Business Builder Grants Available for Farm and Food Businesses

Small farms and food entrepreneurs can apply for grants from the United States Department of Agriculture to help reimburse costs related to growth and expansion.

Known as the Business Builder Grants, the $3.7 million in funding is made available through the Heartland Regional Food Business Center – a six-state organization that includes Iowa, Missouri, Nebraska, Kansas, Oklahoma and Arkansas.

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Christa Hartsook, small farms program coordinator for Farm, Food and Enterprise Development with Iowa State University Extension and Outreach, said the grants are intended to promote business expansion, job creation, business capacity building and increase local products in the marketplace.

“I see this as an opportunity for both our farmers and our food entrepreneurs to really grow their businesses and find some assistance that can help along the way, said Hartsook. “I think this is needed support that can help small farms and businesses grow and scale their operations accordingly.”

ISU Extension and Outreach is one of 34 Heartland Center partners working to fill gaps in resources available to local food and farm businesses that are looking to start and grow.

The Heartland Center is accepting applications for its first-round funding through Oct. 15, 2024. The Center will host an informational webinar on how to apply for Business Builder grants on Aug. 28, from noon to 1 p.m. CT.

In May 2023, USDA awarded $360 million to finalists to establish 12 USDA Regional Food Business Centers and a National Intertribal Food Business Center to provide essential local and regional food systems coordination, technical assistance and capacity building. These centers assist small and mid-sized producers and food and farm businesses with the goal of creating a more resilient, diverse and competitive food system.

The Heartland Center, led by the University of Nebraska-Lincoln and rural Missouri community development corporation New Growth, focuses on expanding the local and regional food system across the six-state region.

“The Regional Food Business Centers are a cornerstone of USDA’s food system transformation efforts, serving to help farmers, ranchers and other food businesses access the resources and technical assistance they need to access new markets,” said Jenny Lester Moffitt, USDA under secretary for marketing and regulatory programs. “The Center’s Business Builder Grant program will empower the region’s small and mid-sized farmers and food businesses to launch and expand their operations by establishing new revenue streams and gaining investors.”

Grant proposals will be accepted semi-annually for competitive subawards of $5,000 to $50,000 each. The Heartland Center will prioritize: 

• Small farms and small businesses in urban and rural areas that operate along the local and regional food value chain

• Food and farm entrepreneurs who are indigenous, immigrant, people of color, veterans, and otherwise disadvantaged, such as those with physical disabilities   

• Food and farm entrepreneurs who are eager and ready to build their enterprises, from startup through growth

• Food and farm entrepreneurs who are unsure of eligibility and where to go for assistance and unfamiliar with resources  

 For more information, including a checklist of required application materials, visit the Business Builder Grant program online.

 Christa Hartsook can be reached at hartc@iastate.edu or 515-294-4430.

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