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CDFA Food and Agriculture Finance Update - December 10, 2024

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CDFA Food and Agriculture Finance Update
December 10, 2024
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CDFA Food & Agriculture Finance Update

Features

Propagate Awarded $24.6M to Advance Agroforestry, Reforestation for Working Farms
A powerful coalition of sustainable agriculture and agroforestry organizations, led by Propagate, is proud to announce a new investment by the Natural Resources Conservation Service (NRCS) under the Regional Conservation Partnership Program (RCPP) to expand agroforestry and reforestation efforts across the Mississippi River Basin. This multi-year program will enable a team of partners to plant productive trees on 3,500 acres of farmland in 5 key states. These projects will decrease soil erosion, increase water quality, and increase biodiversity, contributing to farm resilience and supporting rural economies.

Record Investment in Private Lands Conservation in 2024 Thanks to Inflation Reduction Act
In fiscal year 2024, the U.S. Department of Agriculture's (USDA) Natural Resources Conservation Service (NRCS) made over $3 billion available from the Inflation Reduction Act (IRA) for climate-smart agriculture and forestry mitigation activities, in addition to the $2 billion available from the Farm Bill for all conservation activities. The agency obligated 97.6% of all available fiscal year 2024 IRA conservation program financial assistance funds, or more than $1.6 billion, to farmers, ranchers, and forest landowners across America. 

Sola Gratia Farm, Proofing Station Partner to Strengthen Local Food Access in Urbana, IL
Proofing Station has awarded a long-term, low-interest loan to Sola Gratia Farm, a 29-acre produce farm serving communities in the Champaign-Urbana region of east central Illinois. This investment is Proofing Station's third from its impact-first fund aimed at supporting small and mid-sized food enterprises in the Midwest. The $750,000 debt investment, structured as a nine-year loan, supports construction of a new on-farm building that will be used for washing and packing produce and educational programs, as well as storage and office space. 

Investing in a Different Kind of Paradise: Catalyzing Hawaii's Sustainable Food System
Founded in 2013 as the first social enterprise accelerator in Hawaii and the first Native-led accelerator in the U.S., Hawaii Investment Ready (HIR) has been at the forefront of place-based and culturally-grounded investment strategies in Hawaii. HIR also partnered with Mission Driven Finance to launch Hawaii's first catalytic capital debt fund designed to fill funding gaps and better leverage philanthropic resources. By fostering collaboration and pooling resources, HIR enables high-leverage solutions that address our food systems' unique challenges. 

Restoring a Cornerstone of the Local Grain Economy
The Craft Millers Guild, established in 2020, aims to provide a community for a new generation of millers who draw inspiration from historic practices and try to help restore regional grain economies that have been lost to industrialization. Through networking, education, and advocacy, the group hopes to help small millers get established and grow their share of the market.

$2B to Strengthen Specialty Crops Sector, Expand Crop Storage for Producers
Agriculture Secretary Tom Vilsack announced the creation of new programs that will help farmers who grow fruits, vegetables, and nuts overcome market barriers for their products, and help producers access necessary pre-market storage for their crops following severe weather events, including recent hurricanes. Specifically, the new Marketing Assistance for Specialty Crops initiative will provide $2 billion to assist specialty crop growers in maintaining a strong domestic supply and expanding market opportunities for their crops.

Closed Loop Partners Doubles Down on Investment in Earthodic, Advancing Coating Alternatives for Paper Packaging
Closed Loop Partners' Ventures Group announces its follow-on investment in Earthodic, a Brisbane-based biotechnology company creating recyclable bio-based coatings for paper packaging. This is Closed Loop Ventures Group's second investment in Earthodic, supporting the company's expansion into the U.S. The $4 million seed funding round was led by FTW Ventures, with participation from existing investors Closed Loop Partners' Ventures Group, Tenacious Ventures and Investible, and new investors Circulate Capital, Queensland Investment Corporation, UniQuest Fund, Significant Capital Ventures, Branch Venture Group and Redstick Ventures.

