June 6, 2006

US Vermont programme offers loans for livestock purchases

Farmers just starting out might be able to turn to a new University of Vermont programme to help pay for their animals, The Burlington Free Press reported.

The Centre for Sustainable Agriculture is starting Land Link, which would provide low-interest loans to farmers who have been in business less than 10 years. The money is aimed to help them buy cows, poultry, goats or sheep.

The loans would be for US$1,000 to US$15,000, enough to supplement a herd of cattle or to buy a poultry flock, and could be combined with a commercial loan, said Deb Heleba, coordinator, according to the newspaper.

"Traditionally, farmers transitioned from their parents' operations. Now, young farmers are going into it needing to purchase land and equipment," said Lindsey Ketchel, director of agricultural programmes for the Intervale Centre in Burlington. It also provides assistance to farmers.

"Access to capital and financial support is a significant barrier for young farmers," Ketchel said, according to the newspaper.

The loan will give farmers an "opportunity they might not get through conventional financing," said Wendy Mahmood, owner of Green Mountain Beef, who will review farmers' loan applications. "The loan is geared towards people who do not have resources to find funding elsewhere."

The loans will be for between one and five years. The interest rate will be 3 percent. Heleba said the programme may become a revolving loan fund, allowing loan repayments to be loaned out again. Heifer International is providing the initial funding, according to the newspaper.

The programme is best suited to small farms that sell directly to their customers, but it will be available to farms of any size, Heleba said.