The Strolling of the Heifers Microloan Fund: A credit resource for New England's farmers
In partnership with Chittenden Bank and The Carrot Project, we have created The Strolling of the Heifers Microloan Fund for New England Farmers. The mission of the fund is to address the difficulty that some New England farmers have in obtaining credit for projects that improve their operations and increase their income, as well as for emergency needs. Several sources contributed initial capital for The Microloan Fund for New England farmers: four “Farm Relief” benefit concerts generously given by the legendary folksinger Pete Seeger, his grandson Tao Rodriguez-Seeger, and bluesman Guy Davis in September, 2008 and by the Paul Winter Consort in September, 2009; major grants from the Thomas Thompson Trust and Green Mountain Coffee Roasters; and private investments made through The Carrot Project. For now, applications are limited to farms located in Vermont or in Massachusetts , with a primary focus on loans to small- and mid-sized farms that use sustainable or organic methods (or are moving toward them), and that are marketing at least a portion of their products to local markets. In future years, as the fund grows, it will expand loan activities to all the New England states. Eligibility is limited to farms with 250 or fewer acres in active production, and annual gross revenue of $250,000 or less. Loan applications for amounts ranging from $1,000 to $10,000, with terms of one to five years, will be accepted. Acceptable purposes for the loans are: capital investments and other expenses that help improve efficiency or quality, or that expand production and sales; repairs necessary to maintain farm operations; short-term operating needs such as inventory, supplies, or labor; and emergency funds to deal with business interruptions due to fire, natural disasters, or other unforeseeable events. Collectively, the funds raised for the microloan fund will form a loan security pool, against which Chittenden Bank will lend funds and administer the loans. The Carrot Project will accept and process applications, facilitate loans, and work directly with farmers to ensure their success. A volunteer loan committee, comprising lenders and farmers, has been set up for both Massachusetts and Vermont. Participants include: Rick Chandler, Massachusetts Department of Agricultural Resources; Jon Jaffe, First Pioneer Farm Credit, ACA; Benneth Phelps, Enterprise Farm; Morgan Rilling, Yankee Farm Credit, ACA; Helen Robb, Robb Family Farm; and Lee Straw, Straw’s Farm. The Carrot Project will assist loan recipients by connecting them with business planning and financial technical assistance related to the projects for which financing is sought. Ultimately, microloans are repaid. When they are, those same funds, along with future donations and investments, can be lent to other farms. So the money raised for the microloan fund keeps working indefinitely and becomes an investment not only in the future of farms, but in the health of the entire region. Farmers who wish to apply should begin the process by visiting the application information page at The Carrot Project. |
| Last Updated on Sunday, 02 May 2010 19:04 |