Access to Capital

Starting a farm costs money. Either you have that money right now as savings, or you’ll need to raise it somehow. Grants or loans are generally more appropriate for farmers than equity investments because they don’t involve giving up any control or ownership of your business.

Private lenders like banks are the first place most new founders look for loans. However, many banks find agricultural businesses to be too risky as standalone entities. For this reason, you may need the USDA Farm Service Agency (FSA), the Farm Credit System, state agricultural finance programs, or a nonprofit lender to work with a bank on your behalf. Some states, such as Alaska, have a mariculture revolving loan program that provides startup capital to new farmers.

Learn More

For more details, we recommend reading this excellent short guide to where to find credit and capital written by The National Young Farmers Coalition.

READ

Farmers in Alaska should note that there is a state-run Mariculture Revolving Loan Fund that grants startup capital to new ocean farms.

READ
Farmer Insights
Suzie Flores Stonington Kelp

Hear from kelp farmer and entrepreneur, Suzie Flores, and GreenWave’s Market Innovation Strategist, Sam Garwin, about sales and marketing strategies for small farmers. Read the interview.

Suzie Flores

Stonington Kelp Company, CT