A special milestone was reached in early June as FarmStart LLP, a program to help individuals get started in farming passed the $1 million mark in approved investments to beginning farmers.  The FarmStart Program, established by First Pioneer Farm Credit and CoBank in 2006, provides working capital to individuals with a dream to farm and a solid business plan, but that do not meet traditional lending requirements.  In addition to start-up farm operations, the FarmStart program may also make investments in new cooperative enterprises.

The FarmStart Program is unique in that in addition to providing seed capital, the program also utilizes advisors to help strengthen the entrepreneur’s skills and knowledge relating to business plans, monthly cash flow projections, and business records.  While First Pioneer has a number of other programs to support young and beginning farmers, FarmStart was established as a separate entity to allow investments to beginning farmers who may not be able to obtain conventional credit elsewhere.
 
Startup agricultural businesses require substantial financial investment and young farmers often encounter barriers when it comes to finding capital for their new businesses.  First Pioneer President and CEO Bill Lipinski stated, “We are very pleased to have surpassed the $1 million level for FarmStart and are excited about the young entrepreneurs that are part of this program and what they mean for the future of Northeast agriculture.  This is a first-of-its-kind initiative in the United States intended to address a gap in lending programs for startup farmers and farm cooperatives.”

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