Tennessee Agriculture Enterprise Fund

The Agricultural Enterprise Fund (AEF) is a competitive grant program designed to stimulate economic growth and job creation through the advancement of agriculture in the state of Tennessee. Administered by the Tennessee Department of Agriculture in partnership with the Department of Economic and Community Development, the AEF is a strategic initiative supporting Governor Lee’s broader agenda of fostering sustainable agricultural development. This program emphasizes investment in value-added and processing projects that strengthen the agricultural, food, and forestry sectors, especially in economically vulnerable communities. The AEF offers funding to a wide array of entities including agricultural, food, and forestry businesses, local governments, nonprofits, and individual farmers, provided the applicants are based in Tennessee or are pursuing projects located within the state. Importantly, while the fund welcomes diverse agricultural initiatives, it prioritizes projects that extend benefits beyond individual farm operations—such as improving access to markets or fostering innovation—over standard expansions of livestock, row crop, or horticulture production. Those types of farming projects may find more appropriate support through the Tennessee Agricultural Enhancement Program (TAEP). To be eligible for AEF funding, applicants must demonstrate that their project will substantially contribute to increasing farm income, expanding market access for producers, growing operational capacity, or introducing agricultural innovation. These four project categories guide the fund’s evaluation process and offer flexibility for applicants whose work may intersect multiple impact areas. Moreover, projects located in distressed, at-risk, or adjoining counties receive priority consideration, reflecting the program’s commitment to uplifting economically challenged regions. Financially, AEF grants may cover up to 25% of a project’s total cost, and while there is no minimum project budget requirement, the maximum award is capped at $499,999. Applicants are required to co-invest at least 75% of the project costs and must source a minimum of 25% of any agricultural inputs from Tennessee producers. This sourcing requirement can be relaxed under circumstances such as drought or disease that would otherwise hinder local procurement. Additionally, equipment and structures purchased with grant support must be used for their intended agricultural purpose for a continuous five-year period. The application process includes submission of materials that outline the project’s objectives, budget, expected impact, and alignment with AEF goals. Successful applicants must also commit to providing progress reports that track both business and local economic impacts. AEF administrators use these updates to assess the broader success of the fund and its alignment with Tennessee’s agricultural development priorities. The current grant cycle will close on January 10, 2026, indicating that the program is still in the early engagement stage. Given that the AEF is a recurring program, applicants who miss this round may prepare for future opportunities. Interested applicants are encouraged to contact the Department of Agriculture at [email protected] or by phone at (615) 837-5160 for further information about the program or the application process.

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