Farmstart

FarmStart is a Farm Credit East program that makes working capital investments of up to $75,000 to northeast agricultural ventures showing promise of success. The innovative program targets startup farmers and ag businesses with limited financial resources and who are not generally eligible for conventional lending programs.

The investment functions the same as an operating line of credit and is intended to provide the critical last dollar of funding to overcome the financial challenges that true startup farming operations initially face in generating working capital. Repayment of these funds is up to five years.

Farmers, forestry producers, fishermen, farm-related service businesses and cooperatives, generally in their first three years of business.

A working-capital investment that behaves like an operating line of credit, capped at $75,000: "FarmStart is a Farm Credit East program that makes working capital investments of up to $75,000 to Northeast agricultural ventures showing promise of success with limited financial resources."

This is credit, not a grant — it is repaid. But no interest rate, fee schedule, or repayment term is published on the program page; Farm Credit East routes applicants to a local branch or advisor for the actual terms. Ask for the rate and repayment schedule in writing before you commit.

What it is designed to be: "a source of credit for startups who are not generally eligible for conventional lending programs" — the last dollar of working capital a true startup cannot raise elsewhere.

Who qualifies: "Farmers, forestry producers, fishermen, farm-related service businesses and cooperatives, generally in their first three years of business," expected to be "rural entrepreneurs or cooperatives with very little accumulated net worth and few financial resources," and "an independent enterprise" that "cannot be affiliated with an established operation."

Non-cash terms that come with it: every participant is paired with a Farm Credit advisor knowledgeable in financial management, who "stay[s] in touch with participants to help them follow through with their business plan." You must submit a written business plan with a first-year monthly cash flow spreadsheet.

Farm Credit East's own caution on cash flow: "During the first year, the average new FarmStart business made $19,000 in farm profit before owner's income."

For rate and repayment terms: your local Farm Credit East office or FarmStart@farmcrediteast.com.

Contact your local Farm Credit East office to start an application.

• Ten Years of FarmStart