Pa. farm businesses get boost from new government funding

To grow farm businesses, the Shapiro Administration stated Tuesday that it has expanded funding by $200,000. 

Agriculture Secretary Russell Redding made the announcement that the PA Agricultural Business Development Center has increased funding to meet demand for Farm Vitality Planning Grants. To diversify, expand, or transition ownership of farms to future generations, the PA Farm Bill grants fund strategic business planning. 

“Governor Shapiro knows Pennsylvania agriculture is a key part of our Commonwealth’s economy and a pillar of so many of our communities,” Redding said in a statement. “For every one of Pennsylvania’s 52,700 farm families, business planning is more than just growing their bottom line. It is protecting their family legacy. 

Initiated as part of the historic PA Farm Bill in 2019, the program has thus far accepted 308 applications, funding more than $2,003,439 in project planning, financial and technical expertise to feed farm growth and sustainability. 

Farmers and prospective farmers are eligible for up to $7,500 to cover up to 75% of planning costs. Applications are being accepted until funds are exhausted.  Farm Vitality Planning Grants can be combined with other PA Farm Bill funding. 

To help plan and finance farm transitions, Farm Vitality Planning Grants can be combined with other PA Farm Bill funding, including the following: 

• Beginning Farmer Tax Credit Program. This program provides tax credits as an incentive to those who rent or sell agricultural assets to beginning farmers. Thus far, 21 farm owners have received Beginner Farmer Tax Credits, allowing them to collectively save $343,009 on their taxes. 

• Beginning Farmer Realty Transfer Tax Exemptions. The department has certified 44 beginning famers purchasing preserved farmers and generating $492,311 in tax savings on the sale of those farms. 
• Next Generation Farmer Loan Program. This program uses federal tax-exempt financing to reduce a farmer’s interest rate for capital purchases, including the purchase of farmland to help young families fund farm expansions and purchases. 

“Farm Vitality Grants help bring to the table the experience, in-depth knowledge, market analysis, and risk management expertise that is vital to realizing their vision,” said Redding, “and sustaining not only their farm’s future, but Pennsylvania’s future.”