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CDFA Food and Agriculture Finance Update - December 13, 2022

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CDFA Food and Agriculture Finance Update
December 13, 2022
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CDFA Food & Agriculture Finance Update

Features

CDFA Food Systems Finance Best Practices Guidebook, Available Now!
Linking development finance and food systems can be a daunting undertaking for any community. Research on the current ecosystem of food systems finance has positioned CDFA to identify key strategies for the path ahead in this work. The Food Systems Finance Best Practices Guidebook defines how traditional development finance tools can be used to launch and expand food and agricultural-related businesses and projects and create successful food systems finance programs at the local and regional levels.

Announcing the Return of CDFA's Fundamentals of Economic Development Finance Course
CDFA is proud to kick off the new year with the return of the Fundamentals of Economic Development Finance Course on January 25-26, 2023! This course will help attendees understand the variety of development finance tools available including bonds, tax credits, tax increment financing (TIF), federal financing programs, RLFs, Opportunity Zones, and access to capital lending resources.

Colorado Department of Ag Launches New Agricultural Lending Program
The Colorado Department of Agriculture (CDA) has launched the Colorado Agricultural Future Loan Program, a new lending program that offers financing to farmers and agriculturally supportive business owners, Funding for the program comes from Colorado's stimulus legislation, which appropriated funding to a revolving loan program to support agricultural production.

Innovative Financing Supports Regenerative Agriculture in New York
A new project at New York's Cornell Atkinson Center for Sustainability will directly pay farmers for the ecosystem services they provide, such as cleaner water, healthier soils and increased biodiversity. The researchers are also exploring the option of providing farmers with discounts on transition loans and crop insurance for farms adopting regenerative practices.

New Innovations to Alaska Fishing Industry Through USDA-Guaranteed Financing
Greater Commercial Lending (GCL), which provides loans to businesses and organizations in under-served and rural communities, has completed $40 million in financing for an innovative salmon processing barge in Bristol Bay, Alaska, that will flash-freeze whole salmon right at the fishing grounds. The loan is guaranteed by the USDA through the Food Supply Chain Guaranteed Loan Program.

Minnesota Starts New Meat Processing Loan
The State of Minnesota announced that it would receive $15 million from the U.S. Department of Agriculture (USDA) to establish a loan program that is designed to support small and medium-sized meat and poultry processors. The new Meat and Poultry Revolving Loan Fund can be accessed through the Minnesota Department of Agriculture's (MDA) Rural Finance Authority.

Conservation Fund Program Supports Local Farms, Local Food Near Metro Areas
The Conservation Fund's Working Farms Fund, which launched in 2021, is a revolving fund dedicated to buying farms at risk of being lost to development and helping farmers become landowners in three to five years. The program currently has 10 farms across Metro Atlanta and Metro Chicago, 745 acres secured and $7 million invested in land, supporting more than 35 farmers.

Bridgestone Awarded $35M USDA Climate-Smart Grant
Bridgestone announced a $35M climate-smart grant by the USDA to invest in desert shrub guayule to expand natural rubber production in the U.S. and offer a solution for growers amid the ongoing water crisis in the Southwest with a more environmentally sustainable crop. The investment in guayule will allow natural rubber production expansion in the SW U.S. with lowered greenhouse gas emissions and job creation in the region for local U.S. farmers and Native American tribes.

$52M Construction Loan Secured for California Cold Storage Project
New York-based X-Caliber Capital provided a total of $52 million in construction financing from federal and state sources for the first phase of what will be two 250,000-square foot cold storage buildings in Madera, CA. Financing included $35 million through the USDA's Food Supply Chain Program and $17 million through the Commercial Property Assessed Clean Energy (C-PACE) program from the State of California.

USDA Provides $24M Boost for Beginning Farmers and Ranchers
The USDA announced a nearly $24M investment across 45 organizations and institutions that teach and train beginning farmers and ranchers. This investment is part of the National Institute of Food and Agriculture's Beginning Farmer and Rancher Development Program that supports professional development activities for new farmers and ranchers, such as managing capital, acquiring and managing land, and learning effective business and farming practices.

Upcoming Events
Fundamentals of Economic Development Finance Course

CDFA Federal Financing Webinar Series: Tools for Economic Growth with Treasury and SBA
Tuesday, December 13, 2022 - 2:00 PM - 3:30 PM Eastern
This session will highlight the resources available at the U.S. Department of the Treasury and Small Business Administration to finance economic growth in distressed communities. Featured programs include the State Small Business Credit Initiative, the CDFI Fund, New Market Tax Credits, and other small business financing programs like SBA 504 and 7a.

CDFA // BNY Mellon Development Finance Webcast Series: Financing Approaches to Meet Affordable Housing Needs
Tuesday, December 20, 2022 - 2:00 PM - 3:00 PM Eastern
Both urban and rural places in the U.S. are experiencing housing shortages, and affordability remains a major issue across much of the country. Public officials, development finance professionals, and private developers alike are working to address gaps in housing types and price points, but financing such projects often requires creativity. During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, a panel of housing finance experts will discuss the tools, programs, and strategies that can be used to meet local demand for affordable housing options.

Food & Agriculture Finance News

USDA Announces $325M in Pilot Projects for Climate-Smart Commodities
USDA | Dec. 12 | Access to Capital | Agriculture Finance | Development Finance Toolbox | Federal | Rural Development | U.S. Dept. of Agriculture (USDA) | Rural Business Finance

Kentucky Agricultural Finance Corporation Approves Over $2M in Loans
The Lane Report | Dec. 9 | Access to Capital | Agriculture Finance | Revolving Loan Funds (RLFs) | State Finance Program

Kansas to Invest $7M Into Rural Market Communities
KZRG | Dec. 8 | Access to Capital | Agriculture Finance | Food Systems Finance | Revolving Loan Funds (RLFs) | Rural Development

New Funding Brings Meat Cutting and Butchery Training to Minnesota Students
Minnesota Department of Agriculture | Dec. 8 | Access to Capital | Agriculture Finance | Legislative | State Finance Program

New Legislation Eliminating Tax Liability for IRA Assistance for Distressed Farmers
Insider NJ | Dec. 8 | Access to Capital | Agriculture Finance | Federal | Legislative | Social Finance

Expansion of Regenerative Ag Operating Lines to $1B
Environmental Defense Fund | Dec. 8 | Access to Capital | Agriculture Finance | Green Finance | Revolving Loan Funds (RLFs) | Resiliency

USDA Invests $981M to Expand Market Opportunities for Rural Businesses, Entrepreneurs
USDA | Dec. 6 | Access to Capital | Agriculture Finance | Economic Development | Federal | Rural Development | U.S. Dept. of Agriculture (USDA) | Rural Business Finance

Revolving Loan Fund Program Provides 'Faire' Opportunities in Delaware
EDA | Dec. 6 | Access to Capital | Disaster Recovery & Relief | Food Systems Finance | Revolving Loan Funds (RLFs) | COVID-19 | Case Studies

Montana's Yellowstone Valley Food Hub Offers Year-Round Supply of Local Food
The Prairie Star | Dec. 2 | Access to Capital | Federal | Food Systems Finance | Foundations | U.S. Dept. of Agriculture (USDA)

$900K Available in Dairy Farm Innovation and Alternative Management Funding
VermontBiz | Dec. 1 | Access to Capital | Agriculture Finance | Innovation Finance | Resiliency | State Finance Program

Cost-Share Program Available to Help Upgrade Irrigation Systems in Minnesota
Minnesota Department of Agriculture | Nov. 29 | Access to Capital | Agriculture Finance | State Finance Program

FSA Microloans an Opportunity for Small, Beginning Farms
Ohio's Country Journal | Nov. 28 | Access to Capital | Agriculture Finance | Revolving Loan Funds (RLFs) | U.S. Dept. of Agriculture (USDA)

Maine Farm Loans for Underserved Groups, Beginning Farmers
centralmaine.com | Nov. 27 | Access to Capital | Agriculture Finance | Revolving Loan Funds (RLFs) | Social Finance | State Finance Program

Vermont Meat Processing Plant to Expand
NBC5 | Nov. 21 | Access to Capital | Agriculture Finance | Food Systems Finance | U.S. Dept. of Agriculture (USDA)

New Fund Launches to Support BIPOC Farmers in Michigan, Increase Access to Land
MiBiz | Nov. 20 | Access to Capital | Agriculture Finance | Resiliency | Social Finance

USDA Invests $21.6M in Small Business-Led Innovations
USDA | Nov. 16 | Access to Capital | Agriculture Finance | Development Finance Toolbox | Federal | Innovation Finance | U.S. Dept. of Agriculture (USDA)

USDA Announces New Resources to Empower Indigenous Food Sovereignty
USDA | Nov. 14 | Access to Capital | Agriculture Finance | Federal | Rural Development | Tribal Finance | U.S. Dept. of Agriculture (USDA) | Understanding Access to Capital

Madison, WI Public Market Proposal Could Use TIF Revenue to Close Financing Gap
Fox 47 News | Nov. 14 | Community Development | Economic Development | Food Systems Finance | Local Finance Program | Redevelopment | Tax Increment Finance (TIF)

Minnesota Offers Matching Funds for First Land Purchases for Beginning Farmers
AgWeek | Nov. 10 | Agriculture Finance | Legislative | Rural Development

EPA Launches Green Brewery Recognition Program in Boston, MA
Craft Brewing Business | Nov. 8 | Access to Capital | Development Finance Toolbox | Federal | Food Systems Finance | Green Finance | Legislative | U.S. Environmental Protection Agency (EPA)


CDFA Resources

CDFA Food Systems Finance Best Practices Guidebook
Access to Capital | Agriculture Finance | Bond Finance | CDFA Original Research | Community Development | Development Finance Toolbox | Economic Development | Food Systems Finance | Revolving Loan Funds (RLFs) | Social Finance | Special Assessment Districts | Tax Credits | Tax Increment Finance (TIF)
Linking development finance and food systems can be a daunting undertaking for any community. Research on the current ecosystem of food systems finance has positioned CDFA to identify key strategies for the path ahead in this work. The Food Systems Finance Best Practices Guidebook defines how traditional development finance tools can be used to launch and expand food and agricultural-related businesses and projects, and create successful food systems finance programs at the local and regional levels.


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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