USDA agriculture grants 2026: what is open, what is paused, and who can apply
USDA funds farms, rural businesses and rural communities through a mix of grants, cost-share payments, easements and loans. 2026 changed the picture: REAP grants have been paused since April, most FY2026 grant windows have closed, and several award caps and match rules are different from last year. This guide gives the current status of each major program, the FY2026 caps and match requirements from USDA's own notices, and who is actually eligible to apply, including the programs a council of governments, tribe or nonprofit applies for on behalf of a region. For general small business grants, see our complete grants guide.
- Paused: REAP grants. USDA rescinded the funding notice on April 15, 2026 and will take new grant and guaranteed-loan applications only after it publishes a revised regulation.
- Closed for FY2026: Value-Added Producer Grants (April 22), Beginning Farmer and Rancher Development (June 16), Specialty Crop Block Grants (June 8), Farmers Market and Local Food Promotion (June 5) and Rural Business Development Grants (June 30). Next rounds have not been announced.
- Open now: EQIP and CSP conservation programs take applications year-round, with state ranking cutoffs for FY2027 starting around September and October 2026. The Agriculture Innovation Center grant is open until January 31, 2027.
- For councils of governments, tribes and nonprofits: RBDG, Community Facilities, and the Farmers Market and Local Food programs are applied for by public bodies and organizations, not individual businesses. See the section for regional grant administrators below.
💰 Farm diversification: Value-Added Producer Grant ($50,000 planning, $200,000 working capital in FY2026; dollar-for-dollar match)
🏛️ For public bodies: Rural Business Development Grants and Community Facilities
🔌 Energy projects while REAP is paused: keep your energy audit and quotes current
Understanding USDA grant programs
USDA funding reaches farms and rural places through several agencies, and each one runs its own application route:
Rural Development (RD): programs for rural businesses, cooperatives, community facilities and energy, including REAP, Value-Added Producer Grants and Rural Business Development Grants. RD now says it will post future funding notices only on its own website and Grants.gov, without a Federal Register notice, so anyone tracking the Federal Register alone will miss them.
Natural Resources Conservation Service (NRCS): conservation payments and easements, including EQIP, CSP and ACEP.
Farm Service Agency (FSA): farm loans, including targeted loan funds for beginning and veteran farmers.
National Institute of Food and Agriculture (NIFA): research, education and extension grants, including the Beginning Farmer and Rancher Development Program.
Agricultural Marketing Service (AMS): the Specialty Crop Block Grant Program and the Local Agriculture Market Program (Farmers Market Promotion and Local Food Promotion).
Application routes differ by program: Value-Added Producer Grants use RD's own Grant Application Portal, RBDG and REAP go to the RD State Office, NRCS programs start at your local USDA Service Center, and many NIFA and AMS programs use Grants.gov. Find a Service Center with the farmers.gov locator. For help with federal applications, see our Grants.gov tutorial.
2026 status of major USDA grant programs
Status as of 24 September 2026, from each program's FY2026 funding notice or rule.
| Program | Who applies | FY2026 terms | Status |
|---|---|---|---|
| REAP (Rural Energy for America) | Agricultural producers, rural small businesses | Under the rescinded notice: up to $1,000,000 (renewable energy) or $500,000 (efficiency); 25% to 50% of project costs | Grants and guaranteed loans paused since April 15, 2026 |
| Value-Added Producer Grant | Producers, producer groups, cooperatives, majority-controlled producer ventures | $50,000 planning; $200,000 working capital; dollar-for-dollar match | Closed April 22, 2026 |
| Beginning Farmer and Rancher Development | Organizations and collaborative networks (not individuals) | Up to $250,000 a year for 3 years; 25% match | Closed June 16, 2026 |
| EQIP | Agricultural producers | Payments capped at $450,000 per person or entity for the farm-bill period | Year-round; state ranking dates |
| Conservation Stewardship (CSP) | Agricultural producers | Payments capped at $200,000 per person or entity for the period; 5-year contracts | Year-round; state ranking dates |
| ACEP farmland easements | State and local governments, tribes, nonprofits (as eligible entities) | Up to 50% of the easement's value | Through NRCS state ranking |
| Specialty Crop Block Grant | State departments of agriculture, which sub-award | About $288,737 base per state plus formula; 25% sub-award cost share from FY2027 | Federal window closed June 8, 2026 |
| Rural Business Development Grant | Public bodies, tribes, nonprofits (not for-profits) | No maximum; typically $10,000 to $500,000; no match | Closed June 30, 2026 |
| Farmers Market Promotion | Local governments (including councils of governments), nonprofits, economic development corporations, producer networks | $50,000 to $500,000 by project type; 25% match | Closed June 5, 2026 |
| Local Food Promotion | Same as Farmers Market Promotion | Planning $25,000 to $100,000; implementation $100,000 to $500,000; 25% match | Closed June 5, 2026 |
| Rural Cooperative Development Grant | Nonprofit institutions | FY2025: up to $1,000,000; 25% match | No FY2026 round announced |
| Agriculture Innovation Center | See the notice for eligible applicants | Set in the FY2026 notice | Open until January 31, 2027 |
USDA REAP: grants paused in 2026
The Rural Energy for America Program funds renewable energy systems and energy efficiency improvements for agricultural producers and rural small businesses. On April 15, 2026, USDA rescinded the REAP funding notice for fiscal 2025 to 2027 and said it will announce new grant applications only after it publishes an updated regulation. As of 24 September 2026 no new rule had appeared. The earlier FY2026 deadlines (September 30, 2025, December 31, 2025 and March 31, 2026) no longer apply. The rescission covers REAP guaranteed-loan applications too.
