Grants can be a powerful tool to grow your farm or food business—whether you're expanding infrastructure, selling into new markets, or investing in innovation. But receiving a grant isn’t just about having a good idea. It takes preparation, planning, and the ability to follow through.
If you're considering applying for a federal or state agriculture-related grant, here's what you need to know to get ready—and what to expect if your proposal is successful.
What to Consider Before Applying
1. Does this grant align with your business goals?
Not every grant is the right fit. Make sure the goals of the grant program align with your current stage of business, your growth plans, and your capacity. If the grant funds activities you're not ready for (like hiring staff, launching a new product, or building infrastructure), it may not be the right time.
2. Do you have the time and team to manage it?
Grants often require reporting, deadlines, and detailed recordkeeping. Make sure someone on your team can help manage the administrative work or be ready to bring in outside help (a bookkeeper, grant consultant, etc.).
3. Can you provide matching funds?
Many USDA and state grants require you to match a percentage of the award (often 25%). This can include cash, in-kind contributions (like staff time, equipment use, or donated services), or a combination of both. You will need documentation on what you will be providing as matching funds, no matter what type you are providing. Plan ahead to make sure you know how you’ll meet this requirement.
What to Have Ready Before You Apply
1. Business Documents
Business plan (not always required but helpful)
Organizational structure (LLC, nonprofit, etc.) For ag grants, you can often apply as an individual, but you’ll need to know how your business is organized.
Financial statements (Profit/ Loss statement, Balance Sheet, etc.) or recent tax returns.
Active SAM.gov registration and Unique Entity Identifier (UEI) number (free, but required for federal grants and can take time to process). Registering with this website allows you to do business with the federal government. Get started with this video from KCARD staff!
2. Project Plan
You’ll need a clear and specific project with defined goals, measurable outcomes, and a timeline. Be ready to explain:
What problem you’re solving
Who will benefit
How you’ll implement the work
How your project ties into the grant’s purpose
How you’ll evaluate success
3. Budget
Grants require a detailed, line-item budget. Think through the real costs of your project: staff time, materials, equipment, travel, marketing, and evaluation. Make sure all the items in your budget are eligible expenses according to the grant.
4. Partnerships (if applicable)
Some grants strongly encourage collaboration. If you’re working with other farms, co-ops, nonprofits, or buyers, get letters of support that show a shared commitment to the project. Be ready to list those partners and don’t just give a number of how many; say who they are.
What to Expect If You Get the Grant
1. A Grant Agreement and Scope of Work
You’ll sign an official agreement with the grant agency outlining your responsibilities, deliverables, and timelines. This is legally binding—be sure you understand the terms.
2. Reimbursement-Based Funding
Most grants do not give you cash up front. Instead, you’ll spend your own money (or match), then submit detailed documentation to get reimbursed. This means strong bookkeeping is essential. Typically, you’ll need copies of receipts for purchased items, timesheets or paystubs, and detailed bank statements or credit card statements as proof of purchase and payment.
3. Regular Reporting
Expect to file progress and financial reports—usually quarterly or semi-annually. These help the agency track how funds are used and what progress you're making. These may include updates on meeting your goals, use of funds to date, and any obstacles you may have faced.
4. Audits or Monitoring
Grants, especially federal ones, can be subject to audits. Keep copies of receipts, bank statements, timesheets, and communications for at least several years, which varies by grant.
5. Flexibility and Accountability
You may face delays or need to adjust your plan—but any changes to your budget or timeline usually require approval. Communication with your grant officer is key. They want to see you succeed, so be open and honest with them to avoid any miscommunication or misunderstanding.
Final Thoughts
Grants can unlock game-changing opportunities for farmers, food hubs, processors, and other ag-related businesses. But they’re not free money—they’re investments in your business that require structure, documentation, and follow-through.
With the right preparation, you’ll not only improve your chances of receiving a grant, but also make the experience smoother, more rewarding, and more impactful for your business and your community.
Need help getting grant-ready? Reach out to KCARD at (859) 550-3972 or kcard@kcard.info.