1. New & Beginning Farmers and Ranchers Program: CAPITAL & ACCESS TO CAPITAL OVERVIEW E’licia L. Chaverest, M.S. Assistant Director Small Farms Research Center (SFRC) College of Agricultural, Life and Natural Science Alabama A&M University

2. Capital and Access Capital Capital is different from money. Money is used simply to purchase goods and services for consumption. Capital is more durable and is used to generate wealth through investment. Capital refers to financial resources available for use. Grants vs. Loans GRANTS—You do not have to payback LOANS-You have to eventually payback

3. ACCESSING CAPITAL (LOANS)  Whole Foods Market (Local Loan program)  Alabama Farm Credit (New and Beginning Farmers Loan Program)  USDA Farm Service Agency (Micro Loan Program) Just to name few.

4. OTHER OPTIONS ON ACCESSING CAPITAL (LOANS) cont.  Small Business Administration (SBA )(504) Loan Program- is a financing program for expanding farms  Available to new and existing farmers as well as agricultural processors.  Purpose: Finance land and building acquisition and expansion, construction and land site improvements and machinery and equipment purchases.  Requirements participation: (50% from the bank, 40% from SBA with the remaining 10% percent from the borrower).

5. ACCESSING CAPITAL (GRANTS)  The Awesome Foundation Grant — Initiated in 2009. A series of monthly $1,000 grants to projects and their creators. The money is pooled together from the coffers of ten or so self-organizing “micro-trustees” and given upfront in cash, check, or gold doubloons.  SSAWG Grants- 2014 Farmer Rancher Grant. Available now. Proposals must be submitted by 4:00 p.m. CST, November 14, 2013.  Alabama Forestry Forever Grant - Quality of life & stewardship of the land.  ALA ‑ Tom Resource Conservation and Development (RC & D) Council- similarly to Alabama Forestry Forever Grant.  USDA Rural Development Value-Added Producers Grant

6. ACCESSING CAPITAL (GRANTS) (cont.)  Food and Agricultural Sciences National Needs Graduate and Postgraduate Fellowship (NNF Grants. WEBSITE: http://www.nifa.usda.gov/fo/graduateandpostgraduatefell owshipsserd.cfm Grant Title: Rural Youth Development Small and Mid-Size Farms (SBIR) WEBSITE: http://www.nifa.usda.gov/fo/funding.cfm http://www.nifa.usda.gov/fo/funding.cfm

7. ACCESSING CAPITAL: INNOVATIVE ALTERATIVES  Individual Development Accounts (IDA)— Saving accounts that provide matching funds for farmers of low or moderate means.(state and regional initiative)  Ie. CA Farmlink IDA Program. Matched savings at a rate of 3:1 for up to $300/month over a two year period, for a total match of $9600.  The program is supplemented with required farm finance and money management workshops and the development of a business plan. (Implemented in California)  Contact United Way of Central Alabama to get started 1-888-421-1266 or check out the website www. uwca.org/ida  Crowdfunding Websites  Process of raising very small investments from a large number of investors.  Check out the website! http://www.microventures.com/business_funding Check out the website! http://www.microventures.com/business_funding (Implemented nation-wide) -Suggestions. Please do your homework. There are always pro’s and con’s with new programs and initiatives.

8. ANY QUESTIONS!