Delaware News

Delaware Launches Agricultural Financing Program

Department of Agriculture | Featured Posts | News | Date Posted: Wednesday, September 4, 2024


red agricultural sprayer in front of corn field with booms out

DOVER, Del. (Sept. 3, 2024) – The Delaware Department of Agriculture (DDA), in partnership with the Division of Small Business, officially launched the Delaware Agricultural Financing Program (DAFP) today. This new program aims to increase the viability of Delaware’s agricultural industry by broadening lending opportunities across the agricultural sector.

“Attracting new farmers and producers into our number one industry is a critical need for Delaware,” said Secretary of Agriculture Michael T. Scuse. “We are excited to offer this new loan program, in cooperation with the Division of Small Business, as a way to help farm and aquaculture producers purchase the equipment they need to get started or expand their operations.”

Delaware farmers, producers, and food processors actively engaged in crop, livestock, aquaculture, and/or food production in Delaware are eligible to apply. Low-interest equipment loans will be available for supporting activities, including production, processing, packaging, aggregation, and distribution for small and large operations.

“Agriculture is such an important industry in our state, and we are proud to partner with the Delaware Department of Agriculture to ensure it continues to thrive and grow,” said Division of Small Business Director Regina Mitchell. “DSB prides itself on being a good steward of state funding and is honored to lend its financial expertise to help Delaware farmers, producers, and food processors meet their needs to sustain their livelihood and contributions to Delaware’s economy.”

The DAFP currently has $1.5 million in funding available. The program will provide loans of $25,000 to $250,000 with a maximum loan amount of 50% of a project’s total cost. Applicants must demonstrate eligibility from a private lender for the balance of project costs. Final closing will be contingent on the approval of all participating lenders. All loans will have a term of up to seven (7) years, with interest-only payments due in the first year, followed by full amortization. Interest rates will be fixed at 3.35% for first-time farmers and aquaculture projects and 4.25% for all other projects.

According to Jimmy Kroon, DDA Administrator, “Agriculture and aquaculture financing tends to be more difficult to obtain through traditional banks. Producers may not have formal business training, the industry has thin margins and higher risks, and specialized equipment sometimes doesn’t provide good collateral. Yet, according to nearby state agriculture financing programs, farm loans tend to be safer investments than non-farm business loans. We want to lend a hand to that first time farmer or aquaculture producer who is trying to overcome these hurdles to get started in the business.”

The applicant must provide proof of farm or food business or an IRS Schedule F tax form from the previous year. DAFP requires that all work be performed by experienced and qualified contractors licensed by the State of Delaware, whose primary business location is in Delaware.

Those interested in applying for a DAFP loan can find more information and an application online at https://de.gov/dafp.

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Delaware Launches Agricultural Financing Program

Department of Agriculture | Featured Posts | News | Date Posted: Wednesday, September 4, 2024


red agricultural sprayer in front of corn field with booms out

DOVER, Del. (Sept. 3, 2024) – The Delaware Department of Agriculture (DDA), in partnership with the Division of Small Business, officially launched the Delaware Agricultural Financing Program (DAFP) today. This new program aims to increase the viability of Delaware’s agricultural industry by broadening lending opportunities across the agricultural sector.

“Attracting new farmers and producers into our number one industry is a critical need for Delaware,” said Secretary of Agriculture Michael T. Scuse. “We are excited to offer this new loan program, in cooperation with the Division of Small Business, as a way to help farm and aquaculture producers purchase the equipment they need to get started or expand their operations.”

Delaware farmers, producers, and food processors actively engaged in crop, livestock, aquaculture, and/or food production in Delaware are eligible to apply. Low-interest equipment loans will be available for supporting activities, including production, processing, packaging, aggregation, and distribution for small and large operations.

“Agriculture is such an important industry in our state, and we are proud to partner with the Delaware Department of Agriculture to ensure it continues to thrive and grow,” said Division of Small Business Director Regina Mitchell. “DSB prides itself on being a good steward of state funding and is honored to lend its financial expertise to help Delaware farmers, producers, and food processors meet their needs to sustain their livelihood and contributions to Delaware’s economy.”

The DAFP currently has $1.5 million in funding available. The program will provide loans of $25,000 to $250,000 with a maximum loan amount of 50% of a project’s total cost. Applicants must demonstrate eligibility from a private lender for the balance of project costs. Final closing will be contingent on the approval of all participating lenders. All loans will have a term of up to seven (7) years, with interest-only payments due in the first year, followed by full amortization. Interest rates will be fixed at 3.35% for first-time farmers and aquaculture projects and 4.25% for all other projects.

According to Jimmy Kroon, DDA Administrator, “Agriculture and aquaculture financing tends to be more difficult to obtain through traditional banks. Producers may not have formal business training, the industry has thin margins and higher risks, and specialized equipment sometimes doesn’t provide good collateral. Yet, according to nearby state agriculture financing programs, farm loans tend to be safer investments than non-farm business loans. We want to lend a hand to that first time farmer or aquaculture producer who is trying to overcome these hurdles to get started in the business.”

The applicant must provide proof of farm or food business or an IRS Schedule F tax form from the previous year. DAFP requires that all work be performed by experienced and qualified contractors licensed by the State of Delaware, whose primary business location is in Delaware.

Those interested in applying for a DAFP loan can find more information and an application online at https://de.gov/dafp.

###

image_printPrint

Related Topics:  , , , , , , , , , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.