Food Systems Finance Resource Center
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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-Defining the Food System as an Asset Class
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.
-Understanding Food Systems Finance
Interested in learning more about financing food systems? This section contains resources on understanding the basics development finance tools for food systems.
Learn More About Food Systems Finance
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...
-Food Systems Finance Resources
Designing a Renewable Food System
Other systems, including our energy, water, and transportation systems, also fell in line with that ethos; but unlike the food system, these sectors are undertaking 21st-century upgrades that comport better with our modern norms and realities by creating more decentralized systems that are better adapted to local geography and sociology.
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.
Shared Kitchen ToolkitMembers only 
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This Toolkit is intended for everyone from kitchen entrepreneurs to startup nonprofits, from economic development agencies to producer networks, from food system groups to real estate developers. We hope this Toolkit also provides helpful guidance to existing food businesses and community kitchens (churches, community centers, schools and food access program kitchens) who seek to share their commercial kitchen space with entrepreneurs and food programs as an ancillary use.
Walmart’s Monopolization of Local Grocery Markets (2018)Members only Login
In 43 metropolitan areas and 160 smaller markets, Walmart captures 50 percent or more of grocery sales, our analysis of 2018 spending data found. In 38 of these regions, Walmart’s share of the grocery market is 70 percent or more. Our findings provide a stark illustration of the failings of contemporary antitrust policy. They also show that more will be required to fix our broken markets than reforms to merger policy.
More Food Systems Finance Resources
-Agriculture Finance Resources
Innovative State-Led Efforts to Finance Agricultural Conservation
U.S. farmers are currently facing the most difficult agricultural economy since the 1980s. At the same time, many states are wrestling with the necessity of addressing environmental challenges. This report expounds upon the excellent work states are doing regarding conservation tax credits, cover crop incentives and environmental certifications to increase conservation across the landscape. The report also highlights how these programs work for agricultural producers and states.
Designing a Renewable Food System
Other systems, including our energy, water, and transportation systems, also fell in line with that ethos; but unlike the food system, these sectors are undertaking 21st-century upgrades that comport better with our modern norms and realities by creating more decentralized systems that are better adapted to local geography and sociology.
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.
Fact Sheet on Farm Credit System Farmer Lending Results for 2018 Members only Login
This information summarizes Farm Credit System 2018 lending activity to young, beginning, and small (YBS) farmers, ranchers, and producers or harvesters of aquatic products. For total System loans, the number of new loans made in 2018 declined by 21.4% compared with 2017. The number of loans to young farmers declined by 17.7%, to beginning farmers by 15.5%, and to small farmers by 16.1%.
More Agriculture Finance Resources
-Programs Map
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.
-Case Studies
Innovative State-Led Efforts to Finance Agricultural Conservation
U.S. farmers are currently facing the most difficult agricultural economy since the 1980s. At the same time, many states are wrestling with the necessity of addressing environmental challenges. This report expounds upon the excellent work states are doing regarding conservation tax credits, cover crop incentives and environmental certifications to increase conservation across the landscape. The report also highlights how these programs work for agricultural producers and states.
Early Lessons from the Food Commons: A New Economic Whole System Approach for Regional Food
Food Commons Fresno is operationalizing the model with wholesale, food box, hub, commissary, and farming businesses managed through a linked for-benefit corporation and a community trust. The lessons from TFC suggest the need
for rapid development of true regenerative capital, deepened networks, and collaborations with similar whole-system, place-based models and communities of practice across sectors.
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.
Fact Sheet on Farm Credit System Farmer Lending Results for 2018 Members only Login
This information summarizes Farm Credit System 2018 lending activity to young, beginning, and small (YBS) farmers, ranchers, and producers or harvesters of aquatic products. For total System loans, the number of new loans made in 2018 declined by 21.4% compared with 2017. The number of loans to young farmers declined by 17.7%, to beginning farmers by 15.5%, and to small farmers by 16.1%.
More Case Studies
-Headlines
-Publications
Practitioner's Guide to Economic Development Finance
The Practitioner's Guide to Economic Development Finance 2nd Edition is the only comprehensive resource dedicated to building and utilizing the development finance toolbox. The Practitioner's Guide provides the insight and practical information needed to critically understand how economic development is financed and the tools, strategies and techniques used to build strong communities. From bonds, tax increment finance and special districts to tax credits, seed & venture capital, revolving loan funds and much more, this Guide outlines the financing tools required for succeeding in today's competitive economic development climate.
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency (Handbook) serves as a companion to the Practitioner’s Guide to help illuminate the structures of development finance agencies (DFAs), essential conduits to access development finance tools. The Handbook provides an overview of DFAs and their myriad roles in various development efforts. Included in this discussion is a comprehensive look at over a dozen high-performing DFAs throughout the country. The Handbook is designed to be a starting point for local leaders to engage in the creation or acceleration of a DFA to build and utilize the development finance toolbox.
View More Publications -Training Courses
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 study examples that showcase the variety of financing programs.
This course explores how bonds, tax credits, loan programs, foundation grants, and other financing tools can be used to support a local food system and encourage follow-on investment, small business development, and sustainable growth. In particular, this course addresses the financing challenges associated with growing, processing, distributing, marketing, and selling food.
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-Webcasts