Loans

Chapter 2: Economic assessment and risk management is part of the online publication "From Surviving to Thriving: Strategies for Urban Farm Success. Most of the work of a farm is in producing and marketing crops and livestock. But will this effort be economically viable? And what are the economic risks? These are questions that all farm businesses must answer regardless of whether they are for-profit or not-for-profit. To stay in business, the farm must be economically sustainable. To measure economic viability, this chapter will focus on two economic measurements – profit and cash flow.

Whether a new farmer/food entrepreneur, or an established operation, you’re probably going to need to finance some aspect of your business. There are various loan programs for farmers and food entrepreneurs. There are also some specific grant programs, but these are very specific and very competitive to obtain. Obtaining grants require a lot of work, often have delayed payments or require up-front investment, and are not a reliable source of income. This article provides guidance for evaluating if your needs qualify for the grant’s targeted outcomes and how best to apply for a grant.