Finances

Open Applications:

 

REAP applications are now open. Through the  Resource Enhancement and Protection (REAP) Program, farmers, landowner, and businesses earn tax credits for implementing "Best Management Practices" (BMPs) that will enhance farm production and protect natural resources.

  • REAP is a first-come, first-served program – no rankings.  

  • Eligible applicants receive between 50% and 75% of project costs in the form of State tax credits for up to $150,000 per agricultural operation.

  • Applicants can apply for proposed projects and/or completed projects.  Learn more.

PA DEP's Small Business Advantage Grant is now open to new applications.

SBAG provides 50% matching grants, up to a maximum of $9,500 to enable Pennsylvania small businesses to purchase energy efficient or pollution prevention equipment, or adopt waste reduction processes.

Resources:

The Center for Rural Affairs' Strategies for

Financing Beginning Farmers provides 

user-friendly steps to prepare you to obtain 

financial support for new ag ventures. 

Download it. 

The SBA (Small Business Administration) has a variety of resources for beginning farmers, including consulting, business plan help, and loans.

 

Conventional financing/cost shares:

PA's Next Generation Farmer Loan Program uses federal tax-exempt financing to reduce a farmer’s interest rate for capital purchases, such as direct purchase of farm and

agricultural machinery and equipment.

Uses

-Agricultural land

-Agricultural improvements

-Depreciable property

Eligibility

-Permanent Pennsylvania resident who are at least 18 at the time of the loan application

-Must meet lender’s credit standards

-Access to adequate working capital, farm equipment, etc.

-Borrower must not have had any prior ownership of a substantial portion of land.

Farm Credit  works with beginning and experienced operators.  Their Smart Start program for farmers 35 or under,  or with 10 or fewer years of farming, earn credits for loans by completing educational workshops. 

 

Cost share funding is available for a variety of conservation practices and the certification process for going organic.

 

FSA (Farm Service Administration) is the federal agency that registers your farmland for access to loans, both operating and ownership, are considered 'the loan of last resort' and require the borrower to exhaust commercial lending possibilities. Most FSA loans, except microloans, have a 3 year education requirement; 1 year is typically waived for eligible military service. On-the-job (OJT) apprenticeships/interships may qualify you for the education requirement. FSA has loan programs for beginning farmers (10 years or less) veterans, women, and minorities.​ Find your nearest FSA office here.

NRCS  Funding is available to eligible ag producers for a variety of conservation practices. High tunnels are a popular cost share program.

Other lenders focusing on innovation/value added:

Idea Foundry’s Local Food System Innovation Program offers financial assistance to farms, agriculture technology companies, and others which advance the production and distribution of local food through the Local Food Growth Fund. Applicable organizations cover the Greater Pittsburgh Economic Region, made up of 32 counties in Western Pennsylvania, Ohio, West Virginia, and Maryland.  Contact them at info@ideafoundry.org to express your interest and learn more.

The Progress Fund , based in Greensburg, PA,  provides loans from $20,000 to $1 million to start, expand or buy small businesses, and has an interest in

innovative agribusinesses in PA. Their loans can be used to purchase property, restore and rehabilitate buildings, purchase inventory or  equipment, buy the assets of an existing business, and for working capital.  The interest

rate is variable based on the risk of the project.Terms are typically five to fifteen years.  An origination fee and various closing costs are charged. 


Grants for ag are extremely limited. However, if you become aware of a grant, don't let inexperience keep you from applying. We can help--email us.

Farmer Veteran Fellowship Fund applications are typically open in during the first quarter of the year.

USDA Rural Development administers a wide variety of funding and technical assistance programs, including the Value Added Producer grants, which are available on a cyclical basis. Generating new products, creating and expanding marketing opportunities, and increasing producer income are the goals of this program. Staff in your local RD office cannot write your grant application, but meeting with them prior to applying to discuss your potential project should be your first step.

 

Before approaching a lender or investor, you must have a business plan. Michigan State University Extension's draft template walks you through the process. Download it here. Small Business Development Centers located at colleges/universities throughout PA also provide a variety of services to veterans.

Veterans and those farming 10 years or less receive preference or rating points for many federal programs.

"Creative financing" might include lease-to-own, apprenticeship/internships on land you will purchase in the future through FSA loans, or public/private ventures.  Send us your story to share. 

Information on this page is for educational purposes and does not imply endorsement.

TM

TM

TM

Copyright Mimi Thomas-Brooker, 2019.  All Rights Reserved.

PA Veteran Farming Project

Pennsylvania Veteran Farming Project

Troops to Tractors 

Logo trademarked. All Rights Reserved.