CoBank's New Loan Signals a New Wave of Sustainable Finance in Agriculture
A new sustainability-linked loan announced by CoBank — one of the largest agricultural credit providers in the U.S. — signals that major financial institutions are looking to direct more financing toward their customers' sustainability efforts in innovative ways. CoBank's first sustainability-linked loan will provide Heartland Co-op with a slight interest rate reduction on its operating line of credit if the cooperative achieves goals to expand agricultural water quality practices with farmers.

Upcoming Events
2024 CDFA Equitable Lending Learning Series: Equitable Lending Assessment Tools & Spreadsheet Solutions

SSBCI Coalition Meeting - Virtual
December 13, 2024 - 1:00 PM - 2:00 PM Eastern
CDFA hosts monthly SSBCI Coalition meetings to provide SSBCI updates and facilitate discussions that allow for networking, peer knowledge sharing, and problem-solving. The SSBCI Coalition is available to CDFA Members only. There is no cost to attend SSBCI Coalition meetings.

CDFA // BNY Development Finance Webcast Series: Exploring Common Bond Reserve Funds
December 17, 2024 - 2:00 PM - 3:00 PM Eastern
During this installment of the CDFA // BNY Development Finance Webcast Series, local practitioners will present their Common Bond Reserve Fund program models to demonstrate the potential of this innovative pathway for increasing access to capital.

Food & Agriculture Finance News

Over $25M Allocated to Iowa Projects Through USDA Funding
Iowa Capital Dispatch | Dec. 5 | Access to Capital | Agriculture Finance | Revolving Loan Funds (RLFs) | Rural Development | State Finance Program

Capital Farm Credit Returning $60M in Allocated Equity to its Members
San Saba News | Dec. 3 | Access to Capital | Agriculture Finance

House Bill 683 Could be Good News for Ohio Farmers
Brownfield Ag News | Dec. 2 | Access to Capital | Agriculture Finance | Disaster Recovery & Relief | State Finance Program

USDA Plans to Spend Nearly $27M on Agriculture Tech Grants
RFD TV | Dec. 2 | Access to Capital | Agriculture Finance | Federal | U.S. Dept. of Agriculture (USDA)

USDA Invests $46M in Efforts to Address Food and Nutrition Security
The Highland County Press | Nov. 29 | Access to Capital | Federal | Food Systems Finance | Social Finance | U.S. Dept. of Agriculture (USDA)

$5M Going to Minnesota Food Shelves
KIMT3 | Nov. 25 | Access to Capital | Food Systems Finance | State Finance Program | Tribal Finance

Investments for Tribal Communities to Produce Water-Saving Commodities
USDA | Nov. 22 | Access to Capital | Agriculture Finance | Federal | Tribal Finance | U.S. Dept. of Agriculture (USDA)

USDA and Montana Award $3.1M to Projects, Strengthen Food Supply Chain Infrastructure
QA | Nov. 19 | Access to Capital | Agriculture Finance | Federal | State Finance Program | U.S. Dept. of Agriculture (USDA)

Kentucky Approves More Than $4.8M for Agricultural Projects
Morning AgClips | Nov. 15 | Access to Capital | Agriculture Finance | Revolving Loan Funds (RLFs) | State Finance Program

Danone Institute North America Seeks Grant Proposals for Sustainable Food Systems Initiatives
Waste 360 | Nov. 13 | Access to Capital | Food Systems Finance | Resiliency

Alabama Ag Department Awards $5.9M to Strengthen Supply Chain Infrastructure
Business Alabama | Nov. 11 | Access to Capital | Federal | Food Systems Finance | State Finance Program | U.S. Dept. of Agriculture (USDA)

USDA Announces $250M for Distressed Farm Loan Borrowers
KPC | Nov. 9 | Access to Capital | Agriculture Finance | Federal | Revolving Loan Funds (RLFs) | U.S. Dept. of Agriculture (USDA) | Loan Guarantees

Georgia Officials Agree on $100M for Farms, Forestry
North State Journal | Nov. 9 | Access to Capital | Agriculture Finance | Disaster Recovery & Relief | State Finance Program



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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