The Agricultural Enterprise Fund (AEF) is an initiative administered by the Tennessee Department of Agriculture in partnership with the Department of Economic and Community Development. It is designed to support Governor Lee’s priority of promoting job creation and economic development in Tennessee by funding projects that advance the agricultural, food, and forestry sectors. The AEF particularly focuses on expanding or launching agricultural enterprises that generate significant local economic impact.

The fund is structured to prioritize value-added and processing projects that support the broader agricultural and forestry communities. These may include initiatives that increase market access for Tennessee producers, enhance processing capabilities, or introduce innovative agricultural technologies. While direct farming operations such as livestock, row crop, or horticulture production expansions are generally not competitive for this program, they may be eligible for support through the Tennessee Agricultural Enhancement Program (TAEP).

Projects submitted for AEF consideration must align with one or more of the following categories: increasing farm income, improving access to markets, expanding business capacity, or fostering agricultural innovation. Examples include facilities that offer better prices to farmers, reduce the distance to market, or implement new technologies that improve operational efficiency.

Applicants must either be based in Tennessee or have a project located in the state. They must commit to investing in the project and ensure that AEF funding constitutes no more than 25% of the total budget. Further requirements include submitting impact updates, purchasing at least 25% of agricultural inputs from Tennessee producers (unless infeasible), and committing to use any reimbursed equipment or structures for their intended purpose for at least five years.

The next application deadline for the Agricultural Enterprise Fund is April 10, 2025. The selection process is competitive, with preference given to projects located in or benefiting at-risk, distressed, or adjoining counties. The evaluation focuses on each project’s potential to benefit the agricultural economy of Tennessee through measurable impact and sustainable innovation.

Applicants are encouraged to contact the program via email at agriculture.enterprisefund@tn.gov or phone at 615-837-5160 for further assistance or questions about eligibility and the application process.