What does AgMRC say about reserved funds?
AgMRC's VAPG page states that 10% of total funds are reserved for beginning, veteran and socially disadvantaged farmers and ranchers, for mid-tier value chain proposals, and for food safety projects where most of the funds improve market access.
That reserve is part of the funding for a given year, so it may change. Confirm the current share in the notice of funding opportunity.
Reserved funds do not lower the bar on quality. They mean your application may be compared with others in the same category instead of with every application in the country. Check the notice for the exact wording of each reserved category, since a project can fit one category but not another.
What is the difference between reserved funds and priority?
Reserved funds are money set aside for a category. Priority is extra consideration in scoring. AgMRC notes that beginning, veteran and socially disadvantaged producers, small and medium-sized family farms, cooperatives and mid-tier value chain projects may receive priority.
Neither is a guarantee. You still have to submit a strong, complete application that meets eligibility.
- Reserved funds: set aside for categories
- Priority: extra consideration in scoring
- Neither guarantees an award
- A complete application is still required
Who counts as a beginning or veteran farmer?
Definitions are set in the program notice and in federal law, and they can differ among programs. For example, beginning farmer definitions commonly depend on how many years you have operated, but the VAPG definition is the one that matters here.
If you think you qualify, find the definition in the current notice, and keep documents ready to show it, such as discharge papers for veterans or records of when you started operating.
If you are both a beginning farmer and a veteran, ask how that is handled and whether you need to pick one category or can claim both.
- Read the program's own definitions
- Gather documents proving status
- State your category clearly in the application
- Ask Rural Development how the category is verified
How should I use this in my application?
Claim any category you qualify for as the application directs, and explain it plainly. Do not rely on the category to carry the application. Reviewers still score the project on its plan, market, finances and ability to deliver.
A common mistake is to focus on status and skimp on the business plan.
A practical tip is to ask a past awardee in your state for feedback on how they described their status and project.
What other help exists for new farmers?
Beginning farmers can also look at FSA beginning farmer loans, NRCS programs with special pools, extension programs and nonprofit mentoring. Many offer free help that complements a grant application.
Rural Development state offices and local extension offices can point you to technical assistance for writing a feasibility study or a business plan.
Local veteran farmer groups, beginning farmer networks and extension offices often know which applicants in your area have been funded and may be willing to share advice.
- FSA beginning farmer programs
- NRCS programs with special pools
- Extension and nonprofit mentoring
- Local veteran farmer groups
What should I ask Rural Development?
Ask how the reserved funds are applied in the current cycle, which definitions apply to you, what proof is needed, and whether you can be considered in more than one category. Ask how many awards were made in your state to similar applicants.
Get answers in writing, and check the official notice for final authority. Ask whether your category requires extra documents, and when they must be submitted relative to the main application.
How do I build a strong application as a newer producer?
New producers often worry that a short track record hurts them. You can offset that with a clear plan, proof of demand, a realistic budget and good advisors. Letters from buyers, mentors, a lender or an extension agent can show reviewers that others believe in the project.
Be careful not to overstate experience or sales. Reviewers read many applications and notice vague claims. Plain facts and a sensible budget are more persuasive than big projections, and a pilot run, even a small one, is strong evidence.
Key takeaways
- AgMRC says 10% of VAPG funds are reserved for specific groups and project types; confirm the current share.
- Priority consideration may also apply, but it does not replace a strong application.
- Definitions come from the program notice, not from other programs.
- Gather proof of your status before the deadline.
Sources and official links
Last reviewed: November 12, 2026. Written by the Farm Money & Grants Editorial Team. Educational only, not tax, legal or financial advice. See our editorial policy.