Vision
We envision equitable partnerships between farmers and investors that broaden access to farmland, preserve natural and financial capital, restore our environment, and create more resilient local food systems.
Mission
Northeast Farm Access believes there is a critical need for new, equitable approaches to farm investment. Our mission is to secure social and financial capital in farmland using methods that work well for farmers, investors and the land.
Investment Logistics
Investors and farmers each know what they need. We focus on what they need from each other. NEFA removes the obstacles to their working together, creates fair and durable agreements, and stays involved, managing through the term of the agreement. Each relationship is unique: we develop agreements that are distinct yet simple. So far, we engage one investor per farm. Individual NEFA projects range from $500,000 to $2,500,000 with yields varying on a farm by farm basis. Returns on investment are financial, social and environmental, building equity for all and making land tenure strong.
Connections
We enable investors to purchase farms to lease or later resell to farmers. The core of our work is to establish long term connections between investors and farmers, rooted in the interests of each and in the land, resulting in long-term and affordable tenure. With NEFA’s guidance, investors and farmers create strong tenure through long term leases and / or installment-purchase agreements.
Agreements could include:
- Investor purchases the farm and leases to the farmer for a long term at an affordable rate.
- Investor purchases the farm and leases to the farmer until she or he purchases at fair market value or at a pre-calculated “maximum purchase option price.”
- One or more investors purchase abutting properties and link them agriculturally and operationally as larger farm properties through lease or resale.
Farm leases or sales may be either to individual farmers or multiple operator “associations” such as cooperatives or other farmer collaborations.
NEFA arrangements meet the interests of the investor, the farmers and the land.
How We Work
NEFA financial strategy carefully extends beyond the parameters of conventional sources of farm capital. Our approach better resembles family financing. We support proven farmers lacking the capital to purchase. When evaluating farms and farmers, we contract independent financial underwriters to provide objective analyses of existing and proposed farm operations.
Once they have worked with a NEFA lease for three to five years, these farmers may be considered “seasoned” by conventional lenders and qualify for the capital available through those channels. When that happens, and by virtue of NEFA’s efforts, a farmer once limited by lack of capital will have better reached their potential as a grower, as a business person and as an important provider of good local food. Our goal is for the farmer to have built the equity to purchase the farm and for the investor to have received a modest return on a solid asset and the community to have benefited from both.
We Find Farmers
NEFA works closely with the dozens of farmer organizations throughout New England and the Hudson Valley. Word gets out quickly when a farm opportunity becomes available. We prequalify farmers to meet the standards investors through our program require.
NEFA works with farmers who have at least five years of experience–two in management positions—as well as demonstrated entrepreneurial capacity. These farmers may have been working the land when it was purchased or relocated to work that land after it was purchased by the investor.
We Find Investors
Friends, family and word of mouth have been guiding investors to NEFA so far. The demand seems huge. The notion of owning local farmland appeals to those who appreciate the balance between the kinds of return and the special value of farmland as an asset. The modest financial return that investors generously accept mirrors the modest financial return that farmers accept for their generous effort.
Our services are suited for accredited investors and funds who care about agriculture. Our investors understand that farming and soil-building take time, a kind of slow investing by farmers and funders both, and one that yields abundant rewards for all.
We Find Farms
With many years in the farm community, our sources for properties are diverse and many. NEFA uses everything from GIS and NRCS data to phone calls from colleagues to identify farm prospects. We evaluate farmland based on natural resources, cost, location, and enterprise potential as well as other factors. Is the land ready to be farmable as is or will three years of revitalization be needed before it meets organic standards? Are market challenges offset by opportunities? What kinds of farming activities will best suit the land? Is a suitable farmer already working on the farm or interested in farming there? How well does the farm suit the investor’s interests and resources as well as those of the farmer?
NEFA evaluates these considerations and more to qualify the farm as investment and advise all parties in the challenges and opportunities it offers.
Read our NEFA Social Investment statement.
