Looking for grants

One of the most common requests we get from new farmers is about the availability of grants to start businesses. The fact is that there are a few grant programs available to farmers and small business owners but, for the most part, success in the application process requires experience and the funds are not for startup.
What is a grant? A grant is money that is given for a specific purpose. Grant funds do not have to repaid unless the provisions of the grant are violated but grants are not free money. There are strings attached to grant funds. Normally there is a fairly rigorous application process which requires careful preparation and planning. The competition for grant funds can be stiff and only a small fraction of applications get funded. Once funds are awarded there is usually a reporting and accountability process that can be fairly time-consuming.
If you are interested in raising money to start a new agricultural business you might be better off spending your time and energy writing a compelling business plan that clearly spells out what you will be producing, who your customers will be, how much you will sell and at what price. When you have all that information pulled together you will be able to determine whether or not the business idea is feasible. If the business is a feasible venture you might be better off either raising investment capital from family and friends or borrowing the money from a lender.
In general, grants are not a good source of startup financing.