Funding for farm-related business ventures.
Posted by Preston Bristow on May 30th, 2007 filed in Farm Financing
Vt Farmer Gordon sent a request on Wednesday, May 30 asking “Do you know if there are funding opportunties for farm-related businesses? Not just buying a farm.” Thank you, Gordon, for asking that question, and there are in fact some opportunities that I am aware of.
First, in my blog post of May 8 entitled “Where to borrow money to buy a farm” I expressed my support for the non-profit Yankee Farm Credit as a lender that supports farmers and understands farming, and they do offer commercial loans for farm-related business ventures. A good place to start would be to talk with them. Their website is:
A second place to check, which I also mention in my May 8 “Where to borrow money to buy a farm” blog is the state Vermont Agricultural Credit Corp (VACC) and their parent agency, Vermont Economic Development Agency (VEDA). VACC offers farm operating loans which can include farm-related business ventures. Other farm-related businesses loans VEDA handles directly. VEDA caused a few jaws to drop in the farm community in 2003 when they made a $939,750 loan to Star Hill Dairy (now Woodstock Water Buffalo) to construct a barn and processing facility to raise water buffalo and make buffalo mozzarella and yogurt. VEDA’s website is:
A third source that I have not previously mentioned is the federal USDA Rural Development agency. USDA-RD has two programs that could be especially helpful to farm-related business entrepreneurs: their Value-Added Producer Grants (VAPG) and their Rural Business Enterprise Grants (RBEG). Please note that these are grants and not loans! A loan has to be paid back, but a grant is a grant. For more details and contact information go to the website of the VT-NH Director’s Office at:
All of these entities recognize that Vermont’s rural character, tourism, agricultural economy and way of life will be benefitted by more and varied successful farm-related enterprises, so you should not be afraid to bring them your ideas. Good luck!
June 25th, 2007 at 8:45 am
Hi,
My partner and I are in the process of purchasing land from family. Our goal is to build an organic vegetable and livestock farm. We believe it’s really important to bring high quality local organic food to the community. As well as provide educational tours on organic farming and healthy nutritional advice. We have a dream to build a spectacular farm that will nourish community and visitors. We are open to suggestions for grant funding and any other words of wisdom. Thank you for your time,
Liv Skorstad
June 26th, 2007 at 1:57 pm
Thanks, Liv, for your inquiry. There are two suggestions that I can add to my “Funding for farm-related business ventures” entry.
The first is the possibility that you or your family could sell the development rights on the land to the Vermont Land Trust. Although it can often take up to 2 years from the first visit with the Land Trust until the closing when you get your check, it can be a significant source of income and consistent with your stated ethic and goals.
My second suggestion is to contact your local Regional Development Corporation (RDC). These are quasi-governmental entities whose role is to promote local economic development, and many of the RDCs include promoting agricultural ventures that will bring in tourists and enhance the local economy and quality of life. Having the support of your local RDC will help in getting grants and loans from VEDC, VACC, USDA-RD and other governmental sources.
Here’s a link to find local the RDC for your area:
http://www.thinkvermont.com/resources/regdev.cfm
Good luck!