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

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

Summary

We had an eventful year! We designed and launched a Grow a Farmer campaign that raised $98,000 from over 250 individuals, businesses and foundations. As part of the campaign, we ran a Barnraiser (like a Kickstarter, but for farm and food businesses), held fundraisers and house parties, and found 10 food advocates and farmers to take the Mud Bucket Challenge to raise awareness of the initiative.

Our finance team developed criteria and an application process for the Grow a Farmer Fund, that will open for applications early in 2017. Our efforts also helped make connections that led to investments of over $350,000 from private investors to farm and ag-based businesses.

On the educational front, we reached hundreds of people with information on ways to invest in farm and food businesses closer to home. We provided over 100 farmers and ag-based businesses with information and assistance navigating the confusing maze of finance options. We also leveraged additional funding to further these efforts and brought food and farm financing to the table on regional efforts focused on impact investing.

Objectives/Performance Targets

Following is a summary of the Action and Educational Outcomes we set out to complete in this project, along with our progress to date.

At least 1 Financing Mechanism Created.

• We met this target by creating the Grow a Farmer Fund that is providing low interest loans to farms. 

At least 1 Investment Mechanism Created

• We met this target by providing a way for people to invest in farms by donating to the Grow a Farmer Fund. We continue to explore mechanisms where people can invest with the possibility of getting their principal paid back, potentially with interest.

Over $200,000 will have been invested by members of the Community

• Through the Grow a Farmer campaign, $98,000 was raised from individuals, businesses, and organizations. These dollars will be used to provide low interest loans for farmers in a 20-county portion of Minnesota. An additional $350,000 of loans were made as a result of connections made through this work.

That Community will include 80 Individuals and Businesses

• Over 250 individuals, businesses and organizations contributed to raise the $98,000 for the Grow a Farmer Fund. This ranged from individuals making donations from $5 to $2,000 at events and online, to Mississippi Market Natural Foods Co-op designating the campaign as their “Positive Change” partner in August and their members “rounding up” at the register to support the fund, to a small start-up business, Local Crate, who made the fund their donation partner of the month, to two family foundations who offered anonymous matches to the campaign and the Southern Minnesota Initiative Foundation that seeded the campaign with $25,000. Other businesses contributed space, food, and rewards to help raise the funds, and many people volunteered time and their social capital to spread the word and ask their friends and colleagues to support the fund.

12 sustainable farms and ag-based businesses will have accessed financing made available through this initiative.

• We have not yet met this target, but anticipate that we will by the end of 2017. We do know that at least two businesses were able to access loans through connections made through this initiative, one to help in the purchase of farmland and the other to help finance a processing plant. Several farms and ag-based businesses received assistance to secure loans and grant funds from agencies and community lenders.

At least 1,000 interested eaters will have learned about opportunities to invest their money closer to home and in ways that support sustainable farms and fair food systems.

• We have met this goal through a combination of events and outreach through traditional and social media. 300+ people attended events including the two Slow Money gatherings in St. Paul, an event in Mankato, a house party in Minneapolis, and a presentation on the Sustainability Stage at the Minnesota State Fair’s EcoExperience. 70+ people learned about opportunities through tabling at two natural food co-op annual meetings and at one farmers’ market. Several media outlets covered this initiative including AgriNews, the Rochester PostBulletin, and The Growler. There was also social media outreach through Facebook, Twitter, YouTube and the e-newsletters of  the partner organizations.

Over 150 farmers and/or ag-based businesses will have learned how to better navigate the many financing options available.

• 163 people attended events focused on navigating financing options. This included workshops at the 2015 & 2016 Sustainable Farming Association conferences, 2015 MOSES Organic Conference, 2016 MN Organic Conference, 2016 New Farmer U conference, and 2016 Feast Local Foods Tradeshow.
• At least 18 farms or ag-based businesses have received personalized assistance on navigating financing since the beginning of the grant.

Financial Literacy Increased for Loan/Finance Recipients.

• We aim to accomplish this in the final phase of the project.

Lessons Learned Shared.

• We aim to accomplish this in the final phase of the project.

Systems Outcomes – More Resilient Food System Created.

• We know that this initiative has helped to fuel greater interest and grow support in this area, which we anticipate will lead to a more resilient food system.

Accomplishments/Milestones

For this report, we are focusing on the accomplishments and milestones for 2016. (Earlier milestones were listed in the 2015 report.) 

• We designed and launched the Grow a Farmer campaign to raise funds to support a low-interest, revolving loan fund for farms.
• We hosted the second annual Slow Money Minnesota Network meeting which drew 120 people and included Slow Money founder Woody Tasch.
• As part of the Grow a Farmer campaign, we developed and launched a successful Barnraiser, online crowdfunding campaign similar to Kickstarter.
• As part of the Barnraiser, we implemented the Grow a Farmer Mud Bucket Challenge to bring attention to our efforts.
• We held events and tabled at events to promote this initiative.
• We raised nearly $98,000 for the Grow a Farmer Fund.
• We secured funds to continue research into the feasibility of developing an investment mechanism where investors would invest in farm and ag-based businesses, with the possibility of a return of both their principal and interest.
• We developed criteria and a process for the Grow a Farmer Fund.
• We conducted four workshops for farmers and ag-based businesses on navigating financing.
• The National Slow Money organization published an article on Minnesota’s effort on their blog: https://slowmoney.org/blog/grow-a-farmer-fund/

Impacts and Contributions/Outcomes

$98,000 raised from individuals, businesses, and foundations for a revolving loan fund that will benefit small, sustainable farms in southeast and south central Minnesota.

$350,000 of loans made to farm and ag-based businesses by private companies due to connections made through this initiative.

$35,000 of grants secured from foundations to conduct further research on feasibility of investment mechanisms.

$70,000 contract secured from the state by one of the partners to provide technical assistance to farm, food and ag-based businesses.

Collaborators: