New & Beginning Farmers and Ranchers Program:
CAPITAL & ACCESS TO CAPITAL
OVERVIEW
E’licia L. Chaverest, M.S.
Assistant Director
Small Farms Research Center (SFRC)
College of Agricultural, Life and Natural Science
Alabama A&M University
Capital and Access Capital
Capital is different from money. Money is used simply to purchase goods
and services for consumption. Capital is more durable and is used to
generate wealth through investment.
Capital refers to financial resources available for use.
Grants vs. Loans
GRANTS—You do not have to payback
LOANS-You have to eventually payback
ACCESSING CAPITAL (LOANS)
 Whole
Foods Market (Local Loan
program)
 Alabama Farm Credit (New and
Beginning Farmers Loan Program)
 USDA
Farm Service Agency
(Micro Loan Program)
Just to name few.
OTHER OPTIONS ON ACCESSING
CAPITAL (LOANS) cont.

Small Business Administration (SBA )(504) Loan
Program- is a financing program for expanding farms
 Available to new and existing farmers as well as
agricultural processors.
 Purpose: Finance land and building acquisition
and expansion, construction and land site
improvements and machinery and equipment
purchases.
 Requirements participation: (50% from the bank,
40% from SBA with the remaining 10% percent from
the borrower).
ACCESSING CAPITAL (GRANTS)
 The
Awesome Foundation Grant—Initiated in 2009.
A
series of monthly $1,000 grants to projects and their creators. The money is
pooled together from the coffers of ten or so self-organizing “micro-trustees”
and given upfront in cash, check, or gold doubloons.
 SSAWG
Grants-2014 Farmer Rancher Grant. Available
now. Proposals must be submitted by 4:00 p.m. CST, November 14, 2013.

Alabama Forestry Forever Grant-Quality of life & stewardship
of the land.
 ALA-Tom
Resource Conservation and Development
(RC & D) Council- similarly to Alabama Forestry Forever Grant.
 USDA
Rural Development Value-Added
Producers Grant
ACCESSING CAPITAL (GRANTS)
(cont.)
 Food
and Agricultural Sciences National
Needs Graduate and Postgraduate
Fellowship (NNF Grants.
WEBSITE:
http://www.nifa.usda.gov/fo/graduateandpostgraduatefell
owshipsserd.cfm
Grant Title:
Rural Youth Development
Small and Mid-Size Farms (SBIR)
WEBSITE: http://www.nifa.usda.gov/fo/funding.cfm
ACCESSING CAPITAL:
INNOVATIVE ALTERATIVES

Individual Development Accounts (IDA)—Saving accounts that

Crowdfunding Websites
provide matching funds for farmers of low or moderate means.(state and
regional initiative)
 Ie. CA Farmlink IDA Program. Matched savings at a rate of 3:1 for up to
$300/month over a two year period, for a total match of $9600.
 The program is supplemented with required farm finance and money
management workshops and the development of a business plan.
(Implemented in California)
 Contact United Way of Central Alabama to get started 1-888-421-1266 or
check out the website www. uwca.org/ida


Process of raising very small investments from a large number of investors.
Check out the website! http://www.microventures.com/business_funding
(Implemented nation-wide)
-Suggestions. Please do your homework. There are always pro’s and con’s
with new programs and initiatives.
ANY QUESTIONS!