Agricultural Enterprise Fund
Agricultural Enterprise Fund supports Tennessee agricultural, food, and forestry enterprises with projects that increase farm income, expand markets and business capacity, and advance innovation.
This grant was recently updated
Proof of financing now requires a letter of good standing from your bank on bank letterhead; previously, a bank letter of good standing was acceptable but not required.
Funder: Tennessee Department of Agriculture
Due Dates: January 10, 2027, at 11:59 p.m. Central (AEF application)
Funding Amounts: Up to 25% of project costs over an 18-month contract; program page lists a $499,999 maximum payout, while the application lists up to $1 million for projects costing more than $1 million.
Summary: Supports Tennessee agricultural, food, and forestry projects that increase farm income, market access, business capacity, and innovation.
Key Information: Reimbursement funding requires upfront financing; funded equipment and structures must serve their intended purpose for five continuous years.
Description
The Agricultural Enterprise Fund (AEF) supports agricultural development, job creation, and economic development in Tennessee. The Tennessee Department of Agriculture administers the competitive program with the Department of Economic and Community Development. It serves starting or expanding agricultural, food, and forestry businesses, nonprofits, local governments, and other entities in Tennessee or with Tennessee-based projects.
The program focuses on value-added and processing projects benefiting producers or forest landowners. Examples include food and beverage processors purchasing Tennessee commodities, meat processors enabling value-added sales, expanding sawmills, and businesses commercializing agricultural technology. Projects should demonstrate measurable benefits through increased farm income, improved market access, expanded capacity, or innovation. Priority goes to projects in at-risk or distressed counties and adjoining counties.
