Funding Opportunities for Farm Diversification
Farm diversification is a strategic approach for farmers to enhance their business stability and diversify their income sources in an ever-evolving agricultural landscape. Farm diversification helps mitigate risks caused by market fluctuations, unpredictable weather events and other uncertainties. New income streams can open doors into niche markets, capitalize on consumer trends and help farmers get all the value they can from their land and farming operations. The best news is that there are funding opportunities to help farmers develop farm diversification plans that work best for their operations and business goals, minimizing risk and giving an income boost to businesses exploring new revenue streams.
Branch Out Into Specialty Crops
“Specialty crops” is a general term that includes a wide variety of fruits, vegetables, nuts and other commodities. It can also refer to products grown using specific production methods. Organic produce, heirloom varieties, ethnic or specialty vegetables and medicinal herbs all fall under this umbrella. Incorporating a specialty crop into your planning can provide a separate, growing income stream with premium prices while differentiating your farm business in the marketplace.
Several funding sources can help support your diversification:
The Specialty Crop Block Grant Program is administered by state departments of agriculture and provides funding for proposals that enhance the competitiveness of specialty crops. For farmers, this could look like promoting and developing food safety practices, supporting research initiatives, implementing organic and sustainable production practices or creating programs that serve schools or underserved communities.
If you’re interested in going organic, the USDA Organic Certification Cost Share Program reimburses up to 75% of producers’ organic certification fees during the program year, up to $750 per scope. Organic Certification Cost Share is administered by state departments of agriculture, and many organic certifiers provide cost share application support for their clients.
The Environmental Quality Incentives Program (EQIP) gives grants to producers implementing conservation practices that benefit soil, water, air and wildlife habitats. EQIP grants can support adding a sustainably grown specialty crop to a farm business by funding new management practices that benefit the environment, including irrigation efficiency or pest management systems. Learn more at your local Natural Resources Conservation Service (NRCS) office.
Direct-to-Consumer Sales and Agritourism
Agritourism is an increasingly popular mode of travel for consumers, giving farmers a non-horticultural opportunity to earn additional revenue from their existing land. Agritourism doesn’t just mean hosting overnight guests on your farm. More commonly, it can look like offering on-farm tours, direct-to-consumer sales, educational programs, workshops, hosting seasonal events and more. The gains here aren’t purely financial, either. Opening your farm to the public deepens connections with your local community and teaches people about where their food and fiber come from.
Many states offer local or state tourism grants that include funding opportunities specifically for developing agritourism opportunities on local farms. Depending on your state’s offerings, these funds could support you from the beginning of your agritourism development by funding feasibility studies and market research or assisting with the implementation phase by paying for infrastructure or implementing new practices.
The Farmers Market Promotion Program (FMPP) gives grants to projects that expand direct-to-consumer outlets, including farmers’ markets (of course) but more helpfully to individual farmers; this also includes roadside stands, agritourism, internet sales and community supported agriculture. The FMPP will reopen for applications in spring 2025.
Livestock and Ranching Diversification
Livestock and ranching operations have specific challenges and opportunities, so farm diversification may look different for these producers. Value-added food or fiber products, direct-to-consumer sales, animal-focused agritourism programs and enhanced sustainability measures can all provide new income sources for these businesses.
The Value-Added Producer Grant (VAPG) can help fund the development and marketing of value-added livestock and ranching products such as cheese, meat, yarn and more. Processed products often bring in a higher price than raw products and can attract business to your farm. VAPG pays for a wide variety of product-supporting activities, which you can learn more about through your local Rural Development State Office.
For those with rangeland, the Grazing Lands Conservation Initiative (GLCI) provides funding for conservation practices on grazing lands, promoting sustainable land management and enhancing the productivity and environmental benefits of livestock operations. Learn more about GLCI through your local NRCS office.
