Will you make money, or just spend it?
Whether you're a backyard hobby beekeeper, or an entrepreneur trying to turn your beekeeping into a business, beekeeping can be expensive. You will make a significant investment to establish an apiary, and to buy the tools, bees, and equipment that you need to grow it. Purchasing a honey extraction setup and wax processing equipment could empty your checking account, despite your hopes of making money from your bees.
One way to grow your beekeeping operation without breaking the bank is to apply for grants to help you buy some (or all) of your equipment. While grants are not available to everyone, they can be extremely valuable to a growing beekeeping operation, if you can get them.
What is a grant?
- A grant is a financial award given for a specific purpose.
- There are different types of grants: Federal, state, and private (foundation-based).
- Grants are often made available to specific populations (e.g. women farmers, veterans, small businesses, youth, etc.)
- Grants are usually available to specific geographic areas (e.g. your state, your county, etc.)
- Applying for a grant can be a lengthy process, and there may even be an application fee.
- With planning, grants can be hugely rewarding. Without good planning, they can be a major time-sink and source of stress that doesn't wind up helping you.
A grant is a way for a group or individual with money to help a group or individual who needs money. Grant funds aren't loans, and don't need to be repaid. They're given to worthy applicants to help them achieve something the granting group wants, (like to increase the number of successful agricultural businesses in a region).
We've compiled the following tips and tricks to help you find and win a grant to help you grow your beekeeping operation.
Search and research: Finding the right opportunity is half the battle
- Get to know your local and state beekeeping organizations. They may be able to share grants available to your area. Some even have a list of resources on their websites.
- The USDA and your state's Agriculture Department often post open grants on their websites.
- Word of mouth: Ask around to see if any other beekeepers have found good grants to help fund their apiary.
- If you are able to conduct scientific research as you expand your beekeeping operation, research grants may be available to you. If you're open to helping bee research but don't have any scientific training, you may be able to team up with a scientist to write a grant and conduct research. If your local university has a honey bee lab, they could be looking for a beekeeper like you to partner with.
New York State landing page for open grants.
Follow the rules!
- Grants will almost always have strict eligibility requirements. (For example: Only open to beekeepers between 17 and 32 years of age; Only open to new beekeepers just starting out; Only open to women farmers; Only open to beekeepers who live in the state of Ohio…) Do not waste time applying for a grant that you're not eligible for.
- Grants will have deadlines - a period in which they are accepting applications.
- Miss the deadline? If it's a recurring grant, make a note in your calendar for next year's cycle, and start preparing now.
- Paperwork - Follow all of the instructions, and answer every question. Some companies employ full-time grant writers because this is a hard task! Even typos can disqualify you.
- If you get the grant, use the money the exact way you say you will in the application. Don't tell the grantor that you'll buy a hive for orphans, and then use the money to buy a fancy new smoker for yourself instead. If you misuse grant funds, you will likely be required to pay the grant money back.
- Grants may impose extra requirements on you if you accept their money. For example, if you obtain a grant to do research on how to improve the efficiency of your operation, you will probably be required to publicly communicate what you've learned to help other beekeepers. Don't neglect these reporting, education, or communication requirements, or you'll run the risk of upsetting the granting group.
Disclaimer: We're beekeepers here at Betterbee, not financial advisors, accountants, or grant writers. We've offered these tips to help you, but you should always do your due diligence to make sure any financial decision (including applying for and accepting grant funding) is the right choice for you.
Tell your story well
Grantors will ask questions on the application, and you'll need to have a good story to convince them to give you their money. Don't lie to them because they'll almost always see right through it. Instead, only apply to grants that you're really eligible for, and then make a strong case for why you deserve their assistance.
- Share your vision, and show the reviewers that your plans align perfectly with the core purpose of the grant. Is the grant meant to increase the number of small farmers? Describe the small farm you hope to run. Is the grant meant to support struggling veterans? Don't be afraid to share your own struggles. Figure out what the reviewers are looking for, and give it to them clearly.
- They will usually ask what you will do with the money. Be specific, and present a detailed budget to explain how you would spend the grant money. If you need help, Betterbee is always happy to help you prepare a cost quote so you can present your budget.
- Be prepared to share a business plan. Grantors want to know you're going to be smart with their money. Doing your homework during the application phase will help convince them that you're the kind of person who always gets the job done.
Other forms of financial assistance
What if you're not a disabled veteran, between the ages of 19 and 24, with Ukranian ancestry, trying to start a beekeeping business on a site previously occupied by a coal-fired power plant, on a floodplain in Louisiana? What if you just don't meet the eligibility criteria for any of the grants you find? There may still be ways for you to get financial assistance to grow your beekeeping operation. Consider the following options:
- Start an equipment lending program within your bee club. The club can purchase the extracting or wax processing equipment, and all members can share the equipment. (An added bonus of this strategy: Many bee clubs are registered nonprofit organizations, and thus are eligible for more grants than an individual beekeeper. The club may be able to use grant funds instead of the club bank account to start a program like this.)
- Get a traditional bank loan. Go to your bank with a business plan for how you'll use the borrowed money to turn a profit selling honey, and see if they'll lend you the money with a workable repayment schedule.
- Look into your eligibility for “Aggie Bonds,” a program in some states where agricultural loans can be obtained with much lower interest rates than you would find on the open market
- Seek out programs that offer scholarships. Some programs won't buy you an extractor, but may offer scholarships and other support to help you improve your beekeeping skills. For example, Hives for Heroes offers veterans scholarships for master beekeeper training programs.
Hives for Heroes scholarships page.
Though there's no such thing as a “free” lunch, grants are available to some beekeepers that come awfully close. Some beekeepers or bee clubs are able to get grant money free and clear, with very few strings attached. For those who aren't eligible for a grant, agricultural loan programs and partial cost-sharing can still help you start or expand your beekeeping operation without having to pay the whole bill before you harvest any honey.
Examples of what's available by state: Fund Your Apiary Database
