Eric and Diane’s approach to farm financing is a lesson in small farm startup. Upstart University wanted to revisit this exciting farm launch for farmers who are navigating the process of acquiring funding.
Spending some time talking with Eric and Diane yielded three tips on financing an indoor farm that will build a strong foundation for healthy and sustainable farm growth:
- Build your own capital
- Don’t do “survival entrepreneurship”
- Match your production goals to demand (aka market research)
- Size of the farm: 700 square feet currently used
- Monthly loan payment: $1,165/month
- Liabilities: $49,000 (loan)
- Equity: $76,000 cash up front
- Debt to equity ratio: 1.55
- Projected annual net income: ∼$100,000 (after overhead expenses)
Check out the tips here.