Thad
12-30-2010, 09:28 PM
Posted: Thursday, December 30, 2010 1:00 PM
By STEVE BROWN ([email protected])
Capital Press
Northwest Farm Credit Services -- which covers Washington, Oregon, Idaho, Montana and Alaska -- is a cooperative run by a stockholder board.
Beginners get a financial leg up
Young, beginning, minority or small agricultural producers are often at a disadvantage when it comes to seeking financial assistance. It was with those individuals in mind that Northwest Farm Credit Services developed its AgVision program.
"A lot of producers are just beginning their operations, or they're trying to take over from mom and dad. One of the barriers is financing," said Wendy Knopp, vice president of AgVision.
Knopp said the program provides less-restrictive underwriting standards, competitive interest rates and reduced fees.
Sam Hunt, 28, who raises sheep east of Moscow, Idaho, said AgVision helped him -- along with a partner -- build up a flock that now numbers 1,300 ewes. Hunt's background was in cattle, but a sheep course at the University of Idaho got him interested.
"I thought I'd buy a couple of ewes to give it a try, but a mentor suggested I buy 300 and make a living at it," he said. "I was desperate for some financing, and someone pointed me to Farm Credit Services."
The initial approval took about 60 days, and renewals since then have been "snappy," he said.
Hunt also owns and operates a custom-cut meat plant, and he plans to incorporate the two operations. "I'd like to have my own label on the lambs, everything from conception to the plate."
The AgVision program, he said, helped him build his operation, set up a line of credit and sparked his dreams.
Knopp said the program's financing can include real estate purchases, operating expenses, livestock or equipment purchases and refinancing existing debt.
The Washington State Housing Finance Commission has partnered with Northwest Farm Credit Services by offering loans for qualifying beginning farmers and ranchers that can be combined with other loans, grants and other sources of funds.
The tax-exempt Beginning Farmer-Rancher Bond Program is designed to help them acquire agricultural property at lower interest rates, as low as 3.5 percent, Knopp said.
"When we looked at these customers," she said, "we asked ourselves, 'What does this market segment need? Let's add to the value of the loan.' To do that, we decided to encourage them to tap into more educational and technological resources."
AgVision gives its clients reimbursement vouchers for computers and other technology, for workshops or conferences, and for help with strategic business plan preparation.
Credit officers also work with participants to build financial management skills as they develop their operations.
AgVision has about 800 clients, Knopp said. Many have "graduated" from the six-year program, which was begun in 2001.
Eligibility criteria
To be eligible for AgVision, prospective customers must meet one of the following characteristics:
* Young: 35 or under.
* Beginning: 10 years or less management experience.
* Small: Annual gross production of less than $250,000.
* Minority: African-American, Native American, Alaskan native, Hispanic, Asian or Pacific Islander.
Online
www.farm-credit.com (https://www.farm-credit.com/)
By STEVE BROWN ([email protected])
Capital Press
Northwest Farm Credit Services -- which covers Washington, Oregon, Idaho, Montana and Alaska -- is a cooperative run by a stockholder board.
Beginners get a financial leg up
Young, beginning, minority or small agricultural producers are often at a disadvantage when it comes to seeking financial assistance. It was with those individuals in mind that Northwest Farm Credit Services developed its AgVision program.
"A lot of producers are just beginning their operations, or they're trying to take over from mom and dad. One of the barriers is financing," said Wendy Knopp, vice president of AgVision.
Knopp said the program provides less-restrictive underwriting standards, competitive interest rates and reduced fees.
Sam Hunt, 28, who raises sheep east of Moscow, Idaho, said AgVision helped him -- along with a partner -- build up a flock that now numbers 1,300 ewes. Hunt's background was in cattle, but a sheep course at the University of Idaho got him interested.
"I thought I'd buy a couple of ewes to give it a try, but a mentor suggested I buy 300 and make a living at it," he said. "I was desperate for some financing, and someone pointed me to Farm Credit Services."
The initial approval took about 60 days, and renewals since then have been "snappy," he said.
Hunt also owns and operates a custom-cut meat plant, and he plans to incorporate the two operations. "I'd like to have my own label on the lambs, everything from conception to the plate."
The AgVision program, he said, helped him build his operation, set up a line of credit and sparked his dreams.
Knopp said the program's financing can include real estate purchases, operating expenses, livestock or equipment purchases and refinancing existing debt.
The Washington State Housing Finance Commission has partnered with Northwest Farm Credit Services by offering loans for qualifying beginning farmers and ranchers that can be combined with other loans, grants and other sources of funds.
The tax-exempt Beginning Farmer-Rancher Bond Program is designed to help them acquire agricultural property at lower interest rates, as low as 3.5 percent, Knopp said.
"When we looked at these customers," she said, "we asked ourselves, 'What does this market segment need? Let's add to the value of the loan.' To do that, we decided to encourage them to tap into more educational and technological resources."
AgVision gives its clients reimbursement vouchers for computers and other technology, for workshops or conferences, and for help with strategic business plan preparation.
Credit officers also work with participants to build financial management skills as they develop their operations.
AgVision has about 800 clients, Knopp said. Many have "graduated" from the six-year program, which was begun in 2001.
Eligibility criteria
To be eligible for AgVision, prospective customers must meet one of the following characteristics:
* Young: 35 or under.
* Beginning: 10 years or less management experience.
* Small: Annual gross production of less than $250,000.
* Minority: African-American, Native American, Alaskan native, Hispanic, Asian or Pacific Islander.
Online
www.farm-credit.com (https://www.farm-credit.com/)