Grant Funding 101
Grants offer a valuable source of funding to help farmers launch, expand, or improve on-farm projects. Provided by government agencies, nonprofits, and other organizations, these funds support initiatives that deliver broader public benefits like environmental stewardship, food system resilience, and rural economic development. From increasing efficiency to adopting sustainable practices, grant programs can help farmers achieve key business goals. This page offers a practical overview of how to find, evaluate, and apply for grants, with tips for aligning farm goals with funder priorities, navigating eligibility requirements, and building a strong application. Whether you're exploring cost-share programs or preparing a competitive proposal, you'll find guidance to help you make the most of available opportunities.
Learning Hub ▶ grant funding 101
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Grant Basics
Grants are a source of funding designed to support on-farm projects. Unlike loans, grants do not need to be repaid. They are typically provided by government agencies or philanthropic organizations to fund initiatives that offer broader public benefits, such as strengthening local food systems, improving environmental outcomes, or creating jobs.
Farmers can use these programs to:
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Increase Sales
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Improve Efficiency
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Diversity Business
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Adopt sustainable practices
Grant programs can be public or private and may originate from different geographic levels, including federal, regional, state, or local sources. In most cases, funding is limited and awarded through a competitive application process. Applicants must meet eligibility requirements, and funding decisions are based on specific evaluation criteria set by the granting agency.
Where to learn about grant oppertunites
Learn More
Please note that we cannot confirm the accuracy or reliability of the materials found on external websites linked here.
References
Information for this was developed in collaboration with Lasso, Inc.
Identifying Grants
Because grants are administered at many levels—federal, regional, state, county, and local—there is no single website that lists every opportunity. Instead, you’ll need to look across different geographic tiers and funding types (public and private).
Tips for finding grants:
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Sign up for updates from your co-op, checkoff group, banking partner, or other industry organizations. Many share grant opportunities through newsletters or outreach emails.
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Contact your local NRCS or Soil and Water Conservation District office, which often have information about conservation-focused programs and application support.
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Reach out to your nearest university extension office, which may offer guidance or list local and state grant opportunities.
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Explore both public and private programs, as foundations, non-profits, and agribusinesses may also offer funding or cost-share options.
By checking across these channels, you’ll improve your chances of finding grants that align with your farm’s goals.
stacking funding
Some grants allow funding stacking—the ability to combine financial support from multiple sources (e.g., federal, state, and local programs) to fund a single project. This can be a valuable strategy to cover more of your total project costs. However, not all programs allow this. Some grants prohibit using other public funds as a match or may restrict how multiple grants can be applied to the same project.
Always check the Request for Proposal (RFP) or program guidelines to see if stacking is allowed. If the language is unclear, contact the funding agency directly to confirm whether you can apply for multiple grants for the same project or use one grant as a match for another.
Determing Grant Fit
Carefully evaluating grant opportunities before applying is essential to avoid wasting time and resources. By ensuring you meet eligibility requirements, have a strong chance of being competitive, and are truly ready to implement the project, you can focus your efforts on grants where you’re most likely to succeed. This upfront assessment helps prevent investing hours into applications that ultimately won’t be considered or can’t be completed effectively.
KEY QUESTIONS TO DETERMINE ELGIBILITY
Applicant Eligibility
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Am I the eligible applicant type? For example, some grants might be for non-profits or for public entities (e.g., municipalities) rather than for individual producers or for-profit businesses
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Am I in the eligible geography?
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Does my business meet size requirements? (e.g., years in business, revenue, number of employees, profile of employees)
Project Eligibility
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Does the end goal of my project align with the state grant goals
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Do my corresponding budget items fall under eligible activities?
Tips for Improving Competivness
After determining you and your project are eligible, you need to make sure you have a high likelihood of getting the grant so it’s worth your time and energy to apply. Even though you might be technically eligible, you might not be a good fit for the grant goals.
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Check the rubric: Most grants have a scoring rubric. Estimate how you or your project would score and check if the funding agency is willing to share typical scores that get awarded and not awarded
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Contact the agency: Pick up the phone or email the agency to learn more what projects or applicants are prioritized for this grant
KEY QUESTIONS TO DETERMINE READINESS
Will the farmer be responsible for covering project expenses up front?
Many grants operate on a reimbursement basis. In these cases, the grant funds are only distributed after the applicant has paid for eligible, pre-approved expenses out of pocket or through financing. The farmer must submit documentation (such as invoices or receipts) to receive reimbursement. Therefore, it's critical to have a plan in place for covering upfront costs. In some cases—particularly for historically underserved applicants—funding agencies may allow for upfront disbursements upon request.
Are matching funds required?
Some grants require applicants to contribute a share of the total project cost through cash, loans, credit, or in-kind contributions. For example, if a project costs $100,000 and the grant covers 25%, the applicant must demonstrate the ability to cover the remaining $75,000. In-kind contributions may include donated materials, volunteer labor, use of space, or equipment. Lenders can provide a matching funds letter verifying that the applicant has cash on hand, an approved loan, or a line of credit to meet the match requirement.
