CDFA Releases White Paper 5: Food Systems & Investment Tools
CDFrecently released the fifth white paper in the CDFA Food Finance White Paper Series. This paper, Food Systems & Investment Tools, focuses on finance tools that help to stimulate investment, such as tax credits and opportunity zones. An overview of this category of tools is provided, with examples of current programs as well as an extensive collection of case studies to illustrate how these tools can make an impact.
Lavender Farm Opens and Partnered with Harvest Returns' OZ Fund
Under the Stars Farm, a lavender farm specializing in you-pick agritourism and events, recently opened in Gloucester, VA. The farm also just announced that it has partnered with Harvest Returns' Sustainable Agriculture Opportunity Zone Fund for an equity capital raise. The funds raised will help the Under the Stars Farm team expand lavender production to approximately seven to eight million lavender stems per year by 2021.
Farm Country Feeds America. But Just Try Buying Groceries There.
The challenges of starting a small grocery store in rural America at a time of increasing consolidation in the food business are daunting. A few states offer tax credits and loans to help stores finance construction projects and move to underserved places. In March, a bipartisan cluster of lawmakers in Washington proposed a new tax credit for grocery stores in food deserts.
Maine Harvest Federal Credit Union, First to Focus on Agriculture, Opens
Maine Harvest Federal Credit Union, the first in the nation to focus solely on agriculture, opened for business on October 8th. Maine farmers and food producers report a $180 million gap in access to financing for land and equipment, and it's one of their biggest obstacles to growth. Maine Harvest expects to loan $12 million to 100 farmers and food producers in its first six years, financed by 1,000 members.
Starbucks Investing $10M to Boost Small Business Lenders in Chicago, IL
Starbucks announced that it will pour $10 million in local community development lenders to spur economic development in Chicago's underserved neighborhoods. The investment will be split between four community lenders: Accion Chicago, Chicago Community Loan Fund, Local Initiative Support Corporation and IFF. The $10 million is expected to finance over 500 loans.
How States Are Helping Farmers Adopt Sustainable Practices
At a time when federal funding for conservation and soil health is static at best, and efforts to increase it resulted in several battles during the passage of the last farm bill, this state-level interest is no coincidence. And the momentum suggests that while some farmers and ranchers have signed on to support a Green New Deal, action on agriculture and climate may have a better chance of picking up steam within state governments. A handful of states have recently passed soil health bills that incentivize carbon farming practices, for example.
New Seasons Market in OR Launches Microloan Program
Portland, Oregon-based New Seasons Market has launched a microloan program called the New Seasons Partner Fund. The fund will offer low-interest loans and business mentorship to underrepresented food entrepreneurs who historically struggle to get capital. New Seasons will allow independent food producers who have been in business for at least two years and have fewer than 25 employees to apply, with loans starting at $5,000 to $25,000.
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