Texas Young Farmer Grant (YFGP)

The purpose of this 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.

TAFA’s Young Farmer Grant Program aims to:

•  Grow and support Texas agriculture 

•  Help meet a financial need that is otherwise not met 

•  Help grow an operation that also impacts the community 

• TAFA funds will not be used to support hobby farming. A hobby farm is a small-scale farm that is primarily for pleasure instead of being a business venture.

• Grant applications will be accepted from any individual person 18 years or older, but younger than 46 years of age as of the application deadline, who is engaged or will be engaged in creating or expanding agriculture in Texas. 

• Applications that merely propose to sustain an existing agricultural business are not eligible for an award under this program. 

• Corporations, limited liability companies, partnerships or other types of foreign or domestic entities are not eligible for awards under this program. TDA will immediately disqualify any application filed on behalf of a corporation, limited liability company, partnership or other types of foreign or domestic entity. 

• The applicant must be able to make dollar-for-dollar matching expenditures to sustain, create or expand the proposed project.

• Applicant must be a U.S. Citizen and applicants must reside and operate in Texas.

• Grant funds will not be awarded to multiple family members applying for funding for the same project. 

• To be eligible for a grant, Applicant must have a substantial interest in the agricultural business or operation identified in the application for which the project will impact.

• Each individual grant applicant must clearly describe a distinct project and demonstrate how the individual grant applicant will independently benefit from the grant.

• An applicant that has a family, employment or business relationship with an executive, officer or employee of TDA, or a member of the TAFA Board of Directors, is not eligible for a grant and may not participate in the YFG program. A family relationship is defined as a relationship within the third degree of consanguinity or second degree of affinity as outlined in Chapter 573 of the Texas Government Code.

Program Highlights

• Grant recipients that have a current, open grant may not receive a new grant during this cycle. 

• Grant awards range from $5,000 to $20,000 

• Grant funds may not be used toward capital purchases (Personal property or other capital items with a unit cost of more than $5,000) 

• Applicant must be able to make dollar-for-dollar matching expenditures Grant funds are paid to grant recipients on a reimbursement basis. Funds will be distributed to the grant recipient upon TDA’s receipt of documentation, such as cancelled checks, paid invoices or properly issued vendor receipts evidencing that the grant recipient: 

  • has expended the required amount of matching funds for the project; and

  • has incurred and paid out total expenses for the project in an amount equal to at least the full amount of the project budget. 

• Costs must be within the term of the grant award. 

• Successful applicants will be issued a legally binding grant agreement that will outline the grant period of performance (start and end dates). Expenses incurred before the grant approved start date or after end date of agreement. Look at the timeline in the Request for Application to help plan expenses related to your project. 

What does a matching grant mean?

Matching funds are the amount of funds you are pledging in the matching column of the grant application and there is a 1:1 matching requirement. For examples, if you are seeking a grant for $10,000 you will be expected to document a match of at least $10,000 for a total project of $20,000. In other words, for every $2 you spend you will be reimbursed $1, or 50% of each invoice your submit for payment if awarded the grant.

Applicants that indicate a higher matching amount on their grant application will be required to expend/document the amount listed in the budget section of application during the grant term. For example, if you are seeking a grant for $10,000 and said you would match $40,000 it would be the same as saying for every $5 you spend you will be reimbursed $1, or 20% of each invoice your submit for payment if awarded the grant.

Apply for this grant online on the Texas Department of Agriculture's online grant management system.

You must first register for an account to access the grants system. For more information and instructions for the online grant system, see this document.

To be considered, applications must be complete and include all the following information:

• Completed online application;

• Copy of applicant’s Texas Driver’s License or other form of government-issued identification (U.S. Passport, State of Texas I.D., or birth certificate);

• IRS Form Schedule F to evaluate farm income from most recent tax return or other IRS forms that were filed to describe your operation’s farm income;

• Lender commitment letter if a loan is used to fund your proposed project;

• 3 Letters of Support – see additional instructions in application;

• Business plan for proposed project (Please limit to no more than 4 pages);

• Lender commitment letter if a loan is used to fund your proposed project; and

• Any contract or letter of intent relied upon in connection with your proposed project.

• FAQ

• Request for Grant Application_ _

• Eligible and Ineligible list of expenses

• Deficit / Surplus Commodity Report

• Texas Farm Fresh

• USDA New Farmer Guide