Farming is a capital-intensive business. Some farms are more capital-intensive than others, depending on size and what the farm produces. 

For beginning farmers, access to capital can be challenging – to navigate the choices, and sometimes to qualify for loans. Becoming knowledgeable about different funding and loan options can help beginning farmers think strategically about borrowing.

Existing operations that will grow or diversify when adding a beginning farmer may need funding to support expansion and new income streams, such as purchasing additional land and equipment or adding infrastructure. Limited grant funding or cost-share opportunities may be available for diversification. Longer-term loans are often used in conjunction with other funding or alone for these types of expenditures.