working Capital Grants: These are for defraying expenses associated with processing, marketing, and distribution of value-added products.
Maximum Funding: Planning grants have a maximum of $75,000; working capital grants may reach a maximum of $250,000.
Website
https://www.rd.usda.gov/programs-services/business-programs/value-added-producer-grants
Review
The VAPG program displays special interest to new startups and small businesses in agriculture that wish to grow their operations to new markets. Value-added means that if your business is in changing raw agricultural products into something of more value, this grant could be just the right fit. Though the application process is long, it may be overwhelming if you are a beginner, the reward is worth putting in an application. Previous winners have used VAPG monies effectively to develop new products, expand to new markets, and increase profitability. The key to a successful application is to be able to show clearly and specifically how this grant money will work to improve your product and long-term benefit your business.
Conservation Innovation Grants (CIG)
The Conservation Innovation Grants (CIG) program administered by the U.S. Department of Agriculture’s Natural Resources Conservation Service is an attempt to incentivize the development and widespread adoption of innovative conservation practices on agricultural lands. It is the grant for projects that demonstrate novelty and innovation in the conception and development of innovative solutions in the conservation of challenges that have high potential for wide deployment.
Who Can Submit?
Eligible Applicants: The program will be open to a wide range of perspective participants, including but not limited to state and local governments, non-governmental organizations, tribes, private businesses including those working in agriculture, and individuals. One of the key requirements will be that the project has to develop new tools, technologies or strategies that address NRCS natural resource conservation on eligible agricultural land.
Focus Areas: Projects on which CIG investments are made encompass soil health, water and air quality/quantity, energy conservation wildlife habitat, and pollinator biology.
How to Apply?
Application Procedure
Grant Application is to be made online through the Grants.gov, which is a federal grant website. An application must include a project proposal, budget, and a simple explanation of what is intended to be gained eventually.
Funding Levels: The grant can provide funding up to $2 million depending upon scope and impact of project. Projects are typically funded for 1-3 years.
Cost Share: CIG requires a 50% non-federal match, which may include in-kind contributions.
Website
https://www.usda.gov/partner-portal/key-programs-catalog/programs-for-organizations/conservation-innovation-grants
Review
The CIG program is a very hot opportunity for startups focused in environmental sustainability in agriculture. It’s just designed for people developing leading conservation technology or any practice that’s innovative enough to be replicated across the entire agricultural sector. The process is extremely competitive and requires a clearly defined project plan with goals that are measurable; but the potential funding, up to $2 million, could be a game-changer, especially for large-scale projects with meaningful conservation impacts. If your start-up has an explicit mission for conservation and a project with a real potential for positive impact, then you should go for the CIG grant. Just be prepared for the race and make sure your proposal successfully demonstrates how innovative and scalable your approach is.
Sustainable Agriculture Research and Education (SARE) Grants
The Sustainable Agriculture Research and Education Grants program has been active for more than twenty years, helping further the practices of sustainable agriculture in the United States. Birthed by the USDA, SARE grants fund research and education projects that propel advances in environmental stewardship, profitability for farmers, and well-being of farming communities.
Who May Apply?
Eligibility: SARE grants are open to farmers, ranchers, researchers, educators, graduate students, and non-profits. There are several regions within the program: North Central, Northeast, South, and West, each with its own set of grant opportunities and focus areas.
Project Types: The projects to be funded should be on sustainable agriculture. This could be innovations in crop production and livestock, soil health, conservation of water, management of pests, market development, and others.
How to Apply?
Application Process: Applications are generally forwarded through regional SARE websites. Most of the time, it starts with a pre-proposal, and if selected, then the full proposal. Each region has different deadlines with requirements, so it is upon the applicant to check on the specific guidelines for their region.
Grant Categories:
Farmer/ Rancher Grants: This grant category supports on-farm research by farmers and ranchers. Funding is typically from $7,500 to $30,000.
Research & Education Grants: Research institutions and non-profits doing larger sustainable agriculture projects.
Professional Development Grants: Projects training ag professionals and educators in sustainable practices
Graduate Student Grants: Graduate students pursuing sustainable agriculture research; grant awards of up to $15,000
Funding Levels: Most grants available for this program are in the tens-of-thousands-of-dollars range. Funding is typically a few thousand dollars at most, for small-scale programs, but has been over $200,000 for more significant projects.
