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CDFA Food and Agriculture Finance Update - August 9, 2022

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CDFA Food and Agriculture Finance Update
August 9, 2022
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CDFA Food & Agriculture Finance Update

Features

The CDFA Ohio Financing Roundtable is Back!
Join CDFA on September 14, 2022, in Columbus, Ohio for a one-day conference to share best practices within the development finance industry. Experts from across the state will discuss the latest and most innovative development finance tools, authorities, resources, and approaches, and how these can affect the Ohio economy going forward. If you have a stake in Ohio's economic development finance industry, you won't want to miss this event. Space is limited, register today!

How the Climate Deal Could Help Farmers Aid the Environment
The climate deal achieved by Senate Democrats could lower the high levels of methane emissions from cows and increase programs that help reduce the number of greenhouse gases produced by American farms. The law provides more than $20 billion to increase initiatives to assist farmers in turning their soil less frequently, implementing climate-friendly crop rotation techniques, and planting cover crops that don't yield anything but better soil.

AppHarvest Announces $50M in USDA-Guaranteed Funding for High-Tech Indoor Farm
AppHarvest, Inc. is a sustainable food company, public benefit corporation, and Certified B Corp building high-tech indoor farms to grow affordable, nutritious fruits and vegetables at scale while providing good jobs in Appalachia. The company recently announced that it secured $50 million across two loans guaranteed by the United States Department of Agriculture through Greater Commercial Lending for a 30-acre farm in Somerset, Kentucky .

$13M in Tax Credits for Pennsylvania Farmers' Improving Water and Soil Quality
Secretary Russell Redding announced the availability of $13 million in tax credits to Pennsylvania farmers for measures to improve soil and water quality. Tax credits through Pennsylvania's innovative conservation financing program, Resource Enhancement and Protection (REAP), can be combined with other state funding to help grow a sustainable farm economy.

Capital Help Crucial for Beginning Farmers
Getting started can often be the hardest part of any operation, but resources for young and beginning farmers are available. Programs such as loans and tax credits help farmers in acquiring agricultural property by offering reduced rates and assisting in the purchase of agricultural land, depreciable machinery, or equipment and buildings.

Want to Support Regen Ag? Invest in Mission-Aligned Infrastructure
Croatan Institute's new report — Investing in Regenerative Agriculture Infrastructure Across Value Chains — details the importance of supporting small-to-mid-scale, mission-aligned infrastructure to process, transport, and market regenerative food products. The report identifies financing opportunities and pathways to building resilient value chains for regenerative farms.

$12.7M Bond Proposal for New Gym, Agriculture Barn at a Michigan High School
Montague Area Public Schools in Muskegon County, Michigan has a 24-year, $12.7 million bond proposal on the August election ballot that would allow the district to build a new gymnasium and agriculture barn at the high school. Montague's agriculture barn will be used by students across all grade levels district wide to provide hands-on experience in learning about farming, nutrition, biology, and the business of agriculture.

USDA Invests More Than $14M to Support Agricultural Workforce Training for Historically Underserved Communities to Bolster U.S. Meat and Poultry Sector Resilience
The U.S. Department of Agriculture (USDA) announced an additional investment of more than $14 million to support agricultural workforce training in historically underserved communities which will increase the resilience of the U.S. meat and poultry processing sector. This investment is part of the Biden-Harris Administration's ongoing efforts through the American Rescue Plan to strengthen the nation's food supply chain by promoting fair and competitive agricultural markets.

PepsiCo Issues Green Bond with Focus on Regenerative Ag, Plastic Waste, Water Impacts
PepsiCo has closed on a $1.25 billion 10-year green bond that the company will use toward decarbonization of its operations, plastic waste reduction, regenerative agriculture, and pursuing net-positive water impact. A top use of the funds will be toward adopting regenerative agriculture practices across its supply chain, including watershed enhancement, reduction in fertilizer use, farmer training, and improvement projects.

Upcoming Events
CDFA National Development Finance Summit

CDFA-Bricker Webinar Series: Solar Projects
Thursday, August 11, 2022 - 2:00 PM - 4:00 PM Eastern
This webinar will provide an overview of tax abatements typically used by solar developers, with a focus on examples from the state of Ohio, and panelists will also discuss how abatements and payment-in-lieu-taxes agreements interplay with state permitting processes.

CDFA // BNY Mellon Development Finance Webcast Series: Deploying Capital in Native American Communities
Tuesday, September 13, 2022 - 2:00 PM - 3:00 PM Eastern
During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, a panel of experts will share insights on how to preserve and grow tribal communities by unlocking development finance tools.

