BFRDP Projects

Using Comprehensive Financial Assistance to Increase Capital Infusion for Beginning Farmers
[Final Report]

Award Amount: $591,300
Grant Program: 2020 Beginning Farmer and Rancher Development Program Awards
Project Director: Sarah Larson
Email: sarah.larson@business.wisconsin.edu
Organization: Food Finance Institute

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  • Overview
  • Results
  • Materials
  • Delivery Area
  • Comments

Project Overview

How can we get more capital deployed for beginning farmers? This project allowed the Food Finance Institute (FFI) to work with sources of farm financing to test whether a comprehensive financial training and TA program can de-risk farm investments and attract more capital to beginning farmers. FFI has already successfully used this TA model to help beginning farmers raise money. This program provided beginning farmers financial training and coaching to fix their business models, package a financial request, raise money, and understand the financial benchmarks necessary to maintain profitability. FFI deployed this program through virtual boot camps, leveraging their Edible-Alpha® digital resources, and leading coaching cohort groups. Two important sources of farm funding, Iroquois Valley Farmland REIT (IVFR) and Farm Credit Council (FCC) were involved in the project. We also worked with a socially disadvantaged farm incubator at the Black Oaks Center (BOC). Our TA model was customized for each partners’ beginning farmer network thus providing our financing partners a mechanism to lower risk of beginning farm investments and make them more attractive for funding. Program outcomes include increased business knowledge, capital infusion, secured land access, and improved loan loss performance. In addition, we developed a needed and necessary financial projection tool that takes into account conservation calculations for funds like Iroquois Valley Farmland REIT (IVFR) who want to finance more beginning farms. Outcomes were measured upon entry into the program and annually, in addition, a customized survey was developed to assess impact on farm profitability and loan performance for our collaborating funds. 

Number of Participants: 83

Results

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