The United States Department of Agriculture (USDA) wants to help “historically underserved” farmers and ranchers by offering additional benefits to those that fit certain criteria. We break it down for you here.
Through the EQIP and CSP programs, the USDA-NRCS pays farmers to implement conservation practices. If you are a historically underserved farmer, you receive higher payment rates (up to 90% of the costs of a practice covered, versus the standard 50 to 75%). You are also eligible to receive half of the funds in advance, which is notable given that these programs are usually reimbursement only.
USDA also prioritizes historically underserved farmers by setting aside specific pools of funding. You would get priority consideration, for example, if you were to apply for an FSA microloan or NRCS conservation program.
There are also situations in which the USDA offers programs that only historically underserved farmers can tap into, like the new loan forgiveness program for socially disadvantaged farmers.
Historically underserved producers fall into 4 main categories, according to the USDA. These are:
Limited resource farmers or ranchers
Beginning farmers or ranchers
Socially disadvantaged farmers or ranchers
Veteran farmers or ranchers.
How do you know if you are a part of one of those groups? Let’s dive into who qualifies for each special identity group. If you meet every criterion in the group, then you can apply to USDA programs in that category.
Limited Resource Farmer or Rancher
Individual producers whose:
Total sales this year (before expenses) are less than the recorded value of the previous two years
Total household income is less than or equal to the national poverty level for a four-person family OR less than 50% of your county’s median household income for the last two years
A business (entity or joint operation) falls into this group if all members qualify.
Beginning Farmer or Rancher
Individual producers who:
Have operated a farm or ranch for less than 10 consecutive years
Will contribute management, or labor and management to the farm or ranch that is essential to its function, in line with what the county or State requires
Click here to read more about Grant Funding Options for Beginning Farmers and Ranchers.
A business (entity or joint operation) falls into this group if all members qualify.
Socially Disadvantaged Farmers or Ranchers
Producers belonging to groups that have been subject to racial or ethnic prejudice because of their identity. This includes:
American Indians or Alaskan Natives
Asians
African Americans
Native Hawaiians or other Pacific Islanders
Hispanics
A business (entity or joint operation) falls into this group if half of the ownership is in this category.
Veteran Farmer or Rancher
Individual producers who:
Served in the United States Army, Navy, Marine Corps, Air Force, and Coast Guard, including the reserve
Was released with an honorable discharge
Has operated a farm or ranch for less than 10 years or became a veteran within the last 10 years
Click here to read more about Funding Tips for Veteran Farmers.
A business (entity or joint operation) falls into this group if all members qualify.
You can learn more about historically underserved special identity groups here and here. If you want to know more let us know at support@farmraise.com