Food systems are an important driver for local economic development and the financing sources needed to support those systems are vast. Communities throughout the country are financing their food system with various innovative strategies to support local markets, first time farmers, new food enterprises, and neighborhoods lacking access to fresh foods.
The CDFA Food Systems Finance Resource Center outlines development finance tools that can be used to support local food systems, such as bonds, tax increment finance, tax credits, revolving loan funds, and other tools. Traditional development finance tools provide necessary capital for establishing food industry participants, supporting local farming, investing in agriculture infrastructure, financing food scarcity challenges, and starting small food-related businesses. A variety of innovative approaches and creative programs have been employed by development finance agencies to support food systems financing, which can be accessed in the resources provide below.
CDFA sees the potential for the broadly defined food system to become a desired and performance driven asset class. With funding from the W.K. Kellogg Foundation, CDFA is researching how development finance agencies can become more engaged in developing localized food systems through traditional finance approaches. The premise of this initiative is to suggest and then prove that, if organized and defined properly, the food system can become a defined asset class worthy of traditional investment. As part of this initiative, CDFA is currently producing six in-depth white papers that define traditional development finance tools and explain how they can be applied to agri-food businesses, featuring an abundance of case studies.
Learn more about CDFA's initiative to define the food system as an asset class
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CDFA is producing six in-depth white papers defining how traditional development finance tools can be used to demonstrate the viability of the food system as an asset class. The first white paper is an overview of development finance with an explanation of why and how these tools can be applied to the food system. The next four white papers will provide an extensive description of development finance tools that can be employed for food-related projects – access to capital, bedrock tools, targeted tools, and investment tools – alongside comprehensive case studies that successfully utilize each of these tools. The final white paper will conceptualize the future possibilities of the food system financing landscape.
Learn more about CDFA's initiative to define the food system as an asset class
CDFA Food Finance White Paper Series: Advancing Food Systems Through Development Finance
This is the sixth and final white paper in a series examining the potential creation of a food systems asset class that supports the market growth of local and regional food systems. This paper presents three replicable strategies for restoring local food systems: reframe food systems development as infrastructure and economic development; build effective relationships and partnerships across the entire food system; and plan for strategic food system financing.
CDFA Food Finance White Paper Series: Food Systems & Targeted Tools
This white paper is part of a series examining the potential creation of a food systems asset class which supports the market growth of local and regional food systems. This paper focuses specifically on targeted financing tools that can be used to geographically target local and regional food system developments.
CDFA Food Finance White Paper Series: Food Systems & Bonds
Researched and written by CDFA, this is the third white paper in a series examining the potential creation of a food systems asset class that supports the market growth of local and regional food systems. This paper focuses specifically on bond financing, which CDFA considers a ‘bedrock tool’ for the historic and foundational role bonds have played in public financing.
CDFA Food Finance White Paper Series: Food Systems & Access to Capital
Research and written by CDFA, this white paper is part of a series examining the potential creation of a food systems asset class which supports the market growth of local and regional food systems which meet the economic, social, environmental, and cultural needs of communities throughout the country. This paper focuses specifically on financing that provides access to capital, outlining this category of tools and demonstrating how they can be utilized for various types of food-related endeavors.
CDFA Food Finance White Paper Series: Food Systems & Development Finance
Many food-related initiatives, projects, and businesses have lacked sufficient resources and financing for economic and community development, largely because the food system as a whole has not been formally defined as an asset class. As the first part of a series, CDFA makes the case for a clear definition of the food system that directs development finance to food-related activity.
Read more about Food Systems Finance
Search the map below to find food financing programs by state. This specialized search is part of
CDFA's State Financing Program Directory, the only online resource cataloging the development finance programs offered by state governments. Click on a state to see a sample of food financing programs available. Login with a CDFA Member account at the top of the page to view full results.
King County Local Food Facility Business ConceptMembers only 
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The Local Food Facility hopes to become a pivotal hub in the King County local food network, helping to grow businesses and connect local food partners. ECONorthwest's analysis led to conclude that this food facility concept could be financially sustainable if executed under the right ownership and governance model. This report by ECONorthwest summarizes our analysis and recommendations.
CDFA Reframe, Build, Plan: Restoring America's Local Food Systems
CDFA released the final publication of the CDFA Food Finance White Paper Series, Advancing Local Food Systems Through Development Finance. This webinar provides an overview of this publication as we review CDFA's framework for expanding traditional financing and attracting capital to local food systems through the Reframe, Build, Plan approach.
CDFA Food Finance White Paper Series: Advancing Food Systems Through Development Finance
This is the sixth and final white paper in a series examining the potential creation of a food systems asset class that supports the market growth of local and regional food systems. This paper presents three replicable strategies for restoring local food systems: reframe food systems development as infrastructure and economic development; build effective relationships and partnerships across the entire food system; and plan for strategic food system financing.
Cultivating Development: Trends and Opportunities at the Intersection of Food and Real EstateMembers only Login
Cultivating Development explores the mutually beneficial relationship between food-based amenities—such as working farms, community gardens, food halls, restaurants, and grocery stores—and real estate. Developers, owners, property managers, designers, investors, and others involved in real estate decision making can learn from the research, case studies, and food and development practitioner insights described in this report, thereby allowing them to create places that both support and leverage investments in food.
City of Columbus & Franklin County, Ohio Local Food Action Plan
The Columbus & Franklin County Local Food Action Plan provides a framework of common goals and actions that serve to unify residents, schools, community organizations, businesses, and local government in supporting a healthy, strong, and resilient local food system. The plan’s goals and actions represent those with the greatest potential for a positive impact on the food-related issues facing our community.
More Case Studies
Intro Food Systems Finance WebCourse
December 9-10, 2020
12:00 - 5:00 PM Eastern
The Intro Food Systems Finance WebCourse examines the development finance programs that sustain a local food system and how investments in that system can drive economic development on a broader scale. Topics covered include federal, state, and local sources of capital, stakeholders involved in the financing process, and case studies that showcase the variety of financing programs.
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CDFA - TEDC Webinar: Financing Local Food Systems Development
December 16, 2020
10:30 AM -12:00 PM Central
The food system is composed of a diverse range of activities – from agriculture and livestock, to restaurants and grocery stores, to food hubs and food incubation kitchens, and much more – and is a critical piece of the Texas economy. Communities are turning to local food systems for the opportunity to grow local economies by using local food businesses and projects to revitalize neighborhoods and spur economic development, improve public health, increase resiliency, address social issues, and celebrate local culture. Although financing food businesses has historically been perceived as a risky investment, there are billions of dollars being directed towards local food system development through tax credits, bonds, revolving loan funds, tax increment financing, and much more.
Join CDFA, in partnership with the Texas Economic Development Council, for the CDFA-TEDC Webinar: Financing Local Food Systems Development. This exclusive, 90 minute-long webinar will provide explore the variety of financing tools for local food systems development and best practices for investing in strong local food economies. Development finance experts from Texas (and beyond) will share details of various financing programs and project investments that have contributed to building a successful, local food system.
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CDFA Reframe, Build, Plan: Restoring America's Local Food Systems
CDFA released the final publication of the CDFA Food Finance White Paper Series, Advancing Local Food Systems Through Development Finance. This webinar provides an overview of this publication as we review CDFA's framework for expanding traditional financing and attracting capital to local food systems through the Reframe, Build, Plan approach.