Is a partner or letter of support required?
Many grant programs either require or strongly encourage letters of support. These letters, written by external individuals or organizations, demonstrate community or stakeholder backing and strengthen the proposal by highlighting the value and potential impact of the project. Applicants should give partners or supporters ample notice to write a thoughtful, personalized letter. Some grants may also require formal partnerships with vendors or nonprofit organizations.
Is a business plan needed?
Some grants require a current business plan or recommend submitting one to strengthen the application. Because developing a business plan can take significant time, farmers should begin this process at least two months in advance of the grant deadline. This may involve gathering business data, organizing financial statements, and working with an advisor or accountant. Tools like LivePlan can assist those preparing plans independently.
Are vendor quotes required with the budget?
For capital items like equipment or construction, many grants require vendor quotes to justify budget estimates. Applicants should plan to contact vendors at least one month in advance to request written quotes.
Is registration in SAM.gov required?
Applicants pursuing federal grants will likely need to register with SAM.gov, the System for Award Management, to receive a Unique Entity Identifier (UEI). This registration is mandatory to receive federal funding. Since it can take up to 10 business days to process, it’s important to complete this step early.
Does the grant require a partner organization?
Some grant programs require formal collaboration with a project partner, such as a nonprofit, university, or business vendor. Applicants should reach out to potential partners early to confirm their interest, define roles, and collect any required documentation or commitments.
Applying for the Grant
Apply Broadly, Decide Later
Don’t hesitate to apply for multiple grants—this can increase your chances of getting funded and give you options. If you're awarded more than expected, you can always decide which opportunities to move forward with based on timing, fit, and available resources.
It is challenging to define the typical process for applying for a grant as each process varies significantly based on the grant. In general, there are different processes for cost-share grants vs proposal-based grants.
Cost Share Program
Less of an application-heavy lift, but rather direct work with your local office. Reach out to your local NRCS or Soil & Water Conservation District office. With the office, you can find out about upcoming deadlines to participate in the cost-share programs, understand local funding priorities and cost-share levels, and exact steps to receive cost-share approval. Find your NRCS office here: https://www.nrcs.usda.gov/state-offices
Proposal Based Oppertunities
Often requires significant time and effort, with limited interaction with funding agency during application process
The subsequent slides will go into more details, but the high level process is as follows: set your project goals and define their relationship to the grant priorities and to your longer-term business goals, create a corresponding budget that aligns with those project goals, find contacts for letters of support, and draft narrative.
Proposal-Based Grant Tips
Aligning Goals and Grant Priorities
Aligning farm goals with grant priorities is essential to building a strong, competitive application. Funders want to support projects that advance their mission—whether that’s environmental stewardship, rural development, innovation, or economic resilience. When a farmer’s goals clearly match those priorities, it shows the project is not only well-planned but also relevant and impactful. This alignment increases the chances of funding and ensures the grant supports long-term business success, not just short-term needs.
For example, if a farmer’s long-term goal is to expand the business, investing in a milking robot could help free up labor and improve efficiency—setting the stage for future growth. Including this project in a grant application would make sense if the funding program prioritizes labor-saving technologies or innovation in dairy operations. Throughout the application, especially in the narrative and budget justification, it’s important to clearly connect each project and expense to both the farm’s broader business goals and the grant’s stated priorities. This alignment strengthens the proposal and shows the project is well-planned, relevant, and likely to deliver lasting impact.
Developing a Grant Budget
Once your project goals are clearly defined, the next step is to build a corresponding budget that supports turning those goals into reality. A well-constructed budget not only outlines the financial needs of your project but also demonstrates its feasibility to the funder.
Typical Budget Categories
Include cost estimates for major components of your project. Common categories include:
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Equipment: Machinery, tools, or technology needed for implementation
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Supplies: Consumable materials used during the project
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Marketing: Outreach, communication, or education efforts
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Personnel/Labor: Staff time or wages directly tied to the project
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Consultants: Fees for external experts or technical assistance
Direct vs. Indirect Costs
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Direct Costs: Expenses directly attributable to the proposed project (e.g., project-specific equipment, wages, materials)
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Indirect Costs: Overhead expenses that support multiple projects but cannot be easily assigned to one (e.g., utilities, administrative salaries). Some grants allow a set percentage for indirect costs.
What to Include in the Budget Document
Each line item in your budget should be clearly explained and justified. Make sure to include:
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Budget line item name
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Requested grant amount for that item
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Source of cost estimate (e.g., vendor quote, online pricing, past purchase, or extension recommendation)
A clear, well-justified budget improves transparency and strengthens your overall proposal.
Developing a Grant Narrative
A compelling grant narrative should be grounded in your project goals, clearly demonstrate how those goals align with the grant’s priorities and your long-term business objectives, and explain how your budget supports successful implementation. Once these building blocks are in place, you can craft a cohesive, persuasive story that shows why your project is worth funding.
