CFAC works Kiva into its entrepreneurship program

This post is an updated version of the original post from February 23rd, 2017.

--

For the Community Food Agriculture Coalition (CFAC) of Missoula County, Montana, the word "pitch" means much more than just moving hay. CFAC's community mission is to build a thriving local food system in Western Montana. Supporting local farming businesses with business development and entrepreneurship is a key element of their program. CFAC offers a variety of programs for farmers starting businesses in Montana including their new partnership with Kiva as a trustee for interest-free small farm loan endorsements.

One prong of CFAC's entrepreneurship program is their "Pitchfest", an event connecting entrepreneur farmers with funders.

In the past, CFAC's Pitchfest aimed at connecting beginning farmers with investors, a tricky process since investors expect a financial return on their investment. This past January, CFAC partnered with Kiva to bring interest-free loans to local startup farmers, eliminating the issue of stock investment and expected returns other than repayment of loan capital. In order to qualify for the Pitchfest and possible trustee endorsement by CFAC, farmers were required to complete an online application assessing financial status, loan purpose, social impact, and character references.

CFAC was assisted by an 8-person team of lenders and business advisors from the community who also reviewed the loan applications and provided feedback. Upon successful completion of the application process, CFAC then connected the loan applicants with Kiva to set up their loan profile and complete private fund raising prior to participation in the Pitchfest event.

The Kiva loan process and Pitchfest event were so successful that all participating farmers were fully funded by Kiva lenders within 48 hours after the event!

Three entrepreneurs were endorsed by CFAC to participate in the Pitchfest, and participants pitched their loans to about 40 potential lenders in attendance. The in-person fundraising event made the fundraising process tangible since lenders were able to ask questions directly of the entrepreneurs and make loans immediately at the event. In total, the three farmers qualified for $19,000 in loans funded by 482 Kiva lenders around the world. Participants, attendees, and sponsors (including a local distillery and caterer) provided positive feedback regarding the event.

CFAC offers an array of supportive programs for entrepreneur farmers including access to funding, success planning, and new markets.

CFAC promotes Kiva on their website as well as at agricultural conferences around the state. In addition to their Kiva Trustee loan review and endorsement role, CFAC has several sponsored resources, including a business planning series, Planning for On-Farm Success, offered in partnership with MSA Extension; Field Days, on-farm farmer-led events that occur during the summer months and focus on production topics; FarmLinkMontana.org, a statewide online clearinghouse with a broad selection of Montana-specific resources and tools to connect with mentorship, on-farm employment, and land; a partnership with the state to offer mini-grants to specialty crop producers, and a partnership with the USDA Farm Service Agency to provide free technical assistance to farmers seeking FSA financing.

Other programs focus on increasing low-income access to local foods, which provides new market opportunities for farmers, and preserving farmland, ensuring that farmers will be able to keep farming in Montana well into the future. "Kiva is such an amazing service and we're really lucky to have it," says CFAC's Program Director, Annie Heuscher, "I know the farmers we work with think so too!"