Tennessee Agriculture Enterprise Fund

The Agricultural Enterprise Fund (AEF), administered by the Tennessee Department of Agriculture in partnership with the Department of Economic and Community Development, is a strategic funding initiative designed to promote agricultural development, stimulate local economies, and support Governor Lee’s priority of job creation across the state. The program provides grants to support starting or expanding agricultural, food, and forestry businesses within Tennessee, as well as eligible nonprofits, local governments, and other entities based in or with projects located in the state. AEF emphasizes value-added processing and infrastructure investments that have a measurable impact on local agricultural producers and forest landowners. AEF is not geared toward traditional farming expansion—such as livestock, row crops, or horticulture production—since these are better served through the Tennessee Agricultural Enhancement Program (TAEP). Instead, AEF focuses on projects that increase farm income through enhanced commodity prices or value-added processing, expand access to new or existing markets, increase production or processing capacity, and introduce technological or operational innovations with sector-wide benefits. By concentrating on these areas, the fund encourages investments that generate multiplier effects within the agricultural value chain. Eligible applicants must be Tennessee-based or have projects located in Tennessee and are required to demonstrate clear economic benefit to local farmers, whether through market expansion, innovation, or income enhancement. Additionally, applicants must invest their own capital into the project, with AEF grants not to exceed 25% of the total project cost. Compliance obligations include project reporting and a commitment to source at least 25% of agricultural inputs from Tennessee producers, unless exceptions apply due to impracticality (e.g., drought or disease). The fund awards up to $499,999 per project, with no minimum project size. The application process is competitive, and priority is granted to projects in at-risk or distressed counties or those adjacent to such regions. Applications are evaluated based on the project's potential to impact farm income, market access, capacity, and innovation. Grant recipients must use awarded equipment and structures for the program's intended purpose for a minimum of five years from the date of purchase. The current application cycle for the AEF closes on April 10, 2026, at 11:59 p.m. Central Time. While no pre-application materials such as letters of intent are required, applicants are encouraged to review the program metrics and scoring criteria to strengthen submissions. Interested parties may contact the program office at [email protected] or (615) 837-5160 for further assistance. Although the minimum project cost requirement has been removed, applicants are expected to maintain the matching requirement and meet all operational and reporting commitments. The AEF program appears to recur annually, making it vital for prospective applicants to track future deadlines and updates. Its structure underscores the state’s broader agricultural development goals, combining economic incentive with strategic investment to advance Tennessee’s agricultural sector.

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