SUPPORTING CUSTOMERS INTO THE FUTURE

Innovative And Sustainable Financing

Since our founding, Farm Credit East has been a relationship lender. We are committed to the success of our customers, and with that in mind, focus on whole farm financing to serve their businesses’ needs. Those needs vary based on the industry, where the business is in its life cycle and the owners’ long-term goals — and our financing is flexible to help them meet those goals.

Innovative and sustainable financing is nothing new for Farm Credit East. This has always been our lending philosophy. From competitive interest rates to flexible payment schedules to match customers’ business structure and/or seasonality, Farm Credit East understands agriculture and has built its credit products and financial services to serve the unique needs of the industry’s producers.

One prime example of innovative and sustainable financing is Farm Credit East’s partnership with American Farmland Trust (AFT). Farm Credit East is collaborating with AFT to facilitate its New England Farmer Microgrants

Program. As the grants are provided on a reimbursement basis, grantees with limited resources can apply through Farm Credit East’s FarmStart program to get funding to complete the project up front with the proceeds from the grant repaying the FarmStart investment upon completion of the project. This creative approach has provided greater access to AFT’s grant assistance for farmland access, succession and transfer support, and adoption of regenerative practices.

As a lender who has served the region’s agriculture for more than 100 years, Farm Credit East is here for the long term, just as our customers are. Northeast producers strive to be sustainable in their businesses, both economically and in regard to protecting natural resources. Farm Credit East provides financing to assist members in implementing these practices, including special lending products to facilitate capital projects and other necessary investments.

Linkletter & Sons, Inc., Athens, Maine Farm Credit East has been a partner to Linkletter & Sons, Inc., a vertically integrated forest products business, for upwards of 25 years. Over the course of that time, the business has expanded, with the end goal of being a stump-to-customer operation.

About 15 years ago, with changing market dynamics as a result of the reduction in low grade wood demand from the pulp and paper industry, the Linkletters built a pellet plant to find a sustainable market for their low-grade wood. Six years ago, in an effort to further expand the utilization of low-grade wood from the Central Maine area, the operation built a biomass energy facility. The Linkletters consume a portion of the energy generated by this facility for their operations and sell the remainder to the New England Power Grid. “Farm Credit East has been integral in helping us to expand and integrate all our parts together. They always seem to be there for us when we need them,” said Bob Linkletter.

“The Linkletters have been very innovate in the projects they’ve implemented over the years,” commented Senior Commercial Loan Officer, Scott Kenney. “And we’ve been equally creative in our financing solutions, utilizing investment tax credits and New Markets Tax Credits, which are rooted in projects that promote long-term sustainability.”

Developing The Next Generation

Farm Credit East understands the future of agriculture lies in the next generation and new entrants into the industry. That is why we have developed innovative financing and training and development programs to serve those coming into the industry.

FarmStart

Established in 2005, this first-of-its-kind initiative in the United States assists entrepreneurs and new cooperatives just getting started in agriculture, commercial fishing or forest products by providing working capital investments up to $75,000. Since inception, FarmStart has made 364 investments totaling over $17 million.

Calabash Garden, Newbury, Vermont

Calabash Garden, a regenerative agriculture saffron farm, got up and running about five years ago using a combination of funding from FarmStart and the Vermont Community Loan Fund. “Our initial startup costs were huge, and FarmStart provided that upfront funding to help us get started” said Jette Mandl-Abramson.

As they got started, Jette, along with her husband Zaka, aimed to be as environmentally sustainable as possible. “We are developing the saffron market in the United States, but also developing regenerative agriculture techniques to sequester carbon, mitigate erosion, filter water — in other words, all the things nature does on its own when undisturbed,” said Jette. “It is extremely important for us to be part of the climate change solution.”

Beyond financing, FarmStart has also offered Jette and Zaka additional educational resources that they have found beneficial in building their business. “Our FarmStart advisor has been a fantastic resource on so many levels,” commented Jette. “It’s something special to have a lending entity that is also able to support you in various ways to be successful. They’re looking at more than just the bottom line — they’re taking into account the long-term sustainability and overall health of our business.”

YBSV Incentives

Farm Credit East offers incentives to those who qualify as young (35 or younger), as well as young producers who are beginning (10 years or less experience), small (less than $250k in annual gross sales), or veteran (post-Gulf War-era II). In 2022, incentives in excess of $396,000 were provided toward discounts on Farm Credit East’s financial services and training programs, FSA guaranteed loan fees, farm accounting and management software fees, and interest rate assistance.

74 individuals participated in both in-person and virtual seminars that took place over the winter of 2022-23.

“As someone who works on their family farm and is now taking it over, I have so much to still learn, but after completing GenerationNext, I have a better understanding of the overall picture,” said Katie Carlson, of Carlson Orchards in Harvard, Mass. “GenerationNext opened my eyes to aspects of the business I hadn’t touched upon yet and after finishing this seminar series, I feel the foundation for my success has been laid.”

GenerationNext

A series of annual seminars that focus on developing the skill sets of next generation managers. More than

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