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Perennial Fund

Perennial Fund

About

Financing built for organic farmers. Remove the risk, invest in your soil, and accelerate your transition.

The Perennial Fund works tirelessly to see you through your entire transition to fully organic, set up new crop markets, and connect you with other leading organic farmers.

Long Term & Low-Cost Financing

The Perennial Fund makes you a multi-year commitment to see your farm to 100% organic. The Perennial Fund has the grit to partner with you for the long haul so you take the time to invest in your soil. You only pay when you’re making money based on a flexible crop share and deferral years.

New Crop Markets

You can’t talk about financing without talking about markets. The Perennial Fund helps you secure crop contracts for commodity and specialty crops through our network of buyers. The Perennial Fund's goal is to drive more value into your farm with a diverse revenue stream beyond corn and beans.

Integrated Support

The Perennial Fund believes every organic farmer should have the support conventional farmers have. From cover crop mixes, crop insurance, to field by field marginal analysis, The Perennial Fund can help you level up. The Perennial Fund co-creates an actionable plan to help you make your dreams into reality.

What does The Perennial Fund finance?

Almost anything that helps your farm reach 100% organic.

**Operating loans: **TPF finances operating loans for any acres transitioning to organic and already organic acres. These are 3 to 8 year low-cost loans tailor-fit to your individual farm.

Equipment: If your limiting constraint is a lack of the right equipment, TPF can work with you to finance anything from a roller-crimper to an in-row roller.

**Infrastructure: **TPF can finance anything from grain bins to small scale processing.

Eligibility

Farmers who already have some organic acreage under management and want to expand their operation. TPF prefers farmers who own or have a long term (5+ years) lease on the land that is set to transition. Understand the basics of regenerative agriculture and farm business planning.

TPF focuses on the Midwest and High Plains of the United States. Exceptions can and will be made.

Terms

TPF provides capital for 3 years during the organic transition. After the transition payback on the remaining balance begin. TPF works towards leaning you entirely off of using annual operating loans and maintaining enough of your own working capital to free you from the commercial lending system in its entirety. Towards the end of your transition if you need another operating lender, TPF will do everything in its power to connect you with a values aligned partner.

The amount of money you take home is determined by your:

  1. Expenses

  2. Yield

  3. Market prices

  4. Value adds (N credits, water credits, carbon offsets, biodiversity, etc)

What’s the interest rate?

You have two options.

  1. TPF sets a specific amount over the life of the loan, not a yearly interest rate. This is called a return cap. TPF likes this model because it protects you as a farmer so if you do very well, you’ll experience that upside not us. It also keeps the terms clear and upfront.The rate set is 110-150% of the principal of the loan. If it takes you 8 years total to payback the loan, that is equal to a 6.25% interest rate that you’re only paying when your making money.

  2. You and TPF agree on a standard APR rate.

Similar Programs

Details

Organization

Perennial Fund

Financial Instrument

Loan

Image Credit

Perennial Fund

Updated October 22, 2021

This information was gathered from public sources. Ambrook is not responsible for or able to affect the results of any financial programs listed, nor are they responsible for any incorrect information that is listed or is on the hyperlinked external sites. All information is subject to change.