Community Farms Growing Season

Sometimes Things Don’t Go As Planned

Unfortunately, some years are better than others for farms. Everything from the weather to sick animals and diseased plants all happened to be a problem simultaneously. At first, the owners pushed through and assumed that better days would be coming. But it became clear that things couldn’t go on the way they were. Some significant changes needed to happen to solve the problems and modernize the facilities.

Community Farms Growing Season

A Need for an Injection of Cash

Since things had been less-than-perfect for most of the growing season, capital was needed to take care of the issues the farm was facing. While the owners had some money set aside for a rainy day, they’d already used a substantial amount to keep things running smoothly. What they needed was some help to the tune of around $400,000. It was a tall order, but it was decided that some research should be done into the potential options available to keep the farm alive.


Introducing the Asset-Based Loan

One of the things that the farm had going for it was all the equipment, buildings, and other items used to keep it going. This made up many assets, which meant a traditional loan wasn’t the only option. It took time to visit local banks, research national options, and consider all the possibilities. However, the farm decided an asset-based loan made the most sense in the end.

What Sets This Lending Option Apart

The fact that the loan could be guaranteed based on items already at the farm was a huge win. But that wasn’t the only reason an asset-based loan was the right decision for this community farm. The loan was made to offer working capital to get the farm back on the right track. In addition, the payments would be reasonable since the farm had a great financial history. Finally, they chose a term length that worked best for them and decided to go ahead with the loan.


What Happened in the End?

As soon as the owners had more capital, they were able to handle the problems that had been plaguing the land, animals, and crops. It was enough to easily get them through the season and started on a plan for the next year – when things were sure to improve.


It’s been a couple of years since then, and the small farm is thriving. It’s still a pillar of the community and stands to remain that way for decades more. The asset-based loan let the farm keep running even when everything seemed to be going in the wrong direction. As a result, things look good for the future.

Community Farms Growing Season

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