Can I Use VA Benefits to Buy Farmland? Tips for Veteran Farmers
Overview
Veteran farmers and ranchers make up 11 percent of U.S. agricultural producers, and both the federal government and private organizations have created targeted programs to support their success in agriculture. From USDA conservation cost-shares like EQIP and CSP to VA home loans, FSA microloans, and nonprofit fellowships, eligible veterans have access to a wide range of financial resources. The USDA classifies veteran producers as "historically underserved," which unlocks preferential treatment and unique funding advantages not available to the general farming population. Beyond financial support, organizations like the Farmer Veteran Coalition and the Small Business Administration's Veterans Business Outreach Center offer business planning, training, and mentorship resources. Veterans looking to navigate FSA programs efficiently can turn to the FarmRaise FSA Educational Hub for guidance and use FarmRaise Tracks to stay financially organized before, during, and after the application process.
Eleven percent of United States agricultural producers are active duty military members or have served in the military. That’s pretty high considering that not even seven percent of Americans have military backgrounds. If you’re among the 11 percent of veterans in agriculture, you may be wondering what benefits the U.S. Department of Veterans Affairs (VA) or U.S. Department of Agriculture (USDA) can offer you to help boost your entrepreneurship and farm operation.
There are a number of grant and loan options for military veterans offered by both the federal government, private lenders and nonprofit organizations. Learn the many ways to apply for veteran farm grants whether you’re a new farmer or an experienced rancher.
First things first: get your farm organized
If you're serious about obtaining grant or loan funding as a veteran, one important way you can increase your odds of success today, even before you apply is by tracking every farm expense and revenue transaction. This will enable you to apply for funding faster, appear more organized to grant and loan funders, and seamlessly complete any reporting requirements associated with your grant or loan.
FarmRaise has an app for you called FarmRaise Tracks that makes it simple and easy to save every farm transaction on the go so you're never behind, always organized, and ready to seize funding opportunities for fencing and other projects. We've built this for farmers who want to grow their farms and save time.
Click here to sign up for the Tracks app
USDA Grants and Cost-Shares for Veteran Farmers
The 2018 Farm Bill addresses some of the specific and unique circumstances that certain producers face. Those producers are categorized as “historically underserved” and includes socially disadvantaged farmers, new farmers and veteran farmers and ranchers.
Who Qualifies as a Veteran Farmer?
According the USDA definition, to be qualify for as veteran farmer or rancher for USDA programs, you must:
- have served in the United States Army, Navy, Marine Corps, Air Force, or Coast Guard, including the reserve and was released with honor, and either:
- became a veteran within the last 10 years, or
- qualify as a beginning farmer.
Farm Grant Benefits for Veteran Producers
The USDA Natural Resources Conservation Service (NRCS) gives veteran farmers and ranchers special preference with two conservation programs: Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP).
EQIP is a pretty competitive cost-share program. In fact, only around a third of applicants receive funding. But since qualified veterans are given preference, there's a good chance they'll receive funding with a competitive application. Not only that, but veterans can receive fifty percent of the EQIP and CSP funds up front. That’s a huge advantage since these grants are usually awarded on a reimbursement basis.
Non-Profit Funding Options and Technical Assistance for Veteran Farmers
Federal funding options aren’t the only ones available for veteran farmers. There are other funders out there beyond the USDA that may be able to support you. One example is the Farmer Veteran Fellowship Fund. Through the Fellowship Fund, veterans can receive up to $5,000 to pay vendors or contractors that are critical to their farm business.
The Veteran Farmer Veteran Coalition (FVC) can also offer assistance to veterans who are looking to expand their reach within the agriculture industry. If you want to create a distinction in the marketplace, you can apply for a Homegrown By Heroes label to signify to consumers that your agricultural products are produced by a military veteran. The FVC also has resources to help you create a practical agricultural business plan which will come in handy as you apply for funding both public and private.
Now that we’ve delved into the realm of USDA grant programs and non-profit fellowships, let’s take a look federal loan options and other federal resources for veteran producers.
