![]() ![]() Whether a farmer needs new equipment, infrastructure, or operating capital, the Fund’s goal is to give farmers the financing they need to successfully manage the transition period.Īnd to help their farmers succeed in organic, they’re working on ways to assist them with marketing and create a community among their growers to foster support. Just this year, they launched the Perennial Fund, which provides long-term financing to farmers making the transition. That includes farm loans for organic transition. In support of their mission for restoring our relationship with the earth, they help farmers adopt regenerative and organic practices. Non-profits invested in sustainable practicesĪnother emerging group of lenders is non-profits, like Mad Agriculture. Look for creative ways to engage those who already have a stake in your success that could help reduce your financial burden. If you already rent land, consider whether your landlord would be willing to do a crop-share agreement. ![]() and seeking organic farmers for long-term leases.īut you don’t need to work with an investment group to create a similar arrangement on your own farm. Currently, they own and manage more than 3,000 acres of farmland across six family farms.Īs of March 2021, Clear Frontier is actively investing in conventional and organic land across the U.S. They work with farmers in four phases: lease structuring, land stewardship practices, operations, and offtake arrangement. One example is Clear Frontier Ag Management, which offers long-term, flexible lease structures to family farms transitioning to organic production. ![]() To help make that happen, they’re creating leases for farmers who will transition to organic and continue farming using sustainable and regenerative practices. Some investors want to invest in organic farmland. Land investors and rental agreementsĪnother option for financing the transition is through farmland arrangements. Once they receive organic certification, it converts to a standard 5-year intermediate-term loan with fully amortized principal and interest payments. Their organic bridge loan requires farmers to only pay interest on the loan for the first 2-3 years, with a declining balance operating loan. Then when a farmer receives additional revenue from their certified organic crops, they can schedule repayments.Ĭompeer Financial, an Upper Midwest-based Farm Credit Cooperative, offers a similar product. Their organic transition loan gives farmers the capital they need for the upfront costs associated with organic farming. More banks and lenders are creating loans specifically designed for the organic transition process. Traditional lenders with farm loans for organic transition ![]()
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