In 1916 Congress enacted a law to establish the Farm Credit System (FCS) to provide a reliable source of financing for farmers. FCS is a nationwide network of borrower-owned lending institutions and specialized service organizations that provide loans and other services to agricultural producers, rural homeowners, aquatic producers, timber harvesters, agri-businesses, and agricultural and rural utility cooperatives. According to the federal Farm Credit Administration—which regulates and examines FCS—FCS is the largest agricultural lender in the United States. To locate a Farm Credit institution near you, visit the Farm Credit network website.

State finance programs provide low interest loans, loan guarantees, and loan participation programs to help producers buy land, buildings, equipment and breeding livestock. Some programs, including “Aggie Bond” programs, are targeted specifically to beginning farmers. The National Council of State Agricultural Finance Programs tracks available programs and produces a comprehensive directory of state-level programs available to beginning and established producers.

The USDA Farm Service Agency (FSA) provides direct and guaranteed loans to farmers and ranchers unable to obtain financing from other lenders for operating expenses and land purchases. Microloans are direct farm operating loans with a shortened application process and reduced paperwork designed to meet the needs of smaller, non-traditional, and niche type operations.

To find out more about program eligibility and/or the application process, contact FSA, typically located in your local USDA service center.

Your local bank may also be a potential source for credit. Many banks participate with agencies in providing financing to beginning farmers through state loan programs, including “Aggie Bond” Programs”, and/or may offer loans guaranteed by FSA. Although it is uncommon, some banks have created local financing initiatives that link funds from depositors to a special lending pool available to beginning farmers. Ask your local bank if such a program is available.

Community Development Financial Institutions (CDFIs) are organizations that provide fair and responsible loans with community development as a primary objective. Often, CDFIs are lenders with a mission to provide fair, responsible financing to rural, urban, Native, and other communities that mainstream finance doesn’t traditionally reach. The U.S. Department of the Treasury’s CDFI Fund Program offers both Financial Assistance and Technical Assistance awards to CDFIs. These competitive awards support and enhance the ability of these organizations to meet the needs of the communities they serve.

The Sustainable Agriculture Research and Education (SARE) program is a regional competitive grants and education program operating in every state. The program, supported by USDA, is run by four regions—North Central, Northeast, South and West, each guided by a volunteer Administrative Council that makes grants and sets regional priorities. SARE’s four regions offer an array of competitive grants for farmers and ranchers (and researchers, agricultural educators, and students) in the United States.

State Departments of Agriculture may offer grants to farmers to implement conservation practices, expand market opportunities, develop new products or provide assistance with business planning. These opportunities may be available to new and experienced farmers and typically can be found listed on State Departments of Agriculture websites under Funding Opportunities or Programs.

USDA’s Rural Development offers multiple grant funding opportunities. The Value Added Producer Grant Program helps agricultural producers enter into value-added activities related to the processing and/or marketing of bio-based, value-added products. Priority may be given to a beginning farmer or rancher, a socially-disadvantaged farmer or rancher, a small or medium-sized farm or ranch structured as a family farm, a farmer or rancher cooperative.

The Rural Energy for America Program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.

Each fiscal year, Rural Development grant applications are requested through an announcement posted on Grants.gov.

AFT’s Brighter Future Fund assists farmers in successfully launching, growing, and sustaining farms in the face of forces impacting the food and agricultural system, including the COVID-19 pandemic, changing markets, severe weather, and climate change.

Included in Farm Aid’s work to build a thriving family farm-centered system of agriculture, is the Farm Aid grant program, which funds organizations serving family farms. Farm Aid grantees around the country are critical partners in the movement to keep family farmers on the land, producing good food for all.