Key Facts
- USDA Rural Development certified the Farmers Innovation Fund as a Rural Business Investment Company (RBIC) on July 16, 2026.
- The fund is backed primarily by private capital from Farm Credit Institutions and will invest in agricultural technology companies.
- Under RBIC rules, at least 75% of a fund's invested dollars must go to rural areas, defined as communities of 50,000 residents or fewer.
USDA Rural Development certified the Farmers Innovation Fund as a Rural Business Investment Company on July 16, 2026. The certification allows the fund to raise and deploy private capital into agricultural technology companies.
Acting Rural Business-Cooperative Service Administrator Victoria Collin called the Rural Business Investment Program "a catalyst for private investment in rural America." She said certification gives agricultural innovators a direct line to both capital and the producers who will use the new technology.
How To Apply for the Farmers Innovation Fund
To be licensed as an RBIC, an applicant must raise at least $10 million in private equity capital. Applicants must also show a fund management team experienced in venture capital or community development financing. RBICs can be structured as limited partnerships, limited liability companies, or corporations.
The program is authorized under the Food, Conservation and Energy Act of 2008 and governed by 7 CFR Part 4290.
Organizations seeking RBIC certification follow three steps:
- Contact RBIP@usda.gov before attempting any forms.
- Register with the System for Award Management, a free federal registration that can take time to complete.
- Submit the RBIC license application, which has two parts: a Management Assessment Questionnaire and a set of supporting exhibits. It also requires several fund-instruction workbooks and an applicant interview.
USDA accepts RBIC applications on an ongoing basis. This process applies to organizations forming a new fund, not to individual farms or businesses seeking investment from an already-certified fund like Farmers Innovation Fund.
Where the Fund's Money Must Go
At least 75% of an RBIC's invested dollars must go to rural areas. USDA defines "rural" as outside a metropolitan statistical area, or in a community of 50,000 residents or fewer.
No more than 10% of invested dollars can go to urban areas, defined as 150,000 residents or more. More than half of an RBIC's invested dollars must go to "smaller enterprises." USDA defines a smaller enterprise as a business worth under $6 million with net income under $2 million over the prior two years.
How Farmers Fit Into the Testing Model
The Farmers Innovation Fund takes a different approach than most agricultural technology investors, according to USDA. Instead of relying mainly on laboratory research or small pilot projects, portfolio companies will test new technologies directly with farmers.
The testing happens under real-world conditions, before the technology reaches broader markets. Deputy Under Secretary Joe Gilson said the certification reflects an effort to pair private capital with producer expertise to develop agricultural technology domestically.
USDA did not disclose the fund's total capital target, its fund manager, or which agricultural technology companies it plans to back. The Rural Business Investment Program maintains a public list of certified RBICs, updated as new funds are approved.
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