How Financing is Growing Farmer Capacity in the New England Region

Dorothy SuputFounder & Executive Director

The Carrot Project

Our Clients

3

1962

MOFGA Founded

1970

1989

Organic Food Production Act

1990

2007

Benefits and Impacts

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Community

Business

Farms

• Healthful food• Dollars stay local• Environmental

benefits• Profitable• Jobs and owner

income• Business Values

• Undeveloped land• Home

Characteristics: Types of BusinessesFARMERS Fruit growers Cultivated mushrooms Dairies Diversified veg and/or

livestock Goat farms Grassfed beef Greenhouse herbs Horse hay producers Rope cultured mussels

FOOD PROCESSORS

Bakeries Candy makers Creameries Fruit cordials and

sauces Microbottlers (milk) Pesto-makers Picklers

55

Bug Hill Farm Ashfield, MA

Farm description: Forest and field fruit production, heirloom vegetables, and fruit-based value-added productsPhilosophy: “Discover what is here. Listen to the land. What does it want to grow?”Acreage: 50, hilly, marginal soilsYears in Business: 2 years – developing business and idea, testing markets

6

Bug Hill: Changes in Farm Capacity

2010No net farm income

No employees

Using home kitchen

2012Only family income

1 FTE + 2 PTEs

Building commercial kitchen at home

Village Farm Freedom, ME

Farm description: Diversified organic farm with multiple enterprise centers marketing wholesale and retailPhilosophy: “Growing food for ourselves, our family, and our neighbors is what we love to do and aspire to do better each year.”Acreage: 120 acres- Contiguous 40 acre field and 80 acres of mixed and diverse woodlandYears in Business: Since 2007

8

Village Farm: Changes in Farm Capacity

2010Seedings for farm

Solid business planning skills

Off –farm employment

2012Seedlings for others

Confident financial forecasts

No off-farm employment

The Five C’s – Reprioritized

Primary Factors‒ Cash Flow‒ Capacity=

Character + Farm Management Skills

‒ Conditions: Know the Market

Secondary Factors‒ Cash/Equity‒ Collateral

What is important to lenders? Intangibles

Open to learning Builds on strengths Recognizes personal weaknesses and responds Clear set of expectations or goals Willingness to change course Realistic projections Does homework Understand the strengths and weaknesses of

their plans11

How Financing is are Growing Farmer Capacity in the New

England Region

12

and business technical

assistance

13

Thank You

Dorothy SuputThe Carrot Project

dsuput@thecarrotproject.org www.thecarrotproject.org