Website
Review
SARE grants offer excellent sources for those deeply invested in the sustainability of agriculture. Whether you are a practicing farmer desiring to try out a new sustainable practice on your farm, a researcher who would like to invent a new solution, or an educator intending to spread sustainable farming practices, SARE is there to offer targeted support. It’s a regional application process, sometimes competitive—especially for large grants—but all in all, it is a fine reputation about focusing on real-world, practical solutions. Most successful candidates have an extremely clear, actionable project that addresses a critical sustainability issue in their region. The regional approach of the program further ensures that projects are subject to a peer review process, which more appropriately appreciates the local agricultural environment, therefore increasing relevance and the potential impacts of the funded projects.
The Farm Credit East Startup Accelerator Grant
The Farm Credit East Startup Accelerator Grant is a directed funding opportunity designed to assist early-stage agricultural businesses located in the Northeast part of the United States. It will help new ventures in agriculture, forestry, and fishing by providing the much-needed critical boost during these formative stages.
Who May Apply?
Eligibility: Any early-stage agricultural business with domicile in the Northeastern part of the United States, representing the states of New York, New Jersey, Connecticut, Massachusetts, Rhode Island, New Hampshire, Vermont, and Maine, has access to this grant. Eligible businesses must be in the start-up phase and engaged in agriculture, forestry, or commercial fishing.
Business Types: Grant assistance extends to a wide array of agricultural startups, such as crop production, livestock, dairy, aquaculture, and value-added agricultural products. It is particularly aimed at new businesses with the potential to grow and contribute to the regional economy.
How to Apply?
Application Process Applications are submitted online to Farm Credit East. There is a required business plan that outlines the goals of the startup, the market potential, and how the grant funds would be used to hasten business growth. Applicants will also be required to highlight how their business will enhance the regional agricultural economy.
Amount of Funding Available: The award is up to $10,000 for use in purchasing equipment, marketing, or working capital associated with business expenses.
Judging Criteria: Applications will be reviewed based on the strength of the overall business plan, potential impact to the regional agriculture economy, and the prognosis for growth of the startup.
Website
https://www.farmcrediteast.com/agenhancement
Review
The Farm Credit East Startup Accelerator Grant will be an excellent opportunity for any new agricultural business looking to gain a financial boost in the Northeast. Although $10,000 is modest compared with larger national programs, for a startup this can be just the money spent on buying important equipment, initial marketing campaigns, or even covering the first operational costs. The application process is relatively painless; still, one needs to have a pretty solid business plan to compete. Since it’s regional in nature, applicants are competing against fewer businesses than they would be if it were a national grant. All in all, this grant has proved very useful for startups that need just a little push and really make a difference in the local agricultural scene.
Rural Energy for America Program (REAP) Grants
The Rural Energy for America Program (REAP) Grants is a United States Department of Agriculture program designed to support agricultural producers and rural small businesses in lowering energy costs and enhancing their energy efficiency. It helps in using renewable energy systems and energy efficiency improvements through financial assistance. This hence becomes a great opportunity to be taken advantage of by startups that target changing to the use of sustainable energy solutions within their operations.
Who May Apply?
Eligibility: The REAP Grants are open to the
Agricultural Producers: Any producer directly involved in the production of agricultural products where at least 50% of such entity’s gross income is derived from agricultural activities.
Rural Small Business: Any small business located within an eligible rural area. An eligible rural area is usually any area other than a city or town with a population greater than 50,000 inhabitants.
Eligible Projects: The projects may be of renewable energy systems, which include solar, wind, geothermal, and bioenergy, and energy efficiency improvements such as lighting upgrades, insulation, and HVAC.
How to Apply?
Application Process: Applications are submitted through the USDA’s Rural Development portal. It requires a detailed project description of a given project, an expected energy savings or generation, a technical report for the same, and a budget that outlines the project costs.
Grant Amounts:
- Energy Efficiency Projects: Grants can fund up to 25% of eligible project costs, with a maximum of $250,000 per grant.
- Renewable Energy Systems: Grants also may finance 25% of the project costs, though with an individual maximum of $500,000.
- Loan Guarantees: In addition to grants, REAP provides loan guarantees to cover the remaining project costs.
Website
https://www.rd.usda.gov/inflation-reduction-act/rural-energy-america-program-reap
Review
REAP Grants are an excellent resource for both agricultural producers and rural businesses looking to make the investments required in renewable energy or improving energy efficiency. The grants can significantly lower the overall cost associated with installing solar panels, wind turbines, or energy-efficient systems, therefore making these projects more economically feasible. Application requires a technical process with detailed documentation, like energy assessments and detailed cost estimates. Such savings in energy costs and the positive impact on the environment make this grant program very attractive. REAP provides the financial support and pathway to greener operations that sustainable-focused startups or those involved in high energy usage sectors need. In view of the present emphasis on shrinking carbon footprints and improving energy independence, participation in REAP also shows your business’s improved public image as responsible and forward-looking.
