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Unit 3: Managing the Farm/Ranch Business for Long-Term Success

Since it is not always easy to obtain loans from traditional financing sources, many farmers and ranchers around the country are exploring alternative funding opportunities to meet their needs. One approach that is gaining prominence involves financial agreements between farmers and members of their local community. Community financing, represented by both monetary and social capital, is transferred from the community to farm operations. A few examples of this type of financing include:

• Cooperative land ownership

• Promissory notes with investors who are committed to the same goals/values as the farmer

• Membership- or share-based financial support such as a community supported agriculture (CSA)

• Vendor financing

• Community pledges (such as a Kickstarter campaign)

To learn more about these and other types of creative financing, explore the Guide to Financing Community Supported Farms. This publication focuses on the Northeastern U.S., but the information is relevant to farmers and ranchers nationwide. The publication includes four farm case studies that provide real-life examples of how farmers are applying multiple strategies to obtain financing and credit.