What the program looked like under the rescinded notice: grants of up to $1,000,000 for renewable energy systems and up to $500,000 for efficiency improvements, covering 50% of project costs for zero-emission systems, efficiency projects, energy communities and tribal applicants, and 25% for other projects such as biomass. That means applicants paid 50% to 75% of the cost themselves. Smaller projects file shorter technical reports. Expect the new rule to change some of these terms.
Eligibility: agricultural producers must earn at least 50% of gross income from agricultural operations, and may be located in non-rural areas for projects tied to the farm. Rural small businesses must be in a rural area, meaning outside places of more than 50,000 people.
Veteran farmers receive priority in several USDA programs, so see our veteran business grants guide for more options. For tech-focused agricultural startups, our startup grants guide covers USDA and NSF research grants, and our grant writing software comparison reviews tools for tracking several applications.
Value-Added Producer Grants (VAPG)
Value-Added Producer Grants help agricultural producers turn raw products into higher-value goods or new markets. In FY2026 the caps were $50,000 for planning grants (feasibility studies, business plans, marketing plans) and $200,000 for working capital grants (processing, marketing and distribution costs). Every grant dollar needs at least one dollar of matching funds.
Examples of eligible projects: a cattle rancher developing a branded beef jerky line, a fruit grower launching a jam or cider brand, a dairy farmer adding artisan cheese, or a grain farmer producing craft flour or malt for local brewers.
Eligibility: independent agricultural producers, agricultural producer groups, farmer or rancher cooperatives, and majority-controlled producer-based business ventures. USDA reserves funds for beginning, veteran and socially disadvantaged producers, mid-tier value chain projects and food safety projects, and in FY2026 also gave points to first-time applicants and to requests under $125,000.
How to apply: the FY2026 window closed on April 22, 2026, and the next round has not been announced. VAPG applications go through Rural Development's Grant Application Portal (a USDA eAuthentication Level 2 account is required), not Grants.gov.
Beginning Farmer and Rancher Development Program
The Beginning Farmer and Rancher Development Program (BFRDP) funds organizations, not individual farmers: collaborative networks and partnerships that train, mentor and advise beginning farmers and ranchers. NIFA's FY2026 notice offered up to $250,000 a year for three years (up to $750,000), with a 25% match, and closed on June 16, 2026. If you are a beginning farmer, the practical step is to find a funded program near you; search past BFRDP awards on the NIFA program page or ask your state's extension service.
Beginning farmers can also borrow directly from the Farm Service Agency: Direct Farm Ownership Loans of up to $600,000 and Direct Operating Loans of up to $400,000, plus smaller microloans with simpler applications. These are loans rather than grants, but FSA sets aside funds for beginning and veteran farmers.
Conservation programs: EQIP, CSP, and ACEP
NRCS conservation programs accept applications year-round. Applications are ranked in batches at state cutoff dates, and the first FY2027 cutoffs in some states fall in September and October 2026; check your state's dates on the NRCS ranking dates page. Payments are subject to an adjusted gross income limit of $900,000. In 2025 Congress moved unspent Inflation Reduction Act conservation money for these programs into regular farm-bill funding.
Environmental Quality Incentives Program (EQIP)
EQIP pays producers to install conservation practices such as cover crops, nutrient management, irrigation efficiency, soil health practices and wildlife habitat. Payments are generally made after you complete an approved practice, at rates set in each state's payment schedule. Total EQIP payments are capped at $450,000 per person or legal entity for the farm-bill period, and payments for organic practices at $140,000.
Conservation Stewardship Program (CSP)
CSP pays producers who already meet a high conservation standard to maintain it and add enhancements, through five-year contracts. Payments are capped at $200,000 per person or legal entity for the period.
