Reweaving the Economic Fabric to Support Sustainable Farms and Ag-based Businesses

2015 Annual Report for LNC14-360

Project Type: Research and Education
Funds awarded in 2014: $199,634.00
Projected End Date: 09/30/2017
Grant Recipient: Renewing the Countryside
Region: North Central
State: Minnesota
Project Coordinator:
Jan Joannides
Renewing the Countryside

Reweaving the Economic Fabric to Support Sustainable Farms and Ag-based Businesses

Summary

A key factor that limits the growth of sustainable farming is the difficulty farmers and ag-based businesses have in accessing adequate financing. This is especially true for small-scale and limited resource farmers. Through this project we are working to develop financing mechanisms that will infuse needed capital into sustainable farms and ag-related businesses. Concurrently, we are working to develop pathways for individuals and businesses to invest in their local food and farming systems. This work will build on models that have been proven successful in other parts of the country.

Our approach is to draw on the expertise of a wide array of professionals—from farmers to financial managers, who are helping us design workable mechanisms. We are also incorporating the expertise and experience of organizations across the country who have successful track records in developing and managing creative financing solutions.

Objectives/Performance Targets

By the end of this grant, twelve sustainable farms and ag-based businesses will have accessed financing made available through this initiative. Over $200,000 will have been invested by 80 individuals and businesses who want to help grow a stronger food system. Over 1,000 people will have learned about opportunities to invest their money closer to home and in ways that support sustainable farms and fair food systems. Over 150 farmers will have learned how to better navigate the many financing options available.

Accomplishments/Milestones

Financing Mechanisms and Investment Mechanisms Researched and Shared

  • Steering Committee met and Finance and Investment working groups were formed
  • Google Site created to manage information among participants
  • Legal firm took Renewing the Countryside on as pro-bono client to be able to assist in this work
  • Core team identified and summarized finance mechanisms that could be relevant for Minnesota

(community loan fund, royalty-based loan fund, equity fund) and presented to Finance Working Group

  • Loan fund “parameter” document developed
  • Core team identified, researched and summarized investment mechanisms that could be relevant for Minnesota. Research was conducted on investment clubs, investment crowdsourcing, farmland investment options and a dedicated, managed fund. These mechanisms were presented to the Investment Working Group
  • Presentation developed and presented at 2015 Sustainable Farming Association Conference and 2015 MOSES Organic Farming Conference.
  • Six events have been organized with potential investors:
  • The first event was the Slow Money Minnesota Network launch that included 150 people.
  • The second and third events were small groups with individuals who helped host the Slow Money event.
  • The fourth was a small meeting with Iroquois Valley Farms to explore potential options for assisting farmers with land access.
  • The fifth event was a seminar for people interested in investment clubs.
  • The six event was a meeting with key foundation and organization stakeholders to learn more about investment portals.
  • Survey was conducted with people who attended the Slow Money launch to garner their interest in different investment options.
  • Members of the core team developed a proposal that outlines what would be required to determine if creating a crowdfunding investment portal would be feasible and how it would work.
  • A subset of the core team has developed a framework for a loan pool that would be seeded with donations.

Investment Options Understood

  • Some materials have been developed that will be used in the outreach campaigns
  • A webpage and blog are in place for the project.

Financing Options Clarified

  • Presentation on financing options developed for workshop
  • Financing Resources handout created
  • First workshop was held at Sustainable Farming Association Annual Conference. (Feb 2015)
  • Second workshop was held at the MN Organic Farming Conference (Feb 2015)

Impacts and Contributions/Outcomes

 We do not yet have outcomes to share. We have been successful in engaging a number of stakeholders who could play important roles in the long-term sustainability of the finance and investment mechanisms we are working to create.

Collaborators:

John Mesko

john@sfa-mn.org
Sustainable Farming Association of Minnesota
Box 192
Princeton, MN 55371
Office Phone: 7632600209
Website: sfa-mn.org
Pam Bishop

pamb@smifoundation.org
525 Florence Avenue
P.O. Box 695
Owatonna, MN 55060
Office Phone: 5074553215
Website: smifoundation.org
Christina Jennings

christina@ncdf.coop
2600 E Franklin Ave, Suite 2
Minneapolis, MN 55406
Office Phone: 6127672114
Website: ncdf.coop