Federal Loans and Resources for Veteran Farmers and Ranchers
VA Home Loans to Start a Farm
Many producers wonder if they can take advantage of their VA mortgage benefits to buy a farm. Veteran farmers may apply for benefits from the VA that enable the purchase of a residential farm. This means that you could get a loan from the VA to purchase a farm, but only if you intend to live there full-time, too.
This is a great opportunity to get your farm started. However, there are three things to know. First, the loan will only cover residential costs. These exclude the:
- Nonresidential value of farm land in excess of the home site
- Barn, silo, or other outbuildings necessary to the operation of the farm, or
- Farm equipment or livestock
So while there aren’t any acreage restrictions or requirements, you won’t be able to use this funding to purchase land for your agribusiness.
Second, you can use future projected farm income to qualify for the loan, but only if you can prove you have previous farm experience. Otherwise, you’ll need to have additional income as proof of your ability to repay the loan.
Lastly, your disability status has a major impact on your VA loan eligibility. In fact, if you qualify as 10 to 100 disabled, you’d also qualify for the VA Funding Fee exemption and ability to count disability income. Learn more about how your disability rating affects your VA home loan benefits.
It’s important to know that while the VA runs the VA Home Loan program, it’s the individual lenders who decide whether they want to take on the risk of lending you money. That means that lenders can create their own property restrictions. So if you get denied for a VA loan from one lender, you may find another lender who is willing to accept your application.
If you’d like to learn more about this program, we recommend getting in touch with your district’s VA.
Farm Service Agency Loans
The USDA’s Farm Service Agency (FSA) offers farm loan programs to help veteran producers buy farmland or equipment and make repairs and upgrades. If you have a small farm or grow a specialty crop, the FSA Microloan program may be perfect for you.
Start by checking you and your operation’s eligibility for funding.
Small Business Support for Veteran Small Business Owners
The U.S. Small Business Administration supports veteran farmers through its Veterans Business Outreach Center (VBOC) program.
VBOC provides services to strengthen business skills in service members, veterans and their families - whether you’re just beginning reentry or you’re a military spouse. Some of those services are:
- business training, counseling, and resource partner referrals
- transition assistance
- business plan development workshops
- mentoring and more.
Growing produce or raising livestock is one thing. Running a business is another, and building the business skills necessary to run an agricultural operation is critical to your success. To take advantage of this resource, contact one of the 22 VBOC offices around the country.
Other Resources for Veteran Farmers
For those who have served, there are many NGO and non-profit initiatives that offer services to veterans.
- FarmRaise - specializes in helping farmers make their operations more profitable and regenerative via a farm funding matching and application tool
- Transition Incentives Program - FSA program that incentivizes land owners and operators to work with historically underserved farmers like veterans to continue using for sustainable grazing or farming methods
- Veteran farming webinars - offered by FVC to help you manage your farm, understand risk management and more
- Veteran Farmer Training - with the Rodale Institute, this well known institute is famous for its expertise in regenerative agriculture. The training program offers paid, hands on training to learn the fundamentals of organic farming
- AgrAbility - offers resources and support improve the quality of life for veteran farmers with disabilities
- National Agricultural Library - a list of federal resources that can help military families and veterans
- Homegrown By Heroes - a label administered by the FVC that certifies veteran ranchers, farmers and fisherman products and lets consumers know that your products are veteran owned and produced
Avoid the Paperwork
Whether you’re in a rural community or urban area, farming or ranching, there are grant programs, assistance programs and resources to help the economic development of veterans farmers and ranchers.
But you don’t have to go it alone. If you’re a veteran farmer and you want to avoid being overwhelmed by paperwork, check out the FarmRaise FSA Educational Hub for resources.
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FAQs
Who qualifies as a veteran farmer or rancher under USDA definitions?
