A significant milestone was reached in early May as FarmStart LLP, a program to help individuals get  started in farming, passed the $2 million mark. FarmStart, established by First Pioneer Farm Credit (Enfield, Conn.) and CoBank (Denver, Colo.), provides working capital to individuals who may not meet traditional lending requirements, but have a dream to farm and a solid business plan. In addition to startup farm operations, the FarmStart program also invests in new cooperative enterprises.

FarmStart goals are twofold. First, the program invests initial working capital to help promising startup farmers establish a positive business and credit history during the initial phase of their entrepreneurial careers. In addition, it also creates a mentoring relationship between new farm business owners and a FarmStart adviser. The mentor helps strengthen each entrepreneur’s knowledge about business plans, cash flow projections and business records.

According to First Pioneer President and CEO Bill Lipinski, “This first-of-its-kind initiative in the United States is intended to address a gap in lending programs for startup farmers and farm cooperatives. That is, startup agricultural businesses require substantial financial investment, but young farmers often encounter barriers when it comes to finding capital for their new businesses.”

David Boone, First Pioneer executive vice president and FarmStart program director, added, “Our vision in developing the FarmStart program is to make a difference. Young farmers and agricultural cooperatives bring new ideas and enthusiasm to Northeast agriculture, and we are happy to be able to offer them a chance for success. In fact, over the past 18 months, we’ve invested in 22 beginning farmers because we are committed to the future of agriculture, forestry, commercial fishing, and rural communities across the Northeast.”

According to FarmStart entrepreneur Heather Hollay-Farr, “This FarmStart investment means a great deal to my business.”

Hollay-Farr is an owner of Hollywood Equine, a full-service equestrian facility in Ellington, Conn. “I can use the line of credit throughout the year and repay it during our busy season. I also like that my FarmStart adviser requires a detailed cash flow report every quarter. This advanced worksheet was new to me, but now that I’ve developed it, I find that it is a really nice snapshot of my business and an added bonus that gives me a better financial perspective of my business.”

For more information on FarmStart, go to FirstPioneer.com/Products.