Comprehensive 2026-2027 guide to USDA SBIR/STTR grants providing up to $575,000 in non-dilutive funding for precision farming, food safety technology, sustainable agriculture, rural innovation, and agribusiness solutions. Complete application strategies, eligibility requirements, success rates, and funding timelines for Phase I ($125,000) and Phase II ($575,000) awards supporting AgTech startups across all 50 states serving American farmers, ranchers, and rural communities. USDA SBIR takes no equity, requires no repayment, funding transformative agricultural R&D advancing food security, farm productivity, and rural prosperity through innovative small business solutions[web:211][web:214][web:216].
Agricultural Innovation:
35+ USDA awards annually
Food & Farm Tech:
40+ USDA awards annually
Rural Innovation:
30+ USDA awards annually
Agricultural Tech:
25+ USDA awards annually
The USDA SBIR/STTR program through National Institute of Food and Agriculture (NIFA) provides non-dilutive grants for research and development of innovative agricultural technologies addressing challenges facing American farmers, ranchers, and rural communities. USDA seeks breakthrough innovations in precision farming, food safety, sustainable agriculture, rural broadband, and agribusiness solutions with strong commercialization potential benefiting agricultural producers[web:211][web:214][web:216].
AgTech startups can access Phase I funding (up to $125,000) to prove technical feasibility and farmer benefit over 8-12 months, followed by Phase II awards ($575,000-$650,000) for product development, field testing, and commercial launch over 24 months. USDA evaluates proposals on technical merit, agricultural impact, farmer adoption potential, and commercialization viability focusing on solving pressing challenges for American agriculture enhancing productivity, sustainability, profitability[web:211][web:214][web:216].
Complete breakdown of Phase I, Phase II funding programs with AgTech topic areas and application timelines
Phase I AgTech Objectives:
• Technical Feasibility: Prove agricultural technology works on farms with measurable productivity improvements for farmers
• Farmer Benefit: Demonstrate technology addresses specific farmer problem improving yields efficiency profitability sustainability
• Field Validation: Conduct on-farm testing proving technology functions in agricultural environments with farmer feedback
• Commercial Viability: Identify farmer customers distribution channels demonstrating market demand and revenue potential
• Phase II Readiness: Develop prototype manufacturing plan go-to-market strategy for Phase II commercialization
🌾 Iowa Precision Farming - $125K Phase I
Iowa AgTech startup received USDA Phase I for crop health monitoring sensor reducing fertilizer use 25% validated through 20-farm pilot program. Transition to Phase II with farm equipment dealer distribution.
Location: Des Moines IA | Tech: Precision Farming | Phase II: Funded $575K
🌾 California Food Safety - $120K Phase I Grant
California food tech company obtained USDA SBIR Phase I for rapid pathogen detection system reducing food recall risk 90% validated through food processing facility testing with 10 commercial customers identified.
Location: Salinas CA | Tech: Food Safety | Customers: 10 processors
🌾 Texas Livestock - $125K Phase I Award
Texas AgTech startup secured USDA Phase I for livestock monitoring wearable detecting disease 48 hours earlier improving survival rates 35% validated through rancher partnerships with veterinary endorsement letters.
Location: Austin TX | Tech: Livestock Monitoring | Impact: +35% survival
🌾 Illinois Sustainable Ag - $115K Phase I
Illinois sustainable agriculture company received USDA SBIR Phase I for soil health testing platform optimizing carbon sequestration enabling farmers earn carbon credits validated through 30-farm network generating $200K pilot revenue.
Location: Champaign IL | Tech: Sustainable Ag | Revenue: $200K pilot
Annual Solicitation:
Review Timeline:
Submission Portal:
Visit nifa.usda.gov/sbir for topic descriptions and submission requirements[web:211][web:214]
Phase II AgTech Activities:
💎 California Precision Ag - $650K Phase II + Series A
California AgTech company received $650K USDA Phase II for precision irrigation system reducing water use 40% deployed on 500+ farms. Subsequently raised $5M Series A serving 2000 farmers generating $3M ARR with farm equipment dealer distribution.
Location: Fresno CA | Farms: 2000 customers | Revenue: $3M ARR
💎 Iowa Farm Robotics - $575K Phase II Award
Iowa robotics startup obtained $575K USDA Phase II for autonomous weeding robot eliminating herbicide use deployed on 100+ organic farms. John Deere partnership acquisition $40M validating dual-use technology commercial organic conventional farming markets.
Location: Ames IA | Exit: $40M acquisition | Farms: 100 deployed
💎 North Carolina Food Tech - $600K Phase II
North Carolina food safety company secured $600K USDA Phase II for blockchain traceability platform adopted by 50 food processors. Serving major grocery chains generating $8M ARR. Pre-IPO valuation $120M demonstrating food supply chain commercial opportunity beyond farmers.
Location: Raleigh NC | Revenue: $8M ARR | Valuation: $120M
Clearly articulate how technology improves farmer productivity, profitability, sustainability with quantified benefits: yield increases, cost reductions, labor savings validated through farmer testimonials
Provide field trial data proving technology works on actual farms in agricultural environments with farmer cooperator letters demonstrating adoption interest reducing USDA technical risk
Identify farmer distribution channels: farm equipment dealers, cooperatives, ag retailers with partnership letters demonstrating market access for commercial launch
Align innovation with USDA strategic priorities: American farmer competitiveness, food security, national security, healthy food production, domestic markets supporting rural prosperity
Technology solving academic problem without clear farmer benefit or adoption pathway. Must demonstrate how innovation helps farmers improve operations profitability competitiveness
Laboratory-only testing without field trials. USDA needs proof technology works on actual farms in agricultural conditions with farmer feedback before funding commercialization
No identified distribution channel or go-to-market strategy. Need specific partnerships with farm equipment dealers cooperatives ag retailers demonstrating farmer access and adoption pathway
Get our complete USDA SBIR application guide with Phase I/II templates or work with AgTech specialists for expert proposal support.
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🌾 USDA SBIR Grant Assistance: Phase I $125K • Phase II $575K • Precision farming • Food safety technology • Sustainable agriculture • Farm automation • Crop sensors • Livestock monitoring • Rural broadband • Farmer benefit • Distribution strategy • NIFA grants supporting American farmers ranchers rural communities enhancing productivity profitability sustainability competitiveness