Practical Tips to Help Finance Regenerative Ag Projects

For generations, Long Dairy Farms Inc. of Rising Sun, Maryland has farmed the same piece of land since 1759. Today, they milk 150 cows and raise all of their heifers on-site, ensuring the continuity of their farming legacy. However, the journey to keep the family farm in operation has not always been easy.

You are viewing: Practical Tips to Help Finance Regenerative Ag Projects

In 2015, Alice Crothers and her husband, Caleb, were asked to return to the family farm after learning that her father-in-law was ill.

“We were asked to return to the farm, and it was sort of a shock to us,” Alice recalls. “At the time, we had very different careers in Tennessee, but my husband’s family was looking for the eighth generation to carry the farm on. So, we packed up the car and made the decision to return home.”

Returning to the farm brought both significant challenges and unexpected opportunities. The shift from their previous careers to full-time farming required Alice and her husband to quickly adapt to a new lifestyle and steep learning curve. Operational inefficiencies, financial constraints, and the pressure of maintaining a multi-generational legacy added to the complexities they faced.

“Things were different than we expected, both operationally and financially,” Alice says. “Within the first year, we realized pretty quickly that we needed a game plan and a strategy if we were going to be the eighth generation. And of course, there was a tremendous amount of pressure on our shoulders to not fail.”

Realizing that change was essential for the family business to survive, Alice and her husband concluded that focusing on regenerative agriculture could be a long-term solution.

“We decided that one of our business plans would be to diversify our farm through conservation, preservation, and sustainable projects,” Alice explains. “We laid out a plan on what we hoped to pursue, and a lot of that plan has come to fruition, but not without some hardships.”

Finding the Dollars

Incorporating new sustainability projects, like installing a methane digester, brought significant financial challenges to the operation. The upfront costs were daunting.

See more : Why They Should Be on Your Radar

“We knew these projects were critical for the farm’s future, but the financial pressure was immense,” Alice admits. “We had to get creative, make sacrifices, and seek every possible resource.”

Securing grants was a major hurdle.

“The application process is extensive and time-consuming,” Alice says. “Even when we were eligible, competition for funds was fierce, and timelines didn’t always match our needs.”

But with time and creativity, Long Dairy Farms was able to find a solution and pencil out a financial plan that fit their farm’s needs.

Alice offers practical tips for farmers looking to finance regenerative agriculture projects, emphasizing the importance of careful planning, exploring diverse funding sources, and building partnerships.

Assess Costs and Benefits

Before pursuing sustainability initiatives, it’s vital to evaluate their costs and benefits. Consider projects like energy-efficient equipment, manure management systems, renewable energy installations, or water conservation measures. Assess short-term expenses and long-term savings or revenue potential.

Additionally, consider intangible benefits like improved public perception, compliance with future environmental regulations, and better herd health. A detailed cost-benefit analysis can guide decision-making and strengthen your case for funding.

“Sustainability has to fit your farm,” Alice says. “For us, it wasn’t just about financial returns. As eighth-generation farmers raising the ninth, these projects secure our family’s legacy.”

Leverage Government Grants and Incentives

See more : How To Separate Your Finances After a Breakup

Government programs can ease the financial burden of sustainability projects. Tax credits for renewable energy, rebates for energy-efficient equipment, and USDA grants like the Environmental Quality Incentives Program (EQIP) are valuable resources.

“Staying informed about available incentives is crucial,” Alice says. “These programs can provide the boost needed to get projects off the ground.”

Learn From Others

Alice highlights the importance of learning from other farmers. “Before starting any project, we visited other farms to see what worked and what didn’t,” she says.

Sharing success stories within the farming community can also open doors. “Farmers talk, and having a few successes builds credibility,” Alice explains. “We’ve learned who to partner with, what to avoid, and how to navigate financial challenges by connecting with others.”

A Clearer Path to Sustainability

Financing sustainability projects for your dairy farm may seem daunting, but with the right approach, it’s achievable. Start with a clear plan, explore diverse funding sources, and build partnerships.

“Sustainability isn’t just an investment in our farm,” Alice says. “It’s an investment in the future of agriculture and our planet.”

By embracing regenerative practices, Alice and her family are ensuring their farm’s legacy continues for generations to come.