Filling in the Little Boxes
Farm Loans especially for Young Farmers!
Are you a new farmer or farm cooperative who is confident that you'll be successful, but have a minimal track record and limited financial resources? Have you written a business plan and done your homework on your proposed venture? Can you demonstrate responsibility, good work ethic and follow-through?
FarmStart assists beginning farmers and new cooperatives through their start-up years by providing working capital investments of up to $50,000. Repayment of these funds is up to five years. FarmStart is envisioned as a key element in the success of startup ag businesses. Recipients have the opportunity to develop a successful credit record and to learn the discipline of effective cash flow management.
Who is eligible?
Farmers, forestry producers, fishermen, farm-related service businesses and cooperatives, generally in their first three years of business.
Each FarmStart participant will work with a Farm Credit representative, knowledgeable in financial management. Advisers stay in touch to help participants follow through with business plan activities. They also encourage FarmStart recipients to use other professionals as necessary to solve problems and develop their business venture.
We're looking for substance, not fluff. The business plan is a productive exercise for new business owners to demonstrate to FarmStart that they have the ability to successfully use the investment. Five key business components should be included in the plan. Please refer to guidelines, available in your branch or with a local business consultant, on how to put a business plan together.
Free ag-specific computer software
Yes! Red Wing Software, America's premier provider of financial management software for agriculture, will provide CenterPoint software to FarmStart participants at no cost with the purchase of a Silver Level Customer Care Plan.
To sum up...
The goal of FarmStart is to not only provide working capital but to also enable the start-up farmer to establish a positive business and credit history during this phase of his/her business career. Within five years time, recipients should be positioned to "graduate" to a conventional line of credit from First Pioneer or CoBank.
If you would like more information about this exciting new program, please contact your local branch of First Pioneer or send an email to [email protected].