Financing an indoor farm? Here are some tips.

In a recent blog post, Upstart University introduced Off the Root Hydroponics. The farm was started by Eric Aguilar and Diane Moeller, a husband and wife team located in Gurnee, Illinois.

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)

Off the Root’s finance profile

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)

Eric and Diane make a great team. Eric has a background in construction, and he is comfortable with the technical aspects of farm layout and construction. Diane has a background in environmental engineering, and also has strong administrative capabilities. It goes without saying that they are both passionate about locally grown food, and they are committed to growing their business over the long haul.

Check out the tips here.