PA Farm Bill: Programs, Grants, and How to Apply

The Pennsylvania Farm Bill is a state legislative package that supports Pennsylvania’s agricultural industry through grants, tax credits, low-interest loans, and related programs administered by the Pennsylvania Department of Agriculture. First enacted under Governor Tom Wolf in 2019 with more than $24 million in initial investment, it has been continued under Governor Josh Shapiro, whose 2025–26 budget funded it at $13.8 million for its seventh year.¹ The bill’s programs group into six broad areas: business development, workforce training, conservation, processing capacity, new markets, and disaster readiness.²

Business Development and Beginning Farmer Support

The Farm Vitality Grant Program reimburses 75% of eligible planning costs, up to $15,000, for farm operations working on new business registration, expansion, emergency preparedness, or ownership transitions. It covers planning only, not capital purchases such as land or equipment.³ The Agriculture Business Development Center provides additional resources for business planning, marketing, diversification, and transition planning.

Two programs help move farms into new hands. The Beginning Farmer Realty Transfer Tax Exemption, created by Act 13 of 2019, waives the realty transfer tax when preserved farmland is sold to a qualified beginning farmer.⁴ The Beginning Farmer Tax Credit Program gives owners of agricultural assets a credit for selling or renting to beginning farmers: 5% of the sale price up to $32,000 for sellers, and 10% of gross rental income for the first three years up to $7,000 per year for landlords. Total credits are capped at $5 million for tax years beginning after December 31, 2019, and $6 million for years beginning after December 31, 2020.⁵

Conservation Programs

The Conservation Excellence Grant Program, created by Act 39 of 2019, funds best management practices on farms in the Chesapeake Bay Watershed. It runs in seven counties across two tiers: Lancaster and York in Tier 1, and Bedford, Centre, Cumberland, Franklin, and Lebanon in Tier 2. The State Conservation Commission has awarded $8.8 million to participating conservation districts, which have committed more than $2.98 million to projects covering barnyard runoff control, manure storage, cover crops, and similar practices.⁶

The Resource Enhancement and Protection (REAP) program gives farmers and businesses tax credits for implementing best management practices. Credits apply to a range of state taxes, are transferable and saleable, and may be carried forward for up to 15 years.⁷ The Agriculture Linked Investment Program offers low-interest loans for the same kinds of conservation practices.

Dairy Support

The Pennsylvania Dairy Investment Program, established by Act 38 of 2019, provides grants for innovation, value-added processing, marketing, and organic transitions. It has supported initiatives such as the “Choose PA Dairy” marketing campaign, which promotes local milk and dairy products through retail signage, media, and partnerships.⁸

The Center for Dairy Excellence is funded through the state’s Ag Excellence budget line, which reached $1.45 million annually. Related dairy policy reforms include milk code modernization through SB 434, signed on June 30, 2021, which moved the state from a 17-day milk code to an open code supported by product testing, and Act 108 of 2022, passed to help expand shelf-stable milk processing capacity.

Meat and Poultry Processing

The Center for Poultry and Livestock Excellence launched in 2019 with $1 million in initial Farm Bill funding. A producer-led organization overseen by a board representing the swine, poultry, and small ruminant sectors, it works with the Department of Agriculture and PennAg Industries on biosecurity, infrastructure, applied research, and food safety.⁹

Smaller processors can also apply for the Very Small Meat and Poultry Processor Reimbursement Grant, which reimburses federal inspection costs so smaller operations can reach markets that require federal certification.

Specialty Crops, Organic, and Veterans

The Commonwealth Specialty Crop Block Grant Program funds crops not covered by federal specialty crop grants. Hemp, hardwoods, hops, honey, and certain brewing and distilling grains are designated as high-priority, and the program provides $460,000 in grants for growth, seed certification, and marketing.¹⁰

The PA Preferred Organic Initiative funds organic sector development and transition assistance. The PA Preferred Homegrown by Heroes Program supports veteran farmers.

Urban Agriculture

The Urban Agriculture Infrastructure Grant supports farming projects in urban communities to expand fresh food access in food deserts. Since 2019, the state has invested more than $2 million in urban agriculture, leveraging another $2 million in local matching funds across 113 projects in 19 counties.¹¹ Individuals, businesses, and community organizations in urban areas can apply, and all must provide a 15% match. The GIANT Company contributed $200,000 in 2023–24, bringing that year’s total to $700,000.

