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How Financing is Growing Farmer Capacity in the New England Region. Dorothy Suput Founder & Executive Director The Carrot Project. Our Clients. 1962. 1989. 2007. MOFGA Founded 1970. Organic Food Production Act 1990. Benefits and Impacts. Characteristics: Types of Businesses. - PowerPoint PPT Presentation
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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
4
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