Agricultural Conservation Easement Program (ACEP)
ACEP protects farmland and wetlands through easements. For farmland easements (Agricultural Land Easements), NRCS pays up to 50% of the easement's value through an eligible entity, such as a state or local government, a tribe or a land trust, which holds the easement. Wetland Reserve Easements are held by NRCS and can pay more.
For state-level programs, see our Ohio small business grants guide and California small business grants guide. Agricultural nonprofits should read our nonprofit grants guide. Grant income is generally taxable for farm businesses; CeoCult's tax deduction guide covers self-employment tax strategies.
Specialty Crop Block Grants
The Specialty Crop Block Grant Program funds projects that make specialty crops more competitive: fruits and vegetables, dried fruit, tree nuts, horticulture and nursery crops, including floriculture. USDA awards the money to state departments of agriculture, which then run their own competitions. In FY2026 each state received a base grant of about $288,737 plus a share based on its specialty crop production, and the federal window closed on June 8, 2026.
Each state sets its own sub-award sizes, priorities and deadlines, so contact your state department of agriculture. Note a change for applicants: starting in FY2027, sub-awards require a 25% cost share.
Rural Business Development Grants
Rural Business Development Grants support small and emerging rural businesses, but the money goes to public bodies, federally recognized tribes and nonprofits, which use it to help local businesses; for-profit businesses cannot apply. Uses include technical assistance, business incubators, training, rural distance learning and multi-county economic development planning. There is no maximum award, awards typically run from $10,000 to $500,000 and smaller requests score higher, and there is no match requirement. The FY2026 deadline was June 30, 2026 (June 15 for applications under the SECD reserve). If you run a rural business, ask your local economic development office or USDA Rural Development whether an RBDG-funded program serves your area.
For regional grant administrators: what a public body can apply for
Councils of governments, economic development districts, tribes and regional nonprofits apply for several USDA programs on behalf of the businesses and communities they serve. These are the ones most relevant to rural regions, with their FY2026 status:
- Rural Business Development Grants: public bodies, tribes and nonprofits; no maximum, no match; includes multi-county economic development planning. FY2026 closed June 30, 2026, with a separate reserve for multi-jurisdictional plans under the Strategic Economic and Community Development (SECD) priority.
- Community Facilities grants: for essential community facilities in rural areas of 20,000 people or fewer; public bodies, nonprofits and tribes are eligible, and the grant share can reach 75% of project cost on a sliding scale, according to USDA Rural Development.
- Farmers Market Promotion and Local Food Promotion: the FY2026 notices list local government, including councils of governments, among eligible applicants; 25% match; both closed June 5, 2026.
- ACEP farmland easements: state and local governments can act as the eligible entity that holds the easement, with NRCS paying up to 50% of its value.
- Rural Microentrepreneur Assistance Program (RMAP): FY2026 was open to nonprofits, tribes and public colleges, with quarterly deadlines through June 30, 2026.
- Intermediary Relending Program: loans to intermediaries that relend to rural businesses; an FY2026 notice was published.
- Outside USDA: the Economic Development Administration's Public Works and Economic Adjustment Assistance program remains posted on Grants.gov.
One process change to plan around: Rural Development says it will post future funding notices only on its website and Grants.gov, without a Federal Register notice. Set Grants.gov alerts for Rural Development opportunities rather than relying on the Federal Register.
Who should pursue USDA grants
- Producers ready to add conservation practices (EQIP, CSP), which accept applications year-round
- Farmers planning value-added products who can match the grant dollar for dollar (VAPG, next round not yet announced)
- Beginning farmers looking for training and FSA loans
- Councils of governments, tribes and nonprofits serving rural regions (RBDG, Community Facilities, FMPP and LFPP)
- Specialty crop growers, through their state department of agriculture
- Rural thresholds vary: 50,000 people for Rural Development business programs, 20,000 for Community Facilities, and none for NRCS conservation programs
- Most programs require a match: dollar for dollar for VAPG, 25% for BFRDP, FMPP and LFPP; REAP applicants must cover at least 75% of costs under the standing rule (50% under the rescinded notice)
- Free application help is available through USDA Service Centers and your state Rural Development office
- For non-agricultural business grants, see our general small business grants guide
Are USDA REAP grants available in 2026?
Can small hobby farms qualify for USDA grants?
Can a council of governments apply for USDA grants?
How do I find my local USDA Service Center?
Do I need to write a formal grant proposal?
Bottom line
USDA funding in 2026 rewards readers who check status before they plan. If you farm, start with EQIP or CSP, which accept applications year-round, and keep a value-added or energy project ready for the next VAPG round and the revised REAP rule. If you administer grants for a region, RBDG, Community Facilities and the Local Agriculture Market Program are the programs where a council of governments, tribe or nonprofit is the applicant. Your first step either way: talk to your local USDA Service Center or your state Rural Development office. Read our grant proposal guide →