MassDevelopment has teamed with The Carrot Project to raise the maximum loan amount for eligible Massachusetts farmers.
Qualifying farmers can now receive amounts ranging from $3,000 to $35,000, up from the former ceiling of $15,000. The funds help farmers finance capital investments and meet operating costs, and the increased funds available will better serve farmer demand, according to a statement.
"This program fills a niche for farmers who could not access conventional financing," said Executive Vice President of Finance Programs Laura Canter. "As more Massachusetts residents seek out fresh and quality produce as part of an ever-growing movement toward eating healthful, local food, we hope these funds will help farmers meet demand for their products."
"We are excited to be able to raise the maximum loan amount to $35,000, which will more closely meet the needs of farmers who confront difficulty in accessing capital," said Dorothy Suput, founder and executive director of The Carrot Project.
Two Massachusetts farms have received loans through the program: America Agro in Greenfield, which used funds to improve a basil greenhouse in Deerfield; and Souza Family Farm in Rehoboth, which used funds for lower cost working capital covering operating expenses and renovating recently purchased property.
Farmers who own or lease farms in Massachusetts are eligible, with a focus on farms that have 250 or fewer acres under cultivation; report annual revenues of less than $250,000; and use or are moving toward organic methods. Capital investments covered in the loan include those that improve efficiency and quality, and those that expand farm production or sales.
MassDevelopment, The Carrot Project, and Strolling of the Heifers launched the loan program for small farms in February 2010. In 2009, many Massachusetts farmers had seen crops ruined by heavy rain in June and July and extreme heat in August.
The Carrot Project, a Somerville nonprofit, is dedicated to creating financing solutions for small- and mid-sized farms, limited-resource farms, and those using ecologically sound practices.
