Tennessee Agriculture Enterprise Fund

The Agricultural Enterprise Fund is an incentive program managed by the Tennessee Department of Agriculture in partnership with the Tennessee Department of Economic and Community Development. It aligns with Governor Lee’s stated priority of promoting job creation and economic development by supporting agricultural growth across Tennessee. The fund is designed to stimulate new or expanding enterprises in agriculture, food, and forestry while strengthening rural economies and producer incomes. The program offers competitive grants to businesses, nonprofits, local governments, and other eligible entities either based in Tennessee or with projects located in the state. A primary focus is placed on value-added and processing initiatives that provide benefits for farmers and forest landowners. Typical farming expansion activities, such as increasing livestock, row crop, or horticultural production, are generally not competitive under this program and are instead encouraged through the Tennessee Agricultural Enhancement Program. Applicants are expected to demonstrate measurable impacts from their proposed projects. These include increases in local farm income, enhanced access to markets, expanded business capacity, or the development of agricultural innovations. Preference is given to projects located in Tennessee’s distressed or at-risk counties, as well as in counties adjoining those areas. Because the program is competitive, strong proposals must show clear benefits to both the applicant and the broader agricultural community. Funding awards under the Agricultural Enterprise Fund are limited to a maximum of 25 percent of eligible project costs, up to a cap of $100,000. Applicants must invest at least 75 percent of project costs from other sources, ensuring that grant funds leverage additional capital and commitment. All projects must have a minimum total cost of $40,000 to be eligible. Recipients are also required to procure at least 25 percent of agricultural inputs from Tennessee producers, though this requirement may be waived in special circumstances such as drought or disease. To remain eligible, recipients must use equipment and structures reimbursed by grant funds for their intended purpose for a minimum of five continuous years. They must also submit periodic project updates that track the impact of the funding on their business as well as on the local economy. This evaluation requirement ensures that the program can monitor outcomes and measure progress toward agricultural development goals. Applications for the Agricultural Enterprise Fund must be submitted by the published deadline. The upcoming cycle closes on October 10, 2025. No pre-application steps are indicated, and applications are due in full by this date. Interested applicants can contact the program directly for guidance at agriculture.enterprisefund@tn.gov or by phone at (615) 837-5160. Additional application materials and instructions are available on the Tennessee Department of Agriculture’s official website.

Applicants should emphasize measurable impacts on farm income, markets, and innovation, with priority to projects in at-risk or distressed counties.