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.
Investing in Regenerative Agriculture Infrastructure Across Value ChainsMembers only 
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Regenerative farms rely on small-to-mid scale, aligned infrastructure to process, transport, and market their products. These middle infrastructure businesses help to improve farm income and bolster regional food economies while providing significant social and environmental benefits. However, their unique business models require innovative and patient forms of capital to grow and succeed. This report identifies finance opportunities and pathways to build resilient value chains for regenerative farms.
How Innovative CDFIs Fund Equitable Food Oriented Development
This report describes how three CDFIs drive economic growth in low-income and historically marginalized communities through a model defined by the EFOD Collaborative as Equitable Food Oriented Development (EFOD). EFOD is a development approach that supports locally owned food-based economies. The report details systemic financial barriers that business owners and aspiring entrepreneurs face in marginalized communities.
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