FINANCING

YOUNG FARMER GRANT

CONTACT: Grants@TexasAgriculture.gov | (512) 463 – 6695

Overview

The purpose of the Young Farmer Grant program is to provide financial assistance in the form of dollar-for-dollar matching grant funds to young agricultural producers that are engaged or will be engaged in creating or expanding an agricultural business in Texas.

Eligibility

• Applicant between 18 and 46 years of age • Propose a distinct project to grow the agricultural operation • Must apply as an individual (no corporations, LLCs, or partnerships) • May not be related to any TDA employee or TAFA board member

Application period

Twice a year, with applications typically due by the end of April and October

Award amount

$5,000 to $20,000 with a 1:1 matching requirement (paid on a reimbursement basis)

INTEREST RATE REDUCTION PROGRAM

CONTACT: Grants@TexasAgriculture.gov | (512) 463 – 2537

Overview

The Interest Rate Reduction (IRR) Program is intended to facilitate a lower interest rate to agricultural producers or agribusiness owners. The IRR program provides an interest reduction to the borrower on a qualifying bank loan for an eligible project.

Eligibility

• Application submitted by a lender that makes commercial loans and is an approved depository for state funds • Loan proceeds must be used for agriculture-related operating expenses

Application period

Open enrollment

Award amount

The lender and the borrower determine repayment, maturity, and collateral for the loan. Total linked deposit loans to any one borrower may not exceed $500,000.

AGRICULTURE LOAN GUARANTEE PROGRAM

CONTACT: Grants@TexasAgriculture.gov | (512) 463 – 2537

Overview

The Agricultural Loan Guarantee Program (ALG) provides financial assistance to establish or enhance farming or ranching operations or to establish an agricultural-related business. Funds for the ALG program are used to support the lender’s capital and add protection against reasonable risk associated with the loan by honoring a percentage of debt.

Eligibility

• Application submitted by a lender that makes commercial loans • Borrower credit score of at least 650 • Equity injection of at least 15% of the loan amount • Debt to equity ratio of 2:1 or less • Debt service coverage of 1.25 or better

Application period

Open enrollment

Award amount

The lender and the borrower determine interest rates, maturity, and collateral. There are two options for a guarantee depending on the terms of the loan: • $250,000 or 90% of the loan amount, whichever is less • $500,000 or 80% of the loan amount, whichever is less

ORGANIC COST SHARE REIMBURSEMENT PROGRAM

CONTACT: Grants@TexasAgriculture.gov | (512) 463-4406

Overview

The Texas Department of Agriculture (TDA) has a cooperative agreement with the United States Department of Agriculture (USDA) to provide cost share assistance to producers, processors, distributors or other handlers of organic agricultural products.

Eligibility

• Texas-based organic producers and/or handlers • Operations must possess current USDA organic certification

Application period

Late summer

Award amount

50% of a producer’s certification costs up to $500 per certificate, per year

STAR FUND

CONTACT: STARfund@TexasAgriculture.gov | (512) 463 – 6695

Overview

The State of Texas Agricultural Relief (STAR) Fund is designed to provide relief to Texas agricultural entities adversely impacted by natural disasters and is funded entirely by private donations. STAR Fund money may be used to assist farmers, ranchers, and agribusiness owners in rebuilding fences, restoring operations, and paying for other agricultural disaster relief.

Eligibility

• Agricultural business/operation/farm/ranch located in a county with a state-declared disaster • Agricultural-related expenses directly resulting from the disaster that are not covered by insurance or other governmental sources • Entity has not received another STAR Fund award in the preceding 24 months

Application period

Typically applications are open from the date of a state-declared disaster proclamation plus 90 days.

Award amount

50% cost share for eligible expenses up to $4,000