Maine Farmland Trust

Slow Money Update

MFT Mission

• Protect Farmland

• Support Farmers

• Advance Farming

What MFT does:

• Farmland Protectioneasements, BPS, TA and grants to land trusts

• Farmland Access FarmLink, Maine Farms Realty

• Farm Viability Business planning, local markets, shared equipment

• Outreach & Education events, books, films, gallery, municipal support

Use of Slow Money

• Farmland Protection –primary source of capital for

Buy/Protect/Sell (BPS) projects

• Farm Viability –funds for select projects or farms

Limited to date. NOT a loan program

Buy/Protect/Sell (BPS)

• Buy vulnerable farmland • Protect it with a easement • Sell it to a farmer at “farmland price”

• Funding needs– “filling the gap” (between costs and revenue) –Working capital (to buy properties)

MFT uses slow money for working capital

Slow Money investment in BPS

• Total funds: $3,857,000• Source: Institutions and Individuals • Range: $50,000 to $1.4 million • Rates: 0% to 5% (but usually 2-3%)• Focus: project-based and revolving pool • Term: usually 3 years

Investment Impacts

• 26 projects

• 8,779 acres protected

• 37 farmers accessed more affordable

land

Slow Money Investment in Farm Viability Projects

• Total funds: $175,000• Source: Individuals • Range: $25,000 to $50,000 • Rates: 2-3%• Focus: specific to a farm or project • Term: 2-5 years

Investment Impacts

• 3 projects (all still ongoing)• Too soon to determine impacts

NOTE: MFT does not (at present) have a loan program. Rather, we try at times to channel investments to farms or projects with which we are working.

That’s what we’ve done. What do we want to do?

More of the same, plus… mortgage

financing.

Big Need: Farm Mortgages

• MFT has provided some limited financing for buying farms, but can’t do much and can’t do anything long-term.

• What’s needed: – Investors who will loan for long periods (10 yrs?)– Significant funds ($10 million+) – Ability to originate and service mortgages

(possible role for new credit union)

Questions?