Organic Certification Cost Share Program (OCCSP)
The Organic Certification Cost Share Program is one such federally funded program that enables the defraying of the cost of organic certification for agricultural producers and handlers. This Organic Certification Cost Share Program thus is designed to make it easier for farmers and processors to enter the organic market, thereby reducing financial barriers to becoming certified.
Who May Apply?
Eligibility:
Certified Organic Producers: This means that a certified farmer or rancher has received organic certification under the National Organic Program and is involved in the production of agricultural products.
Certified Organic Handlers: This is businesses engaged in processing, packaging, or storing of organic products and have received certification in organic processes.
Eligibility requirements: Applicants shall be currently certified or seeking organic certification. The certification to be applied for shall be issued by a USDA-accredited certifying agent; certification shall be renewed annually.
How to Apply?
Application Process: Applications are submitted through the local USDA Farm Service Agency offices or through state departments of agriculture. This is the process: Proof of certification must be submitted with an itemized invoice for expenses related to certification, along with a completed application form.
Reimbursement Details:
OCCSP will refund up to 75% of the certification costs, up to a maximum refund of $750 per category. For example, this would include crops, livestock, wild crops, and handling.
Categories: Farmers or handlers can apply in multiple categories if they have a relevant certification. In case of certification for both crops and livestock, the farmer can apply in both categories.
Timing: Applications are accepted on a rolling basis but the deadlines differ for every state. Applicants are allowed to apply soon after certification in order that they get reimbursed.
Website
https://fsa.usda.gov/programs-and-services/occsp/index
Review
The OCCSP is one of the practical, user-friendly programs that can really make a difference in obtaining organic certification for producers and handlers. For small and mid-sized farms or for any new entrant into the organic market, the cost of acquiring and maintaining an organic certification can really add up. This refund program helps alleviate some of that financial burden, so more producers will find it easier to go organic. The application process is rather simple, but you will need to maintain an incredibly detailed record of the expenses of your certification if you want to have a smooth process for reimbursement. For producers already committed to these practices, the OCCSP provides needed financial support to reinforce the economic viability of organic agriculture.
Farm to School Grant Program
The Farm to School Grant Program is a USDA initiative to increase the availability of local foods in schools. This program supports the planning, development, and implementation of farm-to-school programs that bring fresh, local produce into school cafeterias while also providing education about agriculture, nutrition, and healthy eating.
Who Can Apply?
Eligibility: Schools and School Districts: Any public, charter, or private school, or school district, is eligible to apply.
Nonprofit Organizations: Nonprofits that partner with schools in support of farm-to-school initiatives are also eligible.
State and Local Agencies: Eligibility includes state agencies, local governments, and Indian tribal organizations involved in farm-to-school activities.
Agricultural Producers: Farmers, ranchers, and food producers who partner with schools may apply; typically, this is in collaboration with one of the eligible entities above
Types of Projects: Grants can help fund a wide range of projects, such as developing farm-to-school programs, training educators, retrofitting school kitchen infrastructure, building supply chains for local foods, and even creating educational activities regarding nutrition and agriculture.
How to Apply?
The Application Process is carried out online through the USDA’s Farm to School website or through the federal grants portal, Grants.gov. Detailed plans are provided by an applicant for the proposed project, including specified goals, implementation, and expected outcomes.
Planning Grants: This grant is provided to schools or organizations in the early development stages of a farm-to-school program. These are typically between $20,000 and $50,000.
Implementation Grants: Available to those organizations that already have a farm-to-school program in operation and would like to either expand or take their efforts to a higher level of operation. These grants can be as little as $50,000 or as large as $100,000.
Training Grants: Available to organizations that offer technical assistance or training for schools with farm-to-school activities and producers participating in these activities.
Evaluation Criteria: Based on potential impact, feasibility, and alignment with goals of the Farm to School Program.
Website
https://www.fns.usda.gov/grant/fy24-f2s
Review
The Farm to School Grant Program offers immense help to schools and communities that are focusing on child nutrition and local agriculture. The benefits will practically bring fresh, healthful food into cafeterias and provide students with hands-on learning experiences about food and farming. The grant will also cement stronger ties between schools and farmers within a community to establish a more long-lasting food system. This is a competitive process, especially for the implementation grants, but really pays off with large dividends in educational and health outcomes for the students. Any school or organization with a passion for food education and access to local foods should look into this opportunity, as the results go far beyond the school ground when it comes to having a successful farm-to-school program.
