Cover photo for Perennial Fund

Perennial Fund

Perennial Fund

About

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

We work 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

We make you a multi-year commitment to see your farm to 100% organic. We have 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. We help you secure crop contracts for commodity and specialty crops through our network of buyers. Our goal is to drive more value into your farm with a diverse revenue stream beyond corn and beans.

Integrated Support

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

What do we finance?

We can finance almost anything that helps your farm reach 100% organic.

Operating loans: We finance 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, we can work with you to finance anything from a roller-crimper to an in-row roller.

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

Farm finance that actually makes sense.

Organic farmers ought to have the same financing opportunities as conventional farmers. Yet, ordinary bankers don’t understand the transition and offload all of the risks onto the farmer. This often pushes a full transition into a 5+ year process, all while the lender has no real skin in the game.

We are frustrated by the inability of the ordinary banker to keep up with organic farmers that are on the tip of the spear pioneering the next generation of land stewardship. It’s an inevitable future and they can’t see it. Finding a long term reliable lending partner shouldn’t be this hard.

In our work to regenerate over 25,000 acres with dozens of farmers, it is clear we need to re-humanize finance and create loan terms that align with long term stewardship. We believe that lenders should share risk and multi-year financing should be a new normal.

Reach out. We will design you a tailor-made transition finance plan, find the lowest cost option that makes sense for your farm, and commit to you through your whole transition. With this type of financing, you can transition your farm years faster and get on the path to debt-free farming. 

It’s our vision to remove the anxieties of wondering if your bank will fund your next season or seeing a mailbox full of bills. With all of our farmers, we work tirelessly to help you transition to 100% organic years sooner and create a legacy of stewardship.

This is transition finance for farmers ready to buck the system, regain independence, and realize a debt-free future.

Eligibility

Farmers who already have some organic acreage under management and want to expand their operation. We prefer 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.

We focus on the Midwest and High Plains of the United States. Exceptions can and will be made.

Terms

We provide capital for 3 years during the organic transition. After the transition payback on the remaining balance begin. We work 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, we will do everything in our 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. We set a specific amount over the life of the loan, not a yearly interest rate. This is called a return cap. We like 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 we 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. We agree on a standard APR rate.

Similar Programs

Details

Release Date

October 1, 2020

Organization

Perennial Fund

Financial Instrument

Loan

Image Credit

Perennial Fund

Updated March 25, 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.