Food & Agriculture Finance News

Farm Credit Services of America Contribution to the DEX: Dakota Events CompleX
South Dakota State News | Aug. 2 | Agriculture Finance | Rural Development

Sanders Announces More Than $42M in Funding for the State of Vermont
VB | Aug. 2 | Agriculture Finance | Community Development | Education | Energy Finance | Healthcare | Housing Finance | Infrastructure Finance | Legislative | Rural Development | Water Finance

Expanded Meat, Poultry Processing Resources Available in New Mexico
Capital Journal | Aug. 2 | Access to Capital | Agriculture Finance | Federal | Food Systems Finance | Revolving Loan Funds (RLFs) | U.S. Dept. of Agriculture (USDA)

How Can We Improve Access to Finance for Smallholder Coffee Farmers?
Perfect Daily Grind | Aug. 1 | Access to Capital | Agriculture Finance | Economic Development | Food Systems Finance | Public-Private Partnership (P3) Financing | Rural Development

Real Examples of How the NMTC is Transforming Communities and Commercial Real Estate
The Business Journals | Aug. 1 | Community Development | Economic Development | Education | Food Systems Finance | Incentives | Tax Credits

Bipartisan Legislation Moving Forward to Support Farmers and Rural Communities
WISPolitics.com | Aug. 1 | Access to Capital | Agriculture Finance | Federal | Legislative | Rural Development | U.S. Dept. of Agriculture (USDA)

USDA Announces Its LFPA Cooperative Agreement with California
USDA | Jul. 27 | Access to Capital | Agriculture Finance | Federal | U.S. Dept. of Agriculture (USDA)

How Small Community Investors Helped Get a Boston, MA Food Co-op Off the Ground
Next City | Jul. 26 | Access to Capital | Community Development | Food Systems Finance | Social Finance

$1.3M Infrastructure Investment for Lapeer County, Michigan Road Commission to Support Local Agriculture Industry
Michigan.gov | Jul. 26 | Access to Capital | Agriculture Finance | Federal | U.S. Dept. of Commerce (DOC)

USDA Awards over $70M in Grants, Increases Access to Local, Healthy Foods for Kids
USDA | Jul. 25 | Access to Capital | Agriculture Finance | Federal | U.S. Dept. of Agriculture (USDA)

Synthica Energy Announces Development of New Food Waste Powered Renewable Natural Gas Facility in San Antonio, TX
businesswire | Jul. 22 | Access to Capital | Energy Finance | Food Systems Finance | Innovation Finance

A Water Strategy for the West: Cities Pay Farmers to Install Efficient Irrigation Systems
Next City | Jul. 20 | Access to Capital | Agriculture Finance | Federal | Infrastructure Finance | State Finance Program | Water Finance

As Aging Farmers Retire, Lawmakers Explore How to Boost Beginning Producers
Georgia Recorder | Jul. 15 | Access to Capital | Agriculture Finance | Federal | U.S. Dept. of Agriculture (USDA)

Kentucky Agricultural Finance Corporation Approves More Than $1.5M in Loans
The Lane Report | Jul. 15 | Access to Capital | Agriculture Finance | Revolving Loan Funds (RLFs) | State Finance Program

Budget Could Strengthen Pennsylvania Agriculture with Increased Funding
Latrobe Bulletin | Jul. 14 | Access to Capital | Agriculture Finance | State Finance Program

Lawmakers Pushed to Streamline USDA Farm Loans
Agri Pulse | Jul. 14 | Access to Capital | Agriculture Finance | Federal | U.S. Dept. of Agriculture (USDA)

Agriculture Tech Growing Regardless of What Happens
yahoo! finance | Jul. 13 | Access to Capital | Agriculture Finance | Food Systems Finance | Innovation Finance

USDA Makes It Easier for American Farmers to Grow Food, Ease Burdens for American Families
USDA | Jul. 12 | Access to Capital | Agriculture Finance | Federal | U.S. Dept. of Agriculture (USDA)

Down Payment Assistance Program Will Provide Much Needed Boost to Minnesota's Emerging Farmers
Duluth News Tribune | Jul. 12 | Access to Capital | Agriculture Finance | Social Finance | State Finance Program


CDFA Resources

Investing in Regenerative Agriculture Infrastructure Across Value Chains
Access to Capital | Agriculture Finance | Bond Finance | Economic Development | Food Systems Finance | Foundations | Green Finance | Revolving Loan Funds (RLFs) | Resiliency | Rural Development | Social Finance
Regenerative farms rely on small-to-mid scale, aligned infrastructure to process, transport, and market their products. These middle infrastructure businesses help to improve farm income and bolster regional food economies while providing significant social and environmental benefits. However, their unique business models require innovative and patient forms of capital to grow and succeed. This report identifies finance opportunities and pathways to build resilient value chains for regenerative farms.


The Council of Development Finance Agencies (CDFA) is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private and non-profit entities alike. For more information, visit www.CDFA.net or email info@cdfa.net.


Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
(614) 705-1300
info@cdfa.net

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CDFA National Sponsors

  • Alliant Insurance Services, Inc.
  • BNY Mellon
  • Bricker Graydon LLP
  • Business Oregon
  • CohnReznick
  • Frost Brown Todd LLP
  • Grow America | Formerly NDC
  • Hawes Hill and Associates LLP
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • McGuireWoods
  • MuniCap, Inc.
  • NW Financial Group, LLC
  • PGAV Planners, LLC
  • Raza Development Fund
  • SB Friedman Development Advisors
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Z. The Bond Buyer
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