Specialty Crops on the Rise: Market Trends and Financial Opportunities
Specialty crops are in high demand—and farmers stand to benefit.
The market for specialty crops—like fruits, vegetables, and nuts—is growing fast. In 2024, it was worth about $2.28 billion, and it’s expected to grow to $3.86 billion by 2029—a year-over-year increase of more than 11 percent. This market surge presents big opportunities for farmers and rural landowners.
In this article, we’ll cover the reasons for the market jump, resources for specialty crop farmers, and essential information to help you decide how to best leverage your land in a high-opportunity market.
What’s Driving Specialty Crop Growth?
Specialty crops are experiencing a notable surge in market demand, driven by evolving consumer preferences and bolstered by substantial USDA support.
1. New technology is cutting costs—making crops cheaper for everyone.
The average specialty crop farm spent over $142,000 on labor in 2018—an astounding 553 percent higher than the $22,000 labor expenditure reported by the average farm operation. Traditionally, many specialty crops need to be hand-picked or carefully stored and packaged. But with advancements in precision farming—like sensors, drones, AI, and robotics—farmers are able to reduce the reliance on labor. This cuts operating costs, meaning crops can be sold cheaper, which helps increase demand.
2. Consumers are more interested in where their food comes from.
In recent years, demand for sustainable farming practices has increased. From 2012 to 2023, the annual growth rate of inflation-adjusted organic retail sales was more than seven percent. Consumers are looking for organic and sustainably grown specialty crops. It’s more than just organic, too—the 2022 ag census found 239,000 specialty crop farms produced more than $115 billion in agriculture sales.
3. Increased government support helps farmers grow.
Multiple federal programs offer grants, research funding, and trade support for specialty crop growers. Many were either created in the 2018 farm bill or saw increased budgets this year. These programs help farmers adopt new technologies, lower input costs, and find new markets. We cover specific programs below.
Funding and Grants for Specialty Crop Farms
Several grants and federal funding programs are available to specialty crop farmers, primarily authorized or supported through recent Farm Bills and other governmental initiatives.
Local Agriculture Market Program (LAMP)
LAMP is a grant program that helps farmers sell directly to customers and grow their local or regional food businesses. It supports things like farmers markets, food hubs, and value-added products (like jams, cheeses, or dried herbs).
LAMP includes several smaller programs:
- Farmers Market Promotion Program (FMPP)
- Local Food Promotion Program (LFPP)
- Regional Food System Partnerships (RFSP)
- Value-Added Producer Grants (VAPG)
Specialty Crop Research Initiative (SCRI)
SCRI was issued in the 2018 Farm Bill with $100 million annually. Although the funding was equal to the previous bill’s level, the update expanded the scope of the program to include threats to pollinators, emerging and invasive species, and systems to improve and extend storage life. It also facilitates partnerships between industry and public research in enhancing competitiveness.
TAP helps orchardists and nursery growers replant or fix trees, bushes, and vines that were damaged by natural disasters like storms, droughts, or freezes. It became a permanent program in 2014 and can even cover losses going back to October 2011.
In the 2018 farm bill, the rules were updated: the $125,000 yearly payment cap was removed, and the program now covers up to 1,000 acres of damaged crops each year—twice as much as before.
Emergency Citrus Disease Research and Extension Program
Citrus farmers in the U.S. are facing a serious threat from a disease called HLB (also known as citrus greening), which is spread by an invasive insect. This disease has already wiped out over 75% of Florida’s citrus production and has now reached California and Texas too.
To fight this, the 2018 Farm Bill created a special fund to support research on how to stop HLB. The ECDRE program, run by USDA-NIFA, brings together top scientists to find real-world, cost-effective solutions that citrus growers can use.
Agricultural Trade Promotion and Facilitation Program
ATP was started in 2018 to help U.S. farmers and producers sell their products in new countries—especially when trade barriers make exports harder. It gives financial support to U.S. groups to help with things like advertising, trade shows, product demos, market research, and outreach in other countries. The program supports all types of U.S. agriculture, including specialty crops, mostly by working with nonprofit organizations.
Marketing Assistance for Specialty Crops (MASC)
The MASC program gives money to specialty crop farmers to help cover the high costs of getting their products to market. These crops are usually delicate and expensive to handle, like fruits, vegetables, nuts, herbs, flowers, and nursery plants.
The USDA started MASC with $2 billion to help with rising costs. Due to demand, they increased it to $2.65 billion, with a second round of payments up to $1.3 billion already announced.
Bridging the Gap: Financing Options Tailored to Farmers’ Needs
While federal programs can provide a strong foundation of support, many specialty crop farmers also need additional, flexible financing options to scale their operations or navigate complex financial decisions. That’s where AgAmerica’s spectrum of lending solutions comes in. From term loans to revolving lines of credit, AgAmerica helps farmers take advantage of market opportunities, invest in infrastructure, and plan for long-term success. The following story highlights how one specialty crop farmer used this kind of financing to protect his legacy and pass on his land to the next generation.
Success Story: Specialty Crop Farmer Passes 690 Acres to Next Generation
A specialty crop farmer was ready to start succession planning, but he needed help separating his operations and property to better streamline his estate plan. The farm had been growing cantaloupe and citrus since 1997, with a smaller portion of the operation dedicated to growing peppers and eggplant.
The farmer approached AgAmerica looking for a loan that could provide flexibility to plan for the future, protect the farm’s legacy, and make sure the next generation could step in without legal or financial complications. AgAmerica paired a $3.38MM term loan with a $718K revolving line of credit to help this family easily transition 690 acres of farmland and citrus groves to the next generation.
Partner with AgAmerica to Grow What’s Next
The specialty crop market is growing rapidly—and with the right financing, so can your operation. Whether you’re expanding production, investing in new technology, or planning for generational transfer, AgAmerica offers tailored lending solutions like our interest-only loans designed to meet the unique needs of farmers like you. With flexible terms and deep agricultural expertise, we’re here to help you seize today’s opportunities and build long-term success.
Connect with our team to explore financing options built for your farm’s future.