Youth Education, Apprenticeships, and Farm to School

The Agriculture and Youth Development Grant Program funds youth organizations such as FFA and 4-H chapters. Awards range from direct grants of up to $7,500 to matching grants of up to $25,000. Since 2019 the program has supported 377 projects totaling $3.5 million, and in January 2026 the Shapiro administration awarded $600,345 across 62 projects in 33 counties.¹²

The PA Farm to School Grant Program funds nutrition and agriculture education for pre-kindergarten through fifth grade students, with an initial allocation of $500,000.¹³ The state also supports 11 formal agricultural apprenticeships that pair apprentices with experienced farmers on an earn-while-you-learn basis.¹⁴

Disaster Readiness

The Pennsylvania Rapid Response Disaster Readiness Account funds emergency responses to animal health crises, plant disease outbreaks, and foodborne illness events. The Department of Agriculture has drawn on it for threats including Highly Pathogenic Avian Influenza, the Spotted Lanternfly, and Chronic Wasting Disease.¹⁵

How to Apply

Most Farm Bill grants are submitted online through the Department of Community and Economic Development’s Electronic Single Application system.¹⁶ Demand runs high. The Department of Agriculture has told the legislature that applications typically outpace available funding by two to three times.¹⁵ The tax credit programs (Beginning Farmer, REAP) are administered separately from the grant application system.

Funding History

The Farm Bill is funded through annual state budget appropriations. In the 2022–23 fiscal year the legislature allocated $13.6 million, close to a 30% increase over the prior year, and by that point cumulative state investment in Farm Bill programs had exceeded $54.4 million.¹⁷ Since taking office, Governor Shapiro has funded it at $13.8 million annually. Alongside the 2025–26 Farm Bill appropriation, the same budget included $10 million for the separate Agricultural Innovation Grant Program, more than $40 million for food security, and $82 million through the Clean Streams Fund for the Agriculture Conservation Assistance Program.¹⁸

Not the Federal Farm Bill

The Pennsylvania Farm Bill is a state law and is separate from the federal Farm Bill, which authorizes federal agricultural programs nationwide. The federal Dairy Margin Coverage Protection Program, for example, pays dairy farmers when the gap between national milk prices and feed costs falls below a threshold; it covered 1,778 of Pennsylvania’s 4,940 dairy farms and delivered $102 million to the state’s farmers in one recent year.¹⁹ Governor Shapiro proposed a $5.6 million state subsidy to offset sign-up costs and premiums Pennsylvania farmers face to enroll in that federal program. The state and federal programs run independently but address overlapping challenges for Pennsylvania’s $132.5 billion agriculture industry.¹⁷

1
Commonwealth of Pennsylvania. At the 2026 Pennsylvania Farm Show, $10 Million of Agricultural Innovation Announced
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Commonwealth of Pennsylvania. Apply for the PA Farm Bill Grant
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Penn State Extension. Fund Your Farm Planning With Pennsylvania’s Farm Vitality Grant Program
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ArcGIS StoryMaps. PA Farm Bill Grants Story Map
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PA DCED. Beginning Farmer Tax Credit Program
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PA DEP. Phase 3 WIP Newsletter Issue 14
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PA Department of Revenue. What Is the Resource Enhancement and Protection Tax Credit (REAP)?
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Center for Dairy Excellence. PA Dairy Future Commission Recommendations
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Center for Poultry and Livestock Excellence. Center for Poultry and Livestock Excellence
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Commonwealth of Pennsylvania. Apply for the PA Specialty Crop Grant
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Commonwealth of Pennsylvania. Governor Shapiro, Department of Agriculture Announce Increased Investment in Urban Agriculture
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Commonwealth of Pennsylvania. Shapiro Administration Awards $600,345 to Expand Opportunities in Agriculture
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PASA Farming. Pennsylvania Farm Bill Models How States Can Aid Farmers and Local Industry
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Commonwealth of Pennsylvania. PA Celebrates Apprenticeship Week on Lehigh County Farm
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Pennsylvania Senate Republican Agriculture Committee. PDA Testimony for Joint Hearing on Farm Bill at 2024 Farm Show
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Commonwealth of Pennsylvania. PA Farm Bill
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Pennsylvania Capital-Star. New State Budget Fully Funds PA Farm Bill for a Fourth Time
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Commonwealth of Pennsylvania. At the PA Farm Show, Gov. Shapiro Launches Another Round of Ag Innovation Grants
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Spotlight PA. Pennsylvania Dairy Industry Budget, Shapiro Farm Bill Subsidy, Milk Prices