Funding Tip Tuesday is a weekly series that offers practical guidance to help producers prepare for farm funding.

It is not unusual for producers to say, “I know there are grants out there, but none of them will cover the sufficient cost of what I want to do.” 

Others share that their project feels broader than what a single grant is designed to support, so they assume they will not qualify at all. 

These concerns are common, especially when your project includes several upgrades, phases, or investments that do not neatly fit within one program’s criteria.

The good news is that there is a practical way to address these concerns, and it starts with understanding how stacking works.

Understanding “stacking”

Stacking refers to using multiple funding sources for the same project when the program rules allow it.

Understanding these rules early helps you plan your project budget, stay eligible, and make the most of the opportunities available. Stacking can expand your funding, lower your out-of-pocket costs, and strengthen your overall project.

What stacking looks like in practice

Some grant programs allow you to combine different funding sources, while others limit how much support you can layer for the same project. The options you can stack often come from different levels of government or community organizations. For example:

• Federal programs, such as USDA conservation or value-added grants, can cover a portion of project costs.

• State programs, including specialty crop, beginning farmer, regenerative practices, or equipment-focused grants that offer supplemental support.

• Local funds, such as Soil and Water Conservation District cost shares, county incentives, or community-based grant programs.

  
  

When stacking is allowed, one program might cover a specific portion of expenses, while another helps with equipment, labor, or technical components. Each program has its own rules, so your plan should reflect what each source could help you pay for.

How to check whether stacking is permitted

Funding programs outline their requirements in the Request for Proposal (RFP). When checking whether stacking is allowed, focus on the sections that explain how funds can be used and whether other support is permitted. Look for headings such as:

• Restrictions on overlapping funding

• Eligible and ineligible activities

• Matching and cost-share requirements

• Allowable uses of funds
  
  

One important consideration is maximum federal funding limits. Many federally funded programs cap the percentage of total project costs that can be covered with federal dollars. For example, programs like USDA’s Rural Energy for America Program (REAP) limit how much of a project’s cost may be federally funded. If you combine REAP with another federally funded program, their total contribution typically cannot exceed that cap.

As a result, even when individual programs allow stacking, their combined funding may still be restricted. Always confirm whether a program’s funds count as federal and verify the applicable percentage limits in the RFP.

If the RFP is unclear, contacting the funding agency directly can be helpful. Program staff can confirm whether you may pair their program with others and clarify which parts of your project the grant is allowed to support.

A few more tips

• Map out all potential funding sources before you apply.

• Assign each grant to a different part of the project to avoid overlap.

• Track which expenses each program covers, so your budget stays clean and compliant.

• Document all communications with agencies, especially if they confirm that stacking is allowed.
  
  

By doing this, your farm can navigate complex funding options with confidence. Over time, stacking helps you design stronger projects, stretch your resources further, and stay competitive across multiple grant cycles.

If you want an easier way to stay on top of grants that truly fit your operation, Lasso can help. We gather opportunities from multiple sources and filter them based on your location, goals, and project plans. You only see programs you are likely to qualify for, which saves time and helps you focus on the opportunities that matter most. Learn more at app.joinlasso.com.

Do you want to stay updated on practical grant tips, funding opportunities, and ways to strengthen your farm’s competitiveness in the application process? Follow us on our Lasso social media pages!

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