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Agricultural Hobby Grant For Farming

Agricultural Hobby Grant For Farming

Hobby farming has grown in popularity as people seek organic alternatives and a return to a simpler way of life. Small farms with sales less than $250,000 per year make up 90 percent of all farms, according to the Bureau of Labor Statistics.

Agricultural Hobby Grant

Many of these farms are known as hobby farms. There are agricultural hobby grant and low-interest guaranteed loans for hobbyists are offered through several federal new women farmers grant fund programs.

Agricultural Hobby Grant
Agricultural Hobby Grant

Beginning Farmers

If you’re just starting a hobby farm or have been involved in a small farm for 10 years or less, the Beginning Farmer and Rancher Development Program may offer grants to help you start or improve your business.

In 2010, Congress approved $19 million in grants and guaranteed loans funding.

The premiums can be used to assist aspiring farmers or ranchers with land purchase, entire farm planning, and basic livestock and crop production practices.

Project funding is limited to three years and farm grant applications cannot exceed US $450,000 per year.

Sustainable Agriculture

Sustainable Agriculture Research & Education, or SARE, has funded more than 4,200 projects since 1988.

SARE is a sponsorship program and program promoting sustainable agriculture across America. Successful SARE grant recipients include producers, researchers, nonprofits, and educators.

One example is a small farmer in Vermont who uses his rapeseed fields to make biofuel. The farmer also sells the by-product rapeseed meal as fodder, which ensures the profitability of his hobby business start up.

Rural Scholarships

The US Department of Agriculture sponsors agricultural hobby grant that can be used for planning activities and as working capital for marketing agricultural products, as well as for agricultural renewables.

Independent producers, farmers ‘and ranchers‘ cooperatives, agricultural producer groups and majority-controlled producer-based companies are eligible to apply. Another USDA program, Farm Labor Grants, provides money to buy, build, improve, or repair housing for farm workers.


The majority of small farms are founded for hobby and lifestyle reasons; Plant or livestock farming is usually a secondary source of income. The aquaculture sector is a growing industry for hobby farmers.

Hobby farmers looking to start a fishery should consider applying for the National Oceanic and Atmospheric Administration (NOAA) fisheries funding program; This program provides grant funds and low-interest long-term financing for the construction of aquaculture facilities.

Starting Agricultural Hobby As Profession

There is something important to know about starting a hobby farm. The U.S. Internal Revenue Service excludes hobby farms from receiving tax breaks for smallholders. Some people have claimed hobby farms as tax evasion from people wanting to avoid taxes on pastoral spreads, horse shelters, and ranches they run for pleasure.

Section 183 of the U.S. Tax Code explains the details of hobby farming tax allowances. Small businesses that operate businesses should be ready to provide evidence of their business operations and income in order not to miss the designation as a hobby business and thus the tax advantages.

With this type of property, which breaks the line between home ownership and commercial operations, financing challenges have to be overcome. Residential investors in the secondary market like Fannie Mae and Freddie Mac will generally oppose rural properties with agricultural characteristics.

Brokers interested in obtaining credit on these properties will need to look for lenders who offer affordable 15 or 30 year fixed income products. In addition, in order to subscribe to these loans, lenders must ask hobby farmers for their business records to substantiate their hobby farming income. This documentation should include detailed planned revenue, expense reports, and maybe even business plans.


When it comes to underwriting, brokers and lenders need to understand the unique characteristics of real estate in rural America. Finding appraisers who specialize in hobby farming will be difficult, but lenders with experience in rural property finance should have a network of quality appraisers in place.

Agricultural Hobby Grant
Agricultural Hobby Grant

The main problem, however, is that hobby farming does not fall into a typical characteristic that most appraisers are concerned with.

But the farmers can earn a good amount from agricultural hobby grant.

The land is full of appraisers who can value urban real estate or even country houses of 10 acres or less as it is much easier to find comparable sales in local market areas for those properties.

You can also find appraisers who specialize in larger lots / commercial properties, although these often come with high valuation fees.

Federal Support For Agricultural Hobby Grant

There are some federal support for agricultural hobby grant for farming if the property is qualified. is a great place to start your research.

The USDA Alternative Farming Systems Information Center also lists resources and free grants and credit opportunities for smallholders and other agricultural producers.

Another place to look for funding opportunities is your Cooperative Extension Office. There you will find local and individual help for your special situation. Your Cooperative Extension Office can be a helpful source of information and can save you a lot of time searching for scholarship lists that don’t make sense to your needs or your location.

Agriculture Government Grants

The Sustainable Agriculture Research and Education Organization is a great resources with lists of possible agricultural hobby grant, government programs, and links to private lenders.

For many, the benefits of owning rural property will far outweigh the challenges of financing, underwriting, or post-purchase costs. Creativity in hobby farm business concepts is widespread across the country.

For brokers who are up to this challenge, the possibilities of this niche can be worthwhile. For the new owners, pride in ownership, a sense of achievement, and the ability to improve the rural landscape all add significantly to the upgraded American Dream.

  • Apply For Agricultural Hobby Grant.