Financial Resources for Beginning Farmers
Managing your farm’s finances can be challenging. The Farm Financial Management toolbox is a great resource to help manage your finances and give you a better handle on the bottom line of your business. This page gives you an overview of loans, grants and business support opportunities.
Start With Knowing Your Goals
One place to begin is by answering a few simple questions about yourself at the USDA Farm Loan Discovery Tool. This is a helpful questionnaire that helps beginning farmers focus on what their passions and resources are.
Resources on Loans
There are a variety of loan programs for beginning farmers. State loans are available through the California Department of Food & Agriculture (CDFA). Federal loans are available through the United States Department of Agriculture (USDA) and Small Business Administration (SBA). The Farm Credit Services of America is a customer-owned financial cooperative that’s focused on helping new farmers. The organization gave out more than $5.6 billion in loans to young, beginner, and small farmers in 2018 alone.
California Department Food & Agriculture (CDFA)
The Farmer Resource Portal is designed to help farmers and ranchers find key information about CDFA programs, regulations and current news. CDFA offers for farmers and ranchers information in multiple languages.
Small Business Association (SBA)
The Small Business Association is a federally-funded option for financing. The benefits of going through the SBA are its competitive terms, many accompanying counseling and education options, lower down payments, and flexible overhead requirements. For more information on loan SBA options, visit their funding programs page.
USDA Farm Service Agency (FSA)
The USDA Farm Service Agency (FSA) offers targeted farm ownership and farm operating loans to assist beginning farmers and ranchers, as well as underserved applicants.
Beginning farmers and ranchers who cannot obtain credit from a commercial lender can apply for either FSA direct loans or guaranteed loans. Direct loans are made to applicants by FSA. Guaranteed loans are made by lending institutions who arrange for FSA to guarantee the loan. FSA can guarantee up to 95 percent of the loss of principal and interest on a loan. The FSA guarantee allows lenders to make agricultural credit available to producers who do not meet the lender's normal underwriting criteria. Click on the button below to locate your local FSA office for assistance.
The direct and guaranteed loan programs have historically provided three types of loans: farm ownership loans, farm operating loans and emergency loans. In addition to these loan products, FSA also offers microloans through the direct loan program. The focus of microloans is on the financing needs of small, beginning farmer, niche and non-traditional farm operations. Microloans are available for both ownership and operating finance needs. Visit FSA online for more information on microloans.
Grants and Cost-Share Programs
The State of California is committed to promoting agricultural practices that aim to improve soil health, sequester carbon, and reduce greenhouse gas emissions. Through the California Department of Food and Agriculture (CDFA), farmers and ranchers can apply for grants that pay for these practices. Learn more about the Healthy Soils Program (HSP) and the State Water Efficiency and Enhancement Program (SWEEP).
NRCS Environmental Quality Incentives Program
The Natural Resources Conservation Service (NRCS) is a division of USDA and offers an Environmental Quality Incentives Program (EQIP) that provides financial and technical assistance. EQIP grants incentivize practices that create environmental benefits such as improved water and air quality, conserved ground and surface water, and increased soil health. Wildlife habitat creation and mitigation against drought are also included. They offer specific loans and grants for practices such as planting cover crops, prescribed grazing and water conservation.
Conservation Innovation Grants (CIG)
Conservation Innovation Grants (CIG) is another program offered by the NRCS. CIG are competitive grants that drive public and private sector innovation in resource
conservation. CIG projects inspire creative problem-solving—boosting production on farms, ranches, and private forests through improvements in water quality, soil health and wildlife habitat.
Business Support from Private Lenders & Non-Government Organizations (NGOs)
FarmLink helps new farmers find land and secure financing from $1,500 to $1.8 million.
Kitchen Table Advisors provides farmers with access to the tools, knowledge and resources they need on their path to becoming resilient and viable businesses.
The Farm Credit System serves all 50 states and the Commonwealth of Puerto Rico. Created by Congress in 1916 to provide American agriculture with a dependable source of credit, the System is the nation’s oldest government-sponsored enterprise. The four banks and 67 associations of the Farm Credit System are cooperative institutions designed to meet the credit needs of farmers, ranchers, rural cooperatives, and others who are eligible to borrow.
SCORE is another great resource for beginning farmers. They are a nonprofit organization dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship.