Tips for Writing a Successful Narrative:
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Be concise: Avoid unnecessary fluff—clear, data-backed points are more persuasive. For example, if you aim to expand sales of a value-added product locally, include data on local demographics, consumer trends, and your product’s historical performance.
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Be specific: Tailor your narrative to your actual project and context. National trends may be helpful background, but state or county-level data is far more relevant—especially if your project has a local focus.
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Be consistent: Ensure your narrative aligns with the rest of your application. Your goals, work plan, and budget should all reinforce a single, clear vision of how your project contributes to your long-term business strategy.
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Meet all requirements: Carefully follow the grant’s instructions. Address every question or prompt, and stick to any word or character limits. Incomplete or noncompliant applications are often disqualified.
A well-crafted narrative connects the dots between need, opportunity, and impact—making a strong case for why your project should be funded.
grant reviw and submission
Before submitting your grant application, take time to carefully review it for clarity, accuracy, and completeness. Check for any typos or grammatical errors, ensure you've met all word or character limits, and confirm that all required elements—such as the narrative, budget, and letters of support—are included. If the grant includes a scoring rubric, double-check that you've addressed each point clearly to maximize your competitiveness.
When you're ready to submit, verify the preferred submission format—whether it's an online portal, email, or mailed hard copy—and follow instructions exactly. Always request or confirm receipt of your submission to ensure it was delivered successfully and is under review.
Two primary types of competitive grants in agriculture
Where to learn about oppertunites
For a general overview of grant funding programs, see Funding and Financing 101
For detailed information about the USDA Natural Resources Conservation Service (NRCS) Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP) see A Guide to National Resources Conservation Service (NRCS) Funding for Dairy Farms
While there are many types of grants available to farmers, most agricultural grants fall into one of two main categories:
Cost Share Program
In cost-share programs, the funding agency reimburses a set percentage of the total project cost based on established rates for specific practices. The applicant is responsible for paying the remaining costs and often must cover expenses upfront before reimbursement is issued. Eligible practices and reimbursement rates vary by state and local office. These programs typically fund well-defined conservation or infrastructure improvements, and funding windows often align with state or federal enrollment periods.
Proposal Based Oppertunities
In proposal-based grants, applicants must submit a detailed proposal describing their project goals, activities, timeline, expected outcomes, and budget. Funding is awarded competitively based on the proposal’s merit, its alignment with the agency’s priorities, and available funds. Applicants request a specific dollar amount based on their planned activities, and there are generally no set reimbursement rates for individual practices. Some programs may require applicants to contribute matching funds, either in cash or in the form of in-kind support (such as labor or materials). Proposal-based grants typically have a single, highly competitive application window per year, and awards are often announced several months later.
Grant Writting Process Overview
The grant writing process begins by clearly defining business goals and the specific projects planned for the upcoming year. Once projects are outlined, the next step is to identify grants that align with these initiatives. Each grant opportunity is then evaluated to ensure the project is eligible, competitive, and ready for submission. If a good fit is confirmed, the grant application is prepared, including crafting a strong narrative, developing a budget, and gathering required letters of support. Before submission, the application undergoes a thorough review to ensure quality and compliance with all formatting requirements. After a grant is awarded, ongoing follow-up and reporting are essential to meet post-award obligations.
Sources of support for the grant process
Align Your Budget to Long-Term Goals and Grant Priorities
Farmers don’t have to navigate the grant writing process alone—there’s support available. University extension programs, conservation-focused non-profits, and even professional grant writers can offer guidance on finding the right opportunities, developing strong applications, and understanding program requirements. Reaching out to these resources can make the process more manageable and increase your chances of success.
Working with a Grant Writer
A grant writer can help you find suitable funding opportunities, assess which ones are a good fit, and guide you through the entire application process. The best time to reach out is after you've defined your business goals and identified projects you'd like to pursue.
How to Choose a Grant Writer: Start by asking your trusted network—such as your co-op, checkoff program, or local extension office—for referrals. When evaluating a grant writer, consider:
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Fee transparency – Do they clearly explain how they charge?
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Process clarity – Can they outline how they’ll support you?
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Track record – Ask about their experience and success rate.
Understanding Fee Structures: Grant writer fees can vary, so be sure to ask how they charge:
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Flat fee – A set amount paid up front, regardless of the outcome.
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Success fee – A percentage of the grant award, typically higher than a flat fee.
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Combination – A smaller fee up front, plus a success-based payment if the grant is awarded.
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What to Expect During the Process
Your grant writer will likely:
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Set a timeline and work plan for the application process
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Help you clearly define your project goals and connect them to grant priorities
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Draft the narrative, compile supporting documents, and prepare the final application
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Provide templates for letters of support and matching fund documentation
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Submit the grant on your behalf (if authorized)
After the Grant Is Submitted, stay in touch—both you and your grant writer should notify each other if you hear from the funding agency. It’s important to confirm upfront whether the grant writer will support any follow-up actions after an award is made, such as post-award reporting or compliance documentation.