According to the USDA, a veteran farmer or rancher must have served in the United States Army, Navy, Marine Corps, Air Force, or Coast Guard, including reserve components, and must have been released under honorable conditions. In addition to the honorable discharge requirement, the producer must meet at least one of two additional criteria: they either became a veteran within the last 10 years, or they qualify as a beginning farmer. This definition matters because it determines eligibility for USDA programs that give veteran producers preferential treatment, including conservation cost-share programs administered by the Natural Resources Conservation Service. Understanding exactly where you fall under this definition is an important first step before pursuing any federal agricultural funding.
What USDA conservation programs offer special benefits to veteran farmers?
The USDA Natural Resources Conservation Service offers veteran farmers and ranchers preferential consideration under two competitive conservation programs: the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP). EQIP in particular is highly competitive, with roughly only one in three applicants receiving funding in a given cycle, but qualified veteran producers are given preference that meaningfully improves their odds of approval. One of the most significant financial advantages veterans receive through both EQIP and CSP is the ability to collect up to 50 percent of their awarded funds upfront, rather than waiting for the standard reimbursement process that applies to most producers. This upfront payment structure can make a real difference in cash flow for farms that need to purchase materials or hire contractors before a project is complete. Getting organized with accurate financial records through a tool like FarmRaise Tracks can help you put together a more competitive application and meet any reporting requirements that come with the award.
Can veteran farmers use VA home loan benefits to purchase a farm?
Veteran farmers can use VA home loan benefits to purchase a residential farm property, but there are important limitations to understand before applying. The VA loan will only cover the residential value of the property, meaning it cannot be used to finance barns, silos, farm outbuildings, livestock, or farm equipment, and it also excludes the nonresidential value of farmland beyond the home site itself. To qualify using future projected farm income, veterans must be able to demonstrate prior farming experience; otherwise, additional income documentation will be required to prove repayment ability. A veteran's disability rating also plays a significant role, as producers rated 10 to 100 percent disabled may qualify for a VA Funding Fee exemption and the ability to count disability income toward qualification. It is also worth knowing that individual lenders set their own property restrictions within the VA program, so a denial from one lender does not necessarily mean you will be denied by another.
What nonprofit and fellowship funding is available specifically for veteran farmers?
Beyond federal programs, veteran farmers have access to meaningful support from nonprofit organizations. The Farmer Veteran Fellowship Fund offers grants of up to $5,000 to help veterans pay vendors or contractors who are essential to their farm operation, providing flexible funding that can be directed toward practical business needs. The Farmer Veteran Coalition (FVC) is another key resource, offering access to the Homegrown By Heroes label, which allows veteran producers to market their agricultural products with a designation that signals to consumers that the product was grown or raised by a military veteran. The FVC also provides resources to help veterans develop agricultural business plans, which are often required as part of both public and private funding applications. Having a well-prepared business plan not only improves your chances of receiving funding but also helps you run a more strategically sound farm operation over the long term.
What role does the Small Business Administration play in supporting veteran farmers?
The U.S. Small Business Administration supports veteran agricultural producers through its Veterans Business Outreach Center (VBOC) program, which operates 22 offices across the country. VBOC provides a range of services tailored to service members, veterans, and military spouses, including business training, counseling, referrals to resource partners, transition assistance, business plan development workshops, and ongoing mentoring. Running a farm is not only a production challenge but also a business management challenge, and the skills needed to handle recordkeeping, financing, marketing, and planning are often distinct from the skills required to grow crops or raise livestock. VBOC programs can help veteran farmers close that gap by building the business foundation that makes an agricultural operation financially sustainable. Pairing VBOC resources with organized financial records from a tool like FarmRaise Tracks can put veteran producers in a much stronger position when applying for loans or grants.
Where can veteran farmers find help navigating the paperwork involved in farm funding applications?
Applying for farm grants and loans involves a significant amount of documentation, and for veteran producers already managing a demanding operation, the administrative burden can feel overwhelming. The FarmRaise FSA Educational Hub is a dedicated resource designed to help farmers understand FSA programs, eligibility requirements, and application processes without having to sort through complex government documentation on their own. Keeping consistent records of farm income and expenses through FarmRaise Tracks before you begin any application also ensures that when a funding opportunity arises, you are already organized and ready to move quickly.