Western SARE Farmer/Rancher Grants
The Western SARE Farmer/Rancher Grants are a sub-element of the bigger Sustainable Agriculture Research and Education (SARE) program, focused on farmers and ranchers in the Western United States. Such grants are designed to finance on-farm research and education projects that support sustainable agriculture practices and aid in solving the many special problems confronting many producers in the Western states.
Who Can Apply?
Eligibility
Farmers and Ranchers: Any individual or group of individuals operating a farm or ranch in the Western region, which includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. Projects involving more than one producer or partnership with research institutions or extension services are highly encouraged.
How to Apply?
Application Process: Proposals for funding are submitted through the Western SARE website. The proposal process requires a detailed document describing the project, what the objectives are, how it will be conducted, expected outcomes, and what the budget will consist of. Required also are what evaluation techniques will be used to determine project effectiveness and how this information can benefit farming.
Amounts to fund:
Grants generally fall between $7,500 and $30,000. The actual award is based on the scope and scale of work.
Project Duration: Projects are usually funded for a period of one to two years.
Grant Categories:
On-Farm Research Projects: Grants will be awarded for research trials that occur on the farm or ranch. Trials may include testing new practices, comparing different methods, or evaluating new technologies.
Education and Outreach: Projects teaching other producers, sharing results, or developing resources to extend sustainable practices throughout the farming community.
Sustainability Goals: Projects should enhance economic, environmental, or social sustainability on farms or ranches.
Website
https://western.sare.org/grants/farmer-rancher/
Review
The Western SARE Farmer/Rancher Grants offer a prime opportunity for producers testing or putting into practice innovative sustainable practices in their operations. Such grants fund a good deal of practical, on-farm research that has the potential to really improve sustainability and productivity. While the application process is competitive, it is doable—especially if one has a fairly well-defined project around an issue or need specifically identified in farming or ranching. Past grant recipients have used funding to trial new crop varieties, develop novel Integrated Pest Management techniques, and enhance soil health practices. For farmers and ranchers leading the charge in sustainable agriculture and committed to sharing their lessons learned with others, a Western SARE grant provides both financial backing and a chance for true legacy in agriculture.
AgFunder Innovation Fund
AgFunder Innovation Fund is a venture capital fund investing in early-stage agrifood technology startups. It is managed by AgFunder, the leading online investment platform connecting the best new innovative agrifood startups with investors around the world. The AgFunder Innovation Fund invests in companies creating cutting edge solutions to disrupt agriculture and food.
Who Can Apply?
Eligibility:
Early-Stage Startups: This fund looks for startups in the agrifood tech sector with products or technologies that are potentially ready and functional but need to work on their business models and operations for scaling.
Transformative Solutions: Some examples of the sectors the fund targets are precision farming, sustainable farm practices, food production and processing, new proteins, agtech software, and supply chain optimization.
Geographic Focus: Although the fund is North America focused, it also entertains ideas from all other centres with high potential which fit into its criteriorno.
How to Apply?
Application Process:
Pitch Submission: Interested start-ups should apply by pitching on AgFunder. This requires a detailed overview of the business: the technology or solution being developed, the market opportunity, the team, and financial Projections.
Investment Evaluation: AgFunder’s investment team reviews all submissions, evaluates them, and runs due diligence in regard to the potential for growth and investment return. It might involve interviews, examinations of business plans, financial analysis, among others.
Funding Amounts:
Investment Range: Generally, AgFunder Innovation Fund will invest anywhere from $500K to $5M in an early-stage startup. Again, this will depend on the stage of the company and specifics of the investment opportunity.
Website
https://agfunder.com/
Review
The AgFunder Innovation Fund is a key early-stage opportunity for an agrifood tech startup looking for venture capital investment. This is a great fit for startups developing breakthrough solutions in the agriculture industry, oriented toward innovation and technology. The application process requires having a compelling pitch in terms of potential growth, scalability, and impact the startup may have. Those start-ups that manage to win funding from AgFunder gain access to not just capital but also access to AgFunder’s network of industry experts, strategic partners, and extra resources that can really help a company grow faster. With all the competition in this fund, one has to make sure the business model is solid and the value proposition clear, and that means putting together a good team. In summary, AgFunder’s innovation fund will be an invaluable tool for agrifood tech entrepreneurs looking to bring home impactful, innovative solutions to market
SUMMARY
All these subsidies offer unique opportunities for new agricultural enterprises that may fund anything from innovative research to sustainable practices. The trick to this is finding out their qualifications and then tailoring your application to provide evidence for where in those you think your start-up fits the grant. The application processes will be rigorous, but the benefits can potentially outweigh everything. Good luck!