Agriculture is the backbone of the Indian economy, contributing nearly 18% to the country’s GDP and providing employment to around 60% of the population.
However, many farmers and agribusiness owners struggle with financial constraints that hinder growth.
To support the agriculture sector, the government and financial institutions offer various Agri Funding Schemes that help farmers, agritech startups, and rural businesses flourish.
If you’re searching for the best agriculture funding scheme for farmers or wondering how to secure agriculture funding for a new farm, this guide covers the top options, their benefits, and the application process.
Why is Agri Funding Important?
Farming requires significant investment in:
- Seeds, fertilizers, and pesticides to improve crop yield.
- Modern irrigation systems to combat water scarcity.
- Farming equipment and machinery to enhance efficiency.
- Cold storage and supply chain infrastructure to reduce food loss.
- Research and development in agri tech for sustainable farming.
Without adequate funds, farmers and agribusiness owners struggle to expand operations. That’s why Agri Funding Schemes play a crucial role in providing low-interest loans, grants, and subsidies to ensure sustainable agricultural growth.
Top Agri Funding Schemes in India (2025)
If you are wondering which is the best Agri Funding Scheme for small farmers, here are the top agriculture funding schemes designed to support the sector:
1. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
- Who is eligible? Small and marginal farmers.
- Funding provided: ₹6,000 per year (directly transferred to farmers' accounts).
- How to apply? Visit the official PM-KISAN portal and register with Aadhaar details.
- Why is it useful? Helps farmers cover daily agricultural expenses and invest in farming essentials.
2. Agriculture Infrastructure Fund (AIF)
- Who is eligible? Farmers, agribusiness startups, and rural entrepreneurs.
- Funding provided: Loans up to ₹2 crore with 3% interest subvention.
- How to apply? Apply via banks, NBFCs, or the AIF official website.
- Why is it useful? Supports warehouse construction, cold storage, and food processing units.
3. Kisan Credit Card (KCC) Scheme
- Who is eligible? Farmers need short-term credit.
- Funding provided: Loans up to ₹3 lakh at low interest rates.
- How to apply? Through nationalized or cooperative banks.
- Why is it useful? Provides instant credit for seeds, fertilizers, and machinery.
4. PM Formalisation of Micro Food Processing Enterprises (PM-FME)
- Who is eligible? Small food processing businesses and startups.
- Funding provided: 35% credit-linked subsidy for capital investment.
- How to apply? Submit an application via the PM-FME portal.
- Why is it useful? Encourages agri-processing businesses and value addition.
5. National Agriculture Market (e-NAM)
- Who is eligible? Farmers and Farmer Producer Organizations (FPOs).
- Funding provided: A digital trading platform for direct selling.
- How to apply? Register on the e-NAM portal and connect with buyers.
- Why is it useful? Eliminates middlemen and ensures better pricing for crops.
Additional Support for Agri Businesses
Farmers and agripreneurs looking for more financial support can explore various Agri Business Grants
Impact of Agriculture Funding Schemes
- Increased Productivity – Access to funds helps farmers buy high-quality seeds, modern machinery, and better irrigation systems.
- Modernization of Agriculture – Funding supports the adoption of smart farming technologies like AI, IoT, and automation.
- Financial Stability – Low-interest loans and subsidies reduce the financial burden on farmers.
- Sustainable Farming – Many government agriculture funding schemes promote organic farming, solar irrigation, and eco-friendly practices.
Success Stories of Agri Funding Beneficiaries
- Rajesh Kumar , a farmer from Punjab, expanded wheat production by 40% using Kisan Credit Card loans.
- A Maharashtra-based agri tech startup secured funds from AIF to develop an AI-powered crop monitoring system, reducing water wastage by 35%.
- A small organic farm in Karnataka used PM-FME subsidies to export packaged spices to 10 international markets.
How to Apply for Agriculture Funding Schemes?
If you’re wondering how to apply for agriculture funding in India, follow these steps:
- Visit official government portals like PM-KISAN, NABARD, e-NAM, or the Agriculture Ministry’s website.
- Check eligibility criteria for the relevant agriculture funding scheme.
- Gather required documents like Aadhaar card, land ownership proof, and bank details.
- Apply online or visit local agriculture banks for assistance.
- Track your application status and ensure timely submission of required paperwork.
For new farming ventures, consider exploring the Agri Seed Funding Scheme to secure initial capital for sustainable growth.
Conclusion
Agri Funding Schemes are essential for empowering farmers, agri tech startups, and food processing businesses.
These financial aids help modernize farming, boost rural economies, and ensure sustainable agriculture. Whether you are an aspiring farmer, rural entrepreneur, or agribusiness owner, securing the right agriculture funding scheme can pave the way for success.
FAQs
1. What is the best Agri Funding Scheme for small farmers in India?
The best Agri Funding Scheme for small farmers includes the Kisan Credit Card (KCC) Scheme and PM-KISAN, offering low-interest loans and direct financial aid for farming expenses.
2. How can I apply for an Agriculture Funding Scheme in India?
Farmers can apply through government portals like PM-KISAN, NABARD, and e-NAM, or visit local banks with required documents such as an Aadhaar card, land records, and income proof.
3. Which Agriculture Scheme offers funding for agri tech startups?
The Agriculture Infrastructure Fund (AIF) and PM-FME Agriculture Scheme provide financial support to agritech startups to modernize farming methods and improve agricultural supply chains.
4. What types of businesses can benefit from an Agriculture Funding Scheme?
Various agriculture funding schemes support crop farming, dairy farming, poultry farming, organic farming, food processing, and agri tech innovations, ensuring financial assistance for different agri-businesses.
5. Do Agri Funding Schemes offer grants or only loans?
Some Agri Funding Schemes, like PM-KISAN, provide direct grants, while others, such as the KCC scheme, offer low-interest loans. Programs like PM-FME also provide subsidies for business expansion.
By taking advantage of these Agri Funding Schemes, farmers and agripreneurs can build sustainable and profitable agricultural businesses in 2025 and beyond.
Disclaimer: The information presented in this blog is sourced from